The state of the economy at the street level

[sptrawler]

I don't see improved sentiment when building companies are going broke.

Well Labor's policies weren't going to change that, but they would have accelerated the slide on the established front, which one would assume would have had a further clamping effect on consumer spending.

 

[Klogg]

As for the election, have you looked at what these dumb arse have been adding to the national debt.

They're running a budget surplus AND a current account surplus. So nothing since the election.

 

[satanoperca]

Please
How much debt is Australia 2019?
This would be Australia's eleventh consecutive budget deficit. The 2017 budget forecast government spending to be in surplus in the 2020/21 fiscal year, while the 2018 budget forecast a surplus of $2.2 billion in 2019/20. The government's debtlevel is forecast to be $629 billion in 2019/20.

 

[moXJO]

Please
How much debt is Australia 2019?
This would be Australia's eleventh consecutive budget deficit. The 2017 budget forecast government spending to be in surplus in the 2020/21 fiscal year, while the 2018 budget forecast a surplus of $2.2 billion in 2019/20. The government's debtlevel is forecast to be $629 billion in 2019/20.

Who kicked that ball rolling with various schemes

 

[moXJO]

Iron ore is booming. Is none of that translating to economic benefits in WA?

 

[sptrawler]

Iron ore is booming. Is none of that translating to economic benefits in WA?

Not really, the last boom built and installed most of the high labour content infrastructure, this one is only moving more ore.
The crushing, rail, material handling and port facilities are all done.

 

[Value Collector]

this one is only moving more ore.

And funding enormous dividends and share buybacks.

 

[sptrawler]

And funding enormous dividends and share buybacks.

That's true, but I think the reference was regarding increased employment and in that respect it isn't having the same impact as the previous boom.
Also there is a strong impetus in mining to automation, which has its good and bad points.
But as you say the more raw materials we move, the more dividends we receive, it just appears somewhat short sighted and inwardly focused to me.

 

[sptrawler]

Please
How much debt is Australia 2019?
This would be Australia's eleventh consecutive budget deficit. The 2017 budget forecast government spending to be in surplus in the 2020/21 fiscal year, while the 2018 budget forecast a surplus of $2.2 billion in 2019/20. The government's debtlevel is forecast to be $629 billion in 2019/20.

If we couldn't run a budget surplus through the biggest mining boom in history, I can't understand why everyone is surprised it is difficult now, I thought fiscal nous would be rampant on an investment forum.

 

[Value Collector]

That's true, but I think the reference was regarding increased employment and in that respect it isn't having the same impact as the previous boom.
Also there is a strong impetus in mining to automation, which has its good and bad points.
But as you say the more raw materials we move, the more dividends we receive, it just appears somewhat short sighted and inwardly focused to me.

I don’t know, currently my huge FMG dividend has funded a decent renovation of 2 properties I own, including solar panels, patios, kitchens, bathrooms, painting, etc etc.

Although, the work is happening on the other side of the country, so wouldn’t be picked up on any mining related numbers, but the money is definitely flowing through the economy.

 

[PZ99]

I really would have loved to have seen the carnage, if the negative gearing changes had come in, or are you saying it would have been better?

Given the Govts' partial NG crackdown we might get a chance to find out

The Morrison government has surprised the property industry by shifting on its iron-clad election pledge not to change negative gearing rules, introducing a $50 million plan to end tax deductions related to vacant land.
New legislation to deny deductions for any losses or outgoings incurred through undeveloped land has been introduced to Parliament, backdated to July 1.

https://www.afr.com/politics/federa...se-negative-gearing-crackdown-20190731-p52cg8

 

[SirRumpole]

Given the Govts' partial NG crackdown we might get a chance to find out

The Morrison government has surprised the property industry by shifting on its iron-clad election pledge not to change negative gearing rules, introducing a $50 million plan to end tax deductions related to vacant land.
New legislation to deny deductions for any losses or outgoings incurred through undeveloped land has been introduced to Parliament, backdated to July 1.

https://www.afr.com/politics/federa...se-negative-gearing-crackdown-20190731-p52cg8

It's a start...

 

[Garpal Gumnut]

I reckon anyone holding REITs needs their heads read. Sell them now.

Back in the 80’s the CBDs of many regional and subregional towns and cities lost tenants to shopping centres a few kilometres away.

The CBDs have never recovered.

In the early 2000s mega shopping centres developed further out.

Now all three have been disrupted by online shopping.

I am reminded of the medieval call “bring out yer dead” when I rarely visit shopping centres.

I’m calling a big sell on REIT’s with more than 20% of their assets in retail centres.

gg

 

[Value Collector]

I reckon anyone holding REITs needs their heads read. Sell them now.

Back in the 80’s the CBDs of many regional and subregional towns and cities lost tenants to shopping centres a few kilometres away.

The CBDs have never recovered.

In the early 2000s mega shopping centres developed further out.

Now all three have been disrupted by online shopping.

I am reminded of the medieval call “bring out yer dead” when I rarely visit shopping centres.

I’m calling a big sell on REIT’s with more than 20% of their assets in retail centres.

gg

It depends on what properties are in the reits.

A portfolio of Neighborhood shopping centers with Coles and woolies as anchor tenants, with a bottle shop, dominoes pizza, doctors etc will perform quite well in my opinion.

 

[moXJO]

Everyone I'm talking to say sales are up. Local major post office worker said people are paying their year worth of rates in one hit. Something that doesn't usually happen.

Maybe the tax deductions filtering through.

 

[sptrawler]

Given the Govts' partial NG crackdown we might get a chance to find out

The Morrison government has surprised the property industry by shifting on its iron-clad election pledge not to change negative gearing rules, introducing a $50 million plan to end tax deductions related to vacant land.
New legislation to deny deductions for any losses or outgoings incurred through undeveloped land has been introduced to Parliament, backdated to July 1.

https://www.afr.com/politics/federa...se-negative-gearing-crackdown-20190731-p52cg8

At no stage did I say negative gearing was good, just that Labors suggested changes were terrible, as with the franking changes no degree of progressiveness. Just a sledge hammer to crack a walnut.
Labor actually come up with reasonable ideas, it is just their implementation and lack of finesse to the detail, that blows their feet off every time.IMO

 

[basilio]

The rolling out of AI in various industries is going to undermine employment. Don't know how purchasing power will be kept up in an economy with rising numbers of displaced and jobess people.

The big new players with AI seem to be supermarkets

Buy now, pay later: AI and the ‘red-light risk' for millions of Australian jobs
‘Saving manpower will help them stay competitive and increase profits’: Toby Walsh says the rise of artificial intelligence in supermarkets is not good news for workers. Photograph: Bloomberg via Getty Images
Supermarkets are among the businesses forging ahead with new technology, and observers warn that cutting jobs is a prime motive
https://www.theguardian.com/austral...ed-light-risk-for-millions-of-australian-jobs

 

[SirRumpole]

The rolling out of AI in various industries is going to undermine employment. Don't know how purchasing power will be kept up in an economy with rising numbers of displaced and jobess people.

The big new players with AI seem to be supermarkets

Buy now, pay later: AI and the ‘red-light risk' for millions of Australian jobs
‘Saving manpower will help them stay competitive and increase profits’: Toby Walsh says the rise of artificial intelligence in supermarkets is not good news for workers. Photograph: Bloomberg via Getty Images
Supermarkets are among the businesses forging ahead with new technology, and observers warn that cutting jobs is a prime motive
https://www.theguardian.com/austral...ed-light-risk-for-millions-of-australian-jobs

How many bank jobs have been taken and will be taken by ATM's ? Internet commerce ?

It's not something that can be stopped I'm afraid. There is no law against not creating jobs so companies will do it , encouraged by instant asset write-offs and the freedom of not having to deal with employees.

You can't underpay a machine.

 

[sptrawler]

How many bank jobs have been taken and will be taken by ATM's ? Internet commerce ?

It's not something that can be stopped I'm afraid. There is no law against not creating jobs so companies will do it , encouraged by instant asset write-offs and the freedom of not having to deal with employees.

You can't underpay a machine.

It also doesn't take holidays, sickies, need superannuation payments, doesn't go to the dunny or out for a smoke, doesn't sexually harass anyone, doesn't complain, doesn't have to go home to sleep, just does the job.
What I always find funny, is when you go into a bank to withdraw money and the teller says "why don't you use the ATM"?

 

[jbocker]

Maybe we will need AI in the unemployment system.