How Australia's Economy Got Rich and Is Getting Dumber | Economy of Australia | Econ

Australia is known for its prosperous economy, but beneath the surface, there are significant challenges and risks. 🇦🇺💼 It has a unique economy, shaped by its geographic isolation, reliance on natural resources, and booming housing market. 🌍⛏️🏡 Australia's population growth, driven by immigration, has fueled economic activity, and the mining boom has transformed the country. 📈👷‍♂️ However, despite being the world's 13th largest economy, Australia's economic complexity has declined significantly. 📉🔍 In comparison to South Korea's transformation into a high-tech powerhouse, there is a clear need for a serious vision for Australia's future to ensure long-term competitiveness and stability. 🚀🔧🔮 #australia #australiaeconomy #economy #australiavscanada #geopolitics

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[econYT]

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[DonaldMark-nese]

Protecting your capital is much more important than making money. Basically because if you lose your capital, making money is much harder. ''Missing the train'' vs. ''losing your money''. There are a lot of trains, but if your money is gone, it's over.

[tonysilke]

Wish the same could be said about the American economy, more and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.

[Beatricegove]

People try to predict the economy not realizing it is not a capitalistic market, its a command economy, central planning! my concern is, instead of having much dollar in bank that could lose value to inflation, do I save in gold to reserve and grow wealth for now, or just hang on?

[CameronFussner]

I think we are too obsessed about the economy crashing. In the right sense, the economy never crashes. It just undergoes cycles, and almost always recovers. So I really don't care what the predictions are. I just want to grow my portfolio. I read that people are pulling in massive profits despite the downturn. Any tips on how they do it?

[pantsgaming]

"Australia is rich and dumb and getting dumber" as an aussie i can 100% confirm this is true.

[Impozalla]

Australia has way too many monopolies. They are stifling competition, innovation and increasing the over a cost of living for all Australians.

[neznet]

As an American living in Australia the past 10 years, I would say the lack of innovation etc isn't so much Australia being 'dumb', but more that there is just no economic incentive. Australia is a country of abundance where mediocrity thrives - people can live a very comfortable life here without being particularly exceptional, so why push yourself? Whereas in the US you really need to out-work and out-hustle others to have any chance of a half-decent life.

[noni]

I am a mechanical engineer working in manufacturing in Aus for last 20 years, can count at least 100 factories gone down because of red tape, unions, ultra high energy prices. We are dumb to sell coal to china so that they can run factories on cheap and we closed down our coal power plants which lead to manufacturing decline....

[lukehamilton]

5:45 - "Australia has a diversified economy"
9:19 - "Australia's economy lacks both diversification & sophistication"

[Hiereus]

I disagree with some statements in the first half of this video, but the second half is 100% correct. Australia is a wealthy country, mainly due to digging stuff out of the ground that we cannot even convert to a finished product; Australia is a highly educated country (lots of people with University degrees); but Australia is technologically almost a third world nation. We make almost no tech, we don't carry scientific research though to products we can sell, we import almost everything more complex than a tomato or cardboard box from Asia.

The problem is that it is possibly to live an affluent and comfortable life in Australia after getting an easy degree (ie little science or maths), such as law, economics or commerce. You don't even need a degree to get rich; just become a tradesmen or a real estate agent. 80% of the Australian economy is housing. To get rich, you borrow as much money as you can and purchase as many investment products as possible. Why go out of your way to set up a high tech factory or do complicated and expensive medical research?

Australia is heaven for rent-seeking capitalist. And hell for those of us who aren't.

[petervad]

I am a born and bred Australian. Excellent video. A number of points well made, particularly around the selling of raw materials rather than doing some processing here and hence value-adding to create industries and jobs, and then selling that processed stuff for much more (ie dumb and getting dumber).
You missed a couple of points. By and large Australia is virtually giving away its resources. Our governments give overseas (and Australian) companies licences to mine, but then allow those companies to pay only pitiful royalties back into Australian coffers. For the amount of natural resources we have and the relatively low population we should be by far the richest per capita nation in the world. Yet we have homeless people and many people living below the poverty line. This is all because our govts kowtow to rich industrialists and give our wealth away to them in return for their personal and political support.
Another big miss in your video is around housing. We have a tax rort called 'negative gearing'. It is a shocking and unethical tax evasion scheme that encourages rich people to keep on buying property, which has now made it virtually impossible for regular a Australian to buy a home. It is disgraceful. Yet again, our govts won't end the scheme because they kowtow to the demands of the rich who donate to their political parties. It is corruption writ large.
There is a lot good in this country compared to many others, but like most western economies, our wealth is rapidly being concentrated into the hands of the rich few to the massive detriment of the majority average person who is struggling terribly with costs of living and housing. It is immoral what is going on here, and completely preventable if our govts weren't so weak and corrupt.
We could have the greatest and fairest and most 'looking after everyone' country in the world, but our spineless politicians over decades have buckled to the rich and screwed over the rest of us. Deplorable

[MAGHO]

Australia is run more like a mining project than a country!
Banks, consultants, big corps. mining giants... run this project (via bought out politicians) with profit optimization as their only driver.
This includes minimizing operational and maintenance expenses, aka public services, infrastructure, r&d, education, health, etc...while maximizing income from taxes, export of raw materials, and import of cheap labour....
Total disregard to the current and future welfare of the ordinary citizen and the environment.

[Jakekhalid]

As an investment enthusiast, I often wonder how top level investors are able to become millionaires off investing. I do have a significant amount of capital that is required to start up but I have no idea what strategies and direction I need to approach to help me make over $400k like some people are this season...

[PyjamaLlama]

Your understanding of the term "The Lucky Country" is wrong. It is a quote by Donald Horne to explain that Australia's economy seems to keep succeeding through decisions that would sink the economy of other countries. From his book: "Australia is a lucky country run mainly by second rate people who share its luck. It lives on other people's ideas, and, although its ordinary people are adaptable, most of its leaders (in all fields) so lack curiosity about the events that surround them that they are often taken by surprise."

Also, Australia managed to survive the GFC not because of the mining boom, but because of economic decisions by the PM & Treasurer of the time, including borrowing from China to keep spending going.

[adityagupta]

Sadly the colder version of Australia - Canada, is becoming poorer and dumber.

[JuanOceane-bjko]

Fantastic video! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??

[johnriddington]

Errrr as a 38yo Aussie I'm 5 minutes in and REALLY scratching my head. So much of this isn't true. We get so rorted by the resources companies who pay so little in taxes back to the Australian people.

We're not all rich, but definitely agree with the dumb and getting dumber!

[LoriR.Wilson-uosh]

My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means. Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement, I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?

[sitrakaforler]

00:07 Australia's economy is rich due to natural resources
02:10 China's demand for raw materials fueled Australia's iron ore exports boom.
04:05 Australia's economy grew due to migration and resource management
06:28 Australia's economic growth is fueled by immigration (asians mainly then europeans)
08:31 Australia's economy is rich but lacking in diversification and sophistication
10:39 Australia's low productivity growth is hindering its economy.
12:47 Rapid urbanization in Australia strains housing affordability.
14:46 Australia's economy heavily relies on housing and resource extraction.