Aussie investors’ fear of a global recession: What’s driving it?
AUSTRALIA’s global economy is in deep recession.
Its banks are struggling to make loans and its consumer confidence has tumbled, while the country’s economy remains sluggish.
But for the most part, Australians seem unconcerned.
The outlook is gloomy.
What’s the cause?
One of the big myths that has been perpetuated in recent years is that the global economy has crashed.
The idea is that China, Russia and India have been running away from the US and the eurozone, while Australia has been the big loser.
The truth is that Australian households and businesses have been struggling for years to get on track.
The biggest cause of this slump has been falling wages.
As the unemployment rate has fallen, so too has the share of the economy going to wages.
The result is that, at the end of 2015, almost 40 per cent of Australian households were worse off than they were in 2012.
In some parts of Australia, this is happening in real terms.
A quarter of Australians are in work but are still worse off today than they would have been had wages not fallen.
There’s a big difference between a country like New Zealand and Australia, where the share in the economy is growing but the share going to the wages has also fallen.
The main reason is that wages have been stagnant in the past two years.
This means that, on average, people in Australia have been getting paid less than they did a decade ago.
And the reason is because, in real-terms terms, wages have fallen.
Some economists argue that the real-term wages of Australians have actually fallen more than inflation over the past five years.
It’s the same with the Australian dollar.
In the first quarter of this year, the Australian economy’s exports fell by 0.7 per cent compared to the same period last year.
And while that’s good news for the economy, it’s bad news for Australians because it means their wages are going to fall even more.
This is why the Australian government is planning to spend $2.5 billion this year to shore up the economy by spending $1 billion in wages.
It also plans to spend a further $1.5 trillion to fund infrastructure, a major stimulus program.
There is a reason for this.
In Australia, wages are determined by the wages of the workers themselves.
And this means that the wages in the private sector have fallen for the last five years as wages have stagnated.
The government is trying to do something about this.
It wants to make it easier for workers to take part in the workforce.
Labor wants to get rid of the WorkChoices system, which lets employers hire workers from outside their workplaces.
This would give employers more bargaining power and give workers more choice.
It is not just the unemployed who need help.
The Australian Bureau of Statistics has reported that about 70 per cent and 70 per per cent, respectively, of the unemployed in Australia are working part-time, are receiving part-payment or do not have any other job options.
And many of these people are being told that they’ll have to find a job to make ends meet.
So, as the unemployment rates have fallen, the unemployment of part-timers has also dropped.
But these people still have to struggle.
They’re not being given the same benefits and they’re still paying more in taxes.
Some argue that it’s because these people have been left out of the workforce by the recession and are relying on government programs.
The reality is that part- time workers are getting paid much less than full-time workers.
And because they’re getting paid part-pay, they’re more vulnerable to being unemployed.
So the Labor government is also proposing to make part-paid workers eligible for a higher minimum wage, which would help them more easily find work.
This will be the biggest change to the way in which Australians work in decades.
Some people argue that part time workers will be able to get the same pay as full-timters, which will create a vicious circle.
This could be especially true for people who have to work in jobs that require long hours.
The real issue is that most Australians have seen no real change to their pay in the last 10 years.
In reality, most Australians are just getting by on the minimum wage.
The ABC’s Peter Wright reports.
The real cause of the global economic slump has not been the US or the eurozone.
It has been China, and particularly in the manufacturing sector, where wages are falling and workers are being priced out.
In China, the average weekly wage fell by more than 7 per cent last year and by over 20 per cent in the first half of this, according to a survey by the China Bureau of Industrial Research.
China’s share of world GDP has fallen by around 10 per cent over the last two years and by 20 per the last three.
That’s bad enough, but China’s manufacturing sector is also the world’s biggest exporter of manufactured goods, making up around half of the