Hi guys, just a quick update video regarding
the Australian economy. A few days ago, I made a video titled, Australian
Living Standards Are Falling (GDP per capita Heading for Recession). Well, we’re officially in that recession
now. This was the graph that I showed previously
showing that in the third quarter of 2018, GDP per capita was falling. Market economists predicted that there would
be a GDP growth of 0.4% in the fourth quarter (equivalent to a zero per cent per capita
growth). They were wrong. The actual growth was 0.2%, which results
in a per capita decline of 0.2%. Over 2018, GDP only grew 2.3%, which is well
below the Reserve Bank’s forecast of 2.8% and even below the most pessimistic of the
market forecasters. I don’t want to be too harsh on these forecasters. Their job is not just to predict things, but
also to make sure that the public don’t go into panic mode. If professional market economists came out
and said that the economy will be heading into recession next quarter, then that very
action might just send the economy into recession next quarter by instilling panic. I get it. The Australian public, and therefore the economy,
are fickle. The slightest murmurings of economic decline
can result in economic decline. Consequently, we should take predictions with
a grain of salt — at least, one’s made by market economists. Often predictions are there not to predict
the future, but to influence it. Optimism is key in markets, and they know
it. When negative sentiment starts to spread,
people start to spend less, and the economy suffers because of it. It’s a negative feedback loop that will
bring about the next economic downfall.

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13 thoughts on “Australia Is Now in Recession on a per Capita Basis”

  1. People are spending less not for the purpose of affecting the economy, but because if they don't prioritise their mortgage payments, their grocery bills & their transport costs, they'll lose their homes and be lucky to downgrade their accommodation as an alternative to ending up homeless.

  2. Wages down, zero wage growth, building industry collapsing, automotive industry assassinated, other manufacturing nonexistent, resources boom over, tourism down and when every second shop is a Cafe it should be no surprise that Australia is a country of unemployed baristas & underemployed Indian Deliveroo riders. Well done LNP, Labor & the Greens. Now tell us you want more people to immigrants to boost the GDP and further shrink our slice of a rapidly shrinking pie. Corrupted Morons the lot of you.

  3. I just invested in property and the stock market. I don’t care what scare news media says chicken little proved the sky isn’t falling. I’m in for the long haul. 30+ years. Here’s two good examples for ya,

    40 years ago my uncle owned a house across from the beach in south Australia. It was not a popular spot, no life saving club, no shops the beach side was un kept and a lot of crime etc. my uncle saw this decline and go out, sold home for a loss. Today that exact property is worth over 2 million dollars!! There’s life saving, boutique shops the place got gentrified. My uncle is moderately poor paying off his mortgage for a run down property in another suburb and kicking himself every day that he didn’t just keep it and ride out the storm.

    Next example my father owned a 70’s sports car with two black stripes down the middle. He practically gave it away to move to America to become a ‘millionaire ‘, yeah well today my father lives in his 5th wife’s home in the desert of Arizona he’s dirt poor and that same car today is worth over 250k.

    So what have we learned? We learned that just because something looks bad investment wise right now it doesn’t mean it always will. We learned that investing isn’t a get rick quick scheme it’s a long term strategy think 20+ years.

    We also learned that if you listen to fear news media and buy into the bat shit they spew you’ll end up old and poor. Not me I’m learning from the mistakes of those men and investing strategically and saving my money and I’ll be old n living in a nice house travelling with the other grey nomads happy as larry

  4. I think this clip from Full Metal Jacket sums up the current situation in Oz…….

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