I loved the long summer school break as a kid. Spending days at the beach and riding about with my mates. Occasionally we went away for a week or two as a family, but those summer holidays were long and ensured that there was plenty of time to spend with mates.
Winter is here and although the cold has set in, as a family we’ve been discussing what to do over the upcoming June break. The family is split – skiing in the snow or chase the golden sun?
My two boys, Judd and Rhett are very similar in many ways but also so different. One for the snow. One for the sun. Although there is only 17 months between them, physically they look decades apart!
Juddy (14 yrs old) looks almost a man standing 186 cm, yet “Little Rhettsy” barely scrapes 165cm.
Rhett’s turn to grow will come. I have no doubt that although Rhett may never be the size of his giant brother (expected to be around 196 cm, I’m sure he will still fall into the “Big Unit” category. I say this with the utmost confidence and for anyone who doubts me I am happy to show you our weekly food bill!
We all grow up and mature – its part of life. And as it is for us, it is for our country.
Australia’s population growth has been reaching record highs lately and isn’t showing any signs of slowing. For some, this is seen as a good thing while others are wary.
Globally there are approximately 7.5B people in the world having increased 1.12% in 2017. However, according to data recently released by the Australian Bureau of Statistics (ABS), Australia’s population increased over 1.6% in the year 2017 which is quite high when compared with other economically developed nations.
Amazingly, Australia has gained one new person every one minute and 32 seconds since 1990! That’s resulted in a massive 40% increase in our population!
Many people criticise Australia that we don’t manufacture enough and it seems that home grown population falls into that category too. While as citizens we have been spending our spare time watching NetFlix and the Footy, as a country, Australia has been cheating a little bit by inching up our population stats from immigration, rather than natural increase.
Net Overseas Migration makes up over 50% of Australia’s population growth.
These contemporary settlers have obviously been schooled in Calnan Flack’s economic theories as they have behaved exactly as they should – congregating in the cities that provide the most job opportunities for them (notably Sydney and Melbourne).
The great thing about these new Australians is that they are largely adults, working adults with skills ensuring that they can immediately make a sizable contribution to our economy. This is very different from a new born child who provides very little to economic output until they reach working age. Although some parents might argue that even then they still remain an economic drag – but that’s a discussion for another day…..
News reports about migrants stealing “our jobs” seem to be unfounded as unemployment rates are very low and there is growing pressure for pay rises. Instead these educated and skilled migrants are candidates fulfilling much needed roles within our economy.
Australia’s arable land has been estimated to currently support well over sixty million people, meaning that Australia has the farming capacity (even factoring out any productivity improvements from technology or improved techniques) to continue to support the growing population for many decades to come.
All this population growth ensures that increased demand is placed upon existing infrastructure, jobs, employment creating further business and employment opportunities. Demand is intensified for entertainment, leisure and social activities as well as transportation. As an economy and city grows, its inhabitants become more and more specialised in the employment services they provide, driving resources to be used in the most productive manner.
It’s this concept that explains why the biggest cities are the most specialised, productive and expensive. All these increased productive elements will then manifest back into the land price.
Understand this concept and you will understand why real-estate is so expensive in cities like Tokyo, New York and London.
Oh and did any-one mention the role that Government has in all this caper? Remember that legislation will ensure that Australia will continue seeing more immigration (about 245,000 New Australians each year) and hence expanding economic growth, opportunity, prosperity and higher land prices.
It’s just another example of how our 5 Drivers work in real life…