A fellow blogger writes some very interesting posts about economic issues over here and has written a good summary of why Australia can't really have something like the Sovereign Wealth Fund of Norway.
Two graphs from that essay sum it up.
Firstly the levels of current account balance for:
- Norway
- China
- Germany
- Japan
- Saudi Arabia
- and Australia
Being below 0 isn't a good thing, it means we're spending more than we're saving.
So while you may be asking why we don't save anything it all comes down to the same problem many households have ... we spend more than we earn.
and it seems to be getting worse. So while we copy the UK and the USA in their dance with debt I really don't think its a smart thing to be copying. That's the problem here in Australia ... we only focus on countries who speak English.
Thanks Cameron for the leg work there!
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