In 2009, economist Steve Keen walked from Canberra to Mount Kosciuszko after losing a bet that the Australian housing market would crash 40% after the Global Financial Crisis (GFC). However, he had been one of the few economists who actually predicted the coming of the GFC. And he still maintains that a crash in the Australian housing market is coming.
Chairperson of the Australian Prudential Regulatory Authority (APRA) Wayne Byres recently said that he would not use the “B-word” to describe the housing market, preferring instead to use “heightened risk” rather than housing bubble.
When neoliberal economics was being established as a hegemonic position in Australia in the late 1980s, 1.2 million workers were employed in the manufacturing industry — 15% of the workforce.
The Australian Bureau of Statistics’ (ABS) latest employment analysis shows that 25,000 jobs were lost in manufacturing last year, bringing the total employed down to 920,000 — 7.8% of the workforce.
It is a trend that will only continue with the winding-down of the vehicle production industry and its related vehicle components sector.