Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Wednesday, 28 September 2016

Living standards have...increased

Goldilocks, permabears

Everything is never 'just right' - a fact of life!

A lot of people have gripes with neoliberalism. So be it.

Nonetheless, GDP growth in Australia surged by an above trend +3.3 per cent in the year to June 2016.

Even in per capita terms - adjusting for population growth - GDP was up by a very solid +2.0 per cent. 

In other words, despite a global financial crisis, GDP per capita is at a record high. Never been this high before!

Living standards and real wages are at their highest ever level. 

Of course, GDP isn't the perfect measure of living standards (wait until the next time it's falling again, though, and let's see if it's a discredited measure then...).

With GDP growth so strong, people have been at pains to point out weak income growth.

For the record national income and real disposable income also rebounded last quarter to new highs.

For balance people might also note that real net disposable income per capita growth soared by an incredible average of +3.1 per cent per annum over a 17-year period before stagnating from around 2008.

So in fact we have become much better off as a nation over any meaningful period of time. 

Some of this boom was productivity driven, and some by favourable demographic shifts which increased the share of population in work. 

And of course, the improved terms of trade helped a lot too. Alas, commodity prices can’t go up for ever!

Household wealth is tracking at around record highs too, as the ABS will confirm tomorrow, in part because capital city property prices are also at a record high on a weighted average basis. 

Overall, a pretty good effort through a global financial crisis.