Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

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Friday, 16 September 2016

Woe

Whoa

Just flicking back through news reports from the past month.

In summary, it seems that the GDP figure doesn't accurately measure growth, the unemployment rate doesn't measure unemployment, the inflation data doesn't capture the cost of living, and the house price indexes are just wrong.

With tongue out of cheek, there is a valid line of argument to made for each of the above points.

But that said, in Australia we actually don't have runaway inflation, or high interest rates, or high unemployment, and the economy is still growing at 3.3 per cent per annum - even after 25 years of more or less uninterrupted growth.

I don't think anyone uses Hanke's misery index any more - after all, disinflation or deflation is considered as risky as being off to the inflationary races these days - but if they did, the misery index would be at its lowest reading in modern history for Australia. 


Have a great weekend!