As the usual headline stats, GDP growth has been slow at a low 0.3% last quarter due to Australia exporting less, especially from the resources industries, although not a recession, its damn close to one. But although growth has been slow Australia has been seeing some very positive results. The net national disposable income (NNDI) Which measures money flowing to Aussies on a per person basis has been rising steadily to 1.4 in March 2017.
This means that more money is going to actual Australians but although this sounds nice, whats increasing isn’t the rise in income but rather a rise in profits made by firms. While this results in no extra dollar bills in our pockets, we still enjoy the benefits of increased profits by firms, employment is should steadily rising and for those that work, as businesses do better, their superannuation does better.
In a perfect world, as businesses receive a larger profit, they should expand operations and hire more people causing unemployment to go down and wages to go up and America has been seeing this recently, wages growth is finally rising after unemployment fell, and the whole economy is getting back on track. But as Australia’s economy is different to America’s economy with lower minimum wages and much looser employment laws. Should Australia sit back and wait for this to happen as well or should the government try to make the economy work better for most people?