Of course, they have not, so he publicly had to eat humble pie. He honoured the terms of the bet, but not the spirit, because he still believes he’s right. House prices, he says, are propped up by first home-owner’s grants, negative gearing and the lack of a capital gains tax on family homes. He thinks the crash will come when people can simply no longer afford to pay the mortgage, and that day is not far away.
Other commentators have pointed out that property investment starves business of capital and skews the economy.
Another form of skewing, known as Dutch Disease, is taking place here, in Casino. The disease is named after the infamous tulip bubble. Google that and giggle.
The good burghers of the beef capital bask in the benefits of a real estate boom brought on by the gas plant. While that is handy for those who can sell out, it is a disaster for anyone saving to by a home. It is a microcosm of what is happening across the nation.
The mining boom is driving prices up rapidly but most of our wages are frozen and people are doing it increasingly tough. For the first time in its post-convict history, Australia has a servant class working for a fraction of the wages of their employers because they have no choice.
We might be addicted to economic growth, but that does not mean it is good for us. Those of us old enough to remember the earlier half of last century know that austerity and frugality has its benefits. We need politicians who have the courage to slow down the economy for the good of us all.