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Find attached a chart I compiled recently that shows some interesting comparisons:
Ø Australian housing costs are roughly double the USA for both purchase and rental
Ø Labour costs are comparable
Ø Our GDP per capita is substantially lower than the USA, perhaps because of their higher value added exports of advanced manufactures (Aerospace, computers etc)
Ø Their health costs are nearly double ours
Ø We spend more as a % of GDP on foreign aid
Ø They spend more on education
Ø Their current account as % of GDP is only 12% higher than ours
Ø The NYSE DJI Index is around its all time high while the ASX All Ords is still 28% lower than the previous high way back in 2007
Housing costs are one of the key differentials in the two economies, rather than the commonly held view relating to lower labour costs in the USA. Is Australia's long love affair with owning the family home (and expecting escalation in value) a key competitive disadvantage for our economy?
I hope you find this useful, and if you have any corrections/suggestions/comments please let me know.
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