Flat wage growth and No economic growth. Hmmm.

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23 Responses to Flat wage growth and No economic growth. Hmmm.

  1. mundi (of the Adjahdurah)

    If you think that is bad, try looking at the price of bulk water is SE QLD where Anna bligh increased it by 400% over 7 years.

    Its honestly surprising how little media calls out government markets from having prices that grow so ridiculously far beyond inflation.

  2. Ian of Brisbane

    Yay for “free” wind and solar!

  3. Rafe Champion

    How does this line up with another graph that is going around for electricity from 1955 to the present that shows a steady decline to about 1980 then a more or less steady state to 2007 when it turns up sharply? Someone must have a link to this at fingertips.

  4. Herodotus

    It’s honestly surprising how little media calls out LABOR governments ….
    Except insofar as the bulk of scribblers are in the green-left tank.

  5. It’s honestly surprising how little media calls out LABOR governments ….

    The media is the PR arm of Labor government.

  6. Mother Lode

    The media see this as a detail of a much bigger picture which they happen to approve of.

    They approve of it because, true to their history their predictions are wrong.

    You ever seen those murals under bridges painted by local primary schools? Gaudily coloured, wobbly zombie-people with anatomically problematic smiles and wide dead-eyes. They walk jauntily across a flat green expanse that may have been grass was conceived in a child’s brain and looks like grass to a child’s eye. In the background are a few candy-coloured rickety houses and beside them a few pristine but frozen windmills more ‘symbols’ of power like the parallel lines used to represent batteries on circuit diagrams than an image of energy.

    And tucked off on the other side is a grey barren land with grey buildingings and no people. A few ribbons of grey smoke issue from grey chimneys – this is Fossil Fuelland.

    To journalists this is like a photograph from the future. A future that has unfolded right wise, with President Hillary and Prime Minister Shorten, and all the people of Britain sing in unison “La Marseille, Marseille Uber Alles.”

  7. Ƶĩppʯ (ȊꞪꞨV)

    Why would wages go up when the workforce quality is reducing from the relentless waves of imported replacements?

  8. Empire 5:5

    Australia’s forgotten people: those who can no longer afford energy.

    People will die in their own homes this winter because they cannot afford a little warmth. Never forget they were killed by communists and ecofascists.

    Thermogeddon is murder.

  9. Aynsley Kellow

    It is interesting to add to the graph the various political regimes: steep rise under Rudd-Gillard-Rudd, flattening under Abbott, steep rise under Turnbull, now another flattening.
    Rafe: the ACCC report c2017 showed real prices, but I’m not sure how far back it went off the top of my head.

  10. Seco

    The answer = more renewables, surely?

  11. egg_

    the bulk of scribblers are in the green-left tank.

    Far removed from any levers, thankfully.

  12. egg_

    communists and ecofascists.

    There’s a difference?

  13. egg_

    Why would wages go up when the workforce quality is reducing from the relentless waves of imported replacements?

    Did Trumble catch a commuter train from Western Sydney as a token whitey?

  14. Mark M

    The result of a ‘carbon-constrained’ economy?

    Quarterly Update of Australia’s National Greenhouse Gas Inventory:
    September 2018 Incorporating emissions from the NEM up to December 2018

    Figure 8: NEM electricity emissions by quarter, Australia, 2008 to 2018
    – Emissions for the December quarter 2018 decreased by 0.4 per cent on a seasonally adjusted and weather normalised basis.
    Figure 9: Annual metered electricity demand in the NEM by quarter, Australia, 2008 to 2018
    – In the year to December 2018, demand in the NEM reduced at a slower rate (0.4 per cent) than emissions (Figure 9).
    https://www.environment.gov.au/system/files/resources/4391288e-fc2b-477d-9f0b-99a01363e534/files/nggi-quarterly-update-sept-2018.pdf

  15. Rafe Champion

    Yes the one I have just scanned and sent to Aynsley is almost the same as the Jo Nova picture going a bit further with marks for the RET introduction, NEM, CET and the different PMs, Howard, Rudd Gillard and then Abbott and Turnbull.

  16. Dr Faustus

    teamv provides two very useful graphs that clearly illustrate the impact of government policy on power prices.

    The text of the jonova graph assigns the blame to the establishment of the NEM in 1998: “a feat that finally made bad management possible on a large scale.”. My contempt for AEMO/AEMC is second to none, however the real damage was done by the RET, which gave birth to the mandated rash of small and large scale renewables that started to impact prices around 2007.

    Aside from that quibble, Micael Crawford’s graph shows beyond argument, the relationship between increasing non-dispatchable, must-run supply and retail price. No blackbox mystery here, the data is easily available to replicate the work, and everybody working on policy or energy strategy will have run the exact same numbers. Everyone should know, without doubt, that the political class is fully aware of the root cause of increasing real power prices.

    The Wattclarity graph shows two useful features of the wholesale electricity market. Firstly, that electricity price increases are not attributable to gouging by baseload generators. Secondly, since non-dispatchable supply became a significant thing, wholesale prices have become highly volatile – basically because efficient coal baseload generation cannot follow the rapidly interrupted market. So, whether intended or not, government policy has directly introduced subsidised support for high cost gas generation required to keep the lights on.

    The net result has been an absolute bonanza for the ‘Gentailers’ (and their forest of enablers; banks, law firms, lobby groups, Elon Musk and Friends – the list is long) delivering a procession of low-risk/high-return renewable projects, subsidised intentionally by government and unwillingly by consumers. With an unsustainable consumer price outcome nicely illustrated here, by the Green mouthpiece, their ABC.

    Again, remember, every player on all sides of the game knows this. This is not accidental, or a ‘market failure’, it is operating exactly as designed and intended.

  17. Ceres

    Where are you Angus Taylor, Minister for getting electricity prices down? MIA.

  18. Pyrmonter

    Ignoring the growth in the regulated asset base in Qld and NSW – something inflated for essentially domestic political purposes – suggests a looseness with the cost drivers that weakens the argument.

  19. Squirrel

    It’s all OK – the RBA has the answer with its plan to lower the cost of money to new historic lows. There’s no problem in Straya that more unproductive debt won’t fix.

  20. Frank Walker from National Tiles

    Massive debt, inflationism, cheap credit, high taxes, high regulation and high energy costs don’t work!

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