Last week we noted that Australia is a fun place to live: lots of opportunities for the government to separate citizens from thier hard earned cash via the one-armed bandits known as slot machines. Well, guess what? Economists have shed some light on recent financial developments that should come as no surprise to observers: consumer spending has taken a nose dive(as in a high dive into the abyss). Consumer debt has risen sharply over the last few years and now spending is slowing indicating that consumers have shot their wads. Household debt has risen to 212% of income, the fourth highest after Norway, Denmark, and Netherlands, and higher than the U.S.'s 143% at the height of the pre-crisis level in 2007. The savings rate, a key indicator, fell to 4.7% in 1st qtr, a level of a 10 year low.
So, Mr. Government of Australia leader: is gambling good for the economy? We can wait for your response, but try to have it by the weekend. meanwhile, enjoy the last week of autumn.
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