A successful Australian entrepreneur has laid bare why the nation should have one of the strongest economies in the world with cheap housing for all its residents.
Matt Barrie, the CEO of outsourcing marketplace Freelancer, told the latest episode of the EquityMates podcast that: 'You would think a country with 1200 years of coal supply would be an energy superpower.
'You would think a country with 28 per cent of the world's uranium reserves would be an energy superpower. You would think a country with 20 per cent of the world's gas exports would be an energy superpower,' the Stanford graduate said.
Mr Barrie said that with only 3.46 people per square kilometre, Australia should have cheap land and cheap housing for all its residents and yet is in the midst of a housing crisis.
'You would think a country with 47 per cent of the world's lithium production, [that] is sixth in the world for production of copper, fifth in the world for production of nickel - you'd think it would be an electronic and engineering superpower.'
He pointed out that with 56 per cent of the world's iron ore exports, Australia should make its own steel and export it across the globe.
'We should be the richest country in the world, full stop.'
But Mr Barrie said the Australia was experiencing the exact opposite.
'Instead we have the greatest erosion of wealth in the developed world, a cost of living crisis, we have house pricing that is astronomically expensive, it does not make any sense.
'The root cause of the cost of living crisis is the cost of land and the cause of this is immigration, we have the most expensive casual wages in the world, but again it's not enough to live on because people need somewhere to live.
'We also have an energy crisis. We stupidly are going down that path of 'well what about the environment, we can't burn coal.
'No, we are burning the coal, every single thing we are digging out of the ground is being burnt, it's just being burnt by China or Japan.
'The gas we send overseas is in many cases being reexported. We send it to Japan and they onsell it.'
'Our economy in terms of sophistication and complexity is on par with Equatorial Guinea, where they don't have a cinema in the entire country,' he said.
Solutions to Australia's Economic Woes
Barrie claimed the fix was simple.
'We have to get manufacturing running again in this country. To do that you've got to fix the energy problem. We've got to make nuclear legal.'
'I believe immigration needs to be cut by 90 per cent, the skilled migration programme is not skilled.
'You need every person in this country to be able to afford a house over their head to live. To not be a renter or stuck in a mortgage on a treadmill.'
He also suggested international students should pay an 'infrastructure fee' of $50,000 before they are granted entry to the country.
The Root Cause of the Problem: Unchecked Immigration
Barrie argues that Australia's current economic woes are largely due to unchecked immigration. He contends that the government's focus on easy growth through immigration has led to a suppression of wages, a rise in housing prices, and a lack of investment in infrastructure. This, he believes, has created a vicious cycle of dependence on imported goods and services, hindering Australia's ability to develop its own industries.
A Ponzi Scheme: The Consequences of Poor Policy
Mr. Barrie likened the current economic situation to a Ponzi scheme, with the government relying on constant immigration to fuel a seemingly endless cycle of growth. He argues that this approach has left the country with a ballooning debt and a dwindling capacity to support its population. The heavy reliance on foreign investment and the export of raw materials, while boosting short-term economic gains, has come at the cost of long-term development, particularly in the manufacturing sector. As a result, Australia has become increasingly dependent on imports for essential goods and services, which further contributes to the cost of living crisis.
The Way Forward: A Shift in Policy
Barrie's critical analysis of Australia's economic predicament, along with his proposed solutions, has sparked a debate about the country's future. His call for a significant reduction in immigration, coupled with a shift towards a more robust manufacturing sector, has resonated with many who are concerned about the rising cost of living and the dwindling quality of life in Australia. The path forward may require a complete overhaul of the country's economic policies, shifting the focus away from short-term gains and towards sustainable, long-term growth. Only then, argues Barrie, can Australia truly realize its full potential and become the rich and prosperous nation it has the resources to be.
