Deeper in Debt
Thursday March 13th, 7.00pm, Frank Halkyard Library, Prosper Australia rooms
in conversation with Bryan Kavanagh
Join leading economics commentator Steve Keen as he discusses his new report Deeper in Debt. (PDF, 1.5MB)
Assoc Professor Keen, author of Debunking Economics, will outline the perils we face from excessive borrowing. He has leading research on how Australia faces greater recessionary risks than even the US.
Some of his findings include:
- Despite the booms and busts in business and the housing market, since 1964 the ratio of Australia’s private debt to GDP has grown by 4.2% every year, and is currently 156% of GDP. This exponential growth can’t be sustained indefinitely.
- Interest on mortgage and personal loan payments is more than negating the income increases in the last five years, leaving households worse off in real terms.
- The so-called ‘housing boom’ didn’t build many houses – or create more homeowners. House prices have more than doubled in the last twenty years, far out-stripping increases in real wages and rental returns. And because debt has risen even faster than house prices, our net equity in our houses has fallen.
Assoc Professor Keen will offer possible solutions to these trends during his presentation. Bryan Kavanagh from the Land Values Research Group will then join Steve in conversation.
Following this sobering dose of reality, feel free to join us for a philosophical glass of red as we discuss ways to turn our economic rudder towards more sensible outcomes.
Level 1, 27 Hardware Lane, Melbourne, free entry