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The 2 and 20 team is comprised of formers McKinsey consultants, private equity investors and investment bankers.
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- 3 ай бұрын
Why Brexit Failed the UK
- 3 ай бұрын
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Northern Sydney resident here. I've been brought up in a fairly well off area, and previously my family has never had any issues with cost of living. After Covid however, we've had to make massive cuts as loan repayments and cost of living increase drastically. We originally planned to buy a new car in 2022, but we've had to sell one and keep the other, a rapidly ageing 2005 Outback. Our home's value has increased massively from about 1.5 million in 2007 to well over three million now. This all means that i will likely have to stay in this home well after i finish high school. The only hope i see for owning a home is through inheritance. Despite all this, recent plans to create large apartment complexes around railway station have received massive backlash from the community, most of which either fail to realise the harm this procrastination causes or simply don't care. Urban Sprawl in Sydney simply cannot continue, as the west of the city is basically a massive floodplain and it's surrounded by mountains on all sides.
Brit companies fail to adapt. If Brit can’t sell in Europe means Europe can’t sell in Britain. So Brit companies can fill void. If Britain cant buy something from Europe Brit Companies can make Look at Russia. They get sanctioned so become self reliant.
I had the feeling I was watching a video about Canada xD If you want to dig in other lawful scams you should take a look at money creation via credits and fractional reserve. That also explains why price of homes exploded and why we keep having economic crisis. Long story short: - the home prices reflect the ability to borrow of household (if tomorrow the law authorize doubling of mortgages durations prices of houses will double extremely fast and then stabilise again). The only winner : banks that collect interest. Losers ? Anyone one else. - if banks were not authorized to create money ex nihilo to create credits they would have a very limited supply of money they could lend -> less credits -> lower demand -> lower prices - on a side note did you know that when you put your money in the bank the bank doesn't have a guarantee to keep that money. They just emit an acknowledgement of debt (IOU). - the 2% inflation target is due to that constant money creation - when you borrow money from a bank it creates that money for you and charge interest on top of it. When you pay back the principal that created money is destroyed. As a consequence today most of the money in circulation is the debt of someone else. And if everyone pays back its debt we would kill the economy with huge deflation. - so basically for people systemic inflation is kind of painless because they see their wages increase so they think they are getting richer but at the same time prices follow. In reality they lose money because any cash saved is basically losing value. Your past work loses its value - and when people pay back the debt there is less and less money circulating so people start feeling it is hard to earn money to pay the credit. Deflation is painful but it is a logical consequence of the first inflaiton. but it is harder to justify lowering people wages so we call it a crisis when really is just money going back to its initial value. We call it economic crisis and the central back prints money to forgive the debt and ensuring by this action that the money supply will remain at that level (meaning value of money will never recover its original value). And then people restart a cycle of credit -> inflation -> payback -> deflation -> calling it economic crisis -> central bank prints money -> debt never payed -> money lost definitely some more value. Until dollar will be worthless. My english is not great but hopefully you got the gist of it. Professor Werner who created the original quantitative easing is a good source of info on the matter of money value.
commenting for the algorithm
I need the algorithm
If not enough homes then why allow in so many immigrants? Be cheaper kick out immigrants. But I don’t know what do with children.
As an Australian I find this to be a fair summary. Now try convincing all those investors with multiple properties to get rid of negative gearing and the capital gains tax concession. Good luck. You're going to need it. And yet, if we don't do something, it will literally destroy this country.
Thank you for commenting! I agree with you. I’ve very pro business but speculating on real estate is a slippery slope.
I personally think the biggest problem is what we are building. Australia needs to switch to higher density housing. The suburbia thing is over. Cutting back on immigration is frankly stupid. Australia needs more people. We have lots of empty land but we aren't using it wisely
You seem to have forgotten about "stamp Duty". Stamp duty is the "cash cow" thar keeps on giving and no politician is about to cut their income. And NIMBYs should not be blamed for the low building problem. When the greenfield sites in western Sydney where being cleared, the politicians allowed it to be subdivided into housing and no thought was given to where the next generation was going to live. Now, with the lack of land you expect people to live next door to a multilevel building. How about have politicians that can look down the track and foresee the problems that are coming and do something about it before it gets to the problem it has. In my opinion, you now have no other option other than buy up whole streets and start again.
How much population go up without migrants? Probably not fast enough to cause this jump in price.
Actually This vid is wrong. Immigration is certainly a factor driving up RE costs. They and children add to demand but don’t add supply. If supply is same without immigrants how much rent be? Look at SoCal. Without all the illegals, amnestied, and anchor babies while swaths of housing open up.
I literally say that immigration impacts rental rates and housing. However, I clarify that it is mostly rental rates. The analysis I’ve reviewed suggests the impact on housing prices is not as material and would be offset if building rates did not decline
What does Canada and Australia have in common....India. Don't need a 15 min video for that.
Actually lack of innovation and old people trying to live off their propert ownership. Try watching the whole video
Thank you Tim! It’s easy to point fingers but hard to listen to facts and develop a thoughtful opinion! Appreciate your reply :)
Very well said. Loved it.
That means a lot! We are a small channel and these videos take forever to make. Every comment helps :)
The median full-time Australian employee earned $78,800 in 2022. Sydney and Melbourne would be higher.
For F Sake ! Stop voting Labour. Even Libs are just as bad. Go to Pauline Hanson or Palmer. Go for anti immigration but I fear it all too late.
Shit on me
Please
Cut migration to 70 000 a year. Hike taxes in foreign ownership in housing and rental properties. Start taxing gas companies. Establish a national gas reserve.
They are doing this on purpose, as if they couldn't have forecasted the results of thier decisions.
This is what happens when you allow universities, their agents in Asia and a horde of migration agencies to promise would-be students a paradise which simply doesn't exist. The Albanese government is obsessed with the population decline - what did they expect when the cost of raising a child has exploded decade on decade ? Genuine overseas students go to classes, the visa hunters go to 30+ hours of work each week and it's a cosy little arrangement for employers who want a casualised workforce on minimum wage. Throw in dodgy real estate developers and builders who trade while insolvent (a ponzi scheme that worked for decades) and it'a a perfect storm.
Blindly accept what you are given and suffer the consequences. Canadians are trained but not educated. No democracy, no sovereignty. Shame on you!
Civil disobedience in Australia should be a moral obligation .
Do a video on mega corporations not paying ANY tax in Australia...
DONT MIGRANTS WHO ENSLAVE THEMSELVES TO PAY FOR YOUR BLUDGERS
To the people: Don't blame the government; blame yourselves. You push for policies that is detrimental to the majority. Do what I do: be informed, look beyond the fear-mongering crap the media throws at you, think beyond yourselves for once, and vote smart.
Build dense suburbs with multi storey complexes not single family houses when you have such a grave issue.
Sadly high density is impossible to build in Australia. But I absolutely agree it’s needed
@2and20 you’ve actually covered the _whole_ story unlike most Aussie KZreadrs. Solid narrative and great job!! Australia’s social contract was broken decades ago when a corrupt John Howard hammered in the final nails in the Aussie coffin. Wealth in housing is what John Howard sold Australians in the 1990s to underline his campaign - he would be happy that we are still subscribed to his nonsense. Think about it: instead of negative gearing and CGT discounts for any kind of property, if the Australian government incentivised building only new houses e.g., tax rebates on mortgage interest for new constructions only, negative gearing for the first 10 years for new houses only, CGT discounts only for those selling after 15 years of ownership, speedy land release instead of land supply throttling, zero foreign ownership for Aussie houses etc. that would have increased housing supply a lot more because investors would build new houses for tax rebates, plus such policies would reduce rapid property price increases because there would be no tax incentive to sell quickly without CGT discounts, no tax benefits for investors in buying existing property and so on forth- negative gearing incentivises buying existing houses to be rented out (faster) rather than building new houses (slower due to land throttling) because it doesn’t distinguish between the two… BTW the reason countries like Australia, the UK, NZ and Canada facilitate housing bubbles is because there is pretty much nothing else to grow the economy/per capita GDP. It’s not a new government strategy - it’s been done in the 1700s and 1800s too. One of the biggest property crashes in Australia was the 1895 Melbourne housing crash. Add the ridiculous costs of living and overzealous temporary/permanent migration to this, and you have the perfect storm - Australia, Canada, NZ, the UK and the Netherlands are amongst the worst countries to start a family if you want to afford a detached family house and backyard.
Thank you for the comment! We spent a lot of time researching the subject and felt that most people miss a lot of key points. I wish I covered more of the historical context (like you have here) because I feel it helps frame the present. Simply put, Australia (and others) have made the decision to prioritize a non productive asset over all else. Thank you for your very informative comment :)
As an Australian, this is a SPOT ON summary. It pits my stomach with rage, because our Gov does NOT reflect our people. Like SO many other nations we are plagued by NGOs, Orgs and Management firms who lobby for Big Business. It shorts the democratic process. Y'all will some bad things about our history, but we're all pretty laid back people, work hard and love foreigners... just like every other nation on Earth ❤ Some people obsessed with finance, Just, want, MORE.
Thank you so much! It means a lot to see Australians resonating with our research. Hope to see you in our future videos!
I consider myself lucky to fully own a house in Sydney. It was a 30 year struggle on a double below average income. For that right of home ownership, ment having a family was not an affordable option. The house I live in is basically an old poor quality timber dog box, almost third world quality, substandard accommodation. Still the house is valued at over 3 million dollars. Can't afford to get anything better, in the area. However doctors must be doing well. My GP gets an exstra 40 dollars ontop of his medicare fee & I have make an appointment a week in advance.
I'm confused at the statistic at 4:46, our average immigration has not decreased at all, ABS figures show it averages around 220,000. The UN graph makes no sense
It's Net Migration Rate: the number of persons entering and leaving a country during the year per 1,000 persons
Vote Labor/Teal/Greens win stupid prizes 🤡🇦🇺
Given the amount of money spent on buying submarine for around 368 billion dollars, Australia could have used that money to build around 780000 new homes
Wow 2 and 20 I'm speechless! if I didn't know better I would say you're living in Australia. 😂 1) Accurate analysis of the patients medical history check! 2) Accurate diagnosis of the disease check! 3)Accurate non-biased cure check! Incredible video, love your economic bedside manner. 👏 👏 👏 I only hope the we can take the advice and recover before the disease becomes chronic.
Wow this comment made my day, thank you so much :)! This video took us a month to make, used 39 sources and really tried to understand from an Australian’s perspective. You are a gem!
I love Australia, but could NEVER afford housing there. Just like Canada. Voters keep voting in the people who take no action to solve the problem. Uncontrolled immigration accelerates the problem, but the people won't vote politicians in who will stop immigration. Uncontrolled immigration makes the "economy" look good.........
As an aussie i love my country but we deserve what we get. Most people here vote in mass immigration and policy's that pump house pricing and cost of living in general. Most aussies begged to be lockdown and force the vax, which was all paid for by printing money now everyone seems to be completely oblivious to the damage lockdowns caused. Like Canada things well get worse and everyone will vote for more socialism and government which is the problem in the first place.
Show me where Australia is a socialist country. In what industry do the workers own the means of production? The biggest welfare recipients in this country are the multi nationals who get to pay no tax for pilfering our resources. Meanwhile, everyone else has to suffer the brutal excesses of capitalism.
If you can get wealth simply due to the year you were born then there is a serious problem with the society. However going through history, this happened again and again, and it will end the same way again and again. It is not just in Australia it is in most developed countries, property and housing price can only change when there is a drastic decline of population. We have to give Thanos' solution some credits to tackle the global crisis.
Thanos the solution! You need to trademark that haha
Australia missed the timing to develop new cities and infrastructure during past 20years with low interest rates with mass immigration policies that doesn’t match up the demands. Now high interest rates / Economic stagnation with aging populations and government just start to think to fix it which would need 10years.
The current government brought in higher an amount of migration to inflate the economy to artificially make it like we are are not in recession, but in the same breath won't investment the infrastructure to cater for this increased population.
Wow you could replace “Australia” with “Canada” in this video and everything would apply. The parallels are crazy.
Great video thanks for the analysis! Did you come across the key reasons why the govts. were not able to / unwilling to implement policies that did not remove these blockers to supply / kerb demand? Lobbying / COVID priorities etc? Or were they just asleep at the wheel?
Does these trends in outrageous housing in Australia and I suppose Canada too also present themselves in countries like New Zealand?
Yes
Canadians wanted this simple as. They wanted multiculturalism. They got it. They wanted immigration. They got it. Don't be surprised that everything is now unaffordable, there is no such thing as "Canadian" (whatever that is), and this country is just for big banks and megacorporations. Just look at Asia, China, India, Indonesia. The future is over there now. Legacy countries are out debating gender while Indonesia builds bullet trains. Also noticed a lot of boomers who love Canada in these comments. Yeah, try being under 30. High schoolers can't even get min wage jobs anymore, but it's ok, "GOT MINE" as they say. Gross country with a gross selfish individualistic culture.
<Gross country with a gross selfish individualistic culture.> Made up of immigrants that fled their repressive, equally selfish collectivistic culture.
Canada is worse because its cold
Key takeaway: Don't be a brokie in 2024 :)
Thank you for summarizing 40 hours of work into 1 sentence. Do you work for McKinsey?
Great video, keep going.
This video is sooooo freaking good. The quality of content, the animation, the editing. Incredible
Thank you! I love your stuff too! Keep up the great work :)
Australia is a woke country. They should stay that way, it looks like they good at it.
But Canada has them beat on that.
Anytime anyone uses the word "woke" you can tell they lack critical thinking for nuance issues. They just parrot what they talking heads tell them and are just on the opposite side of the same spectrum they whinge about 😂 enjoy fighting the culture wars for your elite masters loser.
@@InspireworkshopJust not religiously indoctrinated into wokeisum & can have an oppinion other than that drummed into them by the education stytem & the mainstream media.
I would just not live there because of all the killer animals
The spiders! The crazy insects! And the housing prices!
Oh don't exaggerate, it's only about 20% of our population that are killed by spiders, snakes, sharks and crocodiles every year, and we can easily replace them with our superb immigration program, so you are worrying about nothing...
As someone who lives in Canada, this sounds very, VERY familiar 💀
Ya the situation is eerily similar to Canada. Thank you for watching and commenting! Any other topics you think we should explore?
There's a unspoken reason behind housing crisis.Government should check the Airbnb listings .So many people hold hundreds of houses for Airbnb which restricts house for renters.This saves money for tourist causing havoc to immigrants and young people who wishes to buy a home .
I agree that AirBnB is a problem, but from the math I’ve run, it’s not the primary issue. If you got rid of all Airbnbs there would still be a supply shortage, and Australias housing issue has been a thing well before Airbnb.
@@2and20 yes ,as you say there are other reasons too.But most of people who owns more than one house are just doing things like this which makes it more harder for anyone to think of home ownership.
Sounds like Toronto and Vancouver for me.
Lol no, Toronto is nowhere near as unaffordable as Sydney and Vancouver despite what some might think