Alan Kohler is one of Australia’s most experienced business commentators. Alan has been a trusted source of investment advice to Australians for many years, and in 2005 he founded Eureka Report - Australia’s #1 online investment report. Along with Robert Gottliebsen and Stephen Bartholomeusz, Alan also founded Business Spectator, the popular business news and commentary website. Alan is the regular finance presenter on the ABC News and producer of the popular nightly graph (or two).
Despite a decline in building approvals, residential investment is set to improve over the next couple of years, but it remains unlikely to aid the economy's transition away from its reliance on mining investment.
Howard and Costello were criticised when they delivered their harsh first budget, but the RBA's rate-cutting spree and the union movement's blunders helped to buoy public sentiment. Hockey and Abbott have had no such luck.
Macroprudential policies that restrict credit growth will do little to alleviate Australia's housing affordability crisis and could even act against the national interest. But there is another solution.
In the digitally-powered economy, many industries will need global scale to underpin their survival. Australia’s paltry marks for innovation and export-oriented jobs should have policymakers very worried.