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Welcome to QETA Newsletter 21 2015.
One of the profound effects of economics in our day is that the people with the money and the
power have embraced the guilt-free, external-less, everything-will-turn-out-okay-in-the-end
philosophy of economics in order to justify their own evil works. And the economists, for the
most part, have sucked up to that money. - Jane Smiley
Thomas Piketty assembles the facts to prove a central point about trickle-down economics:
Doesn't work. Never did. He has cold, hard data showing how the rich keep getting richer and
how the playing field is rigged against working families. - Thomas Piketty assembles the facts to prove
a central point about trickle-down economics: Doesn't work. Never did. He has cold, hard data showing how the rich
keep getting richer and how the playing field is rigged against working families. - Elizabeth Warren
QETA 2015 CALENDAR OF EVENTS
11 November QETA Committee meeting
QETA 2016 CALENDAR OF EVENTS
28 February
7 March
7 March
8 March
9 March
10 March
10 March
31 March
11 April
14 May
11 July
21 July
22 July
25-29 July
25-29 July
12 September
3 October
12 October
2016 Subscription Due
RBA Seminar 1 Cannon Hill Anglican College 11am
RBA Seminar 2 Brisbane Girls Grammar School 4pm
RBA Seminar 3 Toowoomba Grammar School 9am
RBA Seminar 4 Somerset College 9.30am
RBA Seminar 5 Cavendish Road State High School 7am
RBA Seminar 6 Marist College Ashgrove 9.30am
Final date for discounted memberships
Econopak 1 Published
QETA Conference
Econopak 2 Published
UQ Student Day
QUT Student Day
UQ Student Economics Competition
Economics Week
UQ Student Economics Competition Presentation of Prizes
Econopak 3 Published
AGM
QETA NEWS
1. QETA AGM
The Annual Meeting of QETA was held on 14th October 2015 at Cavendish Road State High School. Ron
Hanmer presented the president’s Report which had been circulated to all members prior to the meeting.
Doug Cave presented the Treasurer’s Report which showed QETA’s assets are in excess of $117,000.
The following members were elected to the QETA Management Committee for 2015/16:
President
Secretary/Treasurer
Committee member
Ron Hanmer
Doug Cave
Frederique Bracoud
Louise Coglan
Tony de Luca
Cavendish Road State High School
QETA Life member
University of Queensland
QUT Gardens Point
Clairvaux MacKillop College
Anthony Florido
Tim Merrett
Meredith Morris
Karen Stewart
Cannon Hill Anglican College
St. Patrick’s College Shorncliffe
St. Margaret’s Anglican School
Kenmore State High School
2. QETA CALENDAR OF EVENTS 2016
The Calendar of events for QETA activities is outlined above. Of course, further events may be added as
they become known, particularly events conducted by other organisations such as the Economics Society.
3. MEMBERSHIP FEES 2016
As advised previously, there will be no increase in charges for QETA membership for 2016. Fees will
remain at $71.50 for an individual membership not paid for by a school and $143 for a membership paid
for by the school.
PROFESSIONAL LEARNING
FUTUREOF TEACHING AND SCHOOL LEADERSHIP FORUM
I am pleased to be able to invite you to the inaugural twilight Future of Teaching and School Leadership
Forum on Tuesday, 27 October, 2015.
In partnership with Griffith University, the Department of Education and Training will host a thoughtprovoking and engaging panel discussion of educational leaders to celebrate World Teachers’ Day.
The 2015 theme for International World Teachers’ Day is Empowering teachers, building sustainable
societies. This provides us with an opportunity to discuss how we, as teachers, school leaders and
educators can best support our colleagues, students and aspiring teachers, in an increasingly complex,
multicultural and technological society.
Contributing to the discussion will be:
 Patrea Walton, Deputy Director General, State Schools, Department of Education and Training
 Professor Tania Aspland, Chair of the Australian Council of Deans of Education and the Executive
Dean, Faculty of Education and Arts, Australian Catholic University
 David Hartley, Deputy Principal Coomera Springs State School, Griffith University’s 2014
Outstanding Young Alumnus of the Year and More Aboriginal and Torres Strait Islander Initiative
Ambassador
 Adam Jefford, Head of Department, Creative Industries Pimpama State Secondary College and
the 2012 Queensland-Smithsonian Cooper Hewitt Design Museum Fellow
 Associate Professor Michael Milford, Science and Engineering Faculty Queensland University of
Technology and founding director of Math Thrills.
Our diverse panel, moderated by journalist Jillian Whiting, will share their thoughts on how we can lead
innovation and change, as well as build and support leadership capability at all levels within our
schools. The evening will also allow us to acknowledge the important role that Queensland teachers and
school leaders have in our communities.
Following the panel discussion, there will be an opportunity for networking with colleagues.
Please join us for what is sure to be an enjoyable evening, on Tuesday 27 October at Griffith University
South Bank campus commencing at 5pm and concluding at approximately 7pm.
Places are limited so register early (https://www.eventbrite.com.au/e/future-of-teaching-and-schoolleadership-forum-tickets-18769142009) to secure your opportunity to attend this free event.
RESOURCES
1. FROM THE ABS
5609.0 Housing Finance, Australia, Aug 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5609.0?OpenDocument
5671.0 Lending Finance, Australia, Aug 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5671.0?OpenDocument
8752.0 Building Activity, Australia, Jun 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/8752.0?OpenDocument
4130.0 Housing costs for owners steady while housing costs for renters increase (Media Release),
2013-14
http://www.abs.gov.au/ausstats/[email protected]/MediaRealesesByCatalogue/18023032932391B3CA257EDF007F
ECDA?OpenDocument
4130.0 Housing Occupancy and Costs, 2013-14
http://www.abs.gov.au/ausstats/[email protected]/mf/4130.0?OpenDocument
6202.0 Labour Force, Australia (Media Release), Sep 2015
http://www.abs.gov.au/ausstats/[email protected]/MediaRealesesByCatalogue/46DFE12FCDB783D9CA256B74008
2AA6C?OpenDocument
202.0 Labour Force, Australia, Sep 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/6202.0?OpenDocument
9208.0 Survey of Motor Vehicle Use, Australia, 12 months ended 31 October 2014
http://www.abs.gov.au/ausstats/[email protected]/mf/9208.0?OpenDocument
9314.0 Sales of New Motor Vehicles, Australia, September 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/9314.0?OpenDocument
2. FROM THE IMF
IMF Survey : Asia Can Take Steps to Bolster Resilience Amid Economic Slowdown Growth is
moderating in Asia, but the region will continue to outperform the rest of the global economy, according to
an IMF report on Asia’s economy released on October 9 in Lima, Peru, as part of the IMF-World Bank
Annual Meetings.
http://www.imf.org/external/pubs/ft/survey/so/2015/car100915a.htm
Speech: Brothers and Sisters, There is Much to Do by Christine Lagarde, Managing Director, IMF
http://www.imf.org/external/np/speeches/2015/100915.htm
IMF Survey : Uncertainty, Complex Forces Weigh on Global Growth The IMF’s latest World Economic
Outlook foresees lower global growth compared to last year, with modest pickup in advanced economies
and a slowing in emerging markets, primarily reflecting weakness in some large emerging economies and
oil-exporting countries.
http://www.imf.org/external/pubs/ft/survey/so/2015/res100615a.htm
IMF Survey : Lagarde Calls for New Recipe for Stronger Growth Policymakers in all countries will have to
refine and upgrade their economic policies to boost growth and reduce global uncertainty, IMF Managing
Director Christine Lagarde said.
http://www.imf.org/external/pubs/ft/survey/so/2015/new100815a.htm
MF Survey : How Fiscal Policy Can Tame the Commodities Roller Coaster Resource-rich economies
face enormous challenges to manage volatile and unpredictable commodity prices. In its latest Fiscal
Monitor, the IMF examines how countries can tax and spend wisely so that their oil, gas and metals
support strong and stable economic development.
http://www.imf.org/external/pubs/ft/survey/so/2015/res100715a.htm
IMF Survey : Policymakers Face Triad of Challenges to Ensure Financial Stability While financial
stability has improved in advanced economies, risks remain elevated and continue to rotate toward
emerging markets, which now play a greater role in the world economy, according to the International
Monetary Fund’s latest Global Financial Stability Report.
http://www.imf.org/external/pubs/ft/survey/so/2015/pol100715a.htm
IMF Survey : Youth Unemployment Gap Can Be Bridged through Education, Inclusion Youth
leaders from around the world came together at the IMF’s Annual Meetings “Youth Dialogue” to share
views and personal experiences on the role of education in addressing youth unemployment and on how
to bring more youth into the formal sector, which offers better career prospects and social and job
protection.
http://www.imf.org/external/pubs/ft/survey/so/2015/new100815b.htm
IMF Survey : Policymakers Face Historic Opportunity to Fight Climate Change Governments should
seize the opportunity afforded by low oil prices to move forward with combating climate change by setting
a price on carbon emissions and eliminating energy subsidies, panelists said at a seminar.
http://www.imf.org/external/pubs/ft/survey/so/2015/new101015a.htm
IMF Survey : From Rhetoric to Reality: Decisive Action Needed on Development Goals
Governments must take action at the country level and the collective level to mobilize resources and
partner with the private sector if they are to attain the United Nations Sustainable Development Goals,
panelists said at a seminar.
http://www.imf.org/external/pubs/ft/survey/so/2015/pol101315a.htm
3. FROM WORLD BANK
Action Urged on Climate Change, Growth Slowdown
As the Annual Meetings came to a close in Lima, Peru, the focus was on obstacles to ending extreme
poverty and boosting shared prosperity: climate change, weak global growth, and ongoing crises in fragile
states. In its communiqué, the Development Committee of the World Bank Group and IMF said economic
risks have risen for 2015 and 2016. Read More »
Communiqué | Webcast Replays | Blogs | Videos | News | Photos
4. FROM THE RBA
The Reserve Bank of Australia has released the October 2015 issue of the Chart Pack. You can view
the Chart Pack at: http://www.rba.gov.au/chart-pack/index.html
A speech delivered by Philip Lowe, at CFA Institute Australia Investment Conference in Sydney, is
available on the Reserve Bank website.
http://www.rba.gov.au/speeches/2015/sp-dg-2015-10-13.html
The Reserve Bank of Australia has released the October 2015 issue of the Financial Stability Review.
http://www.rba.gov.au/publications/fsr/2015/oct/html/contents.html
5. FROM THE BUSINESS SPECTATOR
Weekend Economist: Triple dollar sign
10 Oct 2015 | 1:50 AM | Bill Evans
The Australian dollar has further to fall for three reasons - the Fed, commodities and external debt.
We need to bolster the foundations of global finance
8 Oct 2015 | 1:47 PM | Jose Vinals
Although the financial systems of many advanced economies are slowly becoming more stable, the risks of
increased global volatility still loom large.
Prepare for commodities roller-coaster: IMF
8 Oct 2015 | 7:01 AM | Daniel Palmer
Resource-rich nations need to get fiscal policy right in order to cope with boom-bust cycles.
Australia needs a solid economic stance on China
3 Oct | 6:50 AM | James Laurenceson
If our politicians don't adopt a pragmatic approach to our economic relationship with China, we could miss
out on substantial gains.
Sharing the global burden of climate policy
The implementation of climate policies carries big consequences for global income distribution, but there
are ways to mitigate the costs.
India chooses electricity and economics over emissions goals
India's adoption of a clean energy goal suggests emissions reduction is still important, but providing
electricity to its population takes precedence.
A new round of volatility looms for the Aussie
15 Oct 2015 | 7:46 AM | Ric Spooner
The Australian dollar's recent high coincided with a key chart level that suggests it could be in for a wild
ride
The future of shopping in Australia
15 Oct | 10:17 AM | Stuart O’Neill
The weakening dollar is good news for our retailers but this is not the time for them to rest on their
laurels.
6. FROM ECONOMY WATCH
Achieving the 'Asian Century'
The recent Trans-Pacific Partnership agreement presents Asia with good, bad and ugly scenarios. Had the
TPP failed, that would have been a severe blow to the credibility of the United States in Asia. Yet, it
excludes Asia’s largest economies – China, Indonesia and India.
Read More
OECD Issues Warnings about Reckless Spending and a ‘Brexit’
The Organization for Economic Cooperation and Development (OECD) warned countries trying to spend
their way out of crisis that they risk becoming stuck in perpetual economic malaise. The OECD said central
banks were running out of room to boost economies, and fears this could become particularly problematic
in the event of a sharp financial slowdown
Are Recent Global Market Trends Reversing?
The recent trends in the global capital markets are reversing today. Although the price action yesterday warned of
the risk, there have been five fundamental developments that are contributing to the price action today.
Read More
7. FROM TED TALKS
Imagine the hottest day you've ever experienced. Now imagine it's six, 10 or 12 degrees hotter. According
to climate researcher Alice Bows-Larkin, that's the type of future in store for us if we don't significantly cut
our greenhouse gas emissions now. She suggests that it's time we do things differently—a whole system
change, in fact—and seriously consider trading economic growth for climate stability. Watch »
8. FROM AUSTRALIAN BANKERS ASSOCIATION
Sydney, 8 October 2015: The Federal Government’s commitment to economic reform must enable banks
to continue to support growth and prosperity, according to the Australian Bankers’ Association.
“The historical performance of the Australian economy is one of the world’s great success stories,” ABA
Chief Economist Tony Pearson said today.
“However, we are facing challenges now as the economy transitions away from the mining and resources
boom and global economic growth remains fragile. Banks strongly support the Government’s commitment
to reform to get Australia back on track.
“The banking industry is at the heart of the Australian economy, financing the houses we live in, the
places we work and the goods and services we buy. In 2014 banks paid more than $110 billion to savers,
investors and governments through interest on deposits ($75 billion), dividends ($23 billion) and taxes
($14 billion).
“A key objective of the Government’s response to the Financial System Inquiry must be to ensure the
banking system continues to serve Australia as well in the future as it has in the past.
“To ensure banks continue to play their part in Australia’s growth, the burden of government regulation
and tax should be kept as low as possible.
“With the right policy settings, the banking industry believes that Australia can respond to our economic
challenges and opportunities and we will play our part in achieving this.”
The central role banks play in contributing to Australia’s economy has been highlighted in a new economic
report released by the ABA today.
Key findings of the report, Australia's banks: an integral part of the economy and the community, include:
 The finance and insurance industry is the equal-largest industry in Australia, comprising 9 per cent
of the nation’s economy.
 Banks pay more tax than any other industry, including mining. In 2014 banks paid $13.7 billion in
taxes to governments. This significant contribution to government revenue helps to fund the
services and income support which governments provide.
 Australia’s banks provide 150,000 jobs across Australia, with $24 billion in wages paid by retail
banks in 2014. About half of bank employees are women.
 Banks provide six million loans to home buyers and investors and are the predominant suppliers of
finance for housing.
 Banks provide almost one million loans to small businesses, delivering a significant contribution to
business investment and activity
 Productivity growth for the finance and insurance industry is well above that for the economy as a
whole.
A copy of the report is available on the ABA website.
9. FROM ECONOMICS SOCIETY
Economic Society of Australia’s National Economic Panel - Preview
I am contacting you to let you know – if you were not already aware – that your Society has established
the ESA National Economic Panel. This is a group of 49 senior members of our profession who have
agreed to be polled regularly on their views on significant economic questions. The panel was recently
asked for their views on the first question – on choices for the design of the GST in the event of this tax
being used to raise revenue.
You can look up the results of this poll at our website, together with an overview by Professor John
Freebairn of these results. You can also read an article by AFR journalist Ben Potter on the poll which
appeared in the press on 5 October.
Your Society is joining with Monash University in conducting a regular poll of the ESA Panel on economic
questions, of which the GST question was the first. This joint venture is called the Economic Society of
Australia and Monash University Forum (the ESA Monash Forum for short) and I expect the website to go
live in the next few weeks with the results of our second question.
The Forum aims to poll the NEP roughly every three or four weeks. We have a working list of questions
which was developed from a set of ‘crowd-sourced’ suggestions from ESA members. This is a living list
and your suggestions are welcome at any time. You can send them to [email protected] at any
time.
The response to this initiative has generally been very positive, for which we are grateful, and especially of
course to the members of the Panel. A number of people have made some suggestions about how we can
improve this project, which have been welcome. They include some suggestions for the Panel itself,
including more closely reflecting the demography of our Society and our profession. We will take the
opportunity to take these ideas on board as the Panel evolves, and we may also expand the Panel slightly.
I take this opportunity to thank the Panel for their contribution to date and for their future contributions. I
also thank Tom Chan and Buly Cardak from the Victorian Branch for championing the idea of the Panel
and for all their efforts – which have been substantial - in bringing the idea to fruition. And I look forward
to a strong partnership with Monash University in encouraging debate on economic issues through our
joint Forum.
10. FROM GLOBAL EDGE
Feature of Month: Highlights on the Natural Resources Industry
The natural resources industry is not necessarily one of the most discussed industries in the news, but its
role in business, economics, and geopolitics over the history of thousands of years cannot be overlooked.
In today’s business world, the race to find new resource-rich areas is extremely competitive, and countries
that possess these areas have a huge advantage in the global economy.
The most discussed sectors of the natural resource industry are those related to the energy industry, such
as the oil, natural gas, and coal sectors. Worldwide energy consumption has risen 118% in the last 40
years, and with the substantial increase, have come concerns of when these resources will run out. The
increase in consumption has forced these energy-related businesses to spend billions of dollars each year
on research and exploration, and has led many researchers to look into alternative energy possibilities.
Another important sector of the resource industry is the mineral and metals industry. For example, the
advent of computers and electronics has created huge demand for rare earth elements, and mining them
has become very profitable. China is the world leader in mining these elements, accounting for 85% of the
world’s supply, and this dominance has greatly benefited the country’s economy and technological
companies.
The natural resources industry encompasses many different sectors, from oil and gas to fishing and
timber. To read more about the various sectors, check out our Industry Pages!
gE Module: Key Industry Drivers of Globalization
The Key Industry Drivers of Globalization module provides a general understanding of issues
including: the historical circumstances and the forces that currently drive globalization; regional trade
agreements impacting globalization; the implication of globalization on business in the U.S.; the key
drivers for a successful global strategy; and the four basic forces that drive globalization.
gE Module: Doing Business in Russia
Doing Business in Russia offers a general overview of the conditions for doing business in Russia today.
It includes sections covering Russian social and business cultures, marketing distribution and sales
channels in Russia, and supply chain management, as well as information on the costs of doing business
in Russia and issues currently facing the country. This module also includes a case study on Russia’s
Information and Communication Technology Infrastructure.
WEBSITES
1. Westpac: Westpac Australian and New Zealand Weekly
A review of the week's important data and events as well as key information affecting the Australian
market - prepared by Westpac Economics.
http://www.westpac.com.au/docs/pdf/aw/economics-research/WestpacWeekly.pdf
2. Shmoop: http://www.shmoop.com/economics/ Free Study Guides for Economics topics on this site
3. NAB: The World on Two Pages – October 2015
We are still forecasting little to no pick up in the pace of global growth and our domestic forecasts are
unchanged this month, with real GDP expected to expand by 2.4% in 2015/16 and 3.1% in 2016/17.
http://business.nab.com.au/the-world-on-two-pages-october-2015-13379/
Global & Australian Forecasts – October 2015
Global growth remains sluggish and below trend however in Australia, the ongoing high level of business
conditions and trend improvement in key leading indicators.
> Read More
NAB Monthly Business Survey – September 2015
There was a partial recovery in business confidence in September as the Government’s leadership
uncertainties were resolved, while financial market volatility and emerging market concerns have
moderated from the heights of the previous month – although market concerns remain elevated.
http://business.nab.com.au/nab-monthly-business-survey-september-2015-13346/
4. St. George Bank: Quarterly Economic Outlook October
https://webapps.stgeorge.com.au/market-reports/economicoutlook/resources/downloads/October_2015.pdf
Doug Cave
QETA Secretary/Treasurer
[email protected]
http://www.qeta.com.au
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