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Welcome to QETA Newsletter 12 2015.
Answers are not enough, students should be encouraged to ask questions and explore
alternatives to the norm. Entrepreneurship and invention are the backbone of the new
economy, yet I doubt they get more than a nod in economics courses. - Jim Hunt
QETA 2015 CALENDAR OF EVENTS
17 June
18 June
6/7 July
7/9 July
13 July
17 July
23 July
27-31 July
27-31 July
14 September
6 October
14th October
Wealth Academy Financial Literacy Program at Bundamba Secondary College
Wealth Academy Financial Literacy Program at Cavendish Road SHS
ATEC Conference University of Queensland
ACE Conference QUT Gardens Point Campus
Econopak 2 Published
QUT Student Day
UQ Student Day
UQ Student Economics Competition
Economics Week
UQ Student Economics Competition Presentation of Prizes
Econopak 3 Published
AGM
QETA NEWS
1. QUT AND UQ STDUENT ECONOMICS DAYS
These days are on Friday 17th July at QUT Gardens Point Campus and Thursday 23rd July at UQ St. Lucia
Campus. The days are conducted by the School of Economics in each institution and give our students the
opportunity to hear from some leading academic economists, experience something of university life and
broaden their economic knowledge and understanding.
Cost is just $5.50 per student which includes lunch for the students.
QUT Day is now fully booked and there are no further places available.
Registration for the UQ Student Economics Day is now open at www.qeta.com.au
The program for each day is available on the QETA website.
2. QETA UQ SCHOOL OF ECONOMICS STUDENT ECONOMICS COMPETITION 2015
Registration is now open for the 2015 QETA University of Queensland School of Economics Student
Economics Competition. This competition consists of two divisions, Year 11 and Year 12. It is a multiple
choice test format consisting of 40 items based on current economic conditions (10 questions) and the
core unit/s of the syllabus – Markets and Models for Year 11 and Contemporary Economic Management
and International Economics for Year 12.
Every participant is given a Certificate based on their achievement in the Competition, and there are cash
prizes for the top 3 students in each year level.
Registration is at www.qeta.com.au
3. THE WEALTH ACADEMY FINANCIAL LITERACY PROGRAM
If you want to find out about The Wealth Academy and its Financial Literacy Program for schools, then
why not attend one of the following seminars?
Bundamba Secondary College: 17th June 2015 4pm
Cavendish Road SHS 18th June 2015 4pm
For further information see the flyers already circulated to all members.
AUSTRALIAN CURRICULUM
First step to uncrowd the Australian Curriculum
The first step by ACARA to improve the Australian Curriculum has been completed. Following analysis, the
identification of the general capabilities and cross-curriculum priorities on the Australian Curriculum
website has been updated
Previously, the way in which general capabilities and cross-curriculum priorities were presented gave the
impression of more work being required from teachers. This was one of the factors contributing to the
curriculum being seen as overcrowded.
+ Read more
TEACHING RESOURCE
FROM ACC
ACCC’s Tertiary education program blurb (article/blog post)
Are you interested in including an up-to-date, interactive and highly practical educational resource about
Australian competition and consumer laws in your teaching portfolio? Australian Competition and
Consumer Commission’s tertiary education program is free, available online, and consists of 12 modules
on topics including misleading sales and advertising practices, social media, business scams, cartels,
misuse of market power, product safety and consumer rights. It is supported by a comprehensive suite of
free resources and can be facilitated by educators or completed by students in self-study mode. More
information can be found at www.ccaeducationprograms.org or you can join the Tertiary Information
Network to receive the free program resources. Alternatively, you can contact the ACCC education team at
[email protected].
RESOURCES
1. FROM THE FEDERAL TREASURY
Press conference, Canberra
TREASURER: Today’s March quarter National Accounts confirm there is strong and broad-based
momentum in the Australian economy. Real economic growth rose by 0.9 per cent in the quarter to be 2.3
per cent higher over the past year. This exceeds market expectations. This builds on growth, 0.3 per cent
in the September quarter and 0.5 per cent in the December quarter …
Read more
National Accounts – March Quarter 2015
Today’s March quarter National Accounts confirm there is strong and broad based momentum in the
Australian economy. Real economic growth rose by 0.9 per cent in the quarter, to be 2.3 per cent higher
over the past year. This exceeds market expectations. This builds on growth of 0.3 per cent in the
September quarter and 0.5 per cent in December …
Read more
2. FROM THE ABS
5625.0 Private New Capital Expenditure and Expected Expenditure, Australia, Mar 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5625.0?OpenDocument
5302.0 Balance of Payments and International Investment Position, Australia (Media Release), Mar
2015
http://www.abs.gov.au/ausstats/[email protected]/MediaRealesesByCatalogue/DB1B30094A31D9D5CA256EA6007
80195?OpenDocument
5302.0 Balance of Payments and International Investment Position, Australia, Mar 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5302.0?OpenDocument
5519.0.55.001 Government Finance Statistics, Australia, March Quarter 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5519.0.55.001?OpenDocument
8731.0 Building Approvals, Australia (Media Release), Apr 2015
http://www.abs.gov.au/ausstats/[email protected]/MediaRealesesByCatalogue/B4669E44CACBB1D5CA257E38001
BDFC5?OpenDocument
3401.0 Overseas Arrivals and Departures, Australia, Jan 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/3401.0?OpenDocument
5676.0 Business Indicators, Australia, Mar 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5676.0?OpenDocument
8731.0 Building Approvals, Australia, Apr 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/8731.0?OpenDocument
5206.0 Australian economy grows 0.9 per cent (Media Release), Mar 2015
http://www.abs.gov.au/ausstats/[email protected]/MediaRealesesByCatalogue/1AB7DE51F7FCAA46CA257E58001
49A70?OpenDocument
5206.0 Australian National Accounts: National Income, Expenditure and Product, Mar 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5206.0?OpenDocument
8501.0 Retail Trade, Australia (Media Release), Apr 2015
http://www.abs.gov.au/ausstats/[email protected]/MediaRealesesByCatalogue/676AC4CC578D6559CA257734002
04519?OpenDocument
5368.0 International Trade in Goods and Services, Australia, Apr 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5368.0?OpenDocument
6321.0.55.001 Industrial Disputes, Australia, Mar 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/6321.0.55.001?OpenDocument
8501.0 Retail Trade, Australia, Apr 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/8501.0?OpenDocument
5609.0 Housing Finance, Australia, Apr 2015
http://www.abs.gov.au/ausstats/[email protected]/mf/5609.0?OpenDocument
8731.0 Building Approvals, Australia, Apr 2015 (Additional Information)
http://www.abs.gov.au/ausstats/[email protected]/mf/8731.0?OpenDocument
3. FROM THE IMF
The Changing Landscape of Financial Intermediation, Speech by Christine Lagarde, Managing Director, IMF
http://www.imf.org/external/np/speeches/2015/060815a.htm
4. FROM WORLD BANK
Kids Key in Quest to End Poverty
Many countries around the world marked Children’s Day this week, offering an opportunity to reflect on
the kind of world our children will inherit. Find out how you and your kids can join together to make a
better world — one free from extreme poverty. Read More »
Tough Transitions for Developing Countries in 2015
Developing countries are likely to be squeezed by higher borrowing costs and a new era of lower
commodity prices in 2015. The World Bank Group has again revised down its growth forecast for the world
economy to 2.8% this year, while developing countries are now projected to grow by 4.4%. Read More »
Report | Data | Infographic | Video
OPINION
Welcoming Asian Infrastructure Investment Bank to Fight Poverty
5. FROM THE RBA
For your information the Reserve Bank of Australia issued the Financial Aggregates for April 2015. You
can view this statistical release at:
http://www.rba.gov.au/statistics/frequency/fin-agg/2015/fin-agg-0415.html
The Reserve Bank of Australia issued the Index of Commodity Prices for May 2015. You can view this
statistical release at:
http://www.rba.gov.au/statistics/frequency/commodity-prices/2015/icp-0515.html
The Reserve Bank of Australia has released the June 2015 issue of the Chart Pack.
You can view the Chart Pack at:
http://www.rba.gov.au/chart-pack/index.html
An address delivered by Glenn Stevens, to the Economic Society of Australia Luncheon in
Brisbane, is available on the Reserve Bank website.
http://www.rba.gov.au/speeches/2015/sp-gov-2015-06-10.html
6. FROM THE BUSINESS SPECTATOR
Relying on construction is no blueprint for growth
27 May | 2:25 PM | Callam Pickering
Residential construction is a bright spot in an otherwise bleak outlook for the sector, but it won't be
enough to offset the collapse in mining investment.
The economics of wealth and sadness
29 May 2015 | 5:29 PM | Peter Cai
It's time to rethink two of the most fundamental assumptions underpinning the modern economy.
Weekend Economist: The RBA's waiting game
30 May 2015 | 2:11 AM | Bill Evans
A sinking dollar may allow the RBA to sit on rates for the rest of 2015, but if household expenditure
falters, the bank's response could surprise.
Property investment is sucking the life out of the economy
29 May | 2:06 PM | Callam Pickering
Surging investor activity is a reminder of the Australian tendency to prioritise short-term gains over
productivity growth -- and it's hurting the economy.
The recession we don't have to have
29 May 2015 | 6:55 AM | Adam Carr
Neither business nor the government is offering a positive growth narrative for the Australian market. But
it doesn't have to be this way.
The holes in the economy just got bigger
28 May | 2:38 PM | Callam Pickering
The unprecedented collapse in mining and non-mining investment suggests a very gloomy outlook for the
economy, and it's not clear what will fill the gap
Economy has ‘hit a brick wall’
Survey shows business confidence has failed to recover despite concessions in budget.
Don't be fooled by the rebound in growth
3 Jun | 2:26 PM | Callam Pickering
GDP has received a boost in the near term, but keeping the economy on track over the next couple of
years will prove a gargantuan task.
Weekend Economist: A clear cut pause
6 Jun 2015 | 2:49 AM | Bill Evans
The RBA appears intent to hold rates until data compels it to cut. There's good reason to wait and see, but
early signs are a little worrying.
The forces squeezing household spending
4 Jun | 2:30 PM | Callam Pickering
A two-speed dynamic is emerging in the household sector, and it is likely to widen as the mining bust
progresses.
Don't be fooled by the rebound in growth
3 Jun | 2:26 PM | Callam Pickering
GDP has received a boost in the near term, but keeping the economy on track over the next couple of
years will prove a gargantuan task.
All eyes on Glenn as the dollar's gloom grows
10 Jun | 6:32 AM | Matt Richardson
The reasons for the Australian dollar's slide may give the Reserve Bank little reason to celebrate.
Busting a housing affordability myth
There is no housing affordability crisis. It's just basic economics that not everyone will be able to afford a
place in traditionally attractive areas
7. FROM ECONOMY WATCH
Australia GDP Rises Despite Disinflation Woes
Australia saw GDP growth accelerated to a 0.9% rise in the first quarter of 2015, above expectations,
although incomes have stagnated and economists fear the country is facing a disinflationary trend that is
unfamiliar to the country.
Read More
Could India be the New Economy to Watch?
growth for 2015 to 2016 at an astounding 7.5 percent. That puts India's growth slightly higher than
China's. Many investors had overlooked India, assuming its outrageous deficit spending would hamper its
economic growth, but it seems to have had little or no negative consequence yet. This leaves many in the
financial industry asking if India is the best emerging economy in which everyone should invest.
Read More
European Economy Showing True Strength
outlook for the region's long-term financial prospects. According to Barron's, gross domestic product
(GDP) in the European Union should grow by 1.8 percent in 2015 and 2.1 percent in 2016, and each
member state of the EU could see average growth around 1.5 percent. While growth will be slow, a
combination of the European Central Bank's loose monetary policies, a weak Euro, and low energy prices
have helped kick start the EU economic recovery.
Read More
Is Chinese Production Too Efficient for Global Economy?
China's economy grew on the back of its impressive manufacturing capabilities. Just over a decade ago, as
China sought ways to expand its economy, it turned to manufacturing and exporting, and the investment
paid off. For years, Chinese economic growth has been among the best in the world, and China now has
one of the most influential economies on the Planet thanks to its highly efficient production facilities,
abundant human capital, and low price points for its finished goods.
Read More
Protecting Oceans Could Add Almost a Trillion Dollars to World Economy Report Says
The World Wildlife Fund (WWF) has long been committed to protecting animals and their natural habitats.
For over 50 years, this organization has developed a reputation as one of the most respected and
influential environmental groups in the world. As a result, when they offer suggestions, governments tend
to listen. The WWF's ability to shape global environmental policies has helped to preserve a number of
endangered species, led to the adoption of several international environmental protection treaties, and led
to billions of dollars in research on a broad range of environmental matters.
Read More
The AIIB and World Bank: Rivals or Complements
After a late flurry of additions to the founding membership of the Asian Infrastructure Investment Bank
(AIIB), attention now turns to setting the China-led AIIB’s rules and regulations. Important questions
remain — most importantly, whether the AIIB is a potential rival or a welcome complement to existing
multilateral financial institutions like the World Bank. Read More
China's Economy Shows More Signs of Contraction
expected a 10-percent fall in imports, but imports dropped 17.6 percent year-on-year. China is
undergoing a stronger currency that hurts exporters, and drops in commodity prices are hurting the
country's growth potential. Exports fell 2.5 percent, which is a better than an expected turnout of 4.0
percent. The fall in imports is attributed to the trade surplus expanding to 65.6 percent year-on-year.
Analysts believe imports will pick up shortly as the government cut tariffs on certain consumer items
Read More
8. FROM TES AUSTRALIA
Planning writing
Use this simple guide to explain to your students the benefits of planning their writing.
Writing: Six thinking hats
Pupils follow these steps to assist them in writing reports with at least six paragraphs, using De Bono's
strategy.
Research guidelines
Help students to structure their extended research essays with this detailed workbook, which will guide
them through the process
Writing and presenting
Allow learners to construct and communicate thoughts and ideas coherently with this writing book.
9. FROM CEE USA
Check out some of the most popular lessons on CEE's free online resource, EconEdLink.
 We Are Consumers and Producers
 Goods and Services
 Supply and Demand, Lessons from Toy Fads
You'll find more lessons, interactive tools and other teaching resources on
EconEdLink!
MEMBERS WELCOME AUSTRALIA’S NOTIFICATION ON PREFERENTIAL TREATMENT FOR
SERVICES FROM LDCS At the WTO Services Council meeting on 3 June 2015, members welcomed a
notification by Australia on how it intends to support the growth of services trade in least-developed
countries (LDCs) by providing their services exports with preferential treatment.
> News item:
> https://www.wto.org/english/news_e/news15_e/serv_03jun15_e.htm
10. FROM GAPMINDER
Dollar Street Sneak Peek
Imagine everyone in the whole world lived along the same long street, the poorest to the left and the
richest to the right. And everyone else lived somewhere in-between.
This is Dollar Street - a new visual teaching framework for understanding how everyone lives. By using
photos as data, comparing documentary images of homes on different income levels from different
countries, cultural stereotypes simply fall apart.
With 30,000 images collected so far, Gapminder’s Product Manager, Anna Rosling Rönnlund, gives you a
sneak peak of this soon-to-be-launched project in her TED Talk: Using photos as data to understand how
people live.
Davos experts beaten by chimps!
The experts at the World Economic Forum in Davos were beaten by the chimps, when Hans Rosling asked
them about the changing world.
— What percent of one-year-old children in the world are vaccinated against measles?
— Correct answer: 8 out of 10 children.
But only 23% of the crowd got it right. Like many other audiences, they answered worse than random.
They were beaten by the chimps, who pick the right answer 33% of the time, by pure chance.
— How can “World Experts” be so terribly wrong about the success of global primary health care?
— Correct answer: misconceptions are everywhere!
The video is here: Sustainable Development: Demystifying the Facts with audio in English, Chinese,
French, German, Japanese & Spanish!
11. FROM AUSTRALIAN BANKERS ASSOCIATION
Sydney, 1 June 2015: While low interest rates may be fuelling increased household borrowing,
the value of household assets is high and consumers are increasing their mortgage buffers and
reducing the interest paid on their credit cards, the Australian Bankers’ Association said today.
A new ABA report released today shows that consumers increase their credit card use at peak periods
such as Christmas but repay strongly in January. Over December 2014 to January 2015 consumers spent
$50 billion but repaid $52.3 billion.
The report on household finances in Australia looks at the value of total borrowings by households in
relation to income and assets as well as the use of credit cards and available personal credit.
ABA Executive Director – Industry Policy, Tony Pearson, said: “The trends that we are seeing across a
range of household financial measures show that households are equipped to cope with increased
borrowings. They are building resilience into their finances by increasing mortgage buffers and reducing
the amount of interest paid on their credit card balance.
“As might be expected in a low interest rate environment, households are increasing their borrowings for
housing. But the growth rate is much slower today than it was prior to the global financial crisis.
“Households continue to save and are managing their finances well. While households are now increasing
their borrowings faster than income, this increase in borrowings is being more than matched by an
increase in the value of household assets. Every dollar of household debt is matched by almost $6 of
assets,” he said.
Other key figures from the report include:
 The value of housing related borrowings is $1.5 trillion, an increase of 7.3% on last year.
 Total borrowings by households other than for housing is $142 billion, with credit card borrowings
making up $51 billion and other forms of personal loans $91 billion.
 Household debt as a proportion of household assets is at the lowest level in almost seven years.
 The average household is more than two years ahead on their mortgage repayments.
 The household savings ratio is high at 9% of household disposable income.
 The balance accruing interest for credit card customers has been in decline for the past three
years.
 Households are using less of their available personal credit facilities with this figure falling since
2005.
A copy of the report is available on the ABA website.
12. FROM TES AUSTRALIA
Environment ethics
Discuss ethical and philosophical questions about the environment with this set of presentations.
13. FROM MANNKAL FOUNDATION
How to lose your job - get a minimum wage rise!
A political economist in California wants the minimum wage to be raised from $7.75 to $15 and has made
a video to support his case. He should have made a trip to Seattle to see how people celebrated its new
minimum wage - until they lost their jobs. To watch the video and read why minimum wages hurt low
skilled workers click here.
Breheny: Australia should become a Tax Haven
Simon Breheny from the IPA discusses why Australia should cut taxes to increase corporate investment in
Australia. More > > >
14. ACCC’S TERTIARY EDUCATION PROGRAM
Launched in November 2013, the program is an interactive resource for educators teaching their students
about Australian competition and consumer laws.
It is free, available online, and consists of 12 modules on a range of topics. Areas covered include
misleading sales and advertising practices, social media, pricing laws, business scams, cartels, misuse of
market power, product safety and consumer rights.
The content is both educational and practical. Modules include examples, case references and suggested
further reading, and at the end of most modules students can do a short assessment quiz to test their
understanding of the topic. Students will be able to utilise the content both as consumers and as current
or future business decision-makers.
The modules can be incorporated into a wide variety of educational and professional development courses
including business, marketing and advertising, management, journalism, media studies, communications,
entrepreneurship or similar. In addition to being delivered by an educator, the modules can be completed
by students in their own time in self-study mode.
The program has been accessed by more than 10,000 users and used to by educators in at least 13
Australian universities to date, and the feedback received has been very positive.
Educators are able to subscribe to the ACCC’s Tertiary Information Network to receive a free instruction
manual, which contains a PowerPoint presentation, a larger suite of quiz questions and answers, and
discussion questions and answers for each module of the online program.
No prior knowledge of Australia’s competition and consumer protection laws is needed to teach these
modules effectively and the course materials can be used as they are or adapted as needed.
The online education program for tertiary students and registration information for the educators’
resources, as well as ACCC’s free online small business and franchising pre-entry programs can be found
at www.ccaeducationprograms.org.
WEBSITES
1. http://www.pbs.org/wgbh/commandingheights/hi/index.html The Battle for the World Economy
2. Global Edge: http://globaledge.msu.edu/global-insights
3. From NAB: Australia & the World on two pages – June 2015 NAB forecast on the Global economy is for
more of the same this year with global growth staying around 3¼% in 2015, followed by a modest upturn
in 2016 (largely driven by the US). And in Australia, we see the RBA keeping interest rates on hold, with
the next move to up – but not till late 2016.> Read More
4. From NAB Global & Australian Forecasts – June 2015 There was no evidence of an acceleration in the
pace of global growth in early 2015. Weak GDP results in the US, UK and Canada outweighed a pick-up in
Japan and the Euro-zone and similarly mixed trends among the big emerging economies saw China
slowing, India picking up and Brazil still very weak.> Read More
5. NAB Monthly Business Survey – May 2015 he recent Federal Budget and interest rate cut appears to
have had a positive impact on business confidence – which moved up significantly in May – from +3 to +7
index points. This is the highest level of confidence since August 2014 and has helped to turn the trend
more positive.> Read More
Doug Cave
QETA Secretary/Treasurer
[email protected]
http://www.qeta.com.au
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