For many years we have all watched on as Dictator Dan did his level best to turn the Victorian economy into little more than a population ponzi scheme. We warned throughout that this was ill-considered “can-kicking” given all it did was crush wages and lift asset prices while building out for an influx of people that was certain to disrupted at some point, quite possibly permanently. Today we have the result in empty fixed-asset hulks across commerical Melbourne realty and a public infrastructure deficit to boot.
We mused that that would leave Victoria with chronic private sector deficits, bashed up budgets and leave the existing population worse off. And so it has proven with Victoria bosting the lowest wages in the nation and virtually no gains in real discretionary income across a lost decade
Now Moody’s is on the prowl as the chickens come home to roost:
