Economic Boom Down Under in Australia

We don't hear much about it in the U.S., but Australia is in the middle of a huge economic boom, with a record low unemployment rate of 4.3% and a record high stock market that has more than doubled in the last three years (see chart above).

Here's a report on job vacancies reaching a record high in Australia, and how "the unemployment rate is tipped to fall to a fresh historic low as bosses struggle to keep young and restless workers seeking to cash in on the commodities bonanza (coal and iron ore are Australia's two largest exports)."

Alan Greenspan praises Australia in his new book (The Age of Turbulence) as a model of what can happen when governments deregulate their economies, crediting former prime minister Bob Hawke with "a series of significant but painful reforms, especially in labor market reform." Greenspan also pointed to the tariff reductions and the floating of the Australian dollar, which he said "sparked an amazing economic turnaround."

Another article reports that "In the past two weeks, the International Monetary Fund and international credit rating agency Standard & Poor's have both heaped praise on the performance of the Australian economy and its economic management."