Per Capita GDP Growth and Ageing Populations

Australian economic, political and social narratives focus upon ‘high immigration rate’ and ‘population growth’ as negatives, claiming in first article following from The Conversation that the latter masks low or declining economic growth.  On the other hand, VOX CEPR suggests a linkage between ageing, longevity and declining per capita GDP; increasing numbers of retirees may well be a significant cause?

Vital Signs: Australia’s sudden ultra-low economic growth ought not to have come as surprise

March 7, 2019 1.28pm AEDT

Australia’s big little economic lie was laid bare on Wednesday.

National accounts figures show that the Australian economy grew by just 0.2% in the last quarter of 2018. This disappointing result was below market expectations and official forecasts of 0.6%. It put annual growth for the year at just 2.3%.

But the shocking revelation was that Gross Domestic Product per person (a more relevant measure of living standards) actually slipped in the December quarter by 0.2%, on the back of a fall of 0.1% in the September quarter…..

Population growth hides it

The more insidious answer in Australia is that, for a long time, our high population growth, fed by a high immigration rate, has masked a much less rosy picture of how we are doing. And neither side of politics has wanted to admit it.

At 1.6% a year, Australia’s population growth is roughly double the OECD average, which is perhaps why we hear politicians say things like “Australia continues to grow faster than all of the G7 nations except the United States,” as Treasurer Josh Frydenberg did this week.

The good news is that standard economic theory tells us that in the long run, immigration has very little impact on GDP per capita in either direction, unless it drives a shift in the population’s mix of skills.

But in the short term, it depresses GDP per capita because fixed capital such as buildings and machines has to be shared between more workers….

But the fundamentals of the Australian economy are looking somewhat weak. Like the US and other advanced economies, we are living in an era of secular stagnation – a protracted period of much lower growth than we had come to expect.

And until we do something to tackle it, such as a major government investment in physical and social infrastructure, we will continue to face anaemic wage growth, shaky consumer confidence, and mediocre economic growth per person.’

 

The impact of population ageing on monetary policy

Marcin Bielecki, Michał Brzoza-Brzezina, Marcin Kolasa 05 March 2019

Population ageing is likely to affect many areas of life, from pension system sustainability to housing markets. This column shows that monetary policy can be considered another victim. Low fertility rates and increasing life expectancy substantially lower the natural rate of interest. As a consequence, central banks are more likely to hit the lower bound constraint on the nominal interest rate and face long periods of low inflation, especially if they fail to account for the impact of demographic trends on the natural interest rate in real time

Many countries, developed and developing alike, are experiencing a process of population ageing – fertility rates remain below the level that guarantees the replacement of the population and the average life expectancy at birth keeps increasing. As a consequence, the ratio of the elderly to the working-age population – the old age dependency ratio – has been, and will be, increasing over the upcoming decades. To give some idea on the magnitude of this process, while the ratio of elderly (aged 65 or more) to the working-age population (aged 15-64) in the euro area was around 0.25 at the turn of the 21st century, the proportion is projected to exceed 0.5 by 2050 (see Figure 1).

The demographic transition will have many consequences related to various aspects of economic activity. To mention just a few, the increasing share of elderly in populations is likely to negatively impact the growth rate of GDP per person (Cooley and Henriksen 2018) and the sustainability of pension systems (Boulhol and Geppert 2018), and will lead to an increase in the share of GDP being spent on healthcare and related services (Breyer et al. 2011)….’

For more articles about population growth and NOM net overseas migration click through.

 

 

 

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Immigration Population Growth Decline NOM Net Overseas Migration

For the past 10+ years Australia, the Anglo and western worlds have been obsessing in the mainstream about ‘immigration’ and ‘population growth’ as negative factors for the environment, economy, quality of life, infrastructure, traffic congestion, ‘carrying capacity’ etc. based upon misrepresentation and/or misunderstanding of data, analysis and facts.

However, in Australia as opposed to most nations, pension reform, introduction of superannuation, skilled permanent immigration and net financial contributions from temporary resident ‘churn over’ should maintain a balance between social responsibilities of the government and financial management.

In much of this public discourse, political lobbying and news based PR many facts and much data are distorted and/or ignored.  This includes conflation of permanent and temporary immigration, the ‘NOM net overseas migration’ (border movements) equated with directly with ‘(permanent) immigration’, definition change of the NOM (used only by UK, Australia and NZ) by the UN in 2006 inflating/spiking headline numbers, individuals whether international students, backpackers and other temporaries, along with Australians, caught up in the NOM are described as ‘immigrants’ (even when the majority have neither access to permanent residency nor an interest).

Further, false correlations are made with international data suggesting infinite population growth when peak fertility has long passed (ex sub Saharan Africa), comparisons made between different data sets, population is expected to peak (sooner rather then later according to some e.g. Deutsche Bank) and dismissing the impact of ageing work forces now retiring, increasing pension and related service responsibilities, with less tax payers in the permanent population; back grounded by a significant baby boomer ‘die off’ approaching.

This has been back grounded or reinforced by Nativist policies, creating fear, antipathy towards non-Europeans and encouraging isolationism e.g. strong borders, closed economies with tariff walls, low or no growth, and aspirations for ‘sustainable population’ (whatever that means).

The University of Melbourne’s Peter McDonald analyses further in an article for The Conversation:

Why cutting Australia’s migrant intake would do more harm than good, at least for the next decade

December 13, 2018 4.20pm AEDT

Australia’s population is among the fastest growing in the OECD with an increase of 1.7 per cent in 2016-17.

In Sydney and Melbourne traffic congestion has become so intolerable many believe a cut to migration would provide time for infrastructure such as roads and trains to catch up.

Net Overseas Migration was 262,000 in 2016-17, one of the highest levels on record.

They are all compelling reasons to cut the size of the migration program, right?

No, not right. Not at all.

Our migration program is no bigger than it was

Including the humanitarian movement, the government migration program has been set at a near-constant level of a little over 200,000 since 2011-12.

In 2017-18, although the level set in the budget remained above 200,000, the actual intake was 179,000, including an unusually large intake of refugees mainly from Syria and Iraq.

The combined Skilled and Family Streams fell short of the levels set in the budget by 28,000. The reasons for this shortfall are unclear.

‘Net overseas migration’ is different to migration

Net Overseas Migration includes the government program but also other movements in to and out of Australia which both add to and subtract from it.

The net effect of all of these movements can change the recorded “net overseas migration” in ways that are inconsistent with what’s been happening to the migration program.

If, for instance, the Australian economy picked up and fewer Australians decided to leave for better prospects overseas, recorded “net overseas migration” would increase even if the migration program hadn’t.

The two have been moving increasingly independently since mid 2006 when the Australian Bureau of Statistics changed its definition of “resident”, making temporary residents more likely to be counted in the population and their movements counted in net overseas migration.

Over the past five years, the number of international students arriving has increased every year but there have been few international student departures.

Inevitably, the departures of students will increase in future years and recorded net overseas migration will fall sharply again.

So, forget the near-record official net overseas migration figure of 262,000 – the underlying level of net overseas migration is more likely to be around 200,000. The underlying level of population growth is about 1.4%, and falling.

We’ll need strong migration for at least a decade

A new study by Shah and Dixon finds there will be 4.1 million new job openings in Australia over the eight years between 2017 and 2024.

Over two million of these new openings will be due to “replacement demand”, effectively replacing the retirements from the labour force of baby boomers.

There will not be enough younger workers arriving to fill the gap….

It means that without migration Australia would face a labour supply crunch unlike anything it has ever faced before.

Slowing or redirecting it won’t slow congestion…

…Net overseas migration of 200,000 per annum would give us 6.8 million more people of traditional working age by 2051 than would no net migration, but only 400,000 more people aged 65 years and over.

It would place Australia in a better position to support its aged population than any other country in the OECD.’

For more articles about Australian immigration news, demography, Nativism, NOM net overseas migration, population growth and international students.

 

 

 

Hans Rosling – The facts and ignorance about population growth

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Don’t Panic – Hans Rosling Showing the Facts About Population

The world might not be as bad as you might believe!

“Don’t Panic” is a one-hour long documentary produced by Wingspan Productions and broadcasted on BBC on the 7th of November 2013.

‘With the world’s population at 7 billion and still growing we often look at the future with dread. In Don’t Panic – The Truth About Population, world famous Swedish statistical showman Professor Hans Rosling presents a different view…

… We face huge challenges in terms of food, resources and climate change but at the heart of Rosling’s statistical tour-de-force is the message that the world of tomorrow is a much better place than we might imagine.

World population growth has peaked and is in decline.

Population Growth Decline (Image copyright World Bank).

 

Professor Rosling reveals that the global challenge of rapid population growth, the so-called population explosion, has already been overcome. In just 50 years the average number of children born per woman has plummeted from 5 to just 2.5 and is still falling fast. This means that in a few generations’ time, world population growth will level off completely. And in what Rosling calls his ‘Great British Ignorance Survey’ he discovers that people’s perceptions of the world often seem decades out of date.

Highlights from Ignorance survey in the UK

Highlights from the first UK survey re ignorance of global trends. A preliminary summary by Hans Rosling, Gapminder Foundation, 3 Nov, 2013

Gapminder’s mission is to fight devastating ignorance about the world with a fact-based worldview that everyone can understand. We started the Ignorance Project to measure what people know and don´t know about major global trends.

The results indicate that the UK population severely underestimates the progress in education, health and fertility reduction in the world as a whole and in countries like Bangladesh, whereas they severely overestimate how much the richest countries have changed to renewable energy. It is noteworthy that the results from those with university degrees are not better than the average results, if anything they are worse. The results from UK are similar to those obtained by a 2013 survey in Sweden.

The aim of these surveys is to understand how deep and how widespread the public ignorance of major global development trends is in different countries. We are investigating the knowledge about the order of magnitude and speed of change of the most important aspects of the life conditions of the total world population. The first survey covered some major trends in demography, health, education and energy.

  1. In the year 2000 the total number of children (age 0-14) in the world reached 2 billion. How many do UN experts estimate there will be by the year 2100?
  2. What % of adults in the world today are literate, i.e. can read and write?
  3. What is the life expectancy in the world as a whole today?
  4. In the last 30 years the proportion of the World population living in extreme poverty has…
  5. What % of total world energy generated comes from solar and wind power? Is it approximately
  6. What is the life expectancy in Bangladesh today?
  7. How many babies do women have on average in Bangladesh?

 

Conclusions

Question 1: The answers reveal very deep ignorance about population growth. Only 7% know that the total number of children (below age 15) already has stopped increasing. Almost half of the respondents think there will be twice as many children in the world by the end of the century compared to the forecast of the UN experts.

Questions 2 and 3: Answers show that the respondents think the literacy rate and the life expectancy of the world population is around 50% and 60 years (median values), respectively. But these figures correspond to the how the world was more than 30 years ago.

Question 4: The results show that just 10% are aware of that the United Nations’ first Millennium Development Goal, to halve the world poverty rate, has already been met, even before the target year 2015. More than half think the poverty rate has increased. It is important to understand that random guessing would have yielded 33% correct answers. The result is therefore not due to lack of knowledge, rather it must be due to preconceived ideas. The results strongly indicate that the UK public has failed to be informed about the progress towards the first of the UN´s Millennium Development Goals.

Question 5: Two thirds of the respondents severely overestimate the present role of new renewable sources of energy in world energy production. The present proportion is close to 1%.

Questions 6 and 7: The respondents reveal a deep ignorance about the progress of Bangladesh during the last two to three decades. Only about one in ten know that life expectancy in Bangladesh today is 70 years and that women on average have 2.5 babies.

 

For more articles about population growth and immigration click through.

Negative Issues of Digital Marketing

Digital marketing is featured in Mumbrella regarding results of survey on digital marketing, presumably using external agencies, firstly focused round metrics or analytics, brand reputation and fraud.

Digital marketing delivered with dodgy analytics

Importance of Analytics in Digital Marketing (Image copyright Pexels)

Most marketers have had negative experiences in their digital marketing, AMAA survey suggests

September 11, 2018 8:13 by ZOE SAMIOS

Most marketing and agency professionals say they experienced a negative event with their digital marketing, a new survey by the Audited Media Association of Australia (AMAA) indicates.

According to the AMAA, around 60% of the 407 surveyed said they had experienced some sort of bad outcome with their digital marketing. A total of 36% said they were impacted by misreporting of measurement metrics, while 32% were affected by “brand safety compromises”, and 13% said they were affected by ad fraud.

The new data comes from AMAA’s annual Trust Matters Research which aims to provide insights into ad trading decisions. The research was completed by agency The Insights Grill through an online survey between April and May this year.

Of those who said they had had a negative impact, 70% said it had led to wasted advertising dollars.

Concerns about non-human traffic have increased, with 53% of professionals arguing it was an issue to tackle in the next 12 months, compared to 39% last year. More than 50% of marketers also saw ad fraud as an issue, compared to 44% the year prior.

However, one of the biggest issues to tackle in the next 12 months, according to marketing and agencies, is proof of performance measurement.’

 

What are the solutions for any business or organisation to avoid such issues?

 

  • View any digital or marketing strategy as an ongoing system, not a campaign.
  • Do your digital marketing in-house for greater validity and control.
  • Consult and leverage with your customers and stakeholders, both internal and external.
  • If compelled to use external agencies, use CPD or training to learn about digital marketing, become involved, and take an interest in what is being done, not just as a budgetary item for ROI analysis, later.
  • Have your own metrics i.e. ensure valid data points are linked to analytics for feedback, that can be accessed while demanding any agency is transparent in the metrics they use, observe or report.
  • Use mystery shoppers to gauge the UX user or CX customer experience (still stalked by banner ads after purchase?).

 

For more articles and blogs about digital marketing services click through.

 

 

 

 

Focus Group Feedback – Qualitative Data Analysis – Grounded Theory & Coding

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Focus Group Feedback – Qualitative Data Analysis – Grounded Theory & Coding

 

Potential respondents must have the ethics of research explained before any interview or feedback, not only verbally at start of an interview or related interaction, but inclusion on a briefing document explaining study and research, storage of data, along with ethics.

Focus Group Interviews

 

Focus interviews, individual or via a group, based on psychoanalysis, can be very adaptable, allow expression of body language, in addition to concept checking or informal communication which would be precluded by the written form.  However, there are disadvantages, interviews can be very time consuming to conduct, transcribe, code and analyse when using open questions to elicit perceptions, attitudes and experience of the research area, plus they can be subjective or prone to bias.  On the other hand, they are useful to explore same perceptions etc., then importantly, used to inform a valid survey or data collection instrument or further research (Bell, 2005).

 

Types of interview include structured e.g. answering survey face to face, semi-structured and unstructured, the latter allows good quality data to be offered.  The unstructured interview can offer an opportunity for an industry person to explain and elaborate on issues that have emerged organically, that would have otherwise remained unknown and ignored (Ibid.).

 

Focus Group Interview Feedback Respondents

 

The ‘Focus Respondents’ for this research study included two former international students now professionals with digital literacy, two international education marketing (and admissions) managers for large multinational education providers and two more senior ‘Focus Respondents’ who manage within international education, but without formal marketing background.

 

‘Focus Respondents’ were asked open questions based upon the literature and round the information search process with any critical issues, key words, processes or phenomenon to be expressed, not in long narrative for full transcription, but abbreviated for notes and action coding.

 

It was explained to focus respondents, to give them structure or context, that the general focus was decision making behaviour process, represented by a five-stage model:

 

Purchase Decision Making Model

 

Five Stage Purchase Decision Behaviour Model or Process (simplified)

  • Recognition of Need
  • Information Search
  • Evaluation of Alternatives
  • Purchase Decision
  • Post Purchase Behaviour

(Kotler & Keller, 2012).

 

From same focus interviews regarding information search or discovery process, the research elicited factors or latent variables, then quantified by survey to analyse for significance of these factors in ‘optimal marketing and communications’.  These factors and construct can then be used to develop an information seeking construct and a useful template for industry.

Next step is to deliver survey to a hopefully significant sample population to then ground any marketing strategy development.

 

Reference List:

 

Bell, J. (2005) Doing Your Research Project. (4th Ed.). Maidenhead: Open University Press.

 

Kotler, P. & Keller, K. (2012) Marketing Management. (14th Ed.) Upper Saddle River: Pearson Education – Prentice Hall.