Showing all posts tagged: economics
Australia, land of the most expensive passport in the world
2 January 2025
From yesterday, 1 January 2025, the price of a ten-year Australian passport rose to four-hundred-and-twelve Australian dollars. That’s the cost of thirty-five pints of Victoria Bitter at the local pub.
Happy New Year.
As a comparison, the new price converts to a little over two-hundred-and-fifty dollars American, a little under two-hundred-and-fifty Euros, and about two-hundred British pounds. However, the hefty price tag is justified, according to a spokesperson for the Department of Foreign Affairs and Trade, who notes that the Australian passport is “a high-quality travel document”:
“The Australian passport is respected internationally as a high-quality travel document. It has a high level of technological sophistication, backed by rigorous anti-fraud measures, which ensures its integrity,” the spokesperson said in a statement. “This is a key reason why Australian passport holders receive visa-free access to over 180 countries.”
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Coffee prices push toward fifty-year high
17 December 2024
The last few years have been bad for both producers and consumers of coffee. Extremes of weather in growing regions has resulted in diminishing coffee bean harvests, which has in turn pushed up prices. This is a topic I’ve been covering for a while here now, but it seems coffee is only going to get more expensive going forward:
On Wednesday, the price for Arabica coffee, the world’s most popular variety, hit its highest level in nearly 50 years, with a pound of beans (453.6 grams) listed in New York for US$3.20 ($5.02). The all-time high was US$3.38 ($5.30) for a pound of Arabica beans in 1977 due to snow destroying swathes of Brazil’s plantations.
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coffee, current affairs, economics, trends
Coffee drinkers ditch coffee as price rises continue to bite
13 September 2024
Australian food critic Terry Durack, writing for the Sydney Morning Herald:
Coffee’s changing. The cost of beans continues to rise, and everyone is on the lookout for alternatives. Old-fashioned espresso coffee is in danger of being shouldered aside, just as cow’s milk is making way for oat, almond and soy.
With coffee prices rising, people are apparently looking for alternatives to coffee-based brews, and maybe I don’t blame them.
A month or so ago, I bought a small cappuccino after stopping by a place in Redfern — one of the inner suburbs of Sydney — for five dollars. That’s about what I usually pay, for a large drink, but this was a small serve. A super small serve. The cup must’ve been two-thirds the size of the usual sized small/regular takeaway coffee cups. The alternatives to cow’s milk I get. But now I see why some people are keen to try alternatives to their once daily caffeine fix.
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More price rises are on the way for coffee drinkers
9 August 2024
Bad weather continues to hit coffee growers in Brazil and Vietnam, forcing Australian coffee suppliers to warn of shortages, and more price increases.
It’s been a tough few years for coffee producers. When I wrote about production problems almost three years ago, droughts in Brazil were impacting harvest yields, causing a reduction in supply. Labour shortages, occasioned by the pandemic, saw growers in NSW also struggling to harvest.
By early 2022, there were fears coffee might be on the way to seven dollars a cup. Mercifully, that dire prediction has yet to come to pass.
A large cup of takeaway coffee costs five dollars at the places I usually go to. It’s a sensible price, especially if paying with cash, as I sometimes do. I’ve become quite used to having no small change rattling around in my pocket, even if current coffee prices are leaving me more, er, out of pocket.
If the cost of a cup were to press on towards the six dollar mark, I’d start becoming seriously worried about the viability of many coffee shops. Surely some customers would start cutting back, though there is the argument that consumers continue to make smaller comfort purchases, while forgoing other, more costly, outgoings.
And check out the image in this ABC News article, which breaks down the cost of a cup of coffee in Australia. For a small cup, coffee beans only constitute about twelve percent of the total cost. The rest of the money goes elsewhere. But perhaps we should be thankful in Australia after all. A cup of coffee costs about eight dollars in San Francisco, while people in parts of Switzerland pay ten dollars. Five dollars must seem a like a joke to coffee drinkers in those locations.
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Teleportation: the superpower of choice of superheroes
2 July 2024
Given the choice, a regular person, like you or me, who decides they’d like to become a superhero, will choose teleportation as their superhero superpower. In preference to three other choices they could have made: mind-control, flight, or supernatural physical strength. This is the long-story-short conclusion of some recent research into the subject, by Julian J. Hwang and Dongso Lee.
I’m not so sure about teleportation as a superpower though. It would certainly be useful for travel, but for a superhero? I’d go for mind-control, or supernatural physical strength, instead. Wouldn’t either of those be more useful in subduing your foes?
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Burritos power Guzman Y Gomez to hot sharemarket debut
21 June 2024
Shares in Australian founded Mexican food restaurant Guzman Y Gomez (GYG: it’s not only an initialism, it’s a ticker code) had a stellar debut on their first day of trading on the ASX, with one market pundit describing the launch as “the hottest float on the stock market in years“:
Its shares opened at $30, a premium of more than 36 per cent to what investors paid ahead of the blockbuster initial public offering under the ticker “GYG”.
The float price for GYG shares was $22, and as of the close on trading, yesterday afternoon, were priced at $30 a piece. GYG’s burritos sure are hot, as I’ve said before.
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Well-built furniture should last centuries, not a couple of years
12 June 2024
When Lauren was pregnant with a child who’s now turning 25, we purchased a comfy dark-brown leather sofa which fits our living room nicely. What with kids and relatives and employees and cats and Standards Comittees and friends and book clubs and socials, the butt-support cushions had, a quarter century later, worn out. So we had them replaced, at a fair price, by a small local business. Which is something that modern capitalism is trying to make impossible.
An old neighbour runs a furniture recycling business. His speciality is something called mid-twentieth-century furniture, sometimes mid-century furniture. It has a darker, wood stain/grain look, and really isn’t my thing. But it’s sturdy, well-built furniture, and will still be here long after the self-assembly particle-board stuff, this is presently so popular, has crumbled into ruin.
Short wonder my neighbour can’t keep up with demand for furniture that’s seventy-years old.
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Guzman y Gomez goes to IPO, eyes burrito world domination
3 June 2024
I’m not exactly a fan of large-chain food and beverage outlets. But Sydney based Mexican cuisine fast food restaurant Guzman y Gomez, AKA GYG (to me, anyway) is not quite large-chain. Not at the moment, though there are near to two-hundred stores in Australia, sixteen in Singapore, and a handful in Japan, and the United States.
But a successful IPO might see them coming to a location near you, should you currently not reside in any of their catchment areas. At this stage, it is anticipated they will commence trading on the Australian Securities Exchange, on 20 June 2024. Of their burritos, my favourite items on their menu, I will say they make for a fulfilling meal.
I couldn’t say the same for the offering from all large-chain fast food restaurants though.
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Only one in five Australian musicians earn a full time income
4 April 2024
The latest Media, Entertainment and Arts Alliance (MEAA) survey of the pay and work conditions of Australian musicians makes for grim reading. In particular, the stand-out finding that half of local musos earned less than six thousand dollars last year.
Six thousand dollars.
The adult minimum annual wage in Australia, based on earnings of $882 per week, and assuming payment covers fifty-two weeks of the year, is a shade under forty-six thousand Australian dollars. Only twenty percent of musicians said they made a full time income from their work.
Many musicians needed to work several jobs, often perform at shows unpaid, and seldom receive superannuation payments. In 2022, the NSW Labor party promised to pass laws ensuring musicians performing at publicly funded events, receive a minimum payment of two-hundred-and-fifty dollars.
At least it’s a start, but I think the findings of the MEAA survey make it glaringly obvious: more support is needed for the performing arts in Australia.
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arts, Australian music, economics, music
Workers using cafes as offices may reduce their profitability
3 April 2024
Malcolm Knox, writing for The Sydney Morning Herald:
Then there are rents, insurance, equipment and other fixed costs. In a Sydney suburb near me, a new cafe is paying $5000 a week in rent. At $1000 per 7am-to-1pm shift, they need to be selling 300 coffees a day to make it worth their while. That’s nearly one a minute. They don’t often make money on food, which requires more infrastructure such as cooking, storing, plates and so on. It’s all down to their coffee price.
Cafes are a great stand-by for the WFH crowd, an office away from the home office. They’re somewhere to work, be in the company of others, while enjoying a coffee. Or two. Or three. In fact, the more the merrier, so far as the cafe is concerned.
But as much as I love the idea of working in a cafe, I do so infrequently. And then in short bursts — an hour tops — and I will buy at least one coffee and a cake — valued at maybe a little more than ten dollars — to make my stay at least partially worthwhile for the cafe. But even then, I’m short-changing the owners, as they’re hoping to earn closer to forty dollars an hour on the table I occupy.
Running a cafe you see, is an expensive undertaking, and WFH workers who buy a single cup of coffee, and expect to have the same table to themselves all day, are doing the cafe a distinct disservice. I’m fortunate to have a couple of hot-desk options if I don’t want to work at home, virtually negating the need to use a cafe, something I’m sure owners are grateful for. Instead, I’ll come by for a take-out coffee, and be on my way.
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