Editors’ Picks – March 30, 2014

This week in Editors’ Picks, we take a look at threats to the Chinese economy, what makes the labour market unique, the growing problem of offshore profit shifting, the role of the US Federal Reserve in the American economic downturn and a prospective redirection of the Australian manufacturing industry.

Are China ‘ghost’ cities building towards economic ruin? – Phillip Wen

The Chinese economy is fast encountering many threats to its rate of economic growth, with the property bubble being a key economic risk. Phillip Wen explores the role of China’s volatile banking sector environment in creating a risky property market and its potential impact on Australian resource export volumes.

More hard toil needed on our ‘labour market’ – Ross Gittins

There has always been something distinctive about the market for labour, as opposed to standard goods and services. Ross Gittins draws upon esteemed economist Robert Solow’s research, to explain how the labour market is a social institution and therefore, that human nature itself needs to be considered.

How Ireland got Apple’s $9bn profit
– Neil Chenoweth

In our globalised world, federal governments have recently clashed with large multinationals such as Apple, Inc. who have the ability to redirect profits and not pay significant taxes. Neil Chenoweth examines this key problem that is gradually becoming a bureaucratic and fiscal nightmare.

Jeremy Grantham: The Fed is killing the recovery – Stephen Gandel

Many have attributed the slow, but steady recovery of the American economy to the efforts of the US Federal Reserve. Yet, investor Jeremy Grantham argues that far from helping the recovery, it was the Fed’s actions that pushed the US into its economic crisis.

Building a housing industry from the relics of a car industry – Jemma Green & Peter Newman

Australia’s manufacturing industry has been hitting the headlines over the past few months for all the wrong reasons, but can its collapse be suspended and reversed? Jemma Green and Peter Newman consider a repositioning of Australian manufacturing to integrate with the growing modular construction trend.