Yep, afraid so
Disclaimer; I don’t know of my perception is based on reality, or simply the conservatism often seen in the aged.
I’m 78, a retired public servant… This is how I see it: In broad terms, fewer and few people seem to have an ever increasing amount of the property and wealth in our society. That has meant those even in the middle are being squeezed, the result being far more struggle to even keep what they have. Certainly seems to be the case compared with when I wore a younger man’s clothes.
Bought my first house in 1976. At that time the average mortgage was around $18,000. At that time, prime interest rates were around 10%. That meant that repayments were between 25-35% of household income. Based on a one income family…
I just looked this up. The figure for an average mortgage in South Australia was given as $658,000. Based on a two income family earning $130,00 PA. That figure seems low to be because the current median price of a house in South Australia is $1 million.
I’ve been retired for many years and have a comfortable retirement. This is not because of my income, which is modest. It’s because of the things on which I do not spend money: The house and car are paid for and I do not use credit (I have only a bit card) I stopped drinking in 2002 and smoking in 2003 . I have never gambled or taken illegal drugs.
Australians still seem to largely be middle class by aspiration. That huge lump of our population has been based on the notion of the affluent working class. Seems to me that it has become so much harder for even a couple to become affluent no matter how hard they work.
So yes, it seems clear to me that our middle class is significantly smaller than it was even 20 years ago. Their wealth seems to have gone to an ever smaller and less deserving number of people. I won’t give a list. I’m sure most people are able to name some of the obscenely wealthy oligarchs who give little if anything back to the societies which made them rich. Those people (with a few exceptions) seem to have only one mantra; “MORE!!”
Unless this is properly addressed in the coming years, we are going to see a lot of resentment everywhere, and declining productivity, since those who must work for wages will have their rewards taken by those who have assets. All the money going to rents and mortgages.
Unless this is properly addressed in the coming years
seems unlikely, were witnessing the rise and rise of support for billionaires and approval of their lifestyle. Blames being laid on expats but billionaires still need that of course, so that wont be stopped but stupid is ubiquitous.
All the money going to rents and mortgages.
Yes, in the 1990s I was yelling loudly about this stupidity and the inevitable outcome and yet here we are to the surprise of no one.
I don’t expect it to be addressed either. But it’s killing my career motivation, and I used to be a very driven person in my engineering career. I’m starting to change my priorities and expectations, now that my salary increases have slowed dramatically to below inflation level. No prospect of home ownership, so I spend more time hanging out with the neighbourhood cats instead of grinding every night. Enjoy the moment a bit more and not worry about the things I can’t control.
Treasurer Jim Chalmers has flagged that “intergenerational fairness” will be a key theme of the budget being handed down tomorrow night.
Bullshit.
