There is nothing socially or economically desirable for the cost of an essential good or service to increase at a rate greater than wages, irrespective of the fact that said increase in cost may benefit a particular cohort.
What essential good or service are we talking about here...Q? If it's housing, then why not...?
Who's wages are you talking about...and in what suburb for the house prices, relative to those wages you speak of....?
r
Apples with apples remember...
You're obfuscating.
Housing (that is, a dwelling in which people live) is an essential.
Are you of the view that the cost of housing increasing at a rate greater than increases in buying power is a good thing?
Would you take the same view of something like, say healthcare, food or energy?
No, you didn't answer my question, I suggest you are obfuscating not me...
Every essential item is increasing at a greater rate than buying power it could be argued.....but you need specifics such as what I have asked you...
In what suburbs is housing growing at a greater rate than 'buying power'...?
Remember to factor in the average wage for each suburb....
Your problem lies in what you class as 'buying power'....
Do we all have the same buying power...?...No...didn't think so...
Obfuscating indeed...
You are - deliberately or otherwise - complicating what is a fairly simple proposition. That is, that it is not a Good Thing for the costs of life's essentials to increase at a greater rate than income. Be it housing, food ,energy, health care or education - to name the obvious categories - costs rising disproportionately to wages diminishes quality of life and the competitiveness of the economy.
In the case of housing, the fact that you (possibly) or I (definitely) already own all we need and are only exposed to the up-side doesn't make it any less socially or economically undesirable. Though there are many ways to quantify the extent to which the underlying cost of housing assets have increased relative to household income in the last forty years, I don't think anyone disputes it has and the continuation this trend is worth cheering on about as much as is barracking for $3 pl petrol prices in 2011.