Living standards to fall

[Redom]

Bayview, i'm pretty sure that most folk wont ever claim that life has gotten easier. There are behavioural elements at play. For example, the public screaming murder at some very basic and legitimate 2014 budget changes is an example of the behavioural mindset.

The FACTS are, we have grown for 2 decades straight. 2 decades. It is extraordinary. These conditions have had a large REAL income effect for the large majority of Australians (see Budget chart that MarkB has shown). Sure the distribution of these gains are skewed, but that doesn't mean that there haven't been gains.

Unemployment is an issue at the moment and the economy is going through a cyclical adjustment. Unfortunately there are more people out there doing it tough right now - its not nearly that bad.

I'm with Sanj - this isn't a sample of the SS community - the facts are what they are.

We could go back to 4.4% unemployment, somebody somewhere (or rather, most people, everywhere) would be thinking that they're hard done by.

 

[BayView]

I get it about the facts.

It is the opposite story from the mouths of the people I don't get - based on the facts.

The two are currently contradicting each other - based on my experiences - and hence the question of "Why?"

It's a point of interest for me is all; not me saying black is blue when you guys say blue is blue.

 

[Redom]

Probably a combination of:

1) Timing - we're in sub trend growth period, with rising unemployment and fiscal consolidation. Non interest rate sensitive sectors are likely to be feeling the pinch.

2) Behavioural elements.

 

[kathryn d]

bayview,
Living standards are falling, and most people are in denial about it.
They simply will not cut their spending when things start to get tight, instead they allow their bills to fall behind, or put on their credit card.

For us (even though our income is from Canada) we see it with our tenants, who are all regular folk. They pay the bills they deem important and let the others slide..which is where it affects us- rent.

Having a lease, is of no importance. They are consistantly late with their rent, until it gets to the point, they are either evicted, or they just skip. For them, it means they didn't pay rent for a month. Moving costs is simply having their friends and a couple trucks, a case of beer and a couple of pizzas. No biggy.
When its time for us to clean up, you can see where their priorities are...beer,cigs, fast food,pop,etc


After people buy their cigs,drinks,fast food,car payments, phones ...how much money do they have left?

 

[lizzie]

You can still earn more, but have the same or even less to spend if costs increase.

We personally are earning around the same as 10years ago, due to industry decline ... however ... on the ground figures are probably what one should be looking at.

Electricity has more than doubled - fuel has doubled - rego costs are up - groceries have doubled - insurance has definitely more than doubled - rates have doubled - health insurance has quadrupled.

These are all basic expenses - but I haven't seen our income double.

And - as Bayview pointed out - 4.4% of the population may be officially unemployed ... but the "underemployed" more than double that figure

http://www.abs.gov.au/ausstats/[email protected]?OpenDocument

This figure also does not include those who have given up looking for work, working age pensioners and tertiary educations students

 

[BayView]

We personally are earning around the same as 10years ago, due to industry decline ... however ... on the ground figures are probably what one should be looking at.

Electricity has more than doubled - fuel has doubled - rego costs are up - groceries have doubled - insurance has definitely more than doubled - rates have doubled - health insurance has quadrupled.

These are all basic expenses - but I haven't seen our income double.

And - as Bayview pointed out - 4.4% of the population may be officially unemployed ... but the "underemployed" more than double that figure

http://www.abs.gov.au/ausstats/[email protected]?OpenDocument

This figure also does not include those who have given up looking for work, working age pensioners and tertiary educations students

Finally!

Thankyou Lizzie.

Rego as one more example - ours has gone up from just under $600 from memory a couple of years ago, to this year it was $706.

 

[kathryn d]

BV,
Today Rob says we need new tires for our Kia (Canada vehicle)
My heart almost dropped out...all I could think about was another cost.
($768 installed - 4 tires)


Anyways, we stopped into our tire place, and they had an opening right then to install them. I'm not sure if that was a sign of the times, but they had 2 empty slots..usually we always need an appointment.

 

[sash]

That is why you need assets that will comfortably outplace inflation.....by the way inflatoin over the lasy 10 years was about 40%.

From my perspective over the last ten years:

1. Electricity - 400% increase
2. Fuel -75% increase
3. Rego Costs - 60%
4. Medical insurance - 100%
5. Comprehensive car insurance - 10%
6. Food - 100%
9. Airline flights - 20%
10. Cars - 15% (some cases they have gone down)
11. Sydney Water Rates - 50%
12. NSW Councill Rates - 40%

We personally are earning around the same as 10years ago, due to industry decline ... however ... on the ground figures are probably what one should be looking at.

Electricity has more than doubled - fuel has doubled - rego costs are up - groceries have doubled - insurance has definitely more than doubled - rates have doubled - health insurance has quadrupled.

These are all basic expenses - but I haven't seen our income double.

And - as Bayview pointed out - 4.4% of the population may be officially unemployed ... but the "underemployed" more than double that figure

http://www.abs.gov.au/ausstats/[email protected]?OpenDocument

This figure also does not include those who have given up looking for work, working age pensioners and tertiary educations students

 

[BayView]

BV,
Today Rob says we need new tires for our Kia (Canada vehicle)
My heart almost dropped out...all I could think about was another cost.
($768 installed - 4 tires)


Anyways, we stopped into our tire place, and they had an opening right then to install them. I'm not sure if that was a sign of the times, but they had 2 empty slots..usually we always need an appointment.

it's just the nature of the industry.

Some weeks you can't fit anyone in for a week, and then the next week each day might be almost empty in the appointment book, but then you get a few blow-ins and suddenly the next 3 days are overflowing.