Ordinary Australian workers are able to spend despite low wage growth, by either selling assets, taking out personal loans, increasing their mortgages, or maxing out their credit cards. Australia has one of the highest private household debt ratios in the world, somewhere close to 160% of GDP.
It's probably a bit of a straw-man argument to present wage-income going backward as a poor representation of household income. Clearly income inequality is a major concern, and clearly a shift from wage income to "rents" is exacerbating inequality. Isn't introducing average household income just obfuscating the discussion of how regressive current trends are?
Income is horribly skewed. If those who earn more than average decide to spend income on non basic, non-essentials in their move from a city to a country locale, and redecorate the house adding creature comforts and non essentials its possible for spending to increase at a time when the average wage is in free fall.
What proportion of private profits go overseas and are never spent in Australia?
A very informative article
Awesome - I am now armed with a much better understanding of the wage index
Ordinary Australian workers are able to spend despite low wage growth, by either selling assets, taking out personal loans, increasing their mortgages, or maxing out their credit cards. Australia has one of the highest private household debt ratios in the world, somewhere close to 160% of GDP.
It's probably a bit of a straw-man argument to present wage-income going backward as a poor representation of household income. Clearly income inequality is a major concern, and clearly a shift from wage income to "rents" is exacerbating inequality. Isn't introducing average household income just obfuscating the discussion of how regressive current trends are?
Income is horribly skewed. If those who earn more than average decide to spend income on non basic, non-essentials in their move from a city to a country locale, and redecorate the house adding creature comforts and non essentials its possible for spending to increase at a time when the average wage is in free fall.