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MONEY MATTERS MONDAY 3rd DECEMBER 2018

Posted December 4, 2018 by MoneyLink
https://moneylink.com.au/money-matters-monday-3rd-december-2018/

Australia – Lucky Country

‘Australians should stop whingeing. And they should not believe the headlines on the nightly news and in the press that tell us we are badly off. The headlines are designed to attract viewers and readers but do not reflect reality.’

… This is the opinion of an economics teacher friend of mine.

He says we should all thank our lucky stars when we get up each morning that we live in Australia. He encourages young people to limit their criticisms of Australia until they have travelled overseas and seen how a range of people in other countries live.

Rising living standards

The Australian economy grew 3.4 per cent in the last financial year. That is raising everyone’s living standards. The Reserve Bank (RBA) expects growth of over 3 per cent in both 2019 and 2020.

Employment is increasing. Unemployment will soon drop below 5 per cent. The Australian Bureau of Statistics says average weekly earnings are now $1,586.20, for individual full-time workers. While many people earn less than that a large number earn more.

Interest rates are extremely low with the official cash rate at just 1.5 per cent per annum and home loan rates at around 4 per cent. The Australian Government Budget is on track to return to surplus two years sooner than forecast.

Inflation remains very low, below the RBA’s target range, at 1.9 per cent. The cost of living is not rising dramatically. Inflation will not disrupt our lives any time soon.

We have one of the best health systems in world that provides free care for the poor and disadvantaged. We have the new NDIS to care for people with disabilities.

The political rhetoric

Politicians are partly to blame for people thinking they are badly off. They find small groups of people they can describe as disadvantaged then lobby for them and persuade others it is a major issue to win votes. They should see how the poor live in other countries before criticising what we have.

Politicians of all persuasions should drop the politicking and co-operate more to make good policy decisions in the best interests of most Australians long-term.

Australians are the wealthiest in the world

As reported in the Central Western Daily on November 29 Australians are the wealthiest people in the world. The World Wealth Report 2018 prepared by Credit Suisse shows the median wealth of adult Australians is higher than that of any other country including Switzerland, the US, Britain and Germany.

Our free enterprise system has delivered this excellent progress, with excesses moderated where necessary by our version of democracy. We need to remember that our first job is to grow the economic pie, before we can even think about debating how best to carve it up.

This is general advice and should not be treated as personal advice. Russell Tym is an authorised representative of MoneyLink Financial Planning Pty Ltd ASFL No: 247360.

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