Living standards plummet under Coalition

By Leith van Onselen

Some good work by The Guardian’s Greg Jericho today, who has produced some useful charts showing how living standards have declined under the Abbott/Turnbull/Morrison Governments:

Over the past five years, while national income has again risen and fallen with our terms of trade, household incomes peaked in March 2015 and have then consistently fallen as wages have failed to keep pace with inflation:

In fact whether you measure real compensation per employee, household income or national income, growth was better in the 21 quarters before the September 2013 election than in the same period since:

The reality is the government might be able to use a measure it says shows living standards have increased since they came to power, but I doubt it will pass any smell test.

Workers know how poor their pay rises have been, and they know they are not better off.

Pretty much confirms everything MB has argued.

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Comments

  1. haroldusMEMBER

    At least we can be comforted by the twin facts that:

    a) the coalition are better economic muppets, and
    b) interest rates will always be lower under a rodent-inspired “government”.

    • Falling incomes = rising wealth, thanks to the magic of interest rates.

      Can’t be anything but deliberate given the dodgy FTAs, countless visa rorts, undermining of the FWC etc

  2. Does living standards factor in amenity? Stress levels associated with longer commuting and crush-loading, as well as bigger mortgages? Levels of isolation, when factoring in everyone around you speaking another language then English? What about social cohesion?

    • What about social cohesion?

      How much does that cost? the meerkat will provide, of course – at a price.

    • Select / Choosi the Gated Community to your liking!

      We’ve got Whyte Flyght Estate, we’ve got Doing D’Needful Manors, or what about Sum Ting Good Country Club?

    • No, it is purely monetary. All of those other factors are not included. They are in addition

    • Living standard is technological capitalist system invention design to convince ordinary people into success of progress (both the original capitalist incremental progress and later communist revolutionary step change progres)
      Reality is than centuries of both did not improve human condition even a bit

  3. “… living standards have declined under the Abbott/Turnbull/Morrison Governments.”

    Presumably Jericho will be good enough to inform us of the inevitable living standards decline under a Shorten government?

    I wouldn’t bank on it, personally, but let’s see 😉

    • The observable facts are living standards rose under ALP and fell under LNP. Going forward? Well Oz is comprehensively done over. So the question is not which government will have living standards fall, but which will modify the pain best. If one is a Millionaire then the choice is obvious.

      • “… living standards rose under the ALP…”

        Really? Unlikely. And Jacob disagrees. Check out his comment under yours. One of youse is wrong!

    • Yep. Wages fell during ALP rule from 2008 to 2013.

      They gave out Aussie passports for doing a bloody hairdressing course! And then she gave out 457 visas to KFC.

      She also replaced Aussies in IT with third world males in IT en masse.

      • Sheer lunacy, I agree. Giving away a passport to a Western country is more than just granting someone lifetime access — you need to count the cost of all the welfare they’ll receive in a lifetime (Medicare, State pension, any other ancillary benefits — including housing assistance and unemployment payments, god forbid)

  4. If one thinks last few years were bad …. should wait and see next few
    It’s going to be epic.. possibly enough to tear the nation apart … or give rise to evil ideologies

    • The tensions will rise, and the hate will be billowing out, with many not giving two flying fernandos whether they are called ‘rac1st’ or not.

      • Wino Shinyface

        what the useful clown greg Jericho fears most will happen because immigration is off the table as it may fuel their fires of hate…

    • So all this immigration has achieved what? And what are we now left with?

      Couldn’t we have gotten a better result from the mining boom if we had a smaller population, if we hadn’t put all our incomes into housing, or the government hadn’t put it all into making the new arrivals feel so welcome?

  5. Jumping jack flash

    Blaming the government for crashing standards of living is drawing a bit of a long bow in my opinion.

    It assumes the government actually has some control. The government has no control. To control the “markets” that comprise the living costs you need to play in them. The blame falls squarely on the private corporations, driven by the greed and debt of the people that comprise them.

    Regulation is pretty much worthless: Plead and bargain with the corporations who supply the essential goods and services that make up the living costs, to follow rules that will limit their profit, and then, unsurprisingly when they don’t follow those rules, turn a blind eye. An isolated slap on the wrist, if they’re particularly unlucky. They have no more power than that.

    This is the reality and we need to wake up to it. We are living a fine example of what a couple of decades of an hogtied, lazy, indolent, impotent and insipid government does to a country. Sitting idly by while the private banks toss gargantuan piles of debt onto everyone to make everyone as greedy as the proverbial, and then wringing their hands when it all turns into a massive pile of proverbial, waiting for the very corporations who were responsible for the mess, to fix it.

    And in my opinion I can’t see how anything is going to be able to change without climbing out of the box we’re all in, and doing some actual thinking.

    • Yes, because governments have no control over immigration numbers. They have no control over a flood of cheaper migrants, and the effect on incomes. They have no control over flooding the housing market with migrants (including their extended families). Governments have no control over the benefits that are afforded to migrants (the easy granting of tax benefits, Medicare cards, and ease of access to free education). Governments have no control over ensuring that visa breaches are curtailed by law enforcement. Governments have no control ensuring remittances are kept to a minimum. Governments have no control over letting elderly migrants in for the gravy train of benefits.

      Oh that Invisible Hand has some explaining to do!

      May the Invisible Hand flick all those interlopers overseas!

    • It assumes the government actually has some control. The government has no control. To control the “markets” that comprise the living costs you need to play in them. The blame falls squarely on the private corporations, driven by the greed and debt of the people that comprise them.

      Government has complete control. It sets all the rules by which everyone has to operate, including everyone ‘playing in markets’. That is literally its only purpose.

      The problem is not that the Government has no control. The problem is that for decades the Government has been run by people who believe it should not exercise that control because they believe markets are the ends, not the means. High immigration, it is worth keeping in mind, is one of the outcomes of this “MARKETS!” mindset.

  6. Sydney and Melbourne dam levels have dropped to 55%. Melbourne Water is telling Victorians to use less water because population growth has been too high…. LOL How long until water restrictions come back in? What is the backlash on migrant-driven population growth going to be? Mark Latham and One Nation could have grabbed this issue by the horns, but decided instead to waste time on ab0diginee welfare…

  7. Sydney and Melbourne dam levels have dropped to 55%. Melbourne Water is telling Victorians to use less water because population growth has been too high…. LOL How long until water restrictions come back in? What is the backlash on migrant-driven population growth going to be? Mark Latham and One Nation could have grabbed this issue by the horns, but decided instead to waste time on indigenous welfare…

  8. HadronCollision

    Really good discussion

    Glad to have left melBurn and have land foood water and a means to protect same

    Miss Hampton st and cycling on the bay and step run repeats at red bluff and the snow and seeing the Dees but not everything else

  9. Good job Jericho. But what exact difference would standards of living have been if ALP was still in control (/??)?
    Pretty sure they’re not that interested in lowering immigration rate. As this seems to be the one really big factor I can’t see the point in saying LNP nor ALP. Pretty much was going to happen whoever was in. And will continue the decline after next election no matter if its ALP or LNP. None of them are going to address immigration rates.