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Economic growth: is it worth having? : Comments
By Don Aitkin, published 22/11/2012Despite the Club of Rome we've never been better-off and better-fed than we are now.
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And as always, I check facts, which verify, pre the GFC, we had slipped down the rankings from a high of three, to around number thirty, in the national pro rata wealth stakes.
Bigger air-conditioned houses, with barely enough room for the almost obligatory backyard pool, invariably equate to bigger mortgages, higher rates, larger insurance bills, higher energy usage, and vastly more personal or domestic debt, which just prior to the GFC, was apparently larger than our record foreign debt!
None of which equates to, or verifies increased wealth, just increased indebtedness and increased consumption, which by the way, did make a very few of us actually better off!
And indeed, as the housing bubble deflates, many will find the so-called equity, largely delusional, with many Mac'Mansions, worth considerably less than the mortgage loads they still carry!
Massively overvalued and over-leveraged assets are never ever increased wealth, merely massively increased indebtedness!
To reiterate, some of us were better off, but only if you count Billionaire bankers, insurance brokers, real estate resellers, unproductive tax practioners, share holding politicians, and franchise builders, like a now rapidly going backwards, Harvey Norman?
Rhrosty.