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The Forum > Article Comments > Will the plight of Australian battlers get worse? > Comments

Will the plight of Australian battlers get worse? : Comments

By Chris Lewis, published 22/9/2009

The Australian government must adopt polices that ensure welfare assistance and wages are fair and appropriate.

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CL:

Your article accentuates the plight of Howard's " battlers " - fovourite eupherism he loved to evoke when referring to " mums-and-dads " of his generation. In the limited space OLO prescribes, it's a daunting task to encapsulate what Dr David Harmer, myriad consultants, Treasury boffins, bureaucrats from Family Services, 1800 personal submissions etc took four years to churn out. Result: Harmer's Pension Review Task Force 2009 Report.
Far from being perfect,with countless anomalies, it's being adopted in it's current form, regardless !

In a nut-shell, it puts paid to C L's multifarious conundrum.

Now, that our narcissist Wizard of Oz is strutting the World stage eulogising Climate change, and garnering support from World Leaders in the G20 summit talk-fest, in Pittsburgh, what other pinnacles is there to conquer ? Meantime, back home, it is very likely a double-dissolution will see his grandstanding abruptly stymied.

Despite the grandiose spiel about his Economic credentials, did the $ 43 billion stimulus bonanza really achieve scuttling the Recession ? For that matter, did Obama's trillion's put bread on the table,provide health care, and restore people's confidence, to where it was before the sub-prime debacle ? Forget Gordon Brown's fiscal indiscretions. One thing for sure, the pundit's will be debating the issues for the next five decades.

According to ABS stats, Mar 2009, Oz population reached 21,779,000. An increase of 439,100 from 2008. Migration accounted for 63% and 160,000 or 37 % were neonatal births. Since the arrival of the Baby Bonus, on average have exceeded 200,000 annually.

For those of us who weathered the storm,kept our jobs, took the measly handouts, and blissfully await the next " manna-from-canberra "gratuity, one can only wish there was more in the offering ! As for his kudos, and popularity, his sheer vanity repels me completely. I've seen better at the Woolloomooloo, Sydney wharfs.

Wishful dreaming aside, the battlers are going to have to forego a few more McDonald's burghers, since the CPI rise of 1.5% Jun 2009. Auto fuel rose 36 %. Rent's 1.3 %.Furniture 3.7 %. Home purchase 1.3 %.Veges, fruit and

cont
Posted by dalma, Thursday, 24 September 2009 7:29:11 PM
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housing deposits & Loans fell 4.3 %, and overseas holiday travel, a staggering 4.5 %. Hellelujah !!

Despite Julia Gillard's effusive Educational reforms and billions injected into a fractious system, Qld children rated 6/7 in numeric and literacy skills, even with endless coaching, and some fudging, failing to improve the status quo. Truancy, and dropout's continue to plague an organisation-in-disarray. Long term, none of these kids are ever going to gain meaningful employment. Decidely worst,I can assure you,it takes more then the Baby Bonus to rear a pet, let alone a child to adulthood.
It will be a National catastrophy just waiting to happen.

With Govt obsequious connivance on Benefits, Youth allowances, etc and a burgeoning rate of 5.8 % unemployment, taxpayers will ultimately service an untenable inequity. The legions of bludgers keep getting worse, often with three generations of battlers living on welfare,Govt housing,and surviving on Rudd's expansive generosity.
In 15 years time, our welfare burden will be inexorably without precedent, given the maturing aged, baby-boomers etc vying for a diminutive commodity. In this unsustainable scenario, not even ebullent Ken Henry's bravado, Reserve Bank and Treasury have the intestinal fortitude to readilly address this serendipity.

Interesting, what do we for an encore Kevin ?
Posted by dalma, Thursday, 24 September 2009 7:58:10 PM
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*Or is that alright if many make a profit from their second, third, and fourth houses, while others just look on and hope prices oen day come down without a major recession*

CL, I think you are misdiagnosing the problem. Those who invest
in houses in fact do us a service, for somebody has to put up the
money, for those who prefer to rent a house and there are many.

I agree that Australian house values are too high, but if you take
note, you'll find that the lower end of the housing market held
its value, many other areas dropped, as first home buyers armed
with 21'000$ of taxpayer money, pushed up the market.

Last year we also had a record number of migrants. Combined with these
you are competing with twin income couples etc, for the same houses.

If too many houses were being bought by speculators, there would be
a surplus of rental housing, rents would drop, that is not the case.

Fact is that for many years, states like NSW were adding around
100k$ onto the cost of building a house, with various fees and charges, so less were built.

The Federal Govt already spends 110 billion$ on welfare, how much
more do you want?

Owning a house was never easy, I certainly could not have afforded
to buy a house, as well as feed a wife and kids, all on one income.
That was in the 70s.

As I pointed out to you, smart couples bank one wage and live
off the other. In just a few short years, they will just about
be able to pay for a house, perhaps then have babies. We are still
responsible for our actions.

IMHO what has happened, is that our generation made a huge mistake,
by giving their kids life on a plate. Now they expect life on a
plate and think they are doing it tough, at the slightest
adversity.
Posted by Yabby, Friday, 25 September 2009 4:18:35 PM
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Yabby

I agree with a lot of what you say with your last post. I do acknowledge the important role played by home investors and know there are limitations on how much we can spend on welfare. I also agree that current immigration levels is not helping.

I just hope that we can devise a system that again ensures that homes are affordable for most of the population because many are going to struggle in coming years whether through high house prices or rents. Even .

I don't know how we are going to do it, but it is a question I believe needs asking. Perhaps only a serious recession will force house prices to drop, but that wil also cause much suffering.

The Australian Property Monitors site indicates that the median rental for houses and units as of March 2009 was $450 and $410 in Sydney, $350 and $320 in Melbourne, $360 and $340 in Brisbane, $300 and $250 in Adelaide, $370 and $350 in Perth, $300 and $240 in Hobart, $500 and $400 in Darwin, $410 and $400 in Canberra, $300 and $240 in Newcastle, $420 and $350 on the Gold Coast, and $395 and $320 on the Sunshine Coast.

By June 2009, the average house and unit price were $547,000 and $381,000 in Sydney, $465,000 and $345,000 in Melbourne, $421,000 and $339,000 in Brisbane, $417,000 and $268,000 in Adelaide, $476,000 and $336,000 in Perth, $302,000 and $246,000 in Hobart, $549,000 and $375,000 in Darwin, and $488,000 and $364,000 in Canberra.

What do you suggest? I am always looking for ideas.

My article may have been a bit simplistic, but was merely an attempt to express my concern that life may be about to get a lot tougher for a significant number of Australians. Heaven help those who have just bought a house with a $250,000 loan if interest rates go again to 10%.
This would mean an extra $12,500 annual interest payments if the prciniple remains the same.

Anyway, good sparring with you in verbal terms. The more debate the better
Posted by Chris Lewis, Friday, 25 September 2009 4:39:25 PM
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*What do you suggest? I am always looking for ideas.*

Well Chris, you asked, so I will tell you :)

If I was in what I understand to be your position, I certainly
would not buy a home, for you are correct, interest rates are
only heading upwards, so there will be many a sad story.

I'd try and come up with ideas, for your partner to stay at
home with the kid, but still make a few bob. Depending on what
she enjoys and her aptitude, there are all sorts of things she
could do. In the internet age, more and more people are working
from home and fitting it around their family commitments.

I'd have one goal in mind, to accumulate cash. For when
the day comes, when interest rates rise and people have to
sell their houses, you'll be in a prime position to act.

But patience is a virtue, just one little step at a time however,
will eventually get there. Life is a journey and enjoying
the trip is far more important then arriving at the destination :)

Thinking back some of my really happy times were in fact when
I was stony broke and had lots of dreams, but I am a stubborn
bugger and persistance does eventually pay off, even if it sometimes
seems like it takes forever.
Posted by Yabby, Friday, 25 September 2009 9:04:30 PM
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Thanks for an interesting article, I didn't realise that 1 in 8 working age adults relied on social security payments.

I am very concerned that sick people are now put on Newstart rather than sickness benefits because Newstart pays $220 per week and Disability pays $330 per week, plus Disability pensioners have access to health care card and subsidised drugs. I know of people with double vision who were on Newstart, hmmm how can you type or read when you can't see.

I have watched older Australians go hungry as they try to survive on Newstart payments.

Will the plight of Aussie battlers get worse? If this forum is any indication, the answer is yes as society doesn't recognise that there is a problem and are still determined to blame and punish the individual for their predicament.
Posted by billie, Friday, 25 September 2009 10:28:40 PM
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