Pelican, if you really want to help the poor and working poor, then shut down
all pokies tomorrow. That should save them around 6 billion$, IIRC.

The whole thing about increasing interest rates is to get people to think
twice about spending, or bidding even more on that house. Our economy
is frankly overheated and needs to slow down, that’s why interest rates
will work, when the pain is large enough.

Nothing is imposed on the poor, they make choices in life, as we all do.
Australia is full of opportunities for those who want to grab them.

Sheesh, when I married in my early 20s, we were stony broke. It was
a 40$ wedding dress, no wedding rings and 6 people, its all we could
afford. Such is life, you cut your cloth to fit. The biggest problem today
is that people think that if they are not millionaires, they should be miserable.
Rubbish!

Hasbeen, I remind you that State and local Govts load up new land for
housing with something like 100K$ in taxes and charges for infrastructure,
something you did not have to pay. No wonder that new homes are more
expensive, for these costs are passed on to young families when they buy
their block to build on.

Today we have a nanny state in terms of social services etc, but not
economically speaking. There is a large difference. Huge amounts
of Govt money are paid to those on lower incomes, from baby bonuses,
childcare, etc. etc. Take a look at where the 90 billion$ is spent.

Economically speaking, everything changed with the deregulation
of the monetary system. In the 70s it was almost impossible to obtain
a loan. Now any 20 year old with a trade, can borrow to start their
own business. In the 70s, only the very rich owned property other
then their house, today its common. Today, the bank spread between
borrowing and lending is about half what it was then, consumers
benefit. People can now borrow freely, but they can also get into
financial trouble. User beware!

Well said Hasbeen.I don't know about the other states but NSW has chronic shortage of housing.Govt taxes and charges account for 37% of a house/land package and thus investors have deserted the market.
Rents are increasing and this will result in many people just moving to other states.Interest rate hikes will only accelerate this trend.

We have so much wealth,yet the ordinary punter is far worse off than 25 yrs ago.With the Global warming zealots pushing their barrows,things will only get harder.

Yabby I don't know whether to take you seriously or not. You can't believe that the working poor and the poor (ie. those living on meagre pensions) are in dire straits because of the pokies? Sure there will be always be those who waste money in this way from all socio-economic levels.

I do agree that we have become greedy overall. But our heightened consumerism and inability to 'wait' for material possessions, or do without, makes it difficult for those choosing not to don't buy into this lifestyle.

It may be that the Australian Dream of owning your own home will go but even if you cannot buy a home you still have to rent and we are in a tight rental market. I wonder if those who bid more than they should believe it is better to purchase rather than paying out huge amounts of rent which is dead money. Most people don't qualify for government housing and there are not enough rental properties to go round.

It is a great concern when as a society we accept abysmally low pension payments where the elderly, the disabled and their carers are barely surviving. And I mean putting food on the table not out buying plasmas and swimming pools.

Pelican, if you don't realise the signficance of gambling related
to poverty, then feel free to kid yourself.

Australians are the world'd biggest gamblers. The State of NSW has
more poker machines per capital then any place on earth. Aussies
lose around 1000$ a head on gambling, more in NSW, less in WA, as
we don't have pokies.

http://news.bbc.co.uk/2/hi/asia-pacific/6313083.stm

Renting is certainly not dead money. Its a service provided.
Houses require insurance, rates, repairs etc. In many parts of
Europe, renting is normal. So what?

Land is the biggest cost when it comes to housing and Australia
is not short of land. Its Govts who have made land expensive to
people who want to build homes, with their taxes and charges.

Yabby you are purposely misconstruing what I have said to suit your argment. Does gambling cause poverty? Yes of course it does but not all poverty is due to gambling or do you wish to ignore all the other factors that cause poverty?

The difference in renting in Australia and in Europe is supply. I have relatives that live in Europe and rental accommodation is plentiful (not in all places I know) and rents are controlled in some apartment complexes. Not so here in Australia where the market will determine the rent even if there are massess that cannot afford to pay, some even becoming homeless. You might be paying for a service but if there is limited supply then chances are you are paying too much and may as well purchase a house if you have to come up with this amount of money on a monthly basis anyway

No Pelican, of course not all poverty is caused by gambling, but blowing 13 billion
on gambling does not help!

Sometimes I just get pissed off by people constantly grizzling and of course its
all the Govts fault. I really don’t think that Australians appreciate how lucky
they are, in a relative sense.

Meantime other Aussies are thriving, under the same conditions. A couple of
Nights ago there was a pensioner on Today Tonight, complaining about her
miserable pension of 280$, so they went shopping with her. She spent
111$ or so on food, including the most expensive toothpaste ( 8$), then
148$ on Vitamins! Sheesh, no wonder the budget does not add up.

Fact is that you could increase pensions by 50$, some would still blow the
lot, others would cope as they cope now, some quite well.

As to housing, Govts spend 4 billion$ a year, helping 1.5 million households
with various housing assistance.

http://www.news.com.au/story/0,23599,23256626-421,00.html

But no matter how much Govt helps, some individuals will get it wrong,
buy houses they cannot afford, not allow for Murphy’s Law and land
up as hard luck stories on tv.

I have come to the conclusion that some people just like complaining,
its easier to blame everyone else, rather then ourselves, for our problems.

But usually the solution is ourselves. Some facts remain. On average
Australians are earning more then ever before, are richer then ever
before and are spending far less on food then 20 years ago or 50
years ago. Its our selective memories that are the real problem.