wealth gaps growing - society fracturing

When it comes to earning and spending money, it looks like the public are no longer happy to play the game called 'pass the parcel' any more. It's now a game of 'hold onto what you've got'. We, the public, will decide when and how much we will spend; not the politicians, bankers or CEOs.

Until now, these leader groups have done an awesome job in extracting everything they possibly can from you, me, our families, our workmates and our neighbours. We have taken on as much debt as possible, so much so, that banks are now a little 'concerned' if we can repay them in the future any more. And it shows. I see a lot of distressed looks on the faces of salespeople at shopping centres - something different is in the air, and they know it.

The games played by our leader groups are all geared in maximising wealth of the elite in this country, at the expense of the average workers. I'll give you an example. I'm in the car game. A brand new Falcon or Commodore depreciates heavily the minute it leaves the show room. Why? Because the new retail price is heavily inflated due to the tax incentives used by companies/businesses to lease the vehicles. That means Joe Citizen not only has to pay a higher price to buy a new Commodore, he also misses out on the luxury of having the massive tax advantages enjoyed by big earning companies and individuals.

So in other words, top companies get something for nothing but Joe has to dig far deeper into his pockets to buy something he knows will be worth half in 3 years time. Try buying a 2 year old automatic Corolla from a dealership and see how much they are asking. I bet you you'll think you'd be better off buying 'new', as the 2 year old Corolla has barely dropped in price.

To start off with, most Corollas are bought by Joe Citizen, whereas most Commodores are bought by your tax dollars. Hence the massive price distortion we see on the new bigger cars. And when Holden was exporting the Pontiac G8 (Commodore SS) to the USA, it was substantially cheaper than what we paid here, which included currency difference. Plus they had to be shipped there. Do you see what I am getting at? It's one for us, and 5 for them.

Then they decide that we are not worthy of keeping our jobs, that it is better for them if they seek products made overseas for a bigger profit. More for them, less for us. Initially it was more for us as well, as products became cheaper. But what has happened since is the extra money flow going into the top end had a knock on effect on everything below it. More money at the top end meant we had to borrow more to meet the gap. More money at the top end meant local assets, services and labour costs rose disproportionately to what the economy was really earning - which it is now effectively earning less than had it not lost jobs to overseas. Maybe the pay packet shows you are earning more, but it does not go anywhere near as far as it should go. Oh yes, if you want to buy something from Harvey Norman you won't have a problem - that stuff is real affordable. But try getting a plumber to fix your toilet, or pay your electricity bill, or buy a house - is your pay packet really that much stronger? We now have all the debt we could muster.

And to prove where their loyalties lie, they decided that to make things cheaper for them on our local front, that it would be a great idea if we opened up our borders to immigration. Wow, now isn't that fun! I bet you like your traffic jams, longer hospital cues, missing out on getting your kids into the nearest school, or having your abandoned daughter with 3 kids live in your garage, while commission homes are given priority to refugees. But at least immigration is a win win for our leaders. Toot toot! Cheaper labour costs - more money for corporations, but less money in your pay packet. Higher house prices - great for wealthy investors - but more debt is needed for anyone new wanting to buy a home.

In summing up, corporations, politicians and bankers are winning from every front. They import goods from overseas for higher profit, at the expense of local jobs. And when local jobs get too costly, they bring in workers from overseas. When house prices fall in value, they open up the market to foreign investors, or give tax payers money to people to buy houses. And when banks can no longer lend due to deposits going out, then our leaders prop them up with our tax dollars.

Day after day, the gap is getting greater, and it will get worse. In years gone by, average Australian battlers always had a chance of doing the right thing. If they got their girlfriend pregnant, then they got a job driving a forklift (or similar), bought a house, and eventually taught their kids the right way of living.

But now, no one in that situation has a chance - no way. They are not given the fair go that Australia was once envied for. They cannot do the honourable thing of standing by their pregnant girlfriend by getting a job and paying the bills. That is not enough, as now you must have 2 jobs to buy a home. And the deposit required now to get a home is roughly the size needed to buy a home 25 years ago. Wow, that's progress. But don't worry, rental assistance is there if you need it.

So now we have young Australians who are shut out from the game we play. They are not given the chance of buying a home with the one wage that older home owners enjoyed. They are not looking at value for money incomes due to the dilution effect high immigration does to basic wages. They are not given tax incentives to buy a car or a home that cashed up individuals have the luxury of.

So what would you do? Got a girlfriend pregnant, and you want to do the right thing. What right thing? How, with what? You're best option is to dump her, go on the Dole, and leave her and the kid to the tax payer to pick up the tabs.

If you're on the sweet side of the fence here, with the comfort of your own home, with your investment properties paid by renters and tax payers, then you will probably not understand the frustration someone who is starting out is going through. Frustration for these people is real, and it turns to anger. Many get so frustrated by being rejected by society that they either turn to violence and crime. Yes, there is no excuse - but live the life of being rejected long enough and you'll feel your attitude turn for the worst.

The nicest and the most politically correct people on this earth are the ones who have everything they need. The most offensive and negative people are the ones who feel 'let down' by society. People want to be given a chance to prove their worth, and in return will want to give something back to society. But if you keep giving to them negative signals, then the outcome will be, and you guessed right, negative.

Now there is a clear pattern here. Many of our young Australians have become rebellious, and at a much higher ratio than years gone by. The public are angry at the crimes being committed by our youth. But they are even more angry at the lenient sentencing our magistrates are handing out. The fact is, we do not have the prison capacity needed to tackle to crime effectively. The number of crimes occurring is alarming, but the justice system does not know how to deal with the issue. You can't fine someone who has no money to pay. You can't send someone to jail because there is no room. Leave them out on the streets and they turn to crime. Do more crime because you're out on the street and guess what - you have a house to live in!

Society has always been like that. It's thrived off the capable sector of society to the point where it could afford those who did not fit into 'the system' of society. We didn't/don't want people running through the streets like lunatics, so we give them what they need to integrate. Not a bad thing in many ways, because once in a home the anxiety levels drop and so too will be the urge to commit crime. Had these individuals been thrown in jail, then they would have had all the skills needed to commit 'smarter crimes' when they get out. So giving the elements of this country a house to live in makes perfect sense, because it keeps the streets sanitised.

So where does that leave the decent guy that really loves his pregnant girlfriend? What is the best option for him? Is there an incentive to do crime to beat the system? Probably! So there you have it - the rich people and corporations in this country get everything at the cost of you - the tax payer. The criminals of this country get everything at the cost of you - the tax payer. And it will only get worse, because the gap between the rich and the poor is growing rapidly.

In the meantime you will be taxed more, have more debt, face wage reduction pressures, and all in all, have a poorer quality of life than had we not chosen to buy goods from overseas, and had we not decided to bring in excessive numbers of migrants into this country. But of course, that would make me a racist by saying such a thing.

So if took away the following;
rental assistance
negative gearing
salary sacrifice/car lease plans
overseas products
immigration
social security
the pension - what would we have?

More houses on the market would mean a lower price to buy a home - less need for rental assistance, and less likely you will need social support.
Car lease plans removed would mean car prices would drop to their correct prices.
Removal of overseas products would raise inflation, which would put further reduction in house and car prices. But at least jobs will be kept home.
Reduced immigration would mean your wage will go further when it comes to buying a house, so you will have less debt, and able to afford a better quality of life.
Removed social security would mean there is a real incentive to get a job - any job. The outcome - goods and services drop (and so does the tax strain)
Remove pensions, by giving tax incentives to keep elderly grandparents at home - happier and less stressed mums, happier and more balanced children who grow up to respect adults, a much less strain on the tax payer.

What does that mean for corporate Australia. Less profits, less growth, and a smaller gap between the rich and not so rich. And our young, well they would have a greater chance at showing us what they can do. Less elements in our society.

In the meantime, enjoy your night out when going to Melbourne for some entertainment - that is if you make it through the night without being knifed!