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How did Australia become so expensive ?

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Created by pierrec45 > 9 months ago, 15 Dec 2011
Gunna1

Gunna1

154 posts
19 Jan 2012 11:52AM
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evlPanda said...

Gunna1 said...

Another reason could be that we allow all our assets to be flogged off and we "locals" get the scraps. On 6PR talkback yesterday they had the head of the farmers federation explaining why we are paying so much for local produce and why these costs will skyrocket in the near future. The government, in their wisdom, allows any foreign purchase of land under $231 million (per purchase) virtually unregulated so any country can buy Ozzy farms freehold, put in their own workers, plant crops, harvest and send the produce back to their country for nothing. This is happening all over Oz and farms are being purchased at an alarming rate. Can't blame the battling Oz farmer who has been taxed and regulated out of business and takes the money and retires. In a very short time we will have a lot of our farmland sending good produce overseas for next to nothing and the demand increasing here which will send the prices through the roof.


If the prices go through the roof here why would these foreign farmers send the produce overseas when they could simply sell them here for more? Eh?


He didn't cite individual examples however, speaking on behalf of the Farmers Federation he was very concerned. To answer your question he also said it wasn't about profits or selling to a better market. It is about feeding the people in many, mainly middle eastern countries who has squandered their ability to feed their own people to support wars and religious idealogies.

whatthe

whatthe

WA, 186 posts
19 Jan 2012 12:19PM
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How did Australia become so expensive?
Debt and cheap credit.

See graph 1: www.bis.org/publ/bppdf/bispap46e.pdf

Instead of saving money and delaying expenditure, we borrow and spend now. As credit became cheaper in the 80's, we borrowed more and could afford to buy bigger houses and more stuff. This has the medium-term effect of increasing our standard of living. So we all now enjoy a higher standard of living, but with a much larger amount of debt.

Extrapolate this to the rest of the world and you get some explanation of GFC. This video is the best I have come across:

SomeOtherGuy

SomeOtherGuy

NSW, 807 posts
19 Jan 2012 6:59PM
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Gunna1 said...

evlPanda said...

Gunna1 said...

Another reason could be that we allow all our assets to be flogged off and we "locals" get the scraps. On 6PR talkback yesterday they had the head of the farmers federation explaining why we are paying so much for local produce and why these costs will skyrocket in the near future. The government, in their wisdom, allows any foreign purchase of land under $231 million (per purchase) virtually unregulated so any country can buy Ozzy farms freehold, put in their own workers, plant crops, harvest and send the produce back to their country for nothing. This is happening all over Oz and farms are being purchased at an alarming rate. Can't blame the battling Oz farmer who has been taxed and regulated out of business and takes the money and retires. In a very short time we will have a lot of our farmland sending good produce overseas for next to nothing and the demand increasing here which will send the prices through the roof.


If the prices go through the roof here why would these foreign farmers send the produce overseas when they could simply sell them here for more? Eh?


He didn't cite individual examples however, speaking on behalf of the Farmers Federation he was very concerned. To answer your question he also said it wasn't about profits or selling to a better market. It is about feeding the people in many, mainly middle eastern countries who has squandered their ability to feed their own people to support wars and religious idealogies.


So middle eastern people are buying farms on the opposite side of the planet to grow food and ship around the world to finally sell to their own people at a loss? Why wouldn't Saudi sheiks (or wherever it is this food is supposed to go to) just buy perfectly good land in next-door Pakistan. Or North Africa somewhere? Or even Europe?

Sounds like you need to switch to another radio station.

pierrec45

pierrec45

NSW, 2005 posts
19 Jan 2012 11:29PM
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whatthe said...

How did Australia become so expensive?
Debt and cheap credit.

Nothing different in this pattern between Oz and the rest - question was "... as compared to the rest".

Earlier explanations in this thread differentiate here against USA and Europe...

Gunna1

Gunna1

154 posts
20 Jan 2012 8:28AM
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SomeOtherGuy said...

Gunna1 said...

evlPanda said...

Gunna1 said...

Another reason could be that we allow all our assets to be flogged off and we "locals" get the scraps. On 6PR talkback yesterday they had the head of the farmers federation explaining why we are paying so much for local produce and why these costs will skyrocket in the near future. The government, in their wisdom, allows any foreign purchase of land under $231 million (per purchase) virtually unregulated so any country can buy Ozzy farms freehold, put in their own workers, plant crops, harvest and send the produce back to their country for nothing. This is happening all over Oz and farms are being purchased at an alarming rate. Can't blame the battling Oz farmer who has been taxed and regulated out of business and takes the money and retires. In a very short time we will have a lot of our farmland sending good produce overseas for next to nothing and the demand increasing here which will send the prices through the roof.


If the prices go through the roof here why would these foreign farmers send the produce overseas when they could simply sell them here for more? Eh?


He didn't cite individual examples however, speaking on behalf of the Farmers Federation he was very concerned. To answer your question he also said it wasn't about profits or selling to a better market. It is about feeding the people in many, mainly middle eastern countries who has squandered their ability to feed their own people to support wars and religious idealogies.


So middle eastern people are buying farms on the opposite side of the planet to grow food and ship around the world to finally sell to their own people at a loss? Why wouldn't Saudi sheiks (or wherever it is this food is supposed to go to) just buy perfectly good land in next-door Pakistan. Or North Africa somewhere? Or even Europe?

Sounds like you need to switch to another radio station.


Or you could check out the article in todays West Australian, page 12.

whatthe

whatthe

WA, 186 posts
20 Jan 2012 10:39AM
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pierrec45 said...

whatthe said...

How did Australia become so expensive?
Debt and cheap credit.

Nothing different in this pattern between Oz and the rest - question was "... as compared to the rest".

Earlier explanations in this thread differentiate here against USA and Europe...


Australia is geographically isolated. Until the advent of online shopping, our consumer goods markets were isolated giving local operators an monopoly/duopoly/pricing cartel. There are absolutely no alternatives in the housing markets, if you want to work in Sydney, you have to live in Sydney.

In the last five years we have seen online shopping take off due to improvements in technology and consumer awareness. Combine this with a Aussie dollar that has almost doubled against the US, and suddenly we are all regularly comparing Aussie prices with US prices. Local retailers still have to pay Aussie wages however, so are reluctant to lower prices.

Thus, certain market sectors now have to compete in the global economy whilst paying Aussie wages and still battling with the tyranny of distance from the rest of the world.

FlySurfer

FlySurfer

NSW, 4453 posts
20 Jan 2012 4:56PM
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Most people around the world have never heard of banks charging you to keep your money... over here most people have never heard of banks not charging you to keep your money.

Let's compare the UK with Australia, please note that when I lived in the UK from 1997-2001 it was referred to as rip off Britain.

I have a UK bank account which I last used in 2001 with a balance of 48p... every month I get a statement and every 2 years I get a new Visa debit card... my balance is now 55p.

Visa credit cards free with bonuses, freebies... over here $79-$1000 a year or some ridiculous interest rate and 0 benefits.

ATM charges... what's that?

A friend just came back from the UK... his first email to me was Quote
just back - jetlag sucks so much..... Now im starting to deal with getting back to Australian life lol

I need a cheap prepaid mobile data plan, it's such a rip off here.
Would you know of any such deal, and whether its possible... Google says no in Aus :(

Thanks heaps!

Lets face it, we're being shafted by our government, distributors and the companies... everything you want to do has a fee.

NSW License: $50 for 1 year.
UK license: 50 pounds ($75) for LIFE! or until 70

NSW you need rego for a trailer.
UK: U just need a board with your vehicles plate number.

Australian produce is cheaper overseas than over here... yup Oz/NZ lamb is cheaper in the UK.

Tomatoes in Tesco... 99p over here $4.99 - $7.99.

I can't think of anything reasonably priced here.

UK 4 bedroom house in London ~$540k Ealing/Hammersmith/Shepherds Bush
AU 4 bedroom house in Sydney ~$1.5MILLION Ryde/Lane Cove


But hey... just load up on debt and keep partying!

SomeOtherGuy

SomeOtherGuy

NSW, 807 posts
20 Jan 2012 8:51PM
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Gunna1 said...

Or you could check out the article in todays West Australian, page 12.


Maybe I could. If I lived in Western Australia.

highnoon

highnoon

VIC, 602 posts
20 Jan 2012 8:54PM
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SomeOtherGuy said...

Gunna1 said...

Or you could check out the article in todays West Australian, page 12.


Maybe I could. If I lived in Western Australia.


Isn't it on the internet thingy


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"How did Australia become so expensive ?" started by pierrec45



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