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:
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!