You are here

Rudd's 'Big Australia' driving up costs of living and creating poorer Australians

Rudd's penchant for a 'big Australia' is behind his absurd record immigration policy. Population growth and congestion is out of control and is the common denominator driving up Australian land prices, electricity, water, inflation, consumer demand, interest rates, and consequently the costs of living of ordinary Australians.

Our state and federal public infrastructure cannot cope - roads, public transport, health, education, housing, you name it!

Our state and federal public infrastructure cannot cope.
The cost of living for ordinary Australians is becoming desperate!

BIGGER ELECTRICITY BILLS

Today, Origin Energy chief executive, Grant King, warned the Committee for the Economic Development of Australia in Sydney that Electricity prices across Australia were likely to triple over the next 10 years.
He blamed the combination of the federal government's mandatory renewable-energy targets, energy policy uncertainty, higher electricity transmission and distribution costs, and higher fuel costs would drive the increase.

King attributed the rise in electricity demand to booming sales in energy-inefficient flat-screen televisions and air-conditioners. ['Energy prices to triple', The Australian April 14, 2010] This is clearly a consequence of new housing development driven by population growth laregley fueld by record immigration. And the growth lobby like the Urban Taskforce are lapping up the new cash!

Last month, that dodgy NSW Government euphemism 'The Independent Pricing and Regulatory Tribunal (IPART)' approved electricity price rises of up to 64% over the next three years, with "those living outside the main cities will bear the brunt of the increases."

'Country Energy, which provides all of rural NSW customers with their electricity, has been allowed to raise its prices by the steepest amount, with an increase of $918 if the scheme is introduced; otherwise, the rise will be $601.

'Overall, Energy Australia customers will see prices rise by a total of 46 per cent, for Integral Energy 60 per cent, and for Country Energy 64 per cent.

Welfare groups have warned that the price rises will force many low-income households into ''energy poverty'', and they will not be able to afford to pay their bills.'

[Brisbane Courier Mail, 'Households to feel pinch as price of power soars', 19th March 2010]

BIGGER WATER RATES

Across Australia, water rates are on the rise as each capital city spends big on desalination plants to cope with their swelling populations.

Last April (2009) it was reported by the Essential Services Commission that Melbourne households faced water price hikes of up to 84% over five years. The key drivers were claimed to be the global economy (standard excuse) as well as government not keeping water infrastructure up to demand and so deferring infrastructure works for years. [The Age (Melb), 21 Apr 2009]

Just two days ago, (12th April 2010), with Melbourne's extravagant new desal plant blowing out to cost a whopping $5.7 billion, Melbourne's water prices will further escalate to pay the bill and because of the extravagant dependency of desalination for electricity, which is also going up in price.

'Over the past five years the price of electricity has increased 13 per cent a year in Victoria - and in NSW prices have risen 28 per cent a year in each of the past two years.'

['Water plans drift behind a veil of secrecy', The Age April 12, 2010]

BIGGER HOUSING PRICES

In 2009 Australian capital city house prices rose by 12.1%. Meanwhile Australia's homeless stands at 16,000. Key drivers for house prices surging are the government’s first-home owners’ grant boost.
['Web alert - warning on 'crazy' house prices', Sydney Morning Herald, 16th February 2010]

Other drivers are the inflow of new immigrants seeking accommodation and foreign nationals permitted to invest in Australia's residential housing market.

BIGGER MORTAGE INTEREST RATES

Last December, interest rates were predicted to rise 1% during 2010. But the drivers were the surge of capital projects in the next few years and China growth.
['Business, brace for 1% rise in interest rates in 2010', Sydney Moring Herald, 24th December 2009]

This month, all the banks followed the Reserve Bank in raising their mortgage rates by 25 basis points, making this the 5th interest rate rise since October and has pushed up mortgage costs by a total of almost $250 a month.

Treasurer Swan said the rise was “a painful reminder” the economy was improving. How out of touch is Swan?

Economists warned there could be at least one more rate rise before the end of the year.

['CBA, ANZ, Westpac follow as Reserve Bank raises official cash rate to 4.25%', Herald Sun , 6th April 2010]

BIGGER GROCERIES BILLS

It was confirmed just last November that Australians "are paying the fastest-rising food prices of any major developed nation. The cost of feeding a family has shot up more than 40 per cent this decade, new OECD figures reveal.

Experts say the explanation for our pricey produce and soaring staples is not drought, currency movements or transport costs. University of NSW associate professor Frank Zumbo said comparing costs over 10 years eliminated such variables and exposed our "cosy" supermarket duopoly as the main reason.

[Daily Telegraph, 'Australia has fastest-rising food prices of any major developed nation', 9th November 2009]

BIGGER MEAT PRICES

Wholesale butcher Kevin Masterton says the days of expensive cuts at cheap prices are over for Australian meat lovers. He's predicted Australian meat prices will never be the same again.

"Everyone is predicting Lamb will be the first Australian meat that is unaffordable. Some of the predictions I've seen is that lamb racks and cutlets will be one hundred dollars a kilo by the middle of this decade," Kevin said.

And it's all because we've been spoiled for choice. The drought has forced farmers' hands - they've had to off-load cattle to stay afloat. "They see that they are going to make more money on the cattle so they hold onto them for longer. There is also quite a bit of export, the economy has started to turn so there is less cattle in the market," Kevin said.

And it's a similar story when it comes to lamb. There's been a nine per cent jump in retail sales and a 10 per cent rise in national expenditure on the meat.

And this year the nation's sheep flock is forecast to hit its lowest point since 1905. "And we have got massive exports to the middle east, so if you take those factors into account they've had a pretty detrimental impact on the stock," Kevin said.

"Lamb has probably had the most spectacular increase - we are probably talking four to five dollars a kilo for the lamb cuts."

['Meat prices on the rise', Today Tonight, 3rd March 2010]

So there is not enough capacity in our meat livestock industry to cope with demand, hence meat prices are going up.

BIGGER PETROL COSTS

"Crude oil prices have surged to 18-month highs on the weekend and have swept petrol prices higher.
Oil prices could go to $US95 a barrel, warns analysts. Domestically, a litre of unleaded petrol costs $1.29, up 0.3 cents.

'Oil, which has been trading at between $US75 and $US85 a barrel for months, now appears to be in a new range that could go up to $95, according to oil trader and analyst Stephen Schork.'

[Perth Sunday Times, 'Petrol prices set to rise, 6th April, 2010]

The trend suggests that Australian petrol prices could be nudging $2 a litre in two years time and this time it will stay there in line with international prices. Ain't globalisation and free trade great for locals!

BIGGER POORER AUSTRALIA

The compounding cost of living for ordinary Australians is becoming desperate!
What the economic data doesn't report is the social consequences - like the growing depression, family breakdowns, homelessness, substance abuse, suicides and domestic violence.
The long term impacts on children are devastating for not only the children but the future society they become adults in.

More people into less space driving up living costs, only delivers a poorer Australia.

The drivers of these costs must be addressed as a national priority.
The BIG elephant in the room is starkly Rudd's immigration out of control!
Rudd's red herring Population Minister is just that, an election red herring.

Rampant Rudd and his immigration wrath must be stopped!

AttachmentSize
Image icon Chinese symbol for 'Big'.jpg2.59 KB

Comments

Human Development Index: 2009
In order:
Norway
Iceland
Australia
Canada = Luxembourg=Sweden
Switzerland
Ireland
Belgium
United States
Netherland=Japan=Denmark=Finland
UK
France
Austria
....
Niger
Countries high on the Human Development Index tend to have annual population growth rates of 1 percent or less, high urban population percentages (65 percent and up) and balanced percentages of people under 15 and over 65 years of age.
The new estimates indicate that the global population will reach seven billion by 2012 and nine billion in 2050.
As per the new estimates, half of the world’s projected population growth from 2010 to 2050 will take place in nine countries – Bangladesh, China, Democratic Republic of Congo, Ethiopia, India, Nigeria, Pakistan and the US.
Those low on the index tend to have annual population growth rates of 1.5 percent or higher, less than 35 percent of the population in urban areas, and an under-15 population that greatly outnumbers those above 65 years (in most cases, more than 10 times as many.)
If global trends are significant, we can expect to be bigger and poorer in a super-sized Australia. The USA seems to defying the trends! However, there may be some hidden statistics?

You make it very clear John. Population growth is turning Australia into a third world colony dominated by a small crass moneyed class. It should be obvious to everyone, but maybe people just don't believe their own eyes and pockets until they can see that they are not alone in their perception. Population growth drives scarcity, inflation and makes the people who own the assets and the means of production rich and powerful, but it makes everyone else - and the planet - poor. What is more, to get where we are going, we have to lose all our democracy.

As I keep saying these circumstances are so bizarre and counter-intuitive that it actually requires careful thought to understand why they do it.

In a rational economy, it would surely not be in anyone's interests, whether rich or poor to continue increasing the numbers amongst which the available wealth would need to be divided.

However we know that, contrary to what common sense and intuition would tell us, in Australia's land-speculation-based basket-case economy population growth, instead, makes some Australians richer.

So it can only stand to reason that the poor are doubly, if not threefold poorer:

  • Poorer because of the transfer of wealth out of their pockets into the pockets of the rich, caused by higher charges for housing and other resources.
  • Poorer because the wealth remaining after the rich have taken their greater share must be must be shared amongst an even large group of people;
  • Poorer because of the diseconomies of scale that cause the cost of providing a service per capita goes up rather than down after a certain optimum population has been reached.
  • Poorer because what economies of scale, which would be possible through natural monopolies, are thrown away because free market dogma demands that Governments provide only the barest minimum of services themselves and leave the rest to the market.

I have written more of this in my Online Opinion article "How the growth lobby threatens Australia's future" of 9 February 2008 also published on candobetter. This is also discussed here on a miscellanous comments page on 27 Apr 10.

Say good-bye to the middleclass, and welcome the new dawn of our Feudal lords, poor lord government administrators and the younger generations of serfs who own no land. So Its a double bind- if we cant supply new affordable homes to Gen XY, then the retail economy will shrink, as instability means less consumption as they have no where to store or put anything. A whole part of the economy 'Better Homes' not affordable homes and all the retail consumption disappears for younger generations. What? do they think, that gen Y will be happy couch surfing with their expensive portable devices?, eating on the run!, and never having a stable environment to retire too. The Boomer know that their children cant get into housing. For those with British parents and first generation Australian, Son's and daughters of ten pound POMES have become ‘Prisoner Of Megalomanic Estate Statutory’-POMES .Destined to rent forever,?their was a time in this Common wealth when being a subject gave you a right to own land in the 1950's. How did our Governor general allow the land to be sold back to her subjects at 1000 times the inflationary law of rent price in 2010. While Instead we have a weak supine governor general lacky who is costume jewellery of the old Commonwealth role and weak supine to Neoliberalism free market property scam who never rebukes extreme market greed and its land tyrants, for a fair Australia and fair go to all. Something has gone horribly wrong with this supposed Commonwealth. The Governor general has allowed greedy traitors to sell out the country to any greedy pigs that turn up and then sell it back to her subjects at 1000 times the inflationary law of rent price. It seems all those traitor Anglo's who say rid the Monarchy, have become, given up, now as the enemy's of a fair Monarchy, they are trying to rid themselves of a recent memory or ideal of a fair and just Australia under a sovereign guardian or umpire/empire. Instead we have a weak supine governor general lackey who is costume Jewry of the old Commonwealth role and weak supine to Neoliberalism free market property scam who never rebukes unfettered market greed of land tyrants for a fair Australia and fair go to all. Wasn't the role of the Governor General to monitor that land is not being banked by the likes of Delfin Mirvac et al, in order to hike prices for speculative reasons.If so the crown must protect her subjects from these corp land tyrants and must release land to those who are not of the monopoly.

Australia is following Brazil and it has transpired first in the capital cities.
Worst perhaps in Sydney.

According to an article by News Limited journalist in Sydney's Sunday Telegraph 18 April 2010 (which Murdoch has excluded from publishing on the Internet), a study by property analyst Residex has found that 750 new homes a week need to be built in NSW in order to keep up with immigration and population demand.

The article runs:

'Almost 86,000 people migrated to NSW from overseas in the year to September 2009, more than offsetting the 16,700 drop in population caused by interstate migration. [Mainly Australian-born families escaping Sydney's migrant demographic for south east Queensland].

Natural population increase (by both Australian-borns and migrants) added a further 40,000.

NSW managing director of project marketing group, MLG, Chris Freeman is coming from the housing supply side, yet his observations are telling:

"The housing shortage in NSW is dire...we're building far fewer dwellings than we were 20 years ago, and the population growth is two and a half times what it was then."

'Residex managing director John Edwards said most Sydneysiders would be renting by 2040. "The children of the current generation, who've been looking for houses and have given up, will mostly be renters...and the generation that's being born now are unlikely to own their homes."

Since the Rudd Government relaxed its rules on property ownership in March 2009, the floodgates have opened on foreign investment into Australian residential property. In Melbourne, wealthy Chinese based investors are snapping up prime residential real estate and driving up residential house prices and domestic interest rates. Local house hunters are complaining they are being priced out by foreigners who have no intention of living in their new properties.

Chinese buyers fuel top-end property boom by Marika Dobbin 19th September 2009.]

Brighton real estate agent, Nick Johnstone of J. P. Dixon, claimed last September he had made at least 40% sales for the year to the Chinese. Other agents in the east and south-eastern suburbs have reported the same level of demand. "Australia is the flavour of the month amongst the Chinese investors,'' Mr Johnstone, 41, said yesterday. ''They love property and there's plenty of money over there so they're good clients to have.''

''They buy them to land bank, not to rent them out. The houses just sit vacant because they are after the capital growth.''

Last month, Treasurer Wayne Swan announced a further relaxation of Australia's foreign investment screening to ''help boost Australia's growth''.

Keen to cash in on the boom, Marshall White, J. P. Dixon and other big agencies such as Jellis Craig are hastily establishing connections with offshore accounts, lawyers and businessmen to funnel a stream of buyers into Melbourne.

Also in hot demand are Mandarin-speaking Melbourne real estate agents and property lawyers.

Meanwhile, Australia's largest developers - including Australand, Central Equity, Simonds, Becton - are setting up offices in China and Hong Kong to spruik off-the-plan developments."

Prominent real estate franchise LJ Hooker in Sydney's north west suburb of Ryde promotes 'Languages Spoken: Cantonese, Mandarin, Italian"

The Rudd Government has condemned the classic Australian dream of owning a house with a backyard (the quarter acre block) to history.

[Single-person homes may replace Aussie dream' by Di Bain of the ABC, 9th March 2010].

"A few key findings were revealed...at the urban developers' conference in Sydney 9th March 2010 - a report has found the Australian dream of owning a three-bedroom house on a quarter-acre block is a thing of the past and that smaller homes for singletons must be built. A housing supply report to be released officially next month predicts the number of single-person homes will account for one third of Australia's housing supply within 20 years.'

'The report says not enough homes are being built in Australia to cope with population and lifestyle changes. According to the National Housing Council (NHC), there will be a dramatic rise in the number of homes from 8.5 million to just under 12 million by 2029. More people will choose to live in the city, with Sydney, Perth, Melbourne and Brisbane the preferred capitals.'

Rudd actually wants perpetual population growth, although he'd never come out and say it. Not Big Australia, but Infinite Australia. Since politicians and business leaders never want to stabilize the population (although they always promise it'll happen sometimes in the undefined future) I've been trying to work out (a) how big the population will get to before it stabilizes, and (b) what will cause it to stabilize. My guesses are:

(a) 100 million+
(b) Something extremely unpleasant

I keep feeling that Rudd is actually the father in Christina Stead's Man who loved children - a remarkable novel about a man who forced children on his wife because he found them useful for self-promotion. His wife can't stand him and is half-mad because of him and dies of exhaustion or some such before the end. (I guess his wife was Australia.)

Of course I feel that Rudd and other men in charge (aren't most of them men, of course - what woman would force population growth on us without the influence of men) are like a big bullying father who wants to be important at his wife and family's expense.

I would like to read the book again. I was surprised to find that it was listed by ?Time as one of one hundred best books in the world, although I know that I couldn't put it down, years ago, when I read it.

The reason I would like to read it again is to see whether it really does provide a metaphor for overpopulation. It is actually set in New York in the 1930s.

Marvellous book. By a woman. Could that be the reason it's not on every school syllabus? Or is it considered controversial?

Julia Gillard followed in Rudd's footsteps.

You mean she followed him on population? And disappointed those who had hoped she would not.

foreign investors drive Knox prices upward
Ray Abley of Ray Abley Real Estate in Ferntree Gully warned an influx of foreign cash was having a ridiculous effect on local property prices. He said properties were being snapped up by recently landed migrants and overseas investors, some of whom were flying into the country for whirlwind weekend property splurges.

For those unfamiliar with Melbourne, it is an outer suburb on the foothills of Mount Dandenong. It is a residential area that includes industries. It is NOT Toorak or Brighton - a comfortable suburb but the people are generally not wealthy.

This is a betrayal of the interests of Australians. Already we are struggling with mortgage stress and homelessness. Thanks to Kevin Rudd, the dream of home ownership and land with a front and back yard is impossible. Not only this, but foreigners are allowed here to buy property and “help Australia’s growth” - according to Treasurer Wayne Swan!

By displacing the public from home ownership, Kevin Rudd can implement his agenda of high density living onto us, and also increase demand for “social housing”. This is all part of making Australia more “prosperous” through a “big Australia”. However, it is not the public who will share this wealth but the elite and privileged few investors and the already wealthy - even though they may not even live in Australia. Australian could end up paying rent to landlords in China!