Australia: Where the good life comes at a price

Discussion in 'Markets & Economies' started by SilverSurfer77, Feb 24, 2013.

  1. Byron

    Byron Guest

    Can you elaborate on this Capt?

    Personally i believe the biggest problem is underemployment and the casualisation/temporarisation of the workforce. This is only going to get worse. Security of employment will be a thing of the past and it will simply be a race to the bottom as hundreds of applicants for one job will be competing as to who can work for the cheapest wages.
     
  2. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    Alcohol, smokes and fuel are all subject to excise as well as GST.

    This is partly intended to curtail usage by making it plenty expensive for consumers.

    Link to Grog excise guidlines:
    http://law.ato.gov.au/atolaw/view.htm?locid='SAV/ALCOHOL/6.3.5'#6.3.5
     
  3. capt.sparrow

    capt.sparrow New Member

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    yes, simply that the cost of doing business (due to government interference) in the US is much lower than it is here in Australia - which is one of the big reasons why everything is much much cheaper over there.

    So even though we supposedly "earn more" here it does not even come close to making up for the much much higher cost of living here.

    and as Southern Cross' video on taxation alluded to (in another thread) the only reason for the high cost of living here in Australia is due to the nanny state regulations and general meddling by australia's big big big government(s).
     
  4. systematic

    systematic Well-Known Member

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    I think having over 320 million gun toting, freedom loving, competitive consumers kinda gives them a better outlook and a better price on goods and services compared to 22 million apathetic colonists in a relatively isolated part of the world. Can you say "captured market"?
     
  5. capt.sparrow

    capt.sparrow New Member

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    Can you say "apathetic zombies"? :lol:
     
  6. Mjduzane

    Mjduzane New Member

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    ahahahaha i love the way you described americans. It really made me laugh. I've always wanted to live in australia for a few years just to see what it's like but i'm not sure if i want to because of how expensive it is now and because i wouldn't be able to walk around with my pistol on my hip :p. I have a friend who lived there for 2 years. She said there was no way possible for her to work and go to school at the same time there because of how expensive it was, so she had to move back to america.
     
  7. Lovey80

    Lovey80 Well-Known Member

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    Further to what the good captain said. The average working American has more disposable income than the average Aussie. Which is kinda what he said anyway.

    People lose focus on this fact. Sure we have some of the highest paid jobs in the world, but we pay for it much more than other countries.
     
  8. GBN

    GBN Member

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    Anybody ever travelled to the USA for a shopping trip?

    A quick google tells me my next bike is at least 10K less in USA. Add GST, freight, compliance and the flight and theres still enough money left over to fund a few days in Vegas.
     
  9. systematic

    systematic Well-Known Member

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    Yes i can, but not with a mouthful of peanuts and a beer in my hand.
     
  10. NelsonHunt

    NelsonHunt New Member

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    Ha ha, you got taken for a ride! http://www.ozbargain.com.au/node/94953

    Honestly... when the toaster costs less than a loaf of bread... when on-call accounts pay more interest than home loans charge... but your dinner out still costs more than their weekly wage... I don't understand how this can work, but I do know that it can't be sustainable - it will resolve itself eventually (sadly maybe not in our lifetime).
     
  11. Dabloodymess

    Dabloodymess Active Member

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    I definitely see this as well reno and I agree with you.

    There are guys who figure out they can 'live' on $1000 a month.... yeah you survive, but you wont live in the same western lifestyle you are accustomed to.

    The blokes here doing it on $1000 a month will be living in 1 room studios (cant stand them myself, you feel like you are a teenager with just a bedroom in your parents house, or back in an army barrack block), drinking the cheapest booze you can find, forever worrying about finding the cheapest prices and generally being a cheap Charlie... although I guess walking all over town for the best price keeps them occupied seeing though they cant afford other forms of entertainment :p

    If for a moment I thought I would be happier back in Aus, I would get on the next plane, but right now I am happy and enjoy a high quality of life.I dont worry about how much I earn, yet back home friends and family are constantly stressed about money.... that's not my idea of life :)
     
  12. Holdfast

    Holdfast Well-Known Member Silver Stacker

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    Food is cheap, it's the house and land that is expensive.

    Rump steak -$6.99 - 12.99 Kilo
    Lamb chops - $14.99
    Pork - $5 - 6 bucks.
    Chicken $5.50 kilo or Cooked whole chook less than 10 bucks.
    Spuds 10kg for $7
    Carrots 99 cents a kilo
    Cabbage - 3 bucks
    Grapes - free...grow your own.
    Nectarines - $3.99
    Cuies - grow your own.
    Tomarts - cheap as or grow your own.
    Corn cob - 50 cents to a dollar.
    Loaf of sliced bread - dollar
    Leg of baa lamb $6.99 kilo
    Whole lamb less coat and guts $5.99
    Sugar cheap as
    Flour cheap as
    Water cheap as
    Beer - bluddy expensive - VB $36.90 carton :D
    Coopers Stout - $53 bucks a carton.
    Electricity - bluddy expensive
    Firewood - cheap as...collect your own.
     
  13. Old Codger

    Old Codger Active Member Silver Stacker

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    "when on-call accounts pay more interest than home loans charge"


    Lesson #1 for a young man in 1955 Commercial Bank of Australia Ltd. "Young Codger, NEVER forget, THE HIGHER THE GAIN, THE GREATER THE RISK"

    I have never forgotten those words.


    OC
     
  14. willrocks

    willrocks Well-Known Member Silver Stacker

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    Exactly how does that proverb relate to "when on-call accounts pay more interest than home loans charge"?
     
  15. Old Codger

    Old Codger Active Member Silver Stacker

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    ......because normally a bank borrows at interest, and lends at interest plus!

    Thus if a borrowing bank is paying over the odds for funds, he must charge over the odds for loans.

    If not he goes broke.


    OC
     
  16. systematic

    systematic Well-Known Member

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    Banks don't go broke. They get bailed out ...
     
  17. Lunarowl

    Lunarowl Active Member Silver Stacker

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    if it happens to be one of the big4..
     
  18. C.H.

    C.H. Active Member Silver Stacker

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    Yeah that's how people think. You even worked in the bank!
    Do you know what fractional reserve is??? Because of fractional reserve banks can actually pay you way more than they charge for loan.
    They're just cheap thieving greedy bastards and also are trying to maintain the pretence of legitimacy.

    Just to make it clear:

    1. You deposited $100 at 5% deposit.
    2. Bank sends them to the Reserve bank (Federal Reserve or RBA - doesn't matter). Now bank has $100 reserve.
    3. Because of 1:10 fractional reserve (normally higher) bank now can lend $1000.
    4. Bank lends $1000 at 7% (Bank just created $1000 out of thin air. Don't we all want to be able to do this? Yeah - but we're not banksters - not allowed).
    5. Bank receives $1070 back.
    5. Which cancels $1000 created, leaving $70 and $100 in reserve.
    5. Bank pays you $5 as 5% interest promised.
    6. Banks profit is $65 or 65% on your deposit.

    As you can see bank can easily pay you 20% and charge 7% on loan and still have a lot of profit left.
    Banks risks here are:
    1. You withdraw your deposit and they have to cover reserve from their own capital (or new deposits). Term deposits are usually not withdrawn prematurely. Risk - low.
    2. Whoever took loan - defaults and bank can't recover anything from him. Bank has to cover $1000 from their own capital/profits.
    3. People become aware of the fractional reserve scam - banks get burnt, banksters - hanged.

    Risk #3 is pretty low though.
     
  19. Guest

    Guest Guest

    Just on the lime. I used to work in a fruit and veg market and for memory alot of limes come from Mexico....it wouldn't have been an Aussie lime.
     
  20. systematic

    systematic Well-Known Member

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