Is the cost of living really going up? | Video Lab | ABC News
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- Опубліковано 4 кві 2022
- Inflation tells us how much more we’re paying for things over time, but it’s not as simple as it seems. Things beyond our control - for example, war and floods - are pushing prices up in the short-term. But does that mean the overall cost of living is going up?
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So basically those of us below the poverty line are totally screwed. We were already struggling before Covid and Russia/Ukraine war and now it is just impossible. But as long as the upper income earners and big corporations still live well and make huge profit, then that is all that matters.
My only income the last two years has been Social Security and I can pay my bills my mortgage is paid for but I took on a small car loan August of 2021 that is my only debt
Enough is enough. Being proactive and taking action is all we have left. Make noise. Don’t be silent. We must enforce responsibility and accountability.
@@debbieframpton3857 as an American living is oz I can confirm living in America is far more comfortable. We're directly involved in the Atlantic trade route, and shipping doesn't cost $15 for a letter sized package like it does in Australia. You shouldn't be comparing these two economies at all
@@jabbersart6218 ,
Just stating the way I live
It’s bad when you’re nearly 50 and are stuck living with your parents because rent is ridiculously high. Rent would take approx 90% of my wage each week. It’s left me with no hope at all. They want to downsize but I’d be homeless. Sometimes I think it would be better if I wasn’t around.
As Scomo said, just buy a house!
Work on buying the house from your parents. Take over paying all the taxes and such. Pay the energy & water bills
Andrea, did you not have the opportunity to buy an apartment 20-25 years ago? I’m your age and did it myself but I did move further away. Did something else happen to you where you had to move back with your parents?
@@josephj6521 no, I didn’t. Unfortunately I’ve never been able to secure full-time work due to invisible disabilities that weren’t diagnosed until I was 40 🙃. I had been living in a rented flat for a ridiculously cheap rent for 10 years until my landlady had to move into a nursing home and needed to sell. I was holding my own then (just) but the rents now are through the roof and when my old place came up for 300 more than I had been paying 4 years ago I couldn’t believe it! It has zero insulation and you freeze during winter or boil during summer - I can’t imagine the new owners fixed it up that much for it to be cost effective to heat or cool properly. Moving further out is not an option though given everything now, it’s not likely to be much cheaper.
@@andreagriffiths3512 oh I see. That’s tough. The land lady obviously very elderly managed to have multiple properties yet you’ll struggle to have even one! It doesn’t seem fair today. The elder generations mostly lived in their own homes with their gardens. How will younger generations do this? What will you do if your parents need to sell? Is there public housing available?
This video frames everything on oil, when we could have been well on the way to non-oil dependence under Bill Shorten. He wanted EV manufacturing here, where we have some of the best EV needed mineral deposits in the world.
I was thinking the exact same thing. We could be on our way to not rely on petrol, if only Labor won in 2019. Sure we will always need petrol over the next few decades but at least there will be cheaper and cleaner alternatives. I hope something changes next month.
@@josephj6521 Dude it's insane. We have the second largest reserves of cobalt behind the Congo of which China owns most of the mines, and second largest reserves of lithium, behind Chille.
We have the minerals for high volume battery production, in a time where they are in extreme demand, and we are just not making them...
@@JoshuaMcTackett agree. It’s absurd.
This video misses the point, yes, oil has caused a sudden spike. However, the reality is that low interest rates and QE are largely to to blame for the general rate of cost of living being far too high. People need to realise that the Australian dollar is essentially backed by the housing market. When the government/RBA created hundreds of billions of dollars during covid it went straight into the banks coffers to be offered as ‘cheap’ money. And contributes greatly to the rise in housing. And that money is backed by the housing market, essentially. The house of cards is largely built on that and our economy is a basket case based on coal, iron, cafes and houses. No investment public or private in an real advanced economy. The housing ‘market’ is also, not a true free market. It is propped up by successive governments too afraid to see the correction that is truly needed cause it would really hurt. Also, ask yourself, what is tax in a fiat economy? It’s not used to fund public spending. It’s an economic lever to ‘control’ inflation and pull economic levers. If it was truly about funding public expenditure, governments would collect taxes from corporations and the rich. What they’re actually doing is maintaining the value of the dollar by creating scarcity among the majority, ie PAYG wage earners.
Im completely agree - M1 and M3 grew during the pandemic without a corresponding rise in productivity. The RBA needs to shrink the money supply from ~2.6T (2022) back down to ~2.1T (2020 levels) for prices to realistically fall.
well said , 👏🏼 people need to wake up to this absurd monetary mess we a living with,and that everything weve been taught about money is deceiving and a bunch of lies !!
I don’t know about Australia, but in regards to inflation in the US, economists would disagree. That the majority of inflation is more influenced by the global supply of goods and services Vs the demand of the market.
you wrong,, High interest rates will makes the lenders lend their money to banks, and banks will provide loans to entrepreneurs and entrepreneurs will make products and the price of their products will be high to cover the interest on the money borrowed in the bank. the higher the interest rate the higher the product
i mean even the food is a bit more expensive at my place compared to a month ago
$8.50 for a lettuce... building materials ... if you can get them 3* the amount. Car parts if you can get them imported stupid high!
Nothings made here in Australia, materials imported, jobs, food imported, imported, imported where is Australian made ?
Inflation - an artificial increase in the fiat money supply within an economy. You left this important part out.
The problem politicians and corporatists dont want to fix. Eventually, they will say we should just fast for one week each month.
Actually I eat one meal a day with plain boiled water their rest of the day! Dun have a choice cos I cannot afford three meals a day!
Didn't hear much about how Company gross operating profits were up 13% last year, but workers were only paid 2.1% more. The capitalists make the capital, and the workers do all the work.
To be fair, it's the big companies that have really profited. Many small businesses are still struggling, the way they have been for decades.
Small businesses pay tax at a much higher rate than larger businesses.
Pretty sure according to the statistics just quoted, inflation is more like 18%
Then you should have a lot of savings
@@debbieframpton3857 over the past few years I’ve noticed something. I used to save a fair chunk of my salary. My savings balance would ALWAYS go up. The past few years my savings remained stagnant. I’m spending my entire salary and we own our own home (no mortgage). The cost of living has risen dramatically and we are scrambling to find ways to spend less. I go without nice clothes so I can buy my children clothing. We have cut down on meat and fish. We don’t eat out much at all. This surely isn’t healthy.
Now our managers want us back into the office but I’ve asked “why?” now that fuel is 50% higher than last year. Unfortunately we had an opportunity to grow into other industries (renewables) which would cut costs but unfortunately Labor didn’t win the election in 2019. Let’s hope people wake up next month.
Fuel prices didn't go up because of a """shortage"""
There is no shortage. The petroleum companies just look for opportunities to gouge their prices. They've posted record profits this quarter because of the Ukraine crisis. If there was an actual shortage these price hikes wouldn't make up for it. Instead you have the same amount of demand at the pump and inflated prices and NO shortage, which just equalls larger profits.
We really need to move away from fossil fuels
Ridiculous, stupid assessment. There is a shortage, kind of the whole point when you lose 10% of world supply whilst still going to increase demand
Exactly!! There is more than enough crude oil to last over 2000 years
Simple explanation - more money chasing fewer goods. Print money and pay people to stay home and not produce, keep rates artificially low to inflate asset prices so people feel wealthy
nailed it !! 👌
I am already enrolled as a student at a uni in Queensland. Can someone here tell me what is an average of living cost that I have to prepare for a month. Is it enough if I only allocate at 1.850 AUD for a month?
Thanks for the answer guys.
Assuming you mean $1,850 for a month for expenses, I would say that that is low.
It’s less than $500 a week. I would recommend trying to get a job to supplement your income.
Especially with the unemployment rate at 4% - a record low since the 1970s.
I would say any single person in a job should be aiming for a minimum of $700 a week, for quality of life.
dollar cost average ! BTC
This was insightful! Thanks for sharing!
Looking at it the wrong way. Inflation is the symptom of the devaluation of the dollar. Every dollar in existence is debt and the less scarce it is the less value it holds. The asset bubble in 2008 was avoided because we reduced interest rates to nearly zero and didn't allow the market to find some equilibrium. Essentially piling more debt on to a debt crisis and now it's taken a minor shock to expose it. Only this time out rates have nowhere to go
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That one layer of truth. A layer under that is, China was using its massive productions backed up the value of dollars. But today, the west, including Australia is treating China as enemy, and China has therefore refused to support the west. And suddenly, you have higher prices on commodities in combination of oil prices.
Price setting by corporations such as Coles and Wesfarmers is not based completely on inflation. I have no idea why the economist doesn’t know this, they should have found someone else to interview. In finance and management accounting you’re taught the most important is for a company is shareholder return and you must do everything you possibly can to ensure it grows each year, by having profit and revenue rise each year. During Covid people purchased massive amounts of goods whether that be from the supermarket or through online means. Coles and Woolworths made large profits, now that Covid is over they still need to make a profit however this time larger than the profit they made during Covid.
Now that people are buying less they raise prices so that profits remain higher than they were the previous financial year. Prices are also set by what one believes a consumer will pay for the good or service. They will then cite external factors such as inflation, energy increases and so on to validate to the customer the change in price. During Covid oil was worth less than zero, yet the consumer still paid over one dollar a litre for fuel, why? Because consumers will pay it.
Interest rates are based on a variety of factors such as risk, inflation, desired profit margin and administrative costs. Again there’s the threat of inflation so rates rise, banks are expected to have perpetual growth rates rise again, the pay of employees increases, rates rise again.
People selling their homes look at the selling price of the houses around them and expect to receive the same amount of money for their homes or more. Borrowers have access to greater funds, some having parents who can pay their deposit leading to them having greater borrowing power causing prices to rise. Higher prices lead to buyers seeking out cheaper areas where they can stretch their money further then prices rise in the cheaper area causing a domino effect.
Government employees (especially those we voted for) want ever increasing wages and perks. To achieve this they then need to raise taxes and put the country further into debt. This causes Australia to be of greater risk on the interbank and overnight money markets causing again a domino effect on the cost of borrowing.
And don't forget we changed what's included in CPI. We took out housing prices to make the figure more palatable.
"Is the cost of living really going up?" If you have to ask that question then you are getting too much money. Blind Freddy can see that it is going up so what is the point of the question?
To prove it outright instead of it being conjecture.
@@stuartmiller732 Anyone who goes shopping gets all the proof they are ever going to need on the receipt. A pity Auntie can find the time to report on things we really want to know such as why was Scott Morrison fired from Tourism and how much are Peter Costello (and other LNP mates) going to be paid for the $5.5 billion dollar French submarine disaster?
The price of bread in the 80's is not true. I used to have to walk for ever to the corner store to buy bread for lunch in the 80's and it was about $1.40. Clearly there is a mix up between the 80'sand the 60's here.
I think so too. Petrol should be $2 a litre with inflation really. People seem better off nowdays than in the 80s. That's of course not to say that many are in dire need on money. But technology and automation and goods made in China mean things cost less. There are now robots doing then work of 10 people in factories I've worked at.
@@benjaminparkin9716 ur not including rent or house prices
Their figure is a nation wide average, though we don't know how that was determined, if might have been based on ads showing discounts. But a 3x increase is plausible depending on which shop you buy from and where that shop is prices can change a lot (e.g. buy a loaf of bread from an inner city IGA or 7-11 and you will pay much more than an outer suburban Aldi).
Cost of living has risen in line with inflation, but wages haven't.
Cost of living and inflation are the same thing (read; they should be the same thing)..
@tacos mexicanstyle not the way the government works out inflation.
Why would anyone shop at Coles? Premium prices for substandard produce.
the duolopy taking out all the competition mean we dont really have a choice
Nurses aren't happy
Old people aren't happy
Young people aren't happy
People can't move even if they own because nothing to buy
The sooner the property correction happen the better
That's not true I'm old and I'm happy I'm staying in my mortgage free house my real estate taxes house insurance and upkeep is much cheaper than paying rent . My only income is Social Security and I don't need to buy more junk
@@debbieframpton3857 Youre probably a white lady, youre at the pinnacle of privileged, possibly more privilege than the white male
@@debbieframpton3857😂🤦 you wouldnt be happy on your social security if you didnt own your house that you would of bought for a pitance 20 or 30yrs ago.......
Try pricing out a rental and all your expenses on your social security allowance,tell me how that works out....
A cheap rental is 400 per week,u would starve if you payed 800 pf rent thats not including phone,petrol,internet,food...
The real question is can you survive and pay for phone,petrol,internet,food,medical expenses and still save a bit of money for an emergency or to save for a power bill,or registration on 150 per week?
I dont think so debbie
@@mikek2258 ,
I have a friend that pays 575 a month rent on an apartment earning the same Social Security that I get plus she has to pay Heating and Cooling so it's possible.
I paid $76,000 for my house 19 years ago it hasn't went up that much in value I could probably sell it for 85 thousand I also have to set money aside for real estate taxes I pay house and car insurance monthly I have to pay water and flush tax Heating and Cooling and any maintenance phone
@@debbieframpton3857 what state do you live in
Even the price of news is going up!
They get paid for nothing from Google and Facebook thanks to the lnp.
My salary in 1995 was $50k pa. My salary now is $80k pa. Anyone else experience something similar? There is a real problem with very low wage growth.
No, no, no, it is the devaluation of money.
exactly
So to make those goods became more expensive and you pay more to get less.
we kept talking abt how china "steal" jobs from the west but few remembered the inflationary period of last century, in the 80s there was major labour shortages across manufacturing industry, company raise and raise wages but there is just not enough worker in the assembly line(understandably since they are miserable jobs), as result price went higher and higher.
There is no such thing as a miserable job. What might be miserable is the inability of company owners or managers to communicate and work with their employees as individuals with lives outside of the company and to build their business with a socially responsible plan. What we most often see is a business owner who sees him/herself just as a lemon squeezer and the juice should all fall in his or her glass! They have no consideration for something greater than themselves.
@@noramaddy4409 i don't know mate, i can't stand the thought of doing a manufacturing job where i perform an assemble action over and over again for 6 hours plus(often 8 even 10 hours) like in textile and electronics assembly line, cars on the other hand has much more space and much more complexity, hence they survived in the western world.
For people with no other skills they are gratefull for the assembly line job but feel miserable if the employer is unable to manage day to day operations without consideration for commitments an employee may experience outside of work. Managerial work practice and respect contribute to work practice, efficiency and long term projectory goals for the company. Think of the company as your family and invest in the employees.
Inflation, shrinkflation and stagnation.
Globalisation was the reason for low inflation over the past two decades
Every thing has gone up by minimum 20% and some at 100%, so in average our cost of living has gone up by around 40%. When will our pay increase and when will our government do something about it. Not surprising, our government will step in when Australia is in crisis just like covid pandemic. It's time we import from other countries and not let China affect us so much. How are average income earning living these days?.
Very good direct journalism here. We should honestly have a lot more of this instead of the job jab you have most the time.
Terrible journalism - you cannot talk about inflation without addressing the elephant in the room: ACTUAL MONEY SUPPLY VS GENIUNE PRODUCTIVITY of the economy.
Can you please do an update on this, why are we using interest rates to slow the economy? Isn’t there a smarter way to do the same thing?
I bought a loaf of bread for $2.70 yesterday... :)
How much was that computer?
Sure could go for some mean tweets and a healthy economy right now
it going up every years... the question is ......how high? 2%.....3%......4% if no inflation means that the economy in recession
Buy things on special.. TAKE ONLY WHAT YOU NEED, as you need it.
It's pretty irresponsible to say we're dealing with it well when it comes to housing going up 25% in one year fuel going up 35% and food going up at least 10% the only reason our inflation numbers are low is because they are taking other items that'll obviously have no inflation increase and adding that onto the number so it's just a lower number realistically were seeing like 18% inflation in a year if you want to just take Essentials on what people buy that's not right.
Politicians and bankers should all be in prison
I watched a documentary on hour the way inflation is calculated and how that has changed in the last 5 decades.
@@Rubibi-saltwaterjim Can you let us know a link? I am interested in this.
@HelloImTheMailMan sorry I don't remember where I saw it, but it doesn't take into account the additional cost of operating in today's word. For example when I was at school some kids had their own pc and faster adsl internet connection, they definitely found assignments easier. Inflation calculations would consider this cost of luxury, it is things like good internet, mobile phones that have become essential to running your life that hasn't been taken into account.
I'm not sure about $13 dollars for mince, a 500 gram packet of mince in Adelaide Coles is $8, so where are they shopping??
In Germany, 500g of organic mince beef presently sells for 5,29€ which is $7,92 Australian dollars.
Sydney
Go to the supermarket !!!
Tech aside from televisions(arguably) is essentials....no tech no job ..
If you voted for the LNP last election. you've participated in electing the worst economic managers at a time Australia could least afford a crap government.
And albo doesn’t even know the unemployment rate 😆
Why are comments turned off when you post about the sufferings and financial struggles of seniors and oldies! I reckon oldies doesn't mean anything and no one dun wanna hear from oldies! Oldies are supposed to be voiceless! 😢😭
Fuel prices HAVE NOT yet been included into most commodity prices. Line haul freight costs ARE NOT dynamic like fuel and take time to filter into the economy. The main causes of inflation is the spending by every government and undermining the value of our currency by money printing both here and in the USA. Exacerbating the issue was the decrease in freight capacity in both air and sea cargo. The fuel situation as well as the idiotic promises to spend more money from both parties is bound to make things worse.
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A lot of economists would disagree with you. You might want to check your sources and check the surrounding discourse on that topic instead of taking one side as fact.
@@ALuckyDonkey I have been supplying analysis on this subject for over 20 years. At the time of writing this comment 12 days ago we hadn’t yet started to include fuel levies. That of course is not true now. Even so we still won’t see the full extent of the increase on many manufactured goods for a few more weeks. Even then our major disruption is port handling in China due to lockdowns.
Currently its 2.49% mortgage I've factored in for 50% interest rates do your worst economy hit me please!
Yes it’s really going up you …….
Inflation been going up for years and years and yet he blames Putin for it !!! LOL
since the early 2000s basically the past 22 years its been poverty but now its insane out of controll good luck enjoying poverty
But inflation is at 3-4% stay the government 😂
Mabie get half of the people complaining to stop smoking etc lol
Maybe*
then you'd see the economy tank, tobacco products are taxed over 1000%, any other smart suggestions?
hmmmmmmmmmm IDK Mabie stop 95% of the population getting into $100000 of dept???!!!
Only the elite can afford to smoke now, they are s luxury product.
@@mickdoo8969 lol
@@Lordoftheflamesissketchy Nope you're still trying to stagnate the economy. There is no way out of this unless you're going to freeze and seize bank account of mill/billionaires that got rich thru economic rent and then outlaw it, problem solved. workers didn't cause the problem, so you wont find the solution blaming average Joe
I don't get it. I went through my bank statements and I spend the same amount at Coles as I did 5 years ago ($65/week). I earn the same amount of money as well.
Good on you, way to go on not being able to see outside your bubble. I couldn't spend $65 a week on groceries 5 years ago let alone now. And as for wages not going up in 5 years that's a very bad thing
Seriously I doubt it or you are buying more from the markets, independent butchers, bakers etc...
Which seriously good on you....
Youre probably eating less or something is off, theres no way inflation doesnt creep into coles
You’re definitely not buying a lettuce 😂
Give me a house 2-3 my meagre wage like the Boomers had it and I'll pay $15 for a loaf of bread...
Stop ignoring the house crisis and deflecting toward the cost of celery sticks increasing.
Well said! This is indeed the fundementual issue. The higher the property price, the higher the rent or mortgage, the higher the wages needed to cover such. The higher the products prices needed to cover the above. And around amd around it goes.
All for a fundementual basic Human right.
Shout it louder for those in the back!
Stop foreign investment is what needs to happen...
There will be alot of upset boomers crying very loudly when the housing market drops after that...
So sick of these stupid headlines , ABC deleted
Your oil producing country ranking list is wrong. The top oil producing country is the United States. You have the United Arab Emirates on top. You got that mixed up. For a credible news orginzation you couldn’t get that right?
UAE 8 & US 1China 4 & Kuwait 10 on a list for today. Maybe these figures change daily.
Some one is going to get the sack for leaving the comments on
It’s all bs
Welcome to the real World! ... Wallabiis!!
I went to the doctor and they said because of my behaviour I have severe inflation around my paenus
😀
Your video is *** and waste of time. Why electricity, gas , water rates are also increasing? Is it because of petrol? Basically you can't tell us the truth behind this but we know it.
Not for the staff of the grossly overpaid ABC.
Not to mention grossly overpaid politicans, like the PM who now earns more then the US President!!
Pretty massive and consistent salary and perk rises for politicians!! Funny that.
The average ABC reporter gets paid about 75K/year. Which puts them at about 64th percentile of all Aussies (including part-time and casual workers). I'd call that slightly better than average not grossly overpaid.
Isn't it great that we have such informative content on our TVs - and that you can plop your kids down after school in front of ABC Kids and trust that theres only wholesome content on?
Yeah Alan Watts wouldn't want you sporting that name with dumb ass opinions like that. The Murdoch Media Empire that helps keep the LNP crooks in power gets paid a tonne more than the ABC. And if you don't like the standard of ABC journalism, perhaps vote the LNP out so the ABC journos can do their job without fear of funding cuts, privatisation or AFP raids.
@Michelle Imagine how people outside of the the cities feel? I can assure our life is much worse then those in cities.
I wonder how much the politicians food bill is fortnight. Hmmmm. 🌈🌈🌈💯💯🥃🥃🥝🍉🍞🍞🥪🧆🍗🍗🥩🥑🍟🍟🍟. Hmmmm I wonder how much.
Yes and its only going to get worse if Albo gets in with the spending spree he is announcing which will me he raises taxes
Ah a shill for capitalism and the corporations that care nothing for you how refreshing
Give it a rest jordy
Just another Scomo LNP cultist happily drinking the Koolaid.
I second Albert - give it a rest Jordy mate. You are so indoctrinated into your political biases that you would make Rupert Murdoch blush.
@@albertgriffith5801 Well Victoria is the perfect example of life under Labor, look at the total destruction and record debt Dictator Dan has caused with his incompetence lies and cover ups