l am a high school (drop out) educated bloke with no economics degree, but l have a simplistic view on the economy which l am sure everyone will understand.
My simplistic economy is very much like a game of Monopoly. We all start off with a few dollars and we try to get around the board (again and again) and hopefully buy an “Old kent” or “Pall Mall” and dream of owning “Park Lane & Mayfair”
We all know that in a game of Monopoly, there is a little bit of luck as the dice can either make or break you. It dosn’t matter if you start with 2 players or 10 players, eventually someone ends up with all of the cash and everyone else is broke! Of course that’s the end of the game.
In the Australian economy there is only “so much” money in circulation, yet the millionaires and billionaires keep building on their wealth. Every extra dollar that goes into the bank accounts of the millionaires and billionaires is one less dollar that the rest of us can have.
Ok so you might be wondering why most of us are doing “ok” even though these millionaires and billionaires are racking in more and more money every day ??? Well perhaps look at your credit card statement, or have a glance at your mortgage statement…….. Yes many of us are driven into debt because we have to “borrow’ money in order to make ends meet.
You may have heard Tony Abbott & Joe Hockey (along with others) talk about the need for more “foreign investment” Well in my simplistic view of the economy we are simply encouraging people to inject money into Australia’s economy today (because we need the cash circulation) but we understand that every foreign investment is made with the intention of taking “out” more than was put in. In other words, we get some cash injected into our economy now, but we will pay a high price later.
If things continue as they have done, most of us will find it harder to make ends meet and there will be more people in extreme financial hardship
As the old saying goes, “THE RICH GET RICHER & THE POOR GET POORER”