Cost of Living Rises 7.75%, Wages 3.5%

Cost of Living Rises 7.75%, Wages to Grow Only 3.5% Transcript

And that’s why we say if you’re a wage earner with a job you are just going to be just over broke all the time, especially now. So you need to be looking for ways of making money, becoming self-sufficient, making money and reducing your costs so that you are not losing out as much or you are benefiting as in you’re making money.

So this is the biggest problem and this is why this point is it’s really going to hammer home to those that just look at the 140 characters on Twitter and the headlines in the media and don’t actually read the fine print of where this budget is going to take you.

Basically people are losing out mainly because we’ve got wages going up by 3.5%, inflation going up 7.75% and power up by 50%. So could you explain a little bit more what you mean by these numbers and what it means to the everyday person?

Yeah, so the treasury office and its magical unit of numbers has said that the average inflation or the inflation over the basket of goods that they calculate is 7.75%.

The RBA is just told us it’s over eight and so if inflation going up so the things that we are buying every day is going up 7.75%. They say that that’s on an annual basis, we know that that’s not the case.

We actually know that inflation on some things it feels like it’s 7.75% a month and on some things it is and like fuel the other day somewhere on I drive past a service station and it was $2.12 for unleaded further down the road it was $2.01 for unleaded that’s a ten cent, that’s 5%.

That’s a big jump between two service stations. So things are higher than what everyone saying but the way that the government measures it, they’re saying 7.75%.

The real figure though is the money that’s going in your pocket as a wage earner is only increasing by 3.5% so if you take that 7.75% -3.5% that’s going to leave you 4.25%. 

Your wages are actually going back what you are putting in your pocket after you spend and everything is really going back towards 4.25% so every year you’re getting 4.25% poorer because your spending is now increased by 4.25% and once again we know it’s more than that and so forth.

The real telling factor here is and this is another laughing point about the budget is that in the budget and in the lead up to the budget Labor kept promising and it was you know we’re going to cut your power bill.

We’re going to cut your power bill. We’re going to cut your power bill. All the green spending is we’re going to cut your power bill. We’re going to cut your power bill. We’re going to keep going spend more on green in their own budget it says over the next two years power is going up by over.

Why I say I’ve used 50% here is what it’s going to go up because it’s 30% this year in this budget return and it’s 20% in the next budget return. Now you can’t, so if you increase now by 30% and then increase again by 20%.

 The actual increase is more like 60% because it’s not 50% on a lower number. It’s 30% on a lower number then 20% on a higher number which then actually increases. For the mathematicians out there you’ll get to know what I’m talking about. So it’s a capitalising effect, not just a one off effect. 

So they’re saying power is going to go up by 50% but if you really do all the math and work it out it’s more closer to 60%. I personally believe it’s going to double over the next couple of years, purely and simply because the costs of building out our transmission networks are going to be pushed through the system.

The energy companies aren’t going to wear it, governments aren’t going to wear it. So who’s going to pay? It’s going to be the user. They’ll say that energy costs haven’t gone up but transmission costs have.

So they get your double whammy. So your power bill, the actual bill you pay, which is made up of three or four different components, one of them is a connection charge, one of them is transmission charge. In some states you even have the green levy and then you have the actual cost of power. 

So the actual cost of power on average I think in Australia is twenty three cents a kilowatt hour. But when you put all the other charges on it comes up to closer to 40-45 cents kilowatt hour. Bulk of your charges aren’t actual direct usage of electricity. It’s all the other crap that goes around it. 

Especially if you’re a commercial user. If you’re a commercial user you get hit a lot harder than a residential because a residential customer they say is subsidised on their transmission connections. That’s why you lose out. 

So it doesn’t matter what happens in the next 12-24 months. You’re losing out because you’re going backwards. And that’s why we say if you’re a wage earner with a job you are just going to be just over broke all the time. Especially now. 

So you need to be looking for ways of making money, becoming self-sufficient, making money and reducing your costs so that you are not losing out as much or you are benefiting as you’re making money.

So this is the biggest problem and this is why this point is it’s really going to hammer home to those that just look at the 140 characters on Twitter and the headlines in the media and don’t actually read the fine print of where this budget is going to take you.

And mind you, it really wouldn’t have matter if the liberals were in, the way that the liberals were going with their woke bullshit way. Their budget would have had the same thing because the seeds of this were sown six, seven years ago. With this drive and adoption, especially in the power industry, the drive and adoption of renewables. 

The other part of it has been actually driven by since the Gillard government and that by all the little crappy things that have been pushed through, like the unfunded NDIS, the unfunded healthcare, the overspending on schools sorry, with overspending on education, without having a proper performance review. 

Australia spends more per student than just about any other country in the world. And I think we’re level pegging now with Kazakhstan on education quality. We used to be in the top five in the world. We’re lucky now if we’re in the top 50 and we spend more per student than just about anyone else in the world.

So education is not going to be solved by money. The same thing is with a lot of our health systems, is we are spending more per person on the health systems. When I say health systems, I mean on the infrastructure, on the hospitals, on the delivery of health, not on the PBS and NDIS and Medicare and all that, on the physical delivery of health. 

We spend more than a lot of places in our health, delivery is not as good. It’s very patchy. Like the Gold Coast Hospital, Gold Coast University Hospital here on the Gold Coast, where I’ve been treated, mum’s been treated, dad was treated, I cannot rate highly enough.

We’ve got the best care and the best things that we’ve ever seen. I’ve had the same care in regional Australia and it’s been woeful because they just haven’t had the right money, and government, and most of this is state government, by the way, goes and spends the money on administration staff, not on physical delivery. 

So you’re losing out all the time and budgets are always on the side of you losing out.

Yeah. Big, big dramas coming up.