WITH the federal election finally called for 3 May, let’s look at why the cost-of-living is shaping up as the key policy issue.
Data from the Organisation for Economic Co-operation and Development (OECD) compares the percentage change in real household disposable income per capita for residents in the developed world.
Unfortunately we in Australia sit atop that list with the worst result.
The data reveals that our real disposable income reduced by 8.3 percent from March quarter 2022 to September quarter 2024.
Our result is far worse than the next nearest nation, Denmark, where real household disposable income reduced by 2.8 percent.
Sweden’s figure was reduced by 2.7 percent, Czech Republic by 2.4 percent and Finland by only 0.7 percent.
On the other hand, the rest of the developed world seems to be getting over the downturn caused by Covid, which followed a period of economic difficulties after the Global Financial Crisis (GFC), which remains in the thought processes of most populations.
While our Australian politicians are now being shown to have ignored or misunderstood what was happening in the economy, other nations’ leaders have reacted positively.
The numbers now suggest their nations are getting on top of the negative situation.
Canada has just turned the economic corner with a 0.3 percent increase in real household disposable income per capita,
Despite the encouraging result, newly declared USA tariffs of between 10-200 percent on some of their exports may well flatten out their recovery.
France, with a 3.5 percent improvement in their disposable income, could also be similarly affected as wine import tariffs could hit them hard too.
The average percentage change in real household disposable income per capita across OECD nations is 5.5 percent.
The UK improved by 4 percent, Italy by 2.4 percent, and Portugal by 6.9 percent.
Greece had a whopping 9.6 percent improvement across the same period.
I believe this shows our government’s response to our rapidly rising cost of living issues is indeed a poor result.
I’m sure that many voters will enter the polling booths with this disappointing position firmly etched on their minds.
By John BLACKBOURN
