Why are we penalised for working harder/earning more?

[Temjin]

Thought i would drag this thread up again. Glen48s thread reminded me

Again, with IR drops recently and the gov saying they want more cuts, its those that work hard that are again been penalised. If you had been diligently saving instead of loading up on debt, your interest is now only about equal with inflation, so your not going anywhere.

Can leaders not see the problem or do they just choose to ignore it while they live the high life?

The problem lies ultimately in a political system that encourage socialisms or face isolation by the mobs and the keynesian school of economic that is inherently FLAWED.

I will probably piss the people who have studied economics in university here, but the theories you have studied are basically flawed. Try Austrian economics instead.

 

[freddy2]

Perhaps i should just load up the CC and spend all my money on booze, drugs and chicas

With real returns (eg interest rates - taxes - inflation) negative the idea of spending excess cash now instead of saving/delaying consumption is quite a good one.

 

[prawn_86]

With real returns (eg interest rates - taxes - inflation) negative the idea of spending excess cash now instead of saving/delaying consumption is quite a good one.

Yeh but im one of those people who likes to have a buffer. I hate living from week to week like most of my mates do...

 

[xoa]

Why? Because somebody has to pay for all the baby bonuses, fuel watches, rebates, bailouts, and other forms of middle class welfare.

 

[nomore4s]

Yeh but im one of those people who likes to have a buffer. I hate living from week to week like most of my mates do...

Slightly :topic: but .....

It is surprising how many people cannot survive anymore than 1-2 weeks without money coming in - no savings.

I have 10 guys working for me, out of that 10 only 3 could last anymore than 2 weeks without some sort of income. 2 of those 10 can't even make it through the week without running out of money. Dangerous situation to be in if something bad happens and most of them are up to thier eyeballs in debt as well - on things like store cards and car loans.

The lowest paid worker on our books will earn between $35-$40k min this FY, not the greatest wage but enough to survive on and you should be able to save on that income as well imo.

If we start to get high unemployment alot of people could get into serious trouble imo.

<Rant over>

 

[Julia]

Why? Because somebody has to pay for all the baby bonuses, fuel watches, rebates, bailouts, and other forms of middle class welfare.

Yep. With 18 weeks of maternity leave soon to be offered as well.

 

[AlterEgo]

If you had been diligently saving instead of loading up on debt, your interest is now only about equal with inflation, so your not going anywhere.

Yet you still have to pay tax on that interest, even though you have gained nothing in purchasing power, that's what really annoys me!

eg. Say you have 100k in the bank earning 5%, so make 5k in interest, BUT if inflation is at 5% you have effectively made NOTHING! But the ATO still has the nerve to charge you interest on that 5k WHICH YOU NEVER ACTUALLY MADE!!! What sort of stupid system is this?!!

 

[AlterEgo]

But the ATO still has the nerve to charge you interest on that 5k WHICH YOU NEVER ACTUALLY MADE!!!

I of course meant TAX you on that, not INTEREST.

So you get penalised for saving. Might as well just spend everything now!