Category Archives: Economy

Storrar and the redfaced middle: When we have it so easy that we forget how to do it.

It seems that everyone in Australia is talking about Duncan Storrar. A number of articles relating to him appear on my news feed. Without a doubt, his question has hit a sensitive national nerve.

Regardless of ones political or economic views, the fight that has erupted points out to me that we are universally unhappy with the current system.

I’m inclined to tip my hat to people, such as Wilkinson and Pickette, with their research behind the book ‘The Spirit Level’. In short, with moderate inequality, the nation’s economy flows more freely between all contributors than where we have super rich (who, by definition, remove significant amounts of the nation’s GDP into personal accounts) and entrenched poor.

I think of money like the blood of a nation. Clots are bad. Flow is good.

That said, one of the recommended articles in my new feed stood out;

OPINION: Is a family on $120,000 doing that much better than Duncan? Written by Johanna Morley

I had to read it. I can’t say that I was very moved.

Not only did the article rely on a range of fallacies and an inappropriate use of statistical data, but it also point out a lot of what is wrong with modern day Australia.

The sense of entitlement that various groups wax lyrically about is not restricted to a single cohort of the community. It’s wide spread.

To start with the simple errors – MS Morley’s article conflates rich with a household of two incomes of $60k. That’s by no means rich and not even part of the wage brackets likely to see much change in tax brakes.

To go further, while it sounds impressive to rely on ABS data, this data has limited use and is certainly erroneously applied to the article. For instance, two statistics used in one paragraph were the average grocery and transport costs for a couple with children. This is a blanket number for all couples with children (one has to assume because no link is given) regardless of household income. The greater the inequality within the sample, the less applicable this average would be to a single situation.

Ms Morley is likely to misapplied this data.

Certainly, Mr Storrar couldn’t spend the amounts provided in that article and so if these fictional families are, then yes, they are doing better than him.

But here’s my real grievance with the article; the phrase is ‘to live within ones means’ and not ‘to live to ones means’. Here’s my personal case study.

I definitely believe that I live a good life with my wife and two children.

My wife is a full time mother. With her background in early childhood development and our views on embedding our personal values on them prior to schooling age, it was a choice that we reached fairly early.

This of course means that I am the only earner.

She of course gets the FTB, but it amounts to pocket money because of my earnings. That said, our shared gross household income is significantly less than Ms Morley’s example families net income.

Moreover, I have a car loan and pay child support on my teenage son from a previous relationship. All of this is taken out of my payslip prior to addressing our own living expenses.

Even though I wouldn’t complain about my income, we probably have a little less than two thirds of one of her example families.

I would agree with Ms Morley’s example of Melbourne rent, but apart from that, my life is very different from her examples.

We have quality family holidays. We eat well. My children have everything they could ask for. Yet, we don’t live to our limits.

We budget hard and give ourselves a wide margin for the unexpected. We shop around and make the most of the variety of options out there.

We hunt op-shops. We budget annual memberships to places that our children love to visit often, meaning that weekend activities are exciting yet cheap.

And most importantly, we sacrifice what we don’t actually need (to be honest, it isn’t really a sacrifice).

To take mobile phones for example; you can buy a good phone for under $250 and pay for a sim only plan for $25-$30 per month, with unlimited calls and texts as well as sufficient data. This can amount to around half the cost of a phone-plan package that you buy from any retailer.

I also grow a wide range of fruit and vegetables to supplement our groceries (in a small space). We don’t watch (or pay for) TV and couldn’t care less about what is ‘the to-have item’ of the month.

Lastly, we aim to save at least 10% of our pay each week. This is the safety net that goes towards the unexpected and our holidays.

Through a careful eye on our income and critically evaluating our needs and wants, it’s possible to live well on a moderate income.

So to respond to Ms Morley’s question; is a family on $120,000 doing that much better than Duncan?

If they’re not, they’re doing it wrong.

One Reason Homes Cost So Much

I’ve moved a lot, by anyone’s standards, over my life. The reoccurring theme I’ve found in suburban landscapes is that it’s built for the driver. One’s home is an island within vast tracks of MAMBA. We can do it better. We have done it better. We’ll need to make human landscapes better if we’re ever going to make genuine headway on climate adaption and mitigation as well as increase resource security and waste reduction.

I found this video an interesting piece in the puzzle before us.

Converting from Conservation: growth before guard

About a decade ago, I had nearly completed a Bachelor of Science, majoring in biodiversity and conservation. It was on these subject too, where I excelled, based entirely on my passion for the subjects.

I even completed a third year project with a report titled, Fennel, (Foeniculum vulgare); an unappreciated weed in South Australia. I was inspired by a love of hiking which had left me acutely aware of how much of an impact weeds had on the SA landscape.

I despaired for the loss of our wonderful and fragile arid landscapes rich in colour and life to anyone willing to look beyond the “Scrub”.

Today, I grow fennel in my garden.

PSX_20160126_105033It was a slow yet inevitable fall from the concept of conservation for me.

Sure, where possible, we should protect remnant vegetation and, ideally, establish corridors between these islands – that is and forever remains sensible. But a devotion to a pristine landscape isn’t even remotely possible.

Avoiding goats in protected mallee woodlands and first-hand witnessing of olive seed dispersal by birds throughout SA has continually reinforced the immense scale of effort that would be required.

More recently, when I did research for what became the article, A Viking Legacy and Australian Cuisine, I solidified the growing realisation within me.

Conservation for conservation’s sake favours no species; ours included.

We already fight for access to water, land and other resources. No matter who wins these fights, eventually we all lose a quality resource.

Take for example water allocation on the Murray Darling system. Over time more and more water has been used for agriculture. We can’t fault this because agriculture ultimately feeds us.

However, every drop taken away from the system is one that is no-longer available to the surrounding environment. The only option with less water is to do less. Less evaporation from the waterways + Less evapotranspiration from the surrounding environments =  less rainfall recharge. We have a compounding water reduction system that no management scheme could possibly improve.

The realisation that I finally reached is that the commons itself is actually also a player in ‘the tragedy of the commons’ concept and not simply a bank.

We need to accept that old regimes cannot persist with existing criteria and so, for environments to prosper, new species and new ecosystems will need to be introduced to improve biodiversity, biological services and improved resource quality and quantity.

An edible “weed” that will happily grow in a heavily degraded environment is immensely valuable. We have food in an otherwise barren landscape.

….

Nowadays when I hike, it’s a lot slower. I have two pairs of tiny feet walking with me.

“Look!” my eldest daughter points out suddenly. “It’s fennel! It’s a licorice plant!”

I snap a few pieces off, handing one to her, one to her little sister and I keep one for myself to chew while we walk.

Fennel is, in my opinion, still unappreciated. But not as a weed.

Instead, it is an incredible plant that grows remarkably well in poor soils with very little effort. My own fennel was grown from a fennel seed tea bag that I tore open and sprinkled into a seedling tray (and one a being from a dropped seed that grew straight in the hard clay soil of my yard).

Looking towards the future, with an appreciation for the difficulties and uncertainties around our climate and resource security, species that ask the least of us, but serve a function (be it carbon sequestration, food production or water quality) will gain centre stage. They are our safety net.

Today, I’m a grower, not a conservationist.

The Anthropocene; too obvious to ignore but pointless to linger upon

Making the news over the last couple weeks as been that geologists are now saying that our impact is so great that it could be recognised in the geology in distant times as a distinct change – enough to make a change of times. From the Holocene to the anthropocene.

It’s better last than never, I guess.

At the end of the day, these geological eras are artificial creations that are agreed upon to define certain fragments of Earth’s history; all with shared long-term trends of some sort, beginning and ending with a break from this trend.

When did the Anthropocene actually start? Our species have dramatically altered landscapes, species distributions / genetics (and even extinction) as well as the atmospheric chemistry for longer than recorded history.

What I became interested in when I moved to this blog was not simply the recognition of the human-era, but instead the acknowledgement and ownership of the fact.

We can continue to deny, denounce and vilify the human influence on our biosphere, hydrosphere, geosphere and atmosphere or we can become worthy of our status as a force of nature. The former is to keep the blindfold on, press down harder on accelerator and ignorantly hope for the best. The latter can lead to a prosperous, entrepreneurial and unimaginable future.

I wanted to start to paint a picture of what the latter could look like. Unfortunately, I allowed myself to fall into the rabbit holes of insular thinking and politics. While a natural progression, as climate change influences both, it still wasn’t helpful.

We are a force of nature and one that has thus far remained blind and detrimental. I want us to own up to it and find the possibilities exhilarating, as I already do.

Now that the case is strong enough for the Anthropocene to be “official”, let’s rush from that to a new one; one that we create with the focus on a thriving, prosperous planet.

Fuel in the skies: has sequestration finally found its market?

I just came across an article stating that Audi have just done something pretty awesome.

Using water, renewable energy and atmospheric CO2, they have generated a synthetic diesel.

Read the article here.

Personally, I see it as a much bigger deal than simply a cleaner, more efficient fuel, which of course it is.

It’s actually sequestration. Moreover, it’s sequestration with potentially strong market influences. It’s also sequestration that brings a cyclic relationship to our carbon-based fuel.

Given strong global leadership on it, there is even a potential for us to modify the atmospheric CO2 concentrations to counter long term climate trends that could impact us negatively. Through controlling what we burn or store, we would be able to influence our climate for our benefit.

I recognise that I might be getting carried away with this news. However, depending on how this story unfolds, it could be a genuine game changer.

Sunday Reads #8: All things climate, environmental and politics

Firstly, I need to plug my survey again. I had a great response on Friday, but yesterday saw little movement. If the question and the answer matters to you, please try to get at least three friends or family members to spare 60 seconds to fill it in and a couple additional minutes to get three more to follow on.

Survey: Does the Aust Gov have a mandate on Chaplains in Public Schools?

Coalition’s Green Army passes the Senate

Having worked as a retail “trainee” when I was 19-20 in what was clearly a way to get around minimum wage restrictions, I am concerned by this, but not surprised at the bi-partisan support, sadly.

Carpark run-off cheaper to drink than desal water

Thinking for the 21st century!

Changing what we eat [relating to sustainability climate change]

Great to bookmark and refer to the future.

This Is What Your Grocery Store Looks Like Without Bees (PHOTOS)

Expect this message to become a bigger issue over the coming decades.

Fiji accuses global community of abandoning the Pacific on climate change, singles out ‘selfish’ Australia

Unfortunately, our leaders are not listening.

The jobs of yesterday: Abbott’s roads rear-vision

Sorry, second plug. This is my latest article on the Climate Spectator.

Power bills to drop 8pc in Tasmania if Senate approves carbon tax abolition

When the Gillard government introduced the carbon price, Abbott said people would pay thousands more a year in energy costs. He then said he would save people on average $550 a year in energy costs. Tasmanians’ are set to save $164 a year from the latest estimates.

For me, this is a clear indicator that reality is likely to be about 20% the estimate offered by our current PM.

Coal’s share of world energy demand at highest since 1970

And this is a genuine tragedy for the coal rich country down under, regardless what the short-term economics might say.

 

Economic Wealth is Tied to Ecology

Today I stumbled upon The Future Economy Group. Very interesting stuff, especially the following infograph. The biggest problem as I see it from my experience is that those you need to convince (typically conservative politicians) think that token gestures are enough (I’m thinking Direct Action and the Green Army, for example).

Farmers are often conservative, but they know better than most that symbiosis means wealth. “You reap what you sow” isn’t just a dated cliché, it is the unbreakable mantra of our relationship with environments. It is only through investing in environments that we can continue to obtain profitable returns.

This isn’t “Tree hugging” nonsense, but good business strategy.