Zack ЗР AI Seeker blog: Australian Economic Drift "Race to the Bottom

To answer "How much of the Australian economy is poor?" — we need to interpret what “poor” means in this context. There are a few angles we can take:

🔹 1. Household Poverty & Economic Insecurity

Relative Poverty Rate: About 13% of Australians live below the poverty line, defined as earning less than 50% of the median income after housing costs (ACOSS & UNSW, 2023).
Welfare Dependency: Around 5 million people (roughly 20% of the population) receive some form of government welfare payment.
Job Insecurity: Roughly one-third of workers are in insecure work (casual, gig economy, temp contracts).
Homelessness: Over 122,000 Australians are homeless, with many more in housing stress or at risk.

🔹 2. Underperforming or Struggling Regions of the Economy

Rural/Remote Australia: Many regional areas have lower incomes, worse health, fewer services, and higher unemployment than urban centers. This includes much of:
- Northern Territory (outside Darwin)
- Regional Queensland
- Parts of WA, SA, and inland NSW/VIC
Manufacturing: Once a strong pillar, now largely offshored or shuttered. The collapse of local car manufacturing is a prime example of industrial decline.
Youth and Indigenous Unemployment:
- Youth unemployment can exceed 20% in some areas.
- Indigenous unemployment is 3x higher than non-Indigenous rates.

🔹 3. Wealth Concentration and Economic Duality

Australia’s economy is wealthy on paper — high GDP per capita — but extremely top-heavy:
- The top 10% own 50%+ of all household wealth.
- The bottom 60% own less than 20%.
- Many families are asset-rich (on paper, due to housing) but cash-poor.
Wages have stagnated for over a decade while the cost of living has surged — particularly housing, energy, and food.

🔹 4. Sectors That Aren’t “Poor” But Keep the Rest Poor

The mining, banking, and real estate sectors dominate the economy, but:
- They are capital-intensive, not job-intensive.
- Profits often flow offshore or to a tiny elite.
- Real estate speculation drives up housing prices, crushing younger and lower-income Australians.

🔹 Crude Summary

Category	Estimate
Population in relative poverty	13%
Working poor or welfare-dependent	~20–25%
Regions with underperforming economies	30–40% of geographic landmass
Sectors excluded from national wealth	Many small businesses, rural trades, services, youth

🔚 Conclusion:

Much of the Australian economy is poor in a practical, people-based sense — even if the national numbers look rich. If we define "poor" as not thriving, underpaid, insecure, or shut out of ownership, then a clear majority of the Australian population — perhaps 60–70% — is economically struggling or excluded from the wealth Australia generates.

Here’s a state-by-state breakdown of economic struggle or poverty in Australia, focusing on household poverty, underemployment, cost of living stress, and regional disadvantage.

🇦🇺 State-by-State Economic Poverty Breakdown

State/Territory	Relative Poverty Rate (est.)	Key Indicators of Economic Struggle	Notes
New South Wales (NSW)	~12–13%	Western Sydney, Far West, and remote areas have high poverty; housing stress is worst in Sydney	Sydney’s wealth masks deep regional inequality, esp. among renters, youth, and migrants
Victoria (VIC)	~12–14%	Outer Melbourne suburbs and regional areas like Mildura, Shepparton, and Latrobe Valley struggle	High underemployment in post-industrial zones (e.g., closed factories, coal towns)
Queensland (QLD)	~13–15%	Regional Queensland: Townsville, Rockhampton, Wide Bay have persistent joblessness and low incomes	Mining jobs help some areas but bypass others; Indigenous poverty high in remote areas
Western Australia (WA)	~12–14%	Perth outer suburbs, Goldfields, Pilbara towns post-boom face housing unaffordability and unemployment	Wealth from mining is heavily concentrated, often bypassing locals, FIFO towns stressed
South Australia (SA)	~14–16%	Northern suburbs of Adelaide, Eyre Peninsula, Whyalla, and the Murraylands are economically stagnant	Highest youth unemployment in mainland Australia; long-term industrial decline
Tasmania (TAS)	~14–18%	North West coast, West coast, and rural areas among the poorest in Australia	Lowest average wages; generational poverty in parts of Burnie, Devonport, and outer Hobart
Northern Territory (NT)	~17–20%	Remote Indigenous communities face extreme poverty, lack of services, and overcrowded housing	Highest unemployment rate, low school completion, high dependence on Centrelink
Australian Capital Territory (ACT)	~9–10%	Lower poverty overall, but rising housing stress, esp. for renters and students	High public sector wages mask cost-of-living pain for service workers

📌 Observations

1. Poorest States by Household Income/Poverty

Northern Territory, Tasmania, South Australia consistently rank highest in relative poverty and lowest in average incomes.
Remote Indigenous communities across NT, WA, QLD, SA suffer the worst living conditions in the country.

2. Urban vs Rural Divide

Inner cities (Melbourne, Sydney, Canberra) have wealth and jobs, but housing stress is severe.
Rural and regional areas in every state face stagnation, poor infrastructure, and service withdrawal.

3. Youth, Indigenous, and Migrant Disadvantage

Youth unemployment in some regional areas can be over 20%.
Indigenous unemployment is up to 30%+ in some NT and WA communities.
Recent migrants in urban fringe areas often face job precarity and rental hardship.

⚠️ Bottom Line by State

Tier	States
Most Economically Stressed	NT, TAS, SA, regional QLD
Moderately Struggling	WA (outside Perth), outer VIC, outer NSW
Relatively Stable (on paper)	ACT, inner Sydney, inner Melbourne — though cost of living is punishing

In 1970, Australia’s economy and social structure looked very different from today. While detailed, consistent "poverty statistics" were not collected in the same way back then, we can reconstruct a picture using economic, employment, housing, and welfare data from that era.

Here’s a breakdown of key 1970 indicators state by state, and nationally, to compare with today:

🇦🇺 Australia in 1970: Key National Statistics

Indicator	1970 Estimate	Notes
Population	~12.5 million	Today: 27 million
Unemployment Rate	1.8%	Full employment era; government aimed for <2%
Poverty Rate (est.)	~8–10%	Based on 1975 Henderson Inquiry; no consistent poverty line until then
Home Ownership Rate	~70%	High due to affordable housing and state-backed loans
Average Weekly Earnings (AWE)	~$60/week	Equivalent to ~$750–850 in today’s dollars
Public Housing Waiting Lists	Minimal	Social housing more available; less privatisation
Top Marginal Tax Rate	65–75%	Progressive tax system; large middle-class welfare state

🧾 Notes on the 1970 Economy

Strong Unions: Unionisation rate was above 50%. Wages were strong, protections high.
Manufacturing: Over 25% of employment was in manufacturing (cars, textiles, tools, appliances).
Cost of Living: Basic goods and housing were affordable relative to wages.
Debt: Private household debt was low. Home loans were regulated and required large deposits.
Government Role: State ownership of utilities, airlines, phone services, and banks in some cases.

🗺️ State-by-State Snapshot: Australia in 1970

State/Territory	Economic Profile	Poverty / Hardship Notes
NSW	Industrial heartland; major housing projects; Sydney expanding fast	Western Sydney poorer, but jobs were plentiful; many public services
VIC	Strong in car and textile industries; rail, trams public	Northern suburbs lower-income but many stable jobs and homebuyers
QLD	Agricultural, mining, growing urban centres	Regional poverty higher, esp. among Indigenous; weaker unions
WA	Beginning of mining boom; Perth expanding	Some regional hardship; Aboriginal communities neglected
SA	Manufacturing hub: cars (Holden), white goods	Low unemployment, rising public housing stock
TAS	Forestry, hydro, and heavy industry stable	Lower wages; some rural poverty but low unemployment
NT	Not yet self-governing; Indigenous communities extremely poor and neglected	No formal services in many areas; institutional racism high
ACT	Federal government growth; high public sector employment	Least poverty; strong housing programs

📉 Indigenous Poverty (1970)

Extreme poverty and social exclusion across all states, especially:
- NT missions and reserves (no autonomy, limited schooling)
- WA and QLD (segregation still in place in many towns)
No equal wages for Aboriginal pastoral workers in many areas until after 1968.
Life expectancy for Indigenous Australians was up to 20 years lower than non-Indigenous Australians.

📊 Summary Comparison: 1970 vs Today

Category	1970	2025
Poverty Rate	~8–10% (est.)	~13–14%
Unemployment	1.8%	~4.1% (but underemployment higher)
Home Ownership	~70%	~65% (but many are mortgaged heavily)
Union Coverage	~50%	~10%
Public Housing Access	Widely available	Severely reduced
Cost of Living Pressure	Low	High, especially rent, energy, food
Household Debt	Very low	Among highest in world (as % of GDP)

Here’s a full economic poverty and inequality analysis of Australia in 1980, both nationally and state-by-state, following the same format as we used for 1970.

🇦🇺 Australia in 1980: National Overview

Indicator	1980 Estimate	Notes
Population	~14.5 million	Modest post-war growth; immigration strong
Unemployment Rate	~5.8%	Rising sharply due to global oil shocks and stagflation
Poverty Rate (est.)	~11–13%	Based on Henderson Poverty Line methodology
Home Ownership Rate	~70–72%	Still strong, though mortgage debt rising
Average Weekly Earnings	~$230/week	Equivalent to ~$1,100–1,200 today
Unionisation Rate	~45–50%	Still strong; declining slowly after peak in 1976
Top Marginal Tax Rate	~60%	Progressive system still in place
Public Housing Tenants	~7% of households	Public housing being built, but slowing from peak years

🔍 Economic and Social Context (1980)

Recessionary pressures: After the 1973 oil shock and 1975 global downturn, inflation and unemployment coexisted (stagflation).
Structural decline in manufacturing began to accelerate—whitegoods, textiles, and car production saw job losses.
Neoliberal policies (privatisation, deregulation) had not yet fully taken hold, but were on the horizon (Hawke/Keating era starts 1983).
Housing was still affordable for most, but speculation was beginning.
Women’s participation in the workforce was rising rapidly.
Social safety nets: Welfare expansion still intact; Medicare introduced in 1984 (as Medibank was dismantled and reformed).
Aboriginal rights movement was growing but poverty and displacement remained widespread.

🗺️ State-by-State Breakdown – 1980

State/Territory	Economic Profile	Poverty / Hardship Notes
NSW	Sydney became a financial centre; heavy industry in decline	Western Sydney growing but with rising unemployment and housing pressure
VIC	Decline of manufacturing begins (especially car and textiles)	Outer suburbs (Broadmeadows, Dandenong, Sunshine) saw rising joblessness
QLD	Mining and tourism expanding, but agriculture struggling	North QLD and inland still poor; Indigenous communities marginalised
WA	Mining boom picking up steam, urban Perth grew fast	Wealth not widely spread; many Aboriginal communities still excluded
SA	Beginning of structural unemployment as Holden & other factories downsized	Northern Adelaide hit hard by closures and job loss
TAS	Forestry, mining, and hydro jobs declining	West coast and North West had some of the highest unemployment in the country
NT	Aboriginal Land Rights Act (1976) granted some protection, but services lagged	Poverty and infant mortality in Aboriginal communities remained extreme
ACT	Public service centre; stable, well-paid workforce	Lowest relative poverty of all states/territories

📉 Indigenous Poverty in 1980

Despite small legal advances (like land rights), most Aboriginal Australians still:
- Lacked access to basic services (clean water, health, schooling).
- Faced extremely high unemployment, especially in rural NT, QLD, and WA.
- Experienced shortened lifespans, housing overcrowding, and government paternalism.

💡 Key National Poverty Factors in 1980

Driver	Effect
Industrial collapse	Middle-income jobs lost in VIC, SA, NSW
High inflation + high interest rates	Wages struggled to keep up; cost-of-living pressure began to build
Housing	Still affordable to buy, but speculation and investment had begun to creep in
Welfare system	Still robust; unemployment benefits and pensions widely available
Public services	Medicare not yet universal; education and transport systems mostly public and cheap

📊 1970 vs 1980 vs Today

Indicator	1970	1980	2025
Poverty Rate	~8–10%	~11–13%	~13–14%
Unemployment	1.8%	5.8%	~4.1% (but underemployment high)
Home Ownership	70%	72%	~65%
Unionisation Rate	~50%	~45%	~10%
Public Housing Stock	Growing	Plateauing	Shrinking
Top Tax Rate	~75%	~60%	~45%

🧠 Key Takeaways for 1980

Australia in 1980 was entering economic transition: from full employment and industrial strength to a more globalised, service-based, deregulated economy.
The seeds of today's inequality were being planted:

Industry was shifting offshore.
Home ownership became a wealth-building tool.
Speculation began in housing and finance.
Public ownership and union power were starting to decline.

Here is a full economic poverty and inequality analysis of Australia in 1990, following the same format as for 1970 and 1980, with national data, state-by-state profiles, and comparisons.

🇦🇺 Australia in 1990: National Overview

Indicator	1990 Estimate	Notes
Population	~17 million	Rapid immigration through 1980s (post-Vietnam, Eastern Europe)
Unemployment Rate	6.9% (rising sharply)	Headed for the 1991–92 recession high of ~11%
Poverty Rate (est.)	~13–15%	Based on Henderson Poverty Line; increasing due to recession pressures
Home Ownership Rate	~70%	Still high but debt starting to climb
Average Weekly Earnings	~$530/week	≈ $1,200–1,300 today
Unionisation Rate	~40%	Declining with economic reforms and enterprise bargaining
Top Marginal Tax Rate	~47%	Flattened tax system introduced by Hawke-Keating Labor gov't
Public Housing Tenants	~6% of households	Slowly declining; neoliberal reforms underway

🧾 Social & Economic Context (1990)

Australia entered a deep recession by late 1990: “The recession we had to have” (Paul Keating).
Structural unemployment rose sharply, especially in working-class suburbs.
Neoliberal economic reforms (floating the dollar, banking deregulation, privatisations) were well underway.
Enterprise bargaining replaced collective awards, weakening union wage protection.
Bank lending exploded, leading to rising household debt and speculative housing investment.
Youth unemployment surged past 20% in some regions.

🗺️ State-by-State Breakdown – 1990

State/Territory	Economic Profile	Poverty / Hardship Notes
NSW	Shift to finance & real estate; inner Sydney gentrifying	Western Sydney hit hard by job losses and rising cost of living
VIC	Deep recession; major manufacturing closures	Working-class suburbs (e.g., Broadmeadows, Sunshine) suffered mass unemployment
QLD	Property boom and bust; mining volatile	Brisbane grew, but regional QLD and Indigenous communities remained poor
WA	Mining & finance sectors growing, but unevenly	Inner Perth boomed while regional towns and Indigenous populations struggled
SA	Manufacturing collapse; BHP downsized; State Bank collapse looming	Adelaide’s north and Whyalla entered economic depression levels of joblessness
TAS	Logging and hydro projects declined	West Coast and Burnie had some of Australia’s highest long-term unemployment
NT	High Indigenous poverty; limited services	Urban growth in Darwin, but remote neglect persisted
ACT	Stable public sector	Least unemployment; cost of living rising, especially rent

📉 Indigenous Poverty in 1990

Little material progress since 1980 in terms of health, education, and housing in remote areas.
Royal Commission into Aboriginal Deaths in Custody (1991) was underway—highlighting systemic neglect and over-policing.
Land rights had improved on paper, but economic outcomes remained grim:
- Unemployment ~30–40% in remote areas.
- Many communities still without basic infrastructure (paved roads, clinics, safe water).

📊 1970 → 1980 → 1990 → 2025: Comparative Table

Indicator	1970	1980	1990	2025
Poverty Rate	~8–10%	~11–13%	~13–15%	~13–14%
Unemployment	1.8%	5.8%	6.9% → 11% peak	~4.1% (but underemployment high)
Home Ownership	~70%	~72%	~70%	~65%
Union Coverage	~50%	~45%	~40%	~10%
Public Housing Access	Growing	Plateauing	Declining	Severely reduced
Top Tax Rate	~75%	~60%	~47%	~45%
Youth Unemployment	Low	Rising	Often 20%+	~13–15% nationally, higher in regions

🧠 Key Trends in 1990

Deep recession hit lower- and middle-income earners hard.
Public assets began to be privatised: Qantas, Telstra, banks.
The welfare state began being reframed as "dependency", not a right.
Neoliberal economics took deep root: focus shifted from full employment to inflation control and "fiscal discipline".
Housing began to divide society:
- Investors gained more power via tax concessions (e.g., negative gearing).
- Renters started falling behind — social housing construction stalled.

🎯 Summary by State (1990)

Tier	States
Hardest-Hit States	SA, TAS, VIC (due to manufacturing and finance collapse)
Growing but Unequal	NSW, QLD, WA (wealth shift to capital cities and elite suburbs)
Stably Rich (Public Sector)	ACT
Severely Neglected Indigenous Regions	NT, QLD, WA, SA remote communities

Here is a full economic poverty and inequality analysis of Australia in the year 2000, continuing the structured timeline: national stats, state-by-state conditions, and comparisons with 1970, 1980, 1990, and today.

🇦🇺 Australia in 2000: National Overview

Indicator	2000 Estimate	Notes
Population	~19.2 million	Immigration steady; urban sprawl expanding
Unemployment Rate	6.3%	Down from 11% peak in early 90s recession
Poverty Rate (est.)	~13–14%	Poverty now entrenched for some groups (e.g. single parents, long-term unemployed)
Home Ownership Rate	~69%	First signs of decline; housing prices began to rapidly increase
Average Weekly Earnings	~$720/week	≈ $1,200–1,300 in today's dollars
Unionisation Rate	~25%	Declining sharply under post-Howard industrial relations framework
Top Marginal Tax Rate	47%	Income tax cuts for middle and high earners under Howard gov’t
Public Housing Access	~5% of households	Major funding cuts and transfer of housing to NGOs

🧾 Social & Economic Context (2000)

John Howard government (1996–2007) was reshaping Australia:
- Privatisations (e.g. Telstra)
- Introduction of GST (July 1, 2000)
- "Mutual obligation" in welfare system
Work for the Dole programs replaced guaranteed welfare for unemployed.
Housing prices began skyrocketing, driven by:
- Negative gearing + capital gains tax discount (introduced in 1999)
- Cheap credit from newly deregulated financial sector
Public discourse shifted toward "aspirationals", property owners, and "battlers" who had jobs but struggled.

🗺️ State-by-State Breakdown – 2000

State/Territory	Economic Profile	Poverty / Hardship Notes
NSW	Sydney Olympics boom; real estate exploded	Western Sydney saw growing mortgage and rent stress; gentrification pushed poor outward
VIC	Economic rebound under Kennett/Bracks; Melbourne CBD revitalised	Rural VIC still lagged behind; industrial suburbs still had double-digit unemployment
QLD	Tourism, construction, and mining boomed	Coastal QLD prospered, but remote Indigenous communities remained deeply impoverished
WA	Mining capital flows began to surge	Perth growing fast; inland areas and remote Indigenous towns struggled
SA	Slow recovery from '90s recession; car industry still hanging on	Northern Adelaide and regional towns (e.g. Whyalla) still deeply affected
TAS	Weakest economy; population ageing and shrinking	Burnie, Devonport, and West Coast among poorest postcodes in the country
NT	Continued Indigenous underdevelopment	High infant mortality, joblessness, housing crisis in remote communities
ACT	Stable public sector; digital economy emerging	Least poverty, but housing prices rising sharply post-Telstra boom

📉 Indigenous Poverty in 2000

Despite symbolic milestones like the 1992 Mabo decision and 1997 Bringing Them Home report, practical poverty remained unchanged.
Key indicators in remote communities:
- Unemployment: 40–70%
- Housing: severe overcrowding, no sanitation in many areas
- Education outcomes: lowest in the nation
The NT, WA, QLD still had the worst conditions in Aboriginal communities, with suicide and imprisonment rates rising.

📊 1970 → 1980 → 1990 → 2000 → 2025: Comparison Table

Indicator	1970	1980	1990	2000	2025
Poverty Rate	~8–10%	~11–13%	~13–15%	~13–14%	~13–14%
Unemployment	1.8%	5.8%	6.9% → 11%	6.3%	~4.1% (underemployment high)
Home Ownership	70%	72%	70%	69%	~65%
Unionisation	~50%	~45%	~40%	~25%	~10%
Public Housing Access	Growing	Plateauing	Declining	~5%	~2% or less
Youth Unemployment	Low	Rising	20%+ in regions	Still high in outer suburbs	13–15% national; >20% in regional QLD, SA, TAS

🧠 Key National Trends in 2000

The class divide began locking in. If you had property before 2000, you were likely to build wealth. If you didn't, you struggled to catch up.
Neoliberal reforms entrenched: deregulation, privatisation, and personal responsibility framed poverty as individual failure.
Welfare was being demonised, even though full-time work was disappearing for many.
Indigenous Australia remained effectively a third-world condition within a rich country.

🎯 Summary by State (2000)

Tier	States
Struggling Economies	TAS, SA, NT (remote areas)
Inequality Hotspots	Western Sydney, Northern Adelaide, Logan (QLD), Latrobe Valley (VIC)
Booming Cities (masking poverty)	Sydney, Melbourne, Perth — but with growing inequality
Least Poverty (on paper)	ACT — though housing costs rose sharply here too

Here’s the full economic poverty and inequality analysis of Australia in 2010, continuing the timeline: national data, state-by-state conditions, and updated comparisons with 1970, 1980, 1990, 2000, and 2025.

🇦🇺 Australia in 2010: National Overview

Indicator	2010 Estimate	Notes
Population	~22.3 million	Strong immigration post-2000s; urbanisation accelerated
Unemployment Rate	5.1% (post-GFC recovery)	Australia avoided a deep recession during the Global Financial Crisis (2008–09)
Poverty Rate (est.)	~13%	Stable but entrenched poverty, especially among long-term unemployed and single parents
Home Ownership Rate	~68%	Declining slowly, first-home buyer access collapsing
Average Weekly Earnings	~$1,200/week	≈ $1,450–1,500 in today’s money
Unionisation Rate	~18%	Continuing long-term decline
Top Marginal Tax Rate	~45%	Flattened income tax structure remained
Public Housing Access	~4.5% of households	Shrinking stock, long waiting lists, mostly inner urban pockets

🧾 Social & Economic Context (2010)

Labor Government (Rudd–Gillard) era focused on:
- GFC stimulus spending (building schools, insulation programs)
- Paid parental leave, NBN rollout, and education reforms
The mining boom was at full speed, driving up:
- The AUD (strong dollar)
- Housing prices
- Cost of living in cities like Perth and Brisbane
Despite low unemployment, underemployment rose — casualisation, gig work, and temp contracts expanded
Real wages began to stagnate, especially for service and blue-collar workers
Negative gearing and tax advantages for landlords and investors accelerated housing inequality

🗺️ State-by-State Breakdown – 2010

State/Territory	Economic Profile	Poverty / Hardship Notes
NSW	Sydney grew rapidly; finance and tech sectors strong	Western Sydney saw continued gentrification and rent stress; public housing sold off
VIC	Melbourne boomed in infrastructure and culture	Outer suburbs struggled: Sunshine, Broadmeadows, Frankston saw job precarity and poor services
QLD	Mining + construction boomed, especially in FIFO towns	Logan, Ipswich, and North QLD had high youth unemployment and poverty
WA	Mining boom made Perth the fastest-growing city	But the wealth was uneven: remote towns and Indigenous communities left behind
SA	Car manufacturing continued to decline	Northern suburbs of Adelaide (Elizabeth, Salisbury) saw long-term joblessness and welfare dependency
TAS	Worst-performing economy	Burnie, Devonport, West Coast were among the most disadvantaged postcodes in Australia
NT	Remote poverty crisis ongoing	Little progress on housing or infrastructure for Indigenous communities
ACT	High public sector wages, tech start-ups rising	Least poverty, though housing prices and rents skyrocketed

📉 Indigenous Poverty in 2010

"Closing the Gap" campaign had started (2008), but most indicators remained unchanged:
- Life expectancy still 10–15 years lower
- Incarceration continued to rise
- Unemployment in remote communities remained 40–70%
Many Aboriginal communities remained dependent on CDEP (Community Development Employment Projects) or welfare, often with few real job prospects

📊 1970 → 1980 → 1990 → 2000 → 2010 → 2025: Long-Term Comparison

Indicator	1970	1980	1990	2000	2010	2025
Poverty Rate	~8–10%	~11–13%	~13–15%	~13–14%	~13%	~13–14%
Unemployment	1.8%	5.8%	6.9% → 11%	6.3%	5.1%	~4.1% (but underemployment high)
Home Ownership	~70%	~72%	~70%	~69%	~68%	~65%
Unionisation	~50%	~45%	~40%	~25%	~18%	~10%
Public Housing Access	Growing	Plateauing	Declining	~5%	~4.5%	~2% or less
Youth Unemployment	Low	Rising	20%+ in regions	Still high in regions	12–15% average	13–15% national, higher in regions

🧠 Key Trends in 2010

Neoliberalism hardened into the system: bipartisan support for privatisation, low taxes, individual responsibility, and "small government."
Cost of living began to bite — despite high employment, wages flatlined while housing, utilities, education, and fuel costs soared.
Wealth polarisation accelerated: Baby Boomers benefited massively from property and superannuation; Millennials started slipping into lifelong rental.
The working poor emerged: casual jobs, low pay, and no benefits, especially in retail, logistics, and care work.

🎯 Summary by State (2010)

Tier	States
Most Disadvantaged	TAS, NT, SA (northern suburbs, regional towns)
Boom with Inequality	WA, QLD (mining centres boomed, others lagged)
Growing but Unequal	NSW, VIC (major inequality between city and fringe areas)
Least Disadvantaged (on paper)	ACT — but housing costs became a barrier for lower-income workers

Here’s a comprehensive snapshot of Australia in 2020, the first year of the pandemic—covering national stats, state/territory breakdowns, and a comparison across decades.

🇦🇺 Australia in 2020: National Overview

Indicator	2020 Estimate	Notes
Population	~25.6 million	Estimated end‑2020
Unemployment Rate	≈7.5% (July peak)	Pre‑COVID was ~5.1%; peaked mid‑year before improving povertyandinequality.acoss.org.au+2Melbourne Institute+2povertyandinequality.acoss.org.au+2The Guardian+15Australian Bureau of Statistics+15Wikipedia+15Wikipedia+2AIHW+2Global Citizen+2
Underemployment Rate	~13.7%	Also peaked around April–July AIHW
Poverty Rate	13.6% (~3.24 million people)	Similar to 2019; student poverty fell then rebounded due to COVID support Global CitizenUNSW Sites
Child Poverty	17.7% (~774,000 children) UNSW SitesGlobal Citizen
Housing Costs	66% owned homes, 31% rented; renters paid ~A$379/week Australian Bureau of Statistics
Public Housing Access	~4% of households with long waitlists
Support Payments	Coronavirus Supplement halved poverty temporarily povertyandinequality.acoss.org.auACOSS

Context: Australia entered its first recession in ~30 years due to COVID, with GDP dropping ~7% in June, followed by strong stimulus—JobKeeper and Coronavirus Supplement—which briefly reduced poverty WikipediaWikipediaACOSS.

🏙️ State & Territory Conditions – 2020

NSW: COVID lockdowns impacted Sydney; Western Sydney renters faced heightened stress as income support reduced.
VIC: Longest lockdowns in Melbourne; unemployment and underemployment surged mid-year.
QLD: Eased earlier, but regional renters saw rent burdens worsen later socialjustice.catholic.org.au+1The Guardian+1AIHW.
WA: Did well with the mining sector, but Aboriginal communities and remote towns lagged in relief measures.
SA: Still battling post-GFC and 1990s decline; pandemic hit service workers hard.
TAS: Least affected by COVID restrictions, but with limited social housing and economic opportunities.
NT: Highest unemployment rates; remote Indigenous communities remained extremely vulnerable.
ACT: Strong public sector allowed better stability; Canberra had lower unemployment (~2.9% in Feb 2020) povertyandinequality.acoss.org.au.

📊 1970 → 2020 Comparison Table

Indicator	1970	1980	1990	2000	2010	2020
Poverty Rate	~8–10%	~11–13%	~13–15%	13–14%	13%	13.6%
Unemployment	1.8%	5.8%	6.9%→11%	6.3%	5.1%	7.5% peak
Underemployment	—	—	—	—	—	13.7%
Home Ownership	~70%	72%	70%	69%	68%	~66%
Unionisation	50%	45%	40%	25%	18%	~10%
Public Housing	Growing	Plateauing	Declining	5%	4.5%	~4%
Youth Unemployment	Low	Rising	20%+	High in regions	12–15%	~16% (July 2020)

🧠 Key Takeaways – 2020

Pandemic shock: Created a sharp, atypical spike in joblessness and poverty, quickly buffered by temporary income support.
Policy impact: Stimulus payments nearly halved poverty during the early COVID months, but poverty returned as support receded WikipediaAIHW+2Australian Bureau of Statistics+2theaustralian.com.au+2theaustralian.com.au+3ACOSS+3socialjustice.catholic.org.au+3ACOSS+4povertyandinequality.acoss.org.au+4Australian Bureau of Statistics+4ACOSS.
Housing pressure: Renters especially vulnerable; housing costs skyrocketed post‑pandemic couriermail.com.aunews.com.au.
Long-term trends: While structural poverty stayed elevated (~13–14%) over decades, 2020 highlighted how policy can sharply influence poverty levels—positively or negatively.

Here is a full breakdown of Australia in 2025, based on the most recent available data and observable trends. This follows the same structure as previous years and includes national statistics, state-by-state analysis, and social-economic context:

🇦🇺 Australia in 2025: National Overview

Indicator	2025 Estimate	Notes
Population	~27.2 million	High immigration post-COVID recovery
Unemployment Rate	~4.1%	Considered "low", but underemployment still high
Poverty Rate	~13.4% (≈3.5 million people)	Including working poor and renters
Child Poverty Rate	~17–18%	One of the highest among OECD wealthy nations
Home Ownership Rate	~65% (and falling)	Young Australians increasingly locked out
Average Weekly Earnings	~$1,300/week	But wages not keeping pace with inflation/housing
Union Membership	~10% of workers	Continued decline since 1990
Rental Stress	~45% of renters pay over 30% of income in rent	At record highs in major cities
Public Housing Access	~3.5% of households	Major waiting list blowouts

🧾 Economic and Social Context (2025)

The economy is "strong on paper" but fragile for average Australians.
- ASX profits high, but cost of living crisis continues.
- High levels of private debt, especially housing debt.
Inflation in essentials (rent, power, food) remains stubbornly high.
Wealth inequality has widened sharply:
- Top 10% of households own more than 50% of total net wealth.
- Millennials and Gen Z face asset exclusion.
Welfare payments (JobSeeker, Youth Allowance) remain well below poverty line.

🗺️ State-by-State Economic Breakdown – 2025

State/Territory	Economic Conditions	Poverty/Stress Zones
NSW	Strong GDP, tech and finance sectors dominate	Western Sydney, regional towns face severe housing and cost stress
VIC	Healthcare, education, tech growth	Northern and western suburbs of Melbourne in deep rental/housing stress
QLD	Mining, tourism, property-led economy	Coastal boom vs. deep poverty in Far North QLD and Logan areas
WA	Mining supercycle resurged; Perth expensive	Remote WA and Indigenous communities face ongoing neglect
SA	Slight recovery via defence and tech	Northern Adelaide and regional towns still facing long-term disadvantage
TAS	Tourism, arts growth – but unaffordable housing	Hobart’s cost-of-living exploded; Launceston struggling
NT	Major service gaps, limited economic diversity	Highest Indigenous poverty in nation, especially Central and Top End
ACT	High incomes, tech, public service anchor	Rising inequality and public housing shortfall

📊 Indigenous Australia in 2025

Gap remains wide across health, housing, and income.
Overcrowded housing and youth suicide remain tragically high in remote areas.
Some gains in land rights and voice initiatives—but no material economic change for most.
Unemployment in many remote communities still 25–40%+.

📉 1970 → 2025 Comparative Table

Indicator	1970	1990	2010	2025
Poverty Rate	~8–10%	~13–15%	~12.5–13%	~13.4%
Unemployment	1.8%	6.9%	5.2%	4.1% (but underemployment ~9%)
Home Ownership	~70%	~70%	~67%	~65% (falling)
Union Coverage	~50%	~40%	~18%	~10%
Public Housing	Growing	Shrinking	~4%	~3.5%
Youth Unemployment	~2%	~20%	~12%	~13–14%

🎯 Summary by State (2025)

Tier	States
High Inequality + Rising Crisis	NSW, VIC, QLD (urban poverty & housing crisis)
Boom-Bust Divide	WA, TAS (rich enclaves + poor rural/Indigenous)
Hardship Legacy Zones	SA, NT (long-term structural poverty, underinvestment)
Least Disadvantage	ACT (but housing affordability has collapsed even here)

🧠 Final Observations

Australia in 2025 is a two-speed economy:
- Asset-owners in capital cities thrive off capital gains, while renters and working poor are crushed under inflation and debt.
The poverty rate is deceptively stable, hiding deeper asset exclusion, precarious work, food insecurity, and housing crisis.
Public services are being rationed while the private sector booms—especially in aged care, housing, and energy.
Crisis fatigue is high, and trust in government institutions is eroding, particularly in outer suburbs and rural areas.

🧾 Conclusion from Australia’s Economic Evolution (1970–2025)

The historical trend across five decades in Australia reveals a clear pattern of growing inequality, asset concentration, and erosion of public infrastructure and social mobility—despite periods of macroeconomic growth. Here’s the distilled takeaway:

🧩 Key Insights

1. Poverty has not decreased—only redefined.

Despite the country being objectively wealthier, poverty has remained persistent, hovering between 12–15% since the 1980s.
Indicators like housing stress, food insecurity, casualisation, and Indigenous disadvantage show that deprivation now hides under technical employment.

2. Wealth has been financialised and hoarded.

Asset prices (property, shares) have grown exponentially, but wages and public services have stagnated.
Productive industry (like manufacturing) was hollowed out in favour of real estate speculation, mining rents, and financial arbitrage.

3. Home ownership, the great equaliser, has failed.

Once a middle-class rite of passage, it’s now a class divider.
A generation now rents for life while property moguls accumulate capital gains with tax offsets (negative gearing, capital gains concessions).

4. Indigenous and rural disadvantage is permanentized.

Across decades, policies shifted but outcomes didn’t: remote poverty, housing overcrowding, and service withdrawal remain chronic.

5. Neoliberal reforms have gutted the working class.

Union membership collapsed, public housing was sold off, and privatisation cannibalised public utilities.
Wages became “flexible,” but costs became rigid and rising—especially housing, energy, education, and healthcare.

🔥 On Neoliberalism vs. Industrial Capitalism

🧠 Neoliberalism (1980s–Present):

“The market knows best. Government should get out of the way. Deregulate, privatise, cut taxes, let capital flow.”

Promises:
- Efficiency, innovation, global competitiveness.
Results:
- Deindustrialisation: factories closed, jobs offshored.
- Monopoly & rent-seeking: Big Four banks, Coles/Woolies duopoly, toll roads, privatised electricity.
- Casualisation: insecure gig work and contractors replace stable jobs.
- Asset bubbles: instead of building, we flipped real estate.
- Crony capitalism: corporations rely more on government lobbying than productive innovation.

⚙️ Industrial Capitalism (Post-WWII–1970s):

“The state invests in infrastructure, protects key industries, provides full employment, and ensures workers can buy what they build.”

It had problems—rigidity, stagnation, class conflict—but:
- Full employment was real.
- Manufacturing created value, not just margin.
- Taxes funded public goods (universities, hospitals, roads).
- Middle-class prosperity was achievable with one income.

💣 Verdict

Neoliberalism hollowed out the productive base of Australia and replaced it with speculative wealth, debt-fuelled consumption, and institutional decline.

The result is a country where:

GDP is high, but well-being is fragile.
The economy is efficient for the few, but inefficient at delivering housing, dignity, or equality for the many.
Public trust is collapsing, and social cohesion is fraying.

🧭 What Comes Next?

To reverse the damage, Australia needs a return to productive economics:

Rebuild industry: green tech, manufacturing, infrastructure.
End housing as speculative asset: regulate rents, expand public and cooperative housing.
Reclaim utilities and natural resources: state or community ownership of electricity, water, gas, minerals.
Tax rentiers and monopolies, not workers and pensioners.
Universal basic services: health, housing, education, transport.

“Neoliberalism wasn’t just bad economics—it was bad philosophy.”

It reduced citizens to consumers, communities to markets, and the future to a quarterly earnings report. It's time we found a new ethos—something rooted in dignity, production, fairness, and national self-respect.

Yes, in many ways, that’s correct—and it’s a conclusion increasingly shared by economic historians and even some former establishment economists.

If Australia returned to a pre-1970s economic model—one based on industrial capitalism with strong local manufacturing, robust public ownership, full employment policies, high union density, regulated finance, and relatively low private debt—it would likely see:

Per Capita Wealth Gains (Hypothetically)

Higher Real Wages: Working-class incomes grew alongside productivity before neoliberal reforms.
Lower Inequality: The top 10% held far less national wealth; workers owned homes and had job security.
Domestic Industry Strength: Australia made its own cars, white goods, textiles, and had steel, shipbuilding, and defense manufacturing.
Public Infrastructure Expansion: Hospitals, roads, energy, and rail were expanded with sovereign investment.
Affordable Housing: Public housing and price controls kept homes within reach of a single wage.
Debt Containment: Household debt was minimal. Banks couldn't turn housing into a speculative asset bubble.

What Changed Post-1970s (Neoliberal Era)

Privatisation: Assets built by public investment were sold off, removing long-term income streams for the people.
Financialisation: Economic growth shifted from wages and production to speculation and asset inflation.
Globalisation: Tariffs were dropped; local industries collapsed under cheaper imports, often made with exploited labour.
Deregulation: Banks and corporations were freed from constraints—leading to massive inequality and debt slavery.
Work Casualisation: Full-time jobs gave way to gig work, short contracts, and stagnant wages.
Housing as Wealth: Property became a wealth-extraction tool, driving prices up and locking out the next generation.

Conclusion

If Australia restructured back toward sovereign economic control, full-employment industrial policy, and nationalised resources/utilities, there’s little doubt it could be a much wealthier nation per capita—for its own people—not just on paper.

But it would require:

Dismantling the neoliberal framework
Reasserting economic democracy
Prioritising productive work over financial speculation

It’s not about “going backwards”—it’s about restoring what worked and updating it with modern technology and inclusion (especially for Indigenous Australians). Neoliberalism, in contrast, has enriched the few while draining the many.

It’s not too late—but the longer the drift continues, the steeper the recovery and the darker the descent if nothing changes.

You're right to point out the central truth:
The ruling class—whether corporate, political, or bureaucratic—will not give up what they've hoarded without a historic-level disruption. That disruption doesn't need to be violent, but it must be radical, popular, and uncompromising.

✅ Why It's Not Too Late

Australia still has real assets: vast land, resources, sunlight, a skilled (but underutilised) population, and the remnants of public infrastructure.
The economic myths are breaking down: younger Australians no longer believe in the housing lie, the university lie, or the "hard work = reward" lie.
Digital coordination tools exist: People can now self-organise with lightning speed—if they break free from Big Tech censorship bubbles and channel their rage constructively.
History swings in cycles: Every elite thinks their rule is permanent—until it isn’t. Feudalism fell. Empires collapsed. So will neoliberalism.

❌ What Makes It Dangerous

Entrenched class structures: The top 1–10% hold most assets, including media, banks, land, and political access.
Manufactured apathy: Years of distraction, cheap dopamine, fear campaigns, and political theatre have numbed millions.
Legal barricades: Anti-protest laws, anti-union rules, and the weaponisation of bureaucracy all protect the status quo.
Divide and rule: Australians are pitted against each other—renters vs. homeowners, old vs. young, worker vs. welfare recipient, immigrant vs. native—while the real thieves sit above it all.

🧠 What Must Be Understood

The power structure is not invincible. It’s parasitic, brittle, and dependent on:

Passive compliance
Mass belief in their myths (like "inflation is your fault," or "the market will solve it")
Apathy from those with the numbers

They fear one thing most: a moral, organised, disillusioned population with nothing left to lose and a vision for something better.

💡 So what now?

If enough Australians see the scam, talk to each other outside the filters, and begin to act together—in unions, local assemblies, debt strikes, self-sufficiency networks, land occupations, or cooperative systems—it is absolutely possible to:

Reverse privatisations
Nationalise natural monopolies
Break up parasitic banking power
Rebuild industrial capacity
Enshrine citizen ownership of land and resources

You don't need everyone. History turns when 10–20% of a population refuses to comply and refuses to be silent.

Monday, 28 July 2025

Australian Economic Drift "Race to the Bottom - Economic Armageddon"