Recent commentary on levels of inequality exposes the myth that Australia is an egalitarian society in which the privileges of birth have little currency.
Focusing on inequality in the distribution of incomes ignores an equally important dimension of inequality: wealth. Wealth is much more unequally distributed than income. Therefore, ignoring wealth inequality skews perceptions of social inequality.
Perceptions of the levels of income and wealth inequality are derived from our day-to-day experiences. This means that not mixing with people from the other end of the wealth distribution can colour our perceptions of inequality.
The lack of official data on the wealth holdings of Australians hampers research into trends in wealth inequality. Between 1915 and 2003-04, there is almost no official wealth data to examine.
In 2003-04, the wealthiest 20% of Australian households held 58.6% of total household wealth, and the poorest 20% of households held just 1.4% of total household wealth. In 2013-14, the wealthiest 20% of households held 61% of total household wealth, and the poorest 20% of households held just 1% of total household wealth.
These figures indicate that wealth inequality increased over the decade to 2013-14.
The table below details trends over time in various measures of wealth inequality. The P90 to P10 ratio compares the wealth of households at the 90th percentile with that of households at the tenth percentile. A larger ratio indicates greater levels of inequality.
In 2003-04, households at the 90th percentile held 45 times as much wealth as households at the tenth percentile. In 2013-14, households at the 90th percentile of the distribution held 52 times as much wealth as households at the tenth percentile. This indicates that wealth inequality increased in that decade.
Using the mean and median household wealth figures, it is possible to calculate the ratio of median to mean wealth.
The closer this ratio is to one, the lower the level of inequality. In 2003-04, the ratio was 0.63. In 2013-14, it was 0.57. This also indicates that wealth inequality increased.
The distribution of household wealth also varies between Australia’s state and territories, and by location within states and territories.
Households in the ACT recorded the highest mean household wealth (A$890,100). Households in Tasmania recorded the lowest mean household wealth ($595,600).
When these figures are disaggregated by location into capital city households and households located in the rest of the state, the largest wealth gap occurs in New South Wales. The mean wealth of households in Sydney was $971,700, whereas the mean wealth of households in the rest of NSW was $534,700.
The median-to-mean-wealth ratios show wealth was most unequally distributed in Brisbane and Perth.
Given a relatively large proportion of household wealth is held in the form of property assets, the recently released Household, Income and Labour Dynamics in Australia Survey report identifies property as the key driver of increasing wealth inequality.
The percentage of 18-to-39-year-olds with property declined by 10.5 percentage points between 2002 and 2014. And the level of debt of those with a mortgage doubled in real terms.
So, fewer young adults have mortgages now compared to a decade ago, and those who do have mortgages have higher levels of debt.
Two other sources of publicly available data on wealth are the lists of the super-wealthy published annually by the Business Review Weekly in Australia and Forbes in the US.
Figures published in the Business Review Weekly show that, after adjusting for inflation, in 1984 the wealthiest 20 Australians held $8.25 billion in assets. In 2017, the wealthiest 20 Australians held $104 billion.
Forbes’ lists of billionaires (in $US) show that the number of billionaires living in Australia increased from two to 26 between 1987 and 2014.
Having an increasing number of billionaires would not be an issue if all Australians’ wealth was increasing at a similar rate. However, if the gap between the wealth of the billionaires and that of the average residents increases dramatically, there is likely to be discontent.
Further reading: Don’t listen to the rich: inequality is bad for everyone
Drawing on figures published in the Credit Suisse Wealth Report, it is possible to compare the wealth of the billionaires with that of average Australians.
In 2014, the wealth of the 26 Australian billionaires was equivalent to 214,914 adults with average wealth.
Recent turmoil in the UK and the US may be an indicator that the “peasants are revolting” and are not willing to return to the 19th century, when the very rich lorded over the masses.
Australia has yet to experience mass demonstrations and voter backlashes. But events overseas should be ringing alarm bells among our politicians in Canberra.
A new report by the Australian Housing and Urban Research Institute (AHURI) reveals, for the first time, the extent of housing need in Australia. An estimated 1.3 million households are in a state of housing need, whether unable to access market housing or in a position of rental stress. This figure is predicted to rise to 1.7 million by 2025.
To put it in perspective, 1.3 million is around 14% of Australian households. This national total includes 373,000 households in New South Wales, where the number is expected to increase by 80% to more than 670,000 by 2025 under the baseline economic assumptions of the modelling.
The first graph below shows the average annual level of housing need to 2025. The second, showing the percentages of households, permits a direct comparison by state. NSW and Queensland are in the worst position. The ACT is calculated to have the lowest proportional level of need.
What does this mean for households in need?
Housing need is defined as:
… the aggregate of households unable to access market-provided housing or requiring some form of housing assistance in the private rental market to avoid a position of rental stress.
This includes potential households that are unable to form because their income is too low to afford to rent in the private rental market. These households would traditionally rely on public housing and community housing to meet their needs. However, more and more are being forced into the private rental market, paying housing costs they are unable to afford without making significant sacrifices.
To 2025, on average 190,000 potential households in NSW will be unable to access market housing in a given year. The graph below is the most revealing as it illustrates the gap between affordable housing demand and supply.
The lack of social housing and subsidised rental housing prevents such households forming under affordable conditions. Many will manage to form but will have to spend well over 30% of their income on housing costs to do so, putting them in a position of financial stress.
The results also reveal the increasing pressure the affordable housing shortfall places on the housing assistance budget, notably Commonwealth Rent Assistance.
The absence of a significant new supply of affordable housing – there has been no large-scale program since the National Rental Affordability Scheme (NRAS) began in 2008 – has left state governments trying to find ways to plug the affordability gap.
Responses have been largely on the demand side, such as first home buyer concessions recently announced in NSW. But such incentives are no use for low-income households. To help them, intervention needs to be on the supply side.
How does Australia compare?
The AHURI research built on ideas emerging from research into housing need in the UK. It revealed interesting differences between the two countries.
UK government policy prior to 2010 emphasised the role of the planning system in helping to substantially increase affordable housing supply. This reflected evidence from England and Scotland that found a link between low levels of new housing supply and higher and rising house prices.
In this project, we found plenty of evidence of deteriorating housing affordability in Australia. But we did not find a particularly strong relationship between housing supply and price growth. This might reflect how other drivers of deteriorating housing affordability are more important in Australia – such as tax incentives for investors.
These findings suggest we need to look more closely at how new supply and investment demand interact, and in what circumstances boosting new supply is likely to improve affordability.
From our analysis of individuals’ labour market circumstances and incomes, it was also clear that the Australian workforce has not escaped the erosion of secure, full-time employment opportunities seen in other countries.
The combination of widespread insecure, part-time employment opportunities, high housing costs and low supply of rented social housing means the housing of many working Australians is extremely precarious.
How was the research done?
The research modelled housing need at the state and territory level to 2025 using an underlying set of economic assumptions and interrelated models on household formation, housing markets, labour markets and tenure choice.
The models were underpinned by data from the Housing, Income and Labour Dynamics in Australia (HILDA) Survey, the Australian Bureau of Statistics (ABS) and house price and rent data.
This research delivers, for the first time in Australia, a consistent and replicable methodology for assessing housing need. It can be used to inform resource allocation and simulate the impact of policy decisions on housing outcomes.
The intention is to further develop the model to assess housing need at the level of local government areas.
So, what are the policy implications?
The scale of the affordable housing shortfall requires major action from federal and state governments.
NRAS had its problems but at least delivered a supply of below-market housing. Australia cannot rely on the private sector to deliver housing for low-income households without some form of government subsidy as it is simply not profitable to do so.
The question is what government is going to be prepared, or even able, to spend big to close the affordable housing supply gap?
The link below is to an article that looks at the rising pressure on Christians across the world in Islamic countries.
The link below is to an article that reports on a rising radical Islam in the Spanish region of Catalonia.
Christians, moderate Muslims blame growth of Islamism under ‘weak’ government.
JAKARTA, Indonesia, August 17 (CDN) — The country that is home to the world’s largest Muslim population celebrated its 65th Independence Day today amid a widespread sense of distrust in the government’s ability to check attacks on churches by Islamist groups.
Muslims and Islamic organizations, Buddhists and Hindus joined hundreds of Christians for an ecumenical worship service near National Monument Square in Jakarta to protest “government inaction” over attacks on Christians and “forced closure of churches,” reported The Jakarta Globe. They had planned to hold the service outside the State Palace, but the government prohibited it due to preparations for Independence Day celebrations, the daily reported.
“Why did it take President [Susilo Bambang] Yudhoyono so many days to speak against the attacks?” the Rev. Dr. SAE Nababan, president of the World Council of Churches from Asia, told Compass. “Such carelessness can be dangerous for our democracy. Officials must not forget that they are accountable to the people.”
Nababan was referring to President Yudhoyono’s call for religious harmony a day before the month-long Islamic festival of fasting, Ramadan, began here last Wednesday (Aug. 11). According to the Globe, it was the president’s “first public comment” addressing “a recent rash of violence against religious minorities.”
The president’s statement came after a fifth attack on the Batak Christian Protestant Filadelfia Church (HKBP Filadelfia) in Bekasi city, a suburb of Jakarta, on Aug. 8.
More than 300 members of the extremist Islamic People’s Forum (FUI) and Islamic Defenders Front (FPI) broke through a police barricade and injured at least a dozen people during the Sunday worship in a field. The church has faced attacks since November 2000, when it was constructing the church building. (See http://www.compassdirect.org, “Hundreds Injure Church Members in Bekasi, Indonesia,” Aug. 9)
Rising Christian Persecution
Endy Bayuni, former editor of The Jakarta Post, told Compass that churches were being attacked every week but that media were avoiding coverage because it is an “emotional and controversial issue.”
“You also risk being accused of taking sides when you report on religious conflicts,” he said, adding that Christians and the Ahmadiyya, a Muslim sect regarded as heretical because it does not believe that Muhammad was the last prophet, bear the brunt of Islamism in Indonesia.
A report by the Setara Institute for Peace and Democracy stated that violations of religious freedom of Christians had grown from previous years. It recorded at least 28 violations — mostly by Islamist groups – between January and July – up from 18 in 2009 and 17 in 2008.
The violations included forced closure of churches, revocation and delays in issuing building permits, and attacks such as torching and damaging churches. Political motives, economic interests involving illegal extortion, and ideological clashes of “intolerant groups” refusing the presence of those of a different religion impeded justice in most cases, noted the report.
Most Muslims in Indonesia are moderate and tolerant, said Nababan, former bishop of the HKBP Filadelfia church, but he added that the extremist minority poses a “great threat” to the nation.
“Extremism always starts in small numbers,” he said, alluding to alleged government inaction.
Dr. Musda Mulia, a Muslim research professor at the Indonesian Institute of Sciences, told Compass all Indonesians have a right to freedom of faith.
“It seems the government doesn’t want to deal with the radicals,” she said. “Persecution of Christians and other minorities has been my concern for many years, but the government is very weak.”
Extremism in Indonesia, now a republic with a presidential system, dates back to the country’s struggle for independence, when Islamists called for an Islamic state. The Dutch transferred sovereignty to Indonesia in 1949 after an armed struggle.
Not heeding the Islamists’ call, the country’s leaders chose “Pancasila” as the official philosophical foundation comprising five principles: belief in the one and only God; just and civilized humanity; the unity of Indonesia; democracy guided by the inner wisdom in the unanimity arising out of deliberations among representatives; and social justice for all.
In line with Pancasila, “Unity in Diversity” (Bhinneka Tunggal Ika) became the official national motto of Indonesia. The Indonesian Constitution guarantees freedom of religion, but the government only recognizes six religions: Islam, Hinduism, Buddhism, Protestantism, Catholicism, and Confucianism.
Indonesia, an archipelago of 17,508 islands – about 6,000 of which are inhabited – has around 300 distinct native ethnicities and 742 languages and dialects. Over 86 percent of the over 138 million Indonesians are Muslim. Christians are around 8 percent, Hindus 3 percent and Buddhist 1.8 percent.
Islamist militant groups remain active and growing and are still fighting pluralism. According to the Globe, police recently unearthed a terror plot against President Yudhoyono, “part of a larger trend as militant groups widened their targets from Westerners to include state officials” considered to be “symbols of secularism.” One of their aims was to “accelerate the transformation of the country’s democratic system into one controlled by Islamic law.”
In 2002, over 200 people (including 164 foreigners) were killed in a terror attack by Islamist militants in Kuta town on the island of Bali. Indonesia has also fought violent Islamist insurgents, such as in Aceh Province, which now has a special status and implements sharia (Islamic law).
Mulia of the Indonesian Institute of Sciences, who is the first woman to obtain a doctorate degree in Islamic political thought, identified the FPI and the Forum Betawi Rempung (Betawi Brotherhood Forum or FBR) as two of the Islamist groups chiefly responsible for Christian persecution.
The FPI, a national-level organization infamous for vigilante violence and allegedly part of the al Qaeda network, was established on Aug. 17, 1998. The FBR, a similar group based in Jakarta, was formed to fight for the interests of the ethnic Betawi Muslims on July 29, 2001.
Both groups exist legally in the country.
In June, several Indonesian parliamentarians asked the government to ban the FPI, which “has threatened ‘war’ against Christians in Jakarta and urged mosques to set up militia forces,” reported the Globe on July 26. The government, however, thinks that banning such groups will only lead to re-formation of the same organizations under new names.
The deputy chairman of Setara, Bonar Tigor Naipospos, was quoted in the Post’s July 29 edition as saying that local administrations, especially in cities in West Java Province, see these groups “as assets for local elections.”
“They [local governments] bow to pressure from mass organizations that insist the churches’ presence and activities have caused unrest,” he reportedly said.
As for the national government, added Nababan of the World Council of Churches of Asia, “it is preoccupied with its free market economy and apparently has no time to uphold the Constitution.”
Church Building Permits
The sealing of churches and the refusal to grant building permits top the list of major violations of Christians’ religious rights in Indonesia, according to Setara. The Aug. 8 attack on the HKBP Filadelfia church was also rooted in denial of permit for constructing its church building.
Setara’s deputy chairman told the Post that churches in Jakarta mainly faced trouble in renovating and expanding their buildings, which require building permits.
“They have to start over again by obtaining 60 signatures from residents living around the church, and sometimes residents refuse to provide signatures,” he said. The Setara report recommended that President Yudhoyono review a 2006 joint ministerial decree that requires signatures from congregations and residents living nearby, as well as approval from the local administration, to build a house of worship.
According to Setara, at least three churches in east and south Jakarta were experiencing difficulties in obtaining permits for church building at press time.
Nababan complained that some local governments would not give permits for churches for years without stating any reason.
“If this current government can become courageous enough to prosecute those who break the law and allow religious freedom, including the freedom to construct churches where we live, there is hope for Indonesia,” added Nababan.
A Christian source who requested anonymity said he agreed that there was hope for minorities in Indonesia.
“Violent attacks awaken the silent majority, which then speaks up and holds the government accountable,” he said.
Report from Compass Direct News
Muslim groups angered by ruling to allow Catholic newspaper to use word ‘Allah.’
KUALA LUMPUR, Malaysia, January 11 (CDN) — In unprecedented acts that stunned Christians in Malaysia, suspected Islamists have attacked eight church buildings since the country’s High Court ruled that a Catholic weekly could use the word “Allah.”
Firebombs were thrown into the compounds of four churches in Kuala Lumpur and neighboring Petaling Jaya on Friday (Jan. 8); three more attacks occurred on Sunday (Jan. 10) in Taiping, Melaka and Miri; and another church building was hit today in Seremban. There were no reports of injuries.
Judge Lau Bee Lan delivered the controversial court ruling on Dec. 31, arguing that the Herald had a constitutional right to use the word “Allah” for God in the Malay section of its multi-lingual newspaper. The ruling caused an uproar among many Muslim groups widely reported to have called for nationwide protests after Friday prayers, asserting that “Allah” can be used only in the context of Islam. Among groups calling for protests were the Muslim Youth Movement and the National Association of Muslim Students.
Inflammatory rhetoric has emerged in the escalating conflict; at a protest in Shah Alam since protests began on Friday, a speaker at one rally urged listeners to “burn churches,” according to the online news site Malaysian Insider. The crowd reportedly stood in stunned silence.
Malaysia’s Home Ministry filed an appeal against the High Court decision on Jan. 4. Two days later, the court allowed a freeze on the decision to permit the Herald to use the word “Allah” pending hearing in the Court of Appeal.
The attacked churches were Metro Tabernacle (Assembly of God) in Kuala Lumpur, and three churches in Petaling Jaya: Life Chapel (Brethren), Assumption Church (Catholic) and Good Shepherd Lutheran Church (Lutheran); also damaged were All Saints’ Church (Anglican) in Taiping, Melaka Baptist Church in Melaka (vandalized but not firebombed), Good Shepherd Church (Catholic) in Miri (pelted with stones) and Sidang Injil Borneo (Evangelical Church of Borneo) in Seremban.
Though there were no casualties, a number of the church buildings were damaged in the attacks. Metro Tabernacle suffered the worst damage, with the ground floor of its three-story building, which housed its administrative office, completely gutted. The main door of the church in Seremban was charred.
The Rev. Ong Sek Leang, senior pastor of Metro Tabernacle, reportedly said that the church harbors no ill feelings toward the culprits and would forgive those responsible, but that it does not condone the acts.
Most of the other church buildings suffered minor damage, though the Assumption Church was spared when the Molotov cocktail thrown into its compound failed to go off. The Melaka Baptist Church building was splashed with black paint, while stones were thrown into the Good Shepherd Church building in Miri.
The Malaysian Insider reported on Friday (Jan. 8) that two other churches received telephone threats from unknown sources.
Christian leaders, government and opposition leaders, and Non-Governmental Organizations have condemned the attacks. Police have promised to increase security around church buildings, but Inspector-General of Police Musa Hassan told the Malaysian Insider that churches must beef up their own security since there is a shortage of police personnel.
Malaysia’s population is about 60 percent Muslim, 19 percent Buddhist and 9 percent Christian. About 6 percent are Hindu, with 2.6 percent of the population adhering to Confucianism, Taoism and other traditional Chinese religions.
The spate of church attacks shocked the Christian community and nation, as acts of violence on places of worship are unprecedented in Malaysia.
Ramon Navaratnam, Chairman of the Centre of Public Policy Studies, said in a press statement on Friday (Jan. 8) that the attacks marked a “troubling trend” and “a low point in our nation’s history.”
The same day, Malaysian Bar Council Chairman Ragunath Kesavan said in a press statement that the attacks were “shocking and offensive” and that “all right-minded Malaysians must condemn it as indecent and unacceptable.”
Christian leaders strongly denounced the attacks and have asked the government to safeguard the community and its places of worship. They have also called on the government to take firm steps against the perpetrators while paving the way for greater understanding between the different religious communities.
The Rev. Dr. Hermen Shastri, general secretary of the Council of Churches Malaysia, called on the government to “show zero tolerance for the use, threat or incitement, of violence as a means to pressure the decision of the court.” The Rev. Eu Hong Seng, chairman of the National Evangelical Christian Fellowship, called on the government “to take the necessary steps to educate those who lack understanding and are ‘easily confused’ to be mature-minded in a progressive democratic society.”
Leaders on both sides of the political divide have also denounced the attacks, while a number of opposition leaders – including Anwar Ibrahim, adviser to the People’s Justice Party – put the blame on the United Malay National Organization (UMNO), the leading partner in the ruling coalition government. Anwar reportedly accused UMNO-owned newspaper Utusan Malaysia of having incited Muslims over the court decision.
A number of local commentators have also criticized Prime Minister Najib Abdul Razak and Home Minister Hishammuddin Hussein for not defusing rising tensions in the initial days of the court ruling. They have also come under fire for saying they would allow public demonstrations by Muslim groups to proceed, and that they would take action “only if things got out of hand.”
Despite the attacks, a check with parishioners of several churches in the Klang Valley showed Christians were undeterred by the acts of violence and continued to gather for worship yesterday.
Urging Christians to pray, Sam Ang, secretary-general of the National Evangelical Christian Fellowship, told Compass, “We see this as an opportunity to trust in the Lord and to revitalize our faith, especially for second-generation Christians.”
Report from Compass Direct News