“Australia is revelling in wealth,
with the standard of living rising sharply over the past five years and income
increasing faster than inflation, ” David Uren reported in The Australian
today.

“People have found ways to spend the
additional dollars, indulging in more recreation and buying extra personal and
household services. However, housing, health and education are also consuming a
larger slice of the weekly budget.

The Australian Bureau of Statistics
household expenditure survey shows earnings rose an average 28 per cent over the
past five years, while the cost of living rose by 18 per
cent.”

As the BCA reported last week, we
have benefitted greatly from the reforms of the 1980s. There are however, some
left behind. So how do we help the battlers? More of the same, we think.
Economic reform leads to faster growth and provides opportunity to all. That’s
what economists believe.

For the views of a well known
economist, who has been calling for further reform, particularly of the tax
system, read more here.