With wage income suddenly reduced, the Aus Govt is pouring money into households.
$18b via social security + $32b via business grants.
As it does, it's worth keeping in mind how much money *drains out* of households, in rent.
For private rental households, about $40b pa. 1/6
$18b via social security + $32b via business grants.
As it does, it's worth keeping in mind how much money *drains out* of households, in rent.
For private rental households, about $40b pa. 1/6
That $40b drains out of 2.3m private renter households...
... and into 1.2m private landlord households. 2/6
... and into 1.2m private landlord households. 2/6
(Some of it also goes into a mysterious group of about 450,000 LLs that aren't considered 'households' - a mix of corporations, trusts, and individuals who own more than 5 properties each.) 3/6
On average, LL households have much higher incomes than other households ($132k v $82k pa).
84% of LLs are working age, and most are in secure employment. Those of retirement age are, on average, very high wealth: about $3m net. 4/6
84% of LLs are working age, and most are in secure employment. Those of retirement age are, on average, very high wealth: about $3m net. 4/6
That's where $40b in rent is due to flow this year.
As govt tries to replace some of the economy's lost income, renter households are like a bucket with a hole in the bottom. The govt's attempt to pour money in would be more effective if less money was draining out as rent. 5/6
As govt tries to replace some of the economy's lost income, renter households are like a bucket with a hole in the bottom. The govt's attempt to pour money in would be more effective if less money was draining out as rent. 5/6
As the public health+economic crisis of #covid19australia hits, govts must urgently enact an #EvictionMoratorium.
But more than that, they must consider #RentControl.
Stop households from being turned out of their houses.
And stop income being drained out of households . 6/6
But more than that, they must consider #RentControl.
Stop households from being turned out of their houses.
And stop income being drained out of households . 6/6
@threadreaderapp unroll please
