Australian Economist John Adams from Adamseconomics.com and banking expert Martin North report on how Australia’s record debt bubble is leading in massive social problems among Australia’s middle class.
In the past 6 years, Sydney’s south west region of Camden and Oran Park (postcode 2570) has seen a massive spike in domestic violence which local police have told the New South Wales State Government has been caused by mortgage stress (i.e. households that don’t have sufficient cashflow to meet all of their financial obligations including paying their mortgage).
Using independent crime and economic data, Adams and North find that households in Australia’s postcode of 2570 have:
– experience a massive rise in the crimes of ‘domestic assaults’ and ‘intimidation, stalking and harassment’ relative to the state average;
– one of the highest levels of mortgage stress in the country (40.7%);
– one of the highest levels of rental stress in Australia (48.5%); and
– one of the highest levels of mortgages under water (48.15% against the national average of 16.45%).
Adams suggests that this economic and social catastrophe is just the tip of the iceberg of what is to come, especially when the debt becomes unserviceable. Australians are experiencing the social consequences of failing economic policies that are responsible for blowing up the biggest debt bubble in Australia’s history.
Australia’s economic establishment needs to be held accountable for the injustices caused contrary to the interests of the people.