Strangely, the more free, clean, green energy we get the more household incomes fail to keep up with inflation. Who would have thought that using inefficient energy in an artificial government-picks-the-winner market could possibly reduce our living standards?
Of course, this is not all due to electricity efficiency and pricing. Bill Shock only affects things that need to heat, cool or move.
David Uren, The Australian
Australians have endured their longest period of falling living standards in more than a quarter of a century as growth in costs outstripped earnings for the fifth consecutive quarter, leaving households worse off than they were six years ago.
After allowing for inflation, taxes and interest costs, average household incomes dropped 1.6 per cent in the year to September, capping a sustained fall in living standards that has not been seen since the 1990-91 recession.
Economists say more than half the cost increases for households are being driven by electricity, rent, health, new housing and tobacco, while modest wage rises are being partially absorbed by workers being pushed into higher tax brackets.
Energy prices feed into every other cost. Even the value of a house depends on the capacity people have to pay off their mortgage. Higher electricity bills means more expensive food, smaller profit margins, reduced consumer spending, and fewer jobs.
The energy transition we-didn’t need-to-have has a hidden price.
PS: Can anyone find or create a graph of employment in the renewables energy industry in Australia that is up to date?
*The Kyoto Agreement date is just a marker, and indicator of a new government that put “climate change” as a much higher priority. All subsequent governments largely shared that priority. The RET has become increasingly important as the percentage of renewables required to meet the target has risen every year. Rudd was elected in Nov 2007. March 2008 was the point when electricity prices started rising faster than inflation.
At what point did “Bill Shock” begin?
Source: Parliamentary Library
Note the inflexion point:
Australian Household Income: ABS, 6523.0 – Household Income and Wealth, Australia, 2015-16
Solar and Wind Generation from Prof Ray Wills page.