Real Wealth

According to the Australian Bureau of Statistics, the average wage in Australia has just edged over $900 per week. The bureau also suggests that Australian families now have twice the disposable income, in real terms, they had 40 years ago. This means that even after taking inflation into account, we’re twice as rich.

Unfortunately the distribution of wealth during this time has not benefited society evenly, although this hasn’t always been the case. In the 1970s Australia was assessed to have the most equitable distribution of wealth in the developed world.

Despite our classless and egalitarian community, social commentators can’t help but observe a growing underclass. Families where unemployment is now in its third generation and record numbers of homeless individuals and families who exist below the designated state of poverty, for example, point to a society that is struggling to equally share the country’s wealth.

Analysis of top CEO salaries in relation to the average wage goes a long way in explaining the stratifying of wealth, however.

While charitable organisations struggle to cope with increasing requirements for food and clothing hand-outs, top executives enjoy salaries that have increased by about 2700 per cent in just over 25 years. And comparisons with the US indicate this trend will increase.

It’s tempting to stare goggle-eyed at people in our society who earn around $27,000 per week and assume it’s unfair. How can anyone earn, let alone, spend that much money? I’ve even heard people say that it’s immoral.

The fact remains that a market-driven economy allows shareholders to ultimately determine CEO salaries, and any interference in the process by government authorities is deemed to compromise our free society.

Recently my brother-in-law announced to me that he was as wealthy as Bill Gates. He had my full attention. It was time that someone with serious wealth joined our family ranks. He then explained that he had available 24 hours a day, the same as Bill Gates!

That comparison raises the question, then: What is true wealth? As a society have we become so singularly focused on wealth in terms of money and average wages that we’ve lost sight of the fact that true wealth comes from living in a free society, enjoying good health and having 24 hours a day to pursue virtually unlimited opportunity.

Extract from Signs of the Times, June 2003.

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