High Cost of Our Standard of Living

Sunshine Coast Daily (Maroochydore, Australia), January 29, 2013 | Go to article overview

High Cost of Our Standard of Living


BY INTERNATIONAL standards, Australians enjoy a very high standard of living and have among the most expensive real estate market in the world.

Thanks largely to the resilience of the mining sector and the benefits it brings to our economy, the Australian dollar remains at historically high levels and despite the hangover of a recent GFC, by any standard, Australians really are C[pounds sterling]living the dreamC[yen].

But the great irony of our prosperity is that our economic success creates a headwind for business to trade into.

The corollary of having a high-cost business environment is that it is comparatively cheaper to outsource roles overseas and to buy products and services abroad.

WeCOve already seen call centres proliferate and prosper in low-cost countries and there is no reason to think that the trend wonCOt continue.

After all, why canCOt any C[pounds sterling]serviceC[yen] that doesnCOt require face- to-face contact be moved offshore?

As Australian businesses search for cost savings, it seems inevitable that Australian workers will be the victims of cost-cutting pressures. …

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