Cost Of Living Crisis Or Cost Of Greed Crisis?

Currently there is a big discussion occurring around the cost of living crisis but is it truly a cost of living crisis or more an old form of common law that has been the popular legal application across the globe that is currently causing the issues we experience.

Now before you dismiss todays discussion I really want you to take in a few things around that it is that governs the world. As well as how the market reacts because currently the quality of goods all around us have come crashing down, the majority of which are made in BRICS nations.

Globalisation took off in the 80s but really started to take hold in the 90s and ever since a globalised market went to 3rd world nations to have products made, quality was the biggest selling point for locally made products and for a long time internationally made items could not compete with locally made items outside pieces of plastic like toys. But even then, they often were made with child labour and consisted of dangerous chemicals.

BRICS Made Item's are Cheap

Nations economies that are members of BRICS have tanked and for someone even like us in Australia where the Australian Dollar is worth 0.63c almost half the value of the U.S Dollar. These items like the glass I bought in my picture are still only worth a few cents (a packet not each).

You can see those low costs aren't flowing onto Aussies at the check outs and not even on wages as corporate profits are retaining all those profits. These issues are not unique to Australia with many western economies also suffering the same issues. BRICS made items sold for massive profits.

Currently The margin is so great it's almost profitable to kick-start manufacturers back here in Australia and other western nations. This is something Trump is doing with the whole Tariff debacle. People argue that Tariffs aren't paid by companies overseas but by the purchases here, but in a way it stops overseas cheap quality items coming into the U.S and gives local manufacturing the ability to compete.

He's policy does make a lot of sence despite its execution being quite flawed in a few aspects as you do need some low tariffs such as with us Aussies who produce Iron Ore. You want to work the system so that you can import from the countries that are your allies and not pose security threats.

Modern Day Manufacturing Barriers

The problem we face in Australia today is that we've allowed these profit margins to exist because we've lost the skills to offshore companies. None of this is new, our parents raised these concerns in the 70s - 90s but went unheard.

Holden (GM) and Ford were the last to retain the sector but they're gone now.
Since their departure, all large barriers to Aussie made products went out the door and now were flooded with cheap crap and no way to compete. You might want to blame government or government agencies but it's not their fault.

Companies spend a lot of money hiring lawyers to find ways to break the law. Sorry I can't use that term the correct term is "find a way around the legislation"

Legislation = law

Imagine paying a law firm money to come up with ways around other laws like, assault, robbery, theft, private property ownership.

It doesn't happen because most people are across those laws because they're the ones that govern us everyday and we obey. But when it comes to laws that govern corporations and institutions, we lack the adequate understanding and the complexity of it all becomes a challenge.

We get taken advantage of, even if we know it's wrong and we see it, we are powerless to take action.

That's because much of the world is still governed by an outdated legal system called Common Law.

We need change, but is it too late?

Have we enabled the system to become so enriched with wealth and power that us common folk are now just puppets?

Yes and No, it just takes a lot more noise and a lot more to combat.

The time for change is fast approaching and there might be a lot more support for it then first thought.

image sources provided supplemented by Canva Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.

Posted Using INLEO