Questionable Research From The Political Left
According to research conducted by the Australian Labor Party (The Australian version of the Democrats)...
The top 5% of Australian's wealthiest people increased their gross income by $4,000, last year. Which is to say, they made $4,000 more last year than they did the year before.
Compared to the poor and middle class, many of whom's real income showed they were $430 worse off last year compared to the year before.
A few things about this "research":
It was conducted by a political party which is grounded in socialism. In other words, their mandate is about taking money out of the hands of productive people and giving it to unproductive people. So right off the bat you need to question the motives and the wording of the results.
And when you do you discover they are comparing the top 5% of the country's wealthiest - the people who create jobs, are the biggest employers of people, and who basically keep the economy going because they own the businesses - with some middle class employees and unemployed social welfare recipients.
Also, they are comparing the GROSS income of the wealthiest with the REAL income of some of the middle and poor classes.
This, in itself, will mislead you. Because with pay increases across the board, the gross income of the middle classes has actually gone up!
What explains their reduced real income? The same things that would reveal the wealthy also have a lower real income... over-inflated housing prices and rising interest rates in housing as well as consumer credit.
With housing costing more, you get less house for your buying dollar. Thus, your real income has gone down.
With interest rates on home loans, personal loans and credit cards going up, you also get less for your buying dollar as more of your income now goes in debt service. Your real income has gone down.
As the poor and middle classes are also taking on more debt (because they don't have the same level of financial intelligence as the wealthier do), they also have reduced buying power, reduced real income.
Inflation will also cause reduced buying power (reduced real income) for a period of time until pay rises catch up.
If you were going to conduct this research fairly, you would compare real income of the wealthy with real income of the middle class. You would compare gross income of the wealthy with gross income of the middle class. And, you would compare the wealthy as a whole with middle classes as a whole.
You would NOT compare gross income of the wealthy as a whole to real income of some of the poor and middle class.
And you wouldn't pick just the very top 5% of the country's wealthy. These people are multi-millionaires. You cannot compare a multi-millionaire's income with a middle class worker's income. That's ridiculous.
Doing so, reveals that ulterior motives are at hand. And in this case... this is also an election year for Australia, so if the Labor Party can convince Australians (specially the poor and middle classes) that they are worse off now than they were last year, they might get some extra people to vote for them in the upcoming election.

