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No wages growth, but we keep pushing population growth

By Eric Claus - posted Thursday, 1 August 2019


This leads, of course, to the question: What is going to happen in another 20 years? The answer with respect to water is that we will have permanent water restrictions, much higher priced water, more energy guzzling desalinisation plants and bigger dams destroying more native habitat for our dwindling wildlife.

If that was the only erosion of our standard of living due to big business's and government's relentless pursuit of higher population, we could thank our lucky stars, but that is just the start.

First the other obvious ones:

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  • Housing prices will continue to climb (median house price in Sydney is up over 150% in the past 20 years) and we will be living in smaller houses with smaller yards or living in apartments with no yards, driving farther to work and spending more time on crowded roads.
  • Speaking of roads, road tolls will continue to increase. Twenty years ago we squawked about a couple toll roads. Now they're everywhere. The tolls have increased far ahead of inflation and will continue to increase even as they get more congested.
  • Train fares will increase. It is no surprise that the new Metro is much more expensive than the old Western Line. The Metro had to be built underground, that is a lot more expensive than above ground. Expect more of the same in the next 20 years.
  • Rubbish collection and disposal costs will increase. As Landfills fill up and solid waste needs to be taken further and further from Sydney, the costs will increase.
  • Sewage disposal costs will increase. As the volumes of wastewater increase, the impact on the receiving waters (the ocean and Hawkesbury Nepean River) increases, so better sewage treatment is needed. That costs money and that cost gets charged to the public.
  • Congestion will be worse. Roads and trains will be more crowded. Travel times to work have increased 20% since 2002. Parks and beaches will be more crowded.
  • Hospitals and Schools will be more crowded.
  • Anybody remember when parking was free?

Maybe not so obvious:

  • Energy prices will continue to increase. As fossil fuels become harder and harder to mine and pump out, the price to get them will increase. As the demand for energy increases with worldwide population increase, the price will increase even more. Energy prices have increased about 250% in the past 20 years, more than six times wages.
  • Food prices will continue to increase. As more and more good farm land is taken for homes, roads and factories the cost of food will increase. As energy, water and fertiliser prices increase, food will be more expensive. Food prices have increased about 80% in the past 20 years, more than twice wages.
  • Metals prices will continue to increase. Just like fossil fuels, metals are getting harder to dig up and there is more demand increasing the price. Metals prices have increased about 150% in the past 20 years, more than three times wages.

Often discussions of rapid population growth prioritise long term issues like koalas, melting polar ice caps, bees, refugees and whales with a belly full of plastic. Those are all very important, but maybe a bit disconnected from the day-to-day grind of the average Aussie. Every voter needs to understand that when the BCA talks about the economic benefits of high population growth, they are talking about their benefits, not the average Australian's. The average Australian is worse off with high population growth.

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About the Author

Eric Claus has worked in civil and environmental engineering for over 20 years.

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