A RECORD number of everyday Australians have joined the millionaires club with a new crowd of entrepreneurs emerging from the global financial crisis.
There are now more millionaires in Australia than before the crisis, with many newcomers taking the plunge on a business idea mid-GFC and striking gold.
While Europe and the US still struggle, Australia’s economy has evolved into a rolled-gold millionaires factory, churning out 15 new millionaires a day during the past two years.
Business idea! Ha. No, the main increase is because of ridiculous inflation in house prices:
Capital city property prices rose upwards of 20 per cent in the 12 months to April 2009, elevating many Australians to millionaire status on their bricks and mortar alone.
Yup, if you’ve a quarter acre block anywhere near a capital city, you’re probably a millionnaire automatically now, or will be soon.
That’s not a good thing, though. Because when house prices alone make people technically rich (not that most of these people can take advantage of this unearned new money, since they’re living in it), the corollary of that is that only the rich can now buy a house.
The sad thing about this story, with such devastating consequences for future generations, is that stupid governments will probably trumpet it as some kind of success. Rather than the damning indictment it really is.