Blog 001! Houses and Bananas

Why does stuff get more expensive? By Mana Williams. 8-12 Minutes

I remember when I was fifteen, wore Adidas track pants and thought Ninja’s were really cool. Applying for my first job nervously crinkling up my CV (Resume) with Lynx Africa spray on and a naivety for financial independence. It was not long after I received my first paycheck, an $86.04 cent flurry of minor purchases and retail therapies occurred thereafter. My parents were aware of my spending but held the attitude that it was better I made mistakes and spent my money on silly things when I was young and financially dependent than when I was an adult, had priorities that needed managing and bills to pay. I’m sure I speak for many people when I say I have nothing to show for 90% of my purchases. After working for a supermarket for two years I began to notice the significant amount of difference there was between how much I was earning and how much my employer was earning. A business module that operates with a soul purpose of profit margin and to benefit from capital gains taxes with employees under policies of, “for every dollar I give you, you give me ten.” The extra $9 covers the original payment made to the supply chain, logistics and store operating costs but is still left with a net “PROFIT MARGIN” in the end.

If you paid for a kilogramme of bananas for $2.99 in a supermarket produce department. The amount of money the employee would get would equal the about of labour done at roughly 30 seconds from placing the produce onto his trolley, entering the shop floor and taking the bunch of bananas from his trolley to the display. At minimum wage in New Zealand of $15.75, 30 seconds equates to $0.13 before tax.

If rising costs of inflation impose on everything purchasable in our country then why do we not have an equivalent pay increase? If we are supposed to get $1 for every $10 our employer earns then why do we earn $0.13 for a $2.99 kg of bananas? That’s $1 for every $23…

The answer lies with Steve, or trickle down economic hardship as I will explain.

One example was the US House Market Collapse in 2008 where 4 trillion dollars of taxpayers money was lost in investments made against default credit swaps for mortgages.

So how does the American Housing Crisis contribute to the long-term decline in ratio growth of pay rate to inflation in a New Zealand economy?

Or

What does one American’s problem have to do with expensive house costs and shit pay for me?

I’m glad you asked… Like a domino’s effect, a regular guy named Tom want’s to buy a house, a greedy businessman named Steve lends him a loan to buy a house without checking if the man can pay. A greedy banker, named Steve also, creates a “cunning plan” and buys the loan from the greedy businessman and sells it to investors. One of the investors is a government financial representative in charge of tax payers money, guess what his name was Steve too. One of the tax payers is a wealthy businessman who does trade deals internationally with low tax rates. One of the countries the wealthy businessman does deals with is in Oceania. (Australia, New Zealand and other nearby Islands).

Do you remember the man Tom from the beginning? The guy with not too much cash in hand, not dissimilar from myself actually, applying for a cash loan on a Mortgage for his house… He can’t pay… As well as thousands of other people. The greedy businessman Steve shakes his head with confusion and can not longer swap with greedy banker Steve because they are no longer receiving any cash flows from their purchases, the banker is unable to sell their product to investors because they recognise the fraudulence, the United States Government’s Financial representative Steve quits his job because he realises that he just lost 4 trillion dollars of retirement money. 12 million people lose their jobs, of them, hundred’s of workers were made redundant after the international Tax Paying Businessman could no longer afford to do trade deals Internationally because of increased tax rates imposed on export trade deals. The New Zealand house market is saturated by thousands of houses that were being sold for nothing so house prices in New Zealand dropped significantly. The New Zealand Government suffers from higher tax prices with the United States combined with a declining housing market in which they receive capital tax from and decides not to increase the minimum wage. House prices recover and grow with inflation whilst the minimum wage plateaus…

Businesses within New Zealand are plagued with ever rising operating costs through taxation and trickle down economic hardships of other businesses. Inspired by assholes like Steve, businesses will also look for their Profit Margin. That is why a KG of Banana’s was $2.49 this time last year and $2.99 this year.

With an influx of new tax levies imposed by Governing Bodies, organisations and businesses are increasing the prices of everything. But you can guarantee that there is a Steve in there somewhere, creating stupid deals with other stupid people who think they are intelligent. Whether it’s a House or a Banana, it all adds up.