Australians are the Richest People in the world?
“Australia” the land that the wealthiest citizens in the world call home.
In 2018, the average net worth of an Australians adult is 411,000 USD. The median net worth, the middle person from a lineup of richest to poorest of people in Australia is 191,000 USD which means that the wealth is spread very evenly. Additional, Australian has a net worth more than three times that of a regular US citizens.
Picture From :https://en.wikipedia.org/wiki/Mining_in_Australia
The Australian mining industry is also the key of its wealth. Australia geographical location made it a perfect trading partner for exploding Asian economies. Its location is fulled with iron ore, coal, and etc. Most of these materials been exported in raw form to countries like India, Japan, South Korea and China. In2018, Australian exported over 270 billion dollars worth of raw materials to fuel the growth of these Asian economies.
Take a look at “housing” . Australia is a very safe ( If we ignore spider, snake or etc.) and clean country with great schools, great hospitals and fantastic opportunities. These makes some cities in Australia become more popular for wealthy migrants. Australia open widely for migrants and students that are skilled because they will help country boost the economy. Having foreign moneyy spent in country does boost the economy. But the only problem is the demand for housing of these new arrival has skyrocketed . The surgeon demand is compounded by a policy that the Australian government has called negative gearing the policy that makes investing in real estate very tax efficient and has meant that investors would rather put their money into rental properties than the stock market.
In 1991, the Australian Government introduced the superannation guarantee. This was a new law that mandated that employees had to contribute a certain percentage of their income to a retirement saving account. These account would be invested into the market similar to pension funds in other countries but the different was that it applied to all workers in Australia with very few exception abd this contribution is taken before taxes.
Picture From : https://www.sbs.com.au/language/english/en/article/how-government-works-in-australia/dzdnx6szp
In conclusion, Australia is the wealthiest country in the world because of its policy which has forced them into doing what every personal finance book ever has told people to do.
This article is a part of Macroeconomic II , 751309 section 701. This class is teaching by Prof. Napon Hongsakulvasu.
