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The politics of affluence: Australians watch the extravagances of the rich with awe and envy. So why is it that low-income households seem to be able to acquire the basic necessities of life, while the rich say they are suffering, unable to find the money for everything they need?

Article Excerpt
James Packer is the heir to Australia's largest fortune, the product of a family that has ruthlessly pursued material success and political power. He surrounded by the trappings of the super-rich, and is ranked number one on the society A-list. But while the Packer billions can buy a luxurious lifestyle, fearsome power and social success, can they buy James happiness? Are the rumours true--has he sought solace from the Church of Scientology?

If they are, one may wonder about his choice of spiritual guide. Nonetheless it is good that James appears to have recognised that more money and power are not the answer to his discontent. Some might suggest that he will only find the answer if he renounces the wealth, influence and social glamour, but at least he has gone looking.

It has sometimes been observed that no matter how wealthy people are they believe they need more money to be happy. Most people act as if more money means more happiness. But when people reach the financial goals they aspire to, they do not feel any happier. They therefore raise their threshold of sufficiency even higher, and thus begins an endless cycle.

When confined to the lives of individuals this phenomenon of serial disappointment may be regarded as a sad commentary on the human condition. But when it is transformed into a collective complaint that spills into the social domain and demands a political response, we have a problem, one that I have characterised as the rise of the middle-class battler.

A recent Newspoll survey reveals that 62 per cent of Australians believe that they cannot afford to buy everything they really need. When we consider that Australia is one of the world's richest countries, and that Australians today have incomes three times higher than in 1950, it is remarkable that such a high proportion feel their incomes are inadequate. It is even more remarkable that almost half of the richest households in Australia (with incomes over $70,000 a year) say they cannot afford to buy everything they really need. The proportion of `suffering rich' in Australia is even higher than in the United States, which is widely regarded as the nation most obsessed with money.

The survey also asked respondents whether they `spend nearly all of their money on the basic necessities of life'. Across the population, 56 per cent of respondents agreed. Among those in the lowest income...

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