There is a curious and cruel paradox that anyone who has experienced poverty knows – the less
money you have, the more everything costs. It’s sometimes called “Boots Theory” after a
character in a Terry Pratchett book who reflects on how a really good pair of boots that cost $50
would keep your feet dry for 10 years, but an okay-ish pair of boots that cost $10 would only last a
season. Rich people get richer, he surmises, because they spend less – $50 every 10 years
instead of $100.
Mention this poverty tax to any frontline Salvos worker and they will tell you stories: of the harried
mum driving on bald tyres because even though she knows a fine (let alone an accident) will cost
more, she needs to feed her kids. Of the young person buying expensive ready meals, knowing
that cooking from scratch is cheaper, but they don’t have access to a kitchen.
The people we see make every dollar stretch to an astonishing limit. They make heroic
budgeting choices. Seventy-seven per cent of the people we surveyed recently fear they will not be able to afford enough food for their families to eat – they said they felt shame and guilt.
Which makes it hard to hear the government using much the same language to say no to raising
JobSeeker. There simply isn’t room in the budget to allow people to live with dignity.
Like driving on bald tyres or buying okay-ish boots, the government has also fallen for a false
economy, but we will be the ones paying the poverty tax. Putting off raising JobSeeker to a
reasonable level might save money in the short term, but it is going to cost us a lot more in the
We are all familiar with the phenomenon of people showing up to emergency rooms because they
can’t afford a GP. At the Salvos, we see people needing costly medical interventions that could
have been easily avoided if only they could afford their medication. How much does that cost the
There is a well-documented link between financial hardship and an increase in the severity and
prevalence of family violence. Financial hardship after leaving an abusive relationship makes it
harder for victim survivors to rejoin the workforce. Family violence costs Australia at least $34 billion a year. How much of that is because we don’t have adequate income support?
At the Salvos we see poor mental health everywhere. It is a cause, result and amplifier of every other
form of hardship. Mental health costs Australia around $200 billion a year. How much of that could
be prevented by letting people live with dignity?
Child poverty leads to poorer educational, employment and health outcomes, intergenerational
welfare dependence, lost revenue and ongoing government expenditure. It costs the UK around £78 billion a year. In the US, it could be as high as $1 trillion.
The cost to New Zealand could represent as much as 9.1 per cent of their total GDP. We don’t know how much it costs Australia – but it won’t be less.
These days every Australian can sympathise with the idea that we can’t afford something, but
that’s not really true of JobSeeker. There is money in the budget but raising JobSeeker would
involve some tough decisions. We are all getting used to tough decisions. If you have to make a
sacrifice now to save money in the long run, then that’s what you do.
You don’t need to be an expert to see the sense in buying the good boots, and you don’t need to
be a treasurer to see the sense in raising JobSeeker.
The Salvation Army will be making submissions to both Senate inquiries into the rising cost of living and the nature and extent of poverty in Australia. Jennifer will be appearing before the inquiry into the rising cost of living in Sydney on February 1.
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Source: Thanks smh.com