The rental crisis

 Neo-liberalism maintains that the private sector does everything better than the public sector, that the smaller government is, the better, and that the government should never run deficits. This has meant that much of the burden for achieving economic growth has defaulted from fiscal policy (deficit spending) to monetary policy. This has driven down interest rates over several decades, which has made housing more expensive.

But the 'small government' mantra means that not enough subsidised housing has been built. And since government policy is about favouring the rich, we have both negative gearing and reduced capital gains tax on investment assets held for more than a year, which drives up house prices.

These toxic policies are supposed to 'increase growth' and this extra income/GDP is supposed to 'trickle down' to the poor. And yet, in the countries most wedded to neo-liberalism, average wages in real terms have not risen for a long time: a decade in Australia, 15 years in the UK and 3 decades in the US. Even though real GDP has risen. All the incremental wealth created has gone to the top 10%.

Neither main party in Australia wants to fundamentally change this system. Which is why the votes for the two main parties (treating the Nationals as just a faction within the LNP) have fallen from 95% in 1975 to 75% now. This steady worsening in income and wealth inequality gives the people who have lost out no stake in our democracy, so they end up voting for extremist parties and individuals. In response, the Right weaponizes hatred: the world's problems are not due to neo-liberalism or the obscene greed of millionaires and billionaires but to 'Mexicans', 'Blacks', 'gays', 'trans ppl', 'wokeness' (whatever that is), 'Jews', 'Muslims', and eating too much mashed avocado. No one would knowingly vote for policies which siphon wealth up to the richest. So the Right shifts the blame, and newspapers owned by the super rich deflect and lie to make sure right-wing parties remain in office, and right-wing ideas appear 'logical'.

And the result of these pernicious policies is that the most vulnerable end up living in their cars, and the rich call the police to move them on. And no one in power will do anything about it.