While in Bali I was pondering the paradox that while average income is around one tenth ( or less) of the average Oz income, the shops still stock the same sorts of consumer items (TVs, videos etc) and these are at very similar prices to those in Oz ..... so how are the people in Bali able to purchase them? They must be buying the stuff or the shops would not stock it.
The theory I have come up with comes from the different cultural practices of land ownership. In Australia, every person expects to have to buy their own land and house to live in.... and the cost of renting is higher than the cost of purchase. We probably devote around 50% of our income to our home in some form or other. Then add to that the cost of food .... we end up with a small portion of our income available for consumer purchases. Yet in Bali, land is held by families over generations ... the average Balinese does not have to buy their home .... they usually have a dwelling in the communal family property. .... and food is very cheap. Thus very little of their income is taken by living. A high portion of their income is available.
The theory I have come up with comes from the different cultural practices of land ownership. In Australia, every person expects to have to buy their own land and house to live in.... and the cost of renting is higher than the cost of purchase. We probably devote around 50% of our income to our home in some form or other. Then add to that the cost of food .... we end up with a small portion of our income available for consumer purchases. Yet in Bali, land is held by families over generations ... the average Balinese does not have to buy their home .... they usually have a dwelling in the communal family property. .... and food is very cheap. Thus very little of their income is taken by living. A high portion of their income is available.
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