Is anyone happy with Australia's housing market? A new film asks the question
The housing market in Australia has been a topic of concern for many, with rising prices and a sense of crisis in the air. But what's the real story behind these numbers? The documentary 'Common Wealth' by filmmaker Kane Guglielmi delves into this very question, exploring the complex relationship between land ownership, wealth distribution, and the impact on everyday Australians.
Guglielmi, a 'conservatively-raised capitalist', finds himself grappling with the rapid rise in property prices and the subsequent depression it caused. He embarks on a journey to uncover the reasons behind this phenomenon, leading him to some surprising insights.
One key realization is the significant role of land ownership in Australia's wealth distribution. The economist Karl Fitzgerald explains that much of Australia's 'wealth' comes from land and natural resources, and the value of land increases due to societal efforts. However, this increase in land value is often captured by private owners rather than the community, leading to a skewed distribution of wealth.
This raises questions about the fairness of the current system. Fitzgerald introduces Gugliemli to the ideas of Henry George, an American land reformer who advocated for proper land taxation. George's theory suggests that taxing land and resource rents could alleviate poverty and reduce the burden on labor and business income.
Gugliemli's exploration takes him to Singapore, where he learns about their high rates of home ownership despite limited land. The Singaporeans' approach, influenced by Georgist principles, has resulted in affordable housing for millions. This raises questions about Australia's own policy choices and the potential for a more equitable system.
The documentary also takes Gugliemli to Norway, where he discovers their massive sovereign wealth fund, and Alaska, where the Permanent Fund turns oil and mining royalties into a multi-billion-dollar benefit for citizens. These examples highlight the potential for alternative models that prioritize the well-being of the people.
As the film progresses, Gugliemli's initial questions about house prices evolve into deeper inquiries about land ownership, resource rents, and the potential for alternative democratic systems. He questions why politicians keep giving away natural resources for little in return, and the film leaves the audience with a sense of unease about the current state of affairs.
'Common Wealth' is a thought-provoking documentary that challenges viewers to reconsider their assumptions about the housing market and wealth distribution. It highlights the importance of land ownership and resource taxation in shaping society, and the potential for a more equitable future. Gugliemli's personal journey and the insights he uncovers make for a compelling watch, leaving viewers with a lot to ponder.
