COMMUNITY & COOPERATION in the cost-of-living crisis

In the face of escalating living expenses and economic uncertainty, embracing mutual-aid initiatives and community-driven solutions can alleviate financial strain and foster resilience in times of need.

- Martin Oliver

Countries around the world, including Australia and New Zealand, are experiencing a cost-of-living crisis that has been running for the past two to three years. High inflation, which is considered to be the primary cause, initially arose from a large boost in spending as the world emerged from COVID lockdowns. Supply-chain disruptions and the war in Ukraine are two additional factors.

Prices have been running ahead of wages, and homeowners with mortgages have received a double whammy, with their budgets also squeezed by interest rate rises designed to dampen the economy in the short term. Since most COVID measures were lifted a few years ago, Australia has seen its cash rate increase from 0.1 per cent to 4.35 per cent, and New Zealand's has risen further, from 0.25 per cent to 5.5 per cent. However, in both countries, inflation is now on the downturn.

For households whose finances are squeezed, an obvious step is to seek extra sources of income. Also common is minimising discretionary spending and, in some cases, cutting back on what would be considered essentials. Food insecurity - the lack of access to nutritious food - is becoming more prevalent in both Australia and New Zealand.

Individualism versus community

The United States is probably the world's primary exponent of individualism, a quality that the country has embraced since the early 19th century. It is frequently treated as a virtue or an ideal to aspire to and is tied to the popular concept of the "American dream". Since the start of the 1980s, American individualism has received a boost from neoliberalism, which seeks to benefit private enterprise, arguably at the expense of other aspects of society.