An Australian Household's Choice: Housing Deprivation or Financial Debt ‘Betwixt the Devil and the Deep Blue Sea’?
14 Pages Posted: 12 Mar 2017 Last revised: 4 Oct 2017
Date Written: March 9, 2017
Delivering reform that is Pareto Optimal is a challenging task. This is especially true for the Finance and Housing sectors. Compounding this challenge is the need to enhance quality of life opportunities of low income and welfare dependent households. The following discussion demonstrates a current and major challenge faced by authorities – a challenge that has all the hallmarks of being a ‘wicked problem’. A critical part of this discussion is that it identifies an imminent potential unintended consequence that could significantly affect the wellbeing of households – particularly those on low incomes. Namely, without viable alternatives – which currently do not exist, regulatory reforms further restricting the access to particular forms of alternative financial services could result in an increase in housing deprivation experienced by households typically regarded as poor – deprivation they may be willing to trade-out of for increased financial debt.
Keywords: Housing Deprivation; Financial Debt; Alternative Financial Services; Housing Essentials
JEL Classification: G18; G28; G38; D14
Suggested Citation: Suggested Citation