Intro:
Cost of living. How does one define it?
The cost-of-living crisis refers to the significant increase in the price of essential goods and services, such as housing, food, healthcare, and transportation, which makes it difficult for individuals and families to meet their basic needs. This crisis affects people worldwide, but its impact is particularly severe on low- and middle-income households. The main drivers of the cost-of-living crisis include inflation, stagnant wages, and rising costs of housing and healthcare. As expenses outpace income growth, many people find it increasingly challenging to afford a decent standard of living, leading to financial stress and hardship. Addressing the cost-of-living crisis requires comprehensive policy measures, including economic reforms, social safety nets, and efforts to control inflation and improve access to affordable essential services.
Why is this a problem?
It affects everyone… no matter where they are on the societal food chain upper all the way to the lower classes. One could argue that the middleman and those living in absolute poverty are most affected. And they’d be right. Simple statistics state that over 3.3 million Australians alone (not including the rest of the world) are living in poverty because of the cost-of-living crisis that we are facing. And when further surveyed over 50% of Australians admit to struggling to afford basic needs like groceries and what not. And that is just within Australia itself. Reports suggest in 2023 the global rate of inflation has risen a staggering 6.8% with ‘first world’ countries like the U.S and the U.K adversely affected also. Global effects aside, this squeeze is affecting everyone as mentioned earlier and will only get worse as result of little to no action.
Understanding the issue.
The 10th SDG is intertwined with the struggles that we are facing. To tackle the issue we must first understand the issue and what could possibly be done…
The 10th Sustainable Development Goal (SDG), “Reduced Inequalities,” and the cost of living are closely intertwined. The relationship between these two concepts lies in the fact that inequality often exacerbates the impact of high living costs on marginalized and low-income populations.
Income inequality directly affects the ability of individuals to afford basic living expenses. When income distribution is highly unequal, those at the lower end of the spectrum struggle more to meet daily needs such as housing, food, healthcare, and education. SDG 10 aims to ensure that income growth benefits the bottom 40% of the population more than the average, which can help alleviate the pressure of high living costs on these groups.
Access to essential services such as healthcare, education, and transportation is critical for reducing inequality and managing living costs. SDG 10 targets the social, economic, and political inclusion of all individuals, ensuring that everyone, regardless of their background, has access to these vital services.
Social protection measures such as unemployment benefits, child allowances, and pensions play a crucial role in reducing the cost of living for vulnerable populations. These measures are directly aligned with SDG 10’s aim to adopt social protection policies to achieve greater equality.
Economic instability and lack of financial inclusion can exacerbate inequalities and make the cost of living unaffordable for many. SDG 10 focuses on improving the regulation of financial markets and enhancing the representation of developing countries in global economic discussions.
Key interventions:
- Progressive Taxation: By taxing higher incomes more and using the revenue to support social services, governments can reduce the burden of living costs on lower-income households.
- Minimum Wage Policies: Raising the minimum wage ensures that workers earn enough to cover their basic living expenses, reducing the gap between the rich and the poor.
- Universal Healthcare: Providing universal healthcare reduces the financial burden of medical expenses on individuals, particularly those from low-income backgrounds, helping to manage living costs and reduce inequality.
- Subsidized Education: Making education more affordable through subsidies and grants ensures that everyone has the opportunity to improve their economic situation, thereby addressing both living costs and long-term inequality.
- Enhanced Social Safety Nets: Strengthening social safety nets provides financial support to those in need, helping them to afford basic necessities and reducing the gap between different socioeconomic groups.
- Living Wage Initiatives: Promoting living wage initiatives ensures that all workers earn enough to cover the true cost of living in their area, contributing to reduced economic disparities.
- Financial Inclusion Programs: Ensuring that everyone has access to financial services like banking, credit, and insurance can help individuals manage living costs more effectively and build financial resilience.
- Global Cooperation: International financial support and development aid can help stabilize economies in developing countries, making it easier for these nations to provide affordable living conditions for their citizens.
SDG 10 goals:
- Income Growth:
- Achieve and sustain income growth of the bottom 40% of the population at a rate higher than the national average.
- This target focuses on ensuring that economic growth benefits everyone, especially the poorest and most marginalized.
- Social, Economic, and Political Inclusion:
- Empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.
- This emphasizes the importance of inclusive policies and practices that ensure equal participation and representation in society.
- Equal Opportunity and Reduced Inequalities of Outcome:
- Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies, and practices.
- This involves creating fair systems where everyone has the same chances to succeed, regardless of their background.
- Fiscal, Wage, and Social Protection Policies:
- Adopt fiscal, wage, and social protection policies and progressively achieve greater equality.
- This includes implementing tax policies, minimum wage laws, and social security systems that support the disadvantaged and reduce wealth gaps.
- Improved Regulation and Monitoring of Global Financial Markets:
- Improve the regulation and monitoring of global financial markets and institutions and strengthen the implementation of such regulations.
- This aims to prevent financial crises that disproportionately affect poorer populations and to create a more stable economic environment.
- Enhanced Representation for Developing Countries:
- Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions.
- This target addresses the need for a more equitable global governance structure where developing countries have a greater say in international affairs.
- Migration and Mobility:
- Facilitate orderly, safe, regular, and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies.
- This focuses on protecting the rights of migrants and ensuring that migration contributes to development.
- Financial Flows and Assistance:
- Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements.
- Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest.
- This includes providing financial resources and support to help developing countries reduce inequality.
Critical reflection:
Word spaghetti aside, the main things to tackle the cost-of-living crisis is to understand the fundamentals of the issue as outlined above. What the others and I pitched for our idea was to at least help combat the cost-of-living crisis in at least one aspect and that was to combat the supermarket gouging pricing Australians out of necessities on the daily. There is only so much that the idea can do and I guess my message here is to understand what we as country and as a world in a sense is to understand what we are going up against.
All it takes is one idea to spark a change, one person and their thought and I guess just how far they themselves are willing to go with it. Either with the help of others or themselves and their use of technology in a sense. With what I am going to do is just simply raise awareness and help in the sense that all it takes is just one. What I’ve done is just a simple video flicking through just what one needs to understand and what they can do. Real low budget stuff (absolutely no budget at all) and impromptu and done on the fly.
Conclusion:
What this has taught me is just be aware. Educate yourself on the matter as all it takes is one person with an idea and a thought to breakthrough barriers and to be hailed as something else. The report above is only just a basic outline of what was learnt not taking not taking account the pitch idea with started all this but rather what we as a group was trying to combat against. And that is the cost-of-living crisis and how the 10th SDG directly intertwines with our goal. Awareness and education are key and at the end of the day that’s all that really matters.
References:
Akter, S., & Wamba, S. F. (2016). Big data analytics in E-commerce: A systematic review and agenda for future research. Electronic Markets, 26(2), 173–194. (Accessed: 30 May 2024)
Shahriar, A., Katina, M., Uddin, M.R., McCarthy, G. & Mahfuzur, R. 2022, “Transforming business using digital innovations: the application of AI, blockchain, cloud and data analytics”, Annals of Operations Research, vol. 308, no. 1-2, pp. 7-39. (Accessed: 30 May 2024)
Cost of living crisis australia: The Salvation Army Australia (no date) Cost of Living Crisis Australia | The Salvation Army Australia. Available at: https://salvationarmy.org.au/red-shield-appeal/the-cost-of-living-crisis-in-australia/#:~:text=How%20is%20the%20cost-of,over%20the%20next%20three%20months. (Accessed: 30 May 2024).
The cost-of-living crisis is having a global impact – here’s what countries are doing to help (no date) World Economic Forum. Available at: https://www.weforum.org/agenda/2022/09/cost-of-living-crisis-global-impact/ (Accessed: 30 May 2024).
Nicole Black Associate Professor of Health Economics et al. (2024) Undernourished, stressed and overworked: Cost-of-living pressures are taking a toll on Australians’ health, The Conversation. Available at: https://theconversation.com/undernourished-stressed-and-overworked-cost-of-living-pressures-are-taking-a-toll-on-australians-health-223625#:~:text=Between%20August%202022%20and%20February,reaching%20implications%20for%20our%20health. (Accessed: 30 May 2024).
What the cost of living crisis looks like around the world (no date) The IRC. Available at: https://www.rescue.org/article/what-cost-living-crisis-looks-around-world (Accessed: 30 May 2024).


