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The Australia interest rate rise is the wrong medicine and an even worse alibi (www.theguardian.com)
submitted 1 month ago by to c/australianpolitics@aussie.zone
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Slashing and burning housebuilding and investment today will inhibit inflation a little in the short-run at the price of diminishing long-term supply – a sure way to breed more long-term inflation.

This is not an anti-inflation policy. It is a cynical transfer of income from people who did not cause the problem to people who are, in fact, profiting handsomely from it. And it is an excuse for further acts of vandalism on some of Australia’s important institutions.

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[–] -4 points 1 month ago (9 children)

Those who took on too much debt shouldn’t hold the rest of the nation to ransoms.

Aus is an affluent country used to having a high disposable income. They will likely all keep spending.

They need to start taking the medicine. The ironic lucky country is being realised here

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  • [–] [S] 10 points 1 month ago* (last edited 1 month ago) (3 children)

    Aus is an affluent country used to having a high disposable income.

    There is significant wealth inequality in Australia. Many, many people do not have a high disposable income. Should they “take the medicine” of job precarity, housing unaffordability, and price hikes? How would that improve the situation?

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  • [–] 3 points 1 month ago

    housing isn't unaffordable because of rate hikes, its unaffordable because of cheap money and constrained supply, it's what "we" voted for.

    this is a 50 year slow moving shit storm, tweaking rates 50bpd here or there matters nought when you have nothing to begin with but inflation matters a lot.

    How would that improve the situation?

    these many many have fucked around and now they're finding out, they're adults, with agency... this can only get worse for them because nearly everything we do in terms of neo liberal economic policy takes us this way, and they vote for it they're accompolocies not victims... we literally eat the future and how they vote will make it even worse for themselves, we see the same shit in the US.

    As to the many many... new car sales are at a record, 75% of them are ICE ffs, over seas travel is at a record, inflation adjusted spending keeps increasing. I go out anywhere and observe cafes and restaurants over flowing (I don't eat out because i cant afford it) i live near a tourist town that drowns in tourists that require vast amounts of energy to get there, fuck any Hormuz crisis it seems. We've just seen record numbers of people pay ridiculous amounts of money to watch strangers run around in shorts chasing a ball (bread 'n circuses)

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  • [–] 1 point 1 month ago* (1 child)

    I am not saying it will improve, i think its inevitable a lot of people will get hurt, those without likely. However a lack of common awareness is a big issue. Australia is affluent. Do people spend money easy...take a look at westfield most weekends, and tell me i am wrong. But she'll be alright is used like an excuse to not deal with clear issues.

    I know that there is disparity, been calling if for a long time but most people have been ok with this because their house price went up. The can has been kicked and kicked but debt has to be paid eventually. Thats the medicine.

    I am not rich, I cannot afford a home in Aus, but I am also not ignorant to the conditions of those who struggle.

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  • [–] [S] 1 point 1 month ago* (last edited 1 month ago)

    So you say that Australians

    need to start taking the medicine

    yet when asked how that will improve the situation, you say

    I am not saying it will improve, i think its inevitable a lot of people will get hurt, those without likely.

    So, I'm not seeing why those without “need to start taking the medicine”. If it's inevitable they will get hurt whether or not they “take the medicine”, I think they'd be right to say: no we don't and bugger off for saying we need to.

    I think it's not inevitable (as in: cannot be avoided) that a lot of disadvantaged people will get hurt. That can be avoided, because it will happen only by the choices the powerful make. It can be avoided, if we collectively choose to avoid it.

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  • [–] 3 points 1 month ago (1 child)

    You realise if all the people, normal people go broke it won't be good for anyone.

    Ordinary people can't afford their house then they don't go but coffee then the people working at the coffee shop lose their jobs and everyone falls down.

    We shouldn't be trying to bring the country down we should be trying to lift everyone else up.

    I sure as shit don't know how but that's what we need to do

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  • [–] 1 point 1 month ago

    I don't disagree. But this is not a problem that has just arrived. Its been a long time building, with so many people could see it, and voiced it. But people voted for house prices to the moon, meaning more debt for everyone. Meaning less investment to businesses. The can got kicked and kicked. No one wants to see the country in a downward economy but its likely that the result is baked in now. I didn't make this mess, I cant fix the mess, i'm just the person who points out that its been a long time coming and the consequences need to happen.

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