Well, the Interest Rates are going up… never mind the fact some banks raised them anyway last month, the Reserve Bank raised the official interest rates by 25 basis points which lead the Commonwealth Bank to raise its lending rates by 30 today.
Whilst the interest rates are one thing, I want to make 2 comments.
1. This is not a result of a Labor Govt. Do NOT listen to the likes of Malcolm Turnbull that may (will) come out and say that Labor is “mismanaging” the economy. This is a load of rubbish and is pure out and out politicking point scoring. The real reasons stem from a Liberal govt coveting the US foreign policy whilst at the same time providing tax cuts whilst maintaining a massive budgetary surplus. Perhaps if they had invested in infrastructure rather than our back pockets we wouldn’t be this flush with cash.
2. Second, there is another way to relieve the inflation in the market. What about income and GST tax increases? Would that be political suicide? At the moment our increased interest rates means we are relieved of dollars via our mortgage payments and other investments and that money goes into the banks for the benefit of shareholders. We spend less as a result and inflation subsides. But what if we lost our dollars via increased taxes and then those dollars were then shipped into the Governments coffers for the benefit of all via hospitals, education et al? Again, we wouldn’t be able to spend as much but at least the dollars would be put to the general good.
I presume this makes me a Communist as well, but maybe they were on to something!