Interest rates
I’m amazed at how much mileage the media are giving “Howard lied about keeping interest rates low”. We have either redefined the truth or lack of it or I have missed something. Howard said rates would be lower under the Coalition and they are; He said he would keep rates low and they are.
What have I missed.
This rise is the sixth since the reelection of the Coalition in 2004 but they have all been a quarter or a percent and whereas it’s not good it certainly is better than when the ALP last held power.
Chief economist John Edwards said the decision showed the bank’s independence was intact as the rate hike was the first ever in an election year.
“The sharp increase in third quarter core inflation, plus the rapid increase in jobs, the associated fall in unemployment to a 33 year low, signs that housing construction may be coming out of a long slump, and continuing strength in retail sales and business investment, left the RBA board very little choice when it met Tuesday.”I can’t see many economic negatives there. The rate is now 6.75% and that’s certainly higher than when the Coalition come to power but it’s a whole lot less than the 18% mortgage I was paying in the 80’s – thanks Keating! Under the ALP I was once 24 hours from having myself and my family on the streets. I needed more than one job to pay the interest but there wasn’t any jobs either – no one was investing, they were just waiting to kick Keating out before they did anything. I recovered but just!
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Kev
The issue is less the rate, and more the amount borrowed as a result of bank lending policy. Back when you (and I) were struggling, the average amount borrowed was much less. The real historical comparison should be the proportion of weekly earnings required for the mortgage payments then and now. Back then it was was much lower. There was also a much lower rate of credit card debt in those days – again as a result of individual and corporate greed. Comparing the actual percentage is fallacious – that historical horse is dead, there’s not much point in continuing to flog it.
An interesting observation is that self-funded retirees (like me) are better off because of the rate rise. I taunt my kids with this, and they accuse me of being a closet liberal voter.
It may be fallacious but it’s all over the media. Howard’s rates as treasurer get a daily mention so when that stops, I’ll stop.
Yes, rates do help us. When I resigned under the Hawke/Keating regime my super went up and up. Naturally it stabilized under Howard.
Possibly the only positive should Rudd get in.
Each generation want’s more. That’s fuelled higher living standards and longer lives.
Do you think we should live as Surfs for the ‘enlightened’ elite, 1735099?
Corporate greed? they are supplying a demand, not creating it.
We don’t need to live like serfs – just within our means. The level of private debt is beyond a joke.
Harry, they’re doing both. Many corporations create a demand through marketing and then meet it. Bottled water is a basic example.
Yesterday we saw the Telstra shareholders overruled by their board on a pretty basic issue of greed. It’s ingrained in corporate culture.
Why greed. Why not “they have the responsibility to themselves and their shareholders to make a profit”
I don’t know what other word to use to describe a remuneration package of $22 million p.a. At yesterday’s meeting, the responsibility that the board has to disclose the triggers generating executive bonuses was ignored. The only responsibility honored was to the management team.
It’s time to dump the board.
Apart from that, I believe that corporations have a social responsibility beyond their shareholders. This was once a feature of Australian business life which sadly has been lost.
What do you propose 1735099 ?.
A government department to approve loans
” I believe that corporations have a social responsibility beyond their shareholders. This was once a feature of Australian business life which sadly has been lost.”
Myth!!
I propose a value system based on compassion rather than materialism – a system where the worth of each individual is based on how they value their fellow man rather than how much they own and consume.
To assign that understanding to mythology is to give up on mankind.
“I propose a value system based on compassion rather than materialism – a system where the worth of each individual is based on how they value their fellow man rather than how much they own and consume.”
What a pile of mealy mouthed weak political banter – these kinds of grotesque evasions are designed to hide reality.
They are as meaningless as “education revolution” or “working families” or any of the other focus group driven shite excreted by Kevin.07 and his band of spinners.
What is being evaded, Peter, and what reality hidden?