I was more asking about housing than the broad economy.
'High' house prices are a problem(?) - MT and SM have said a supply response is needed. The fed govt is in a very limited position to stimulate supply. The states are in a much better position to stimulate supply - but 'can' they; and why would they?
For the states to stimulate supply they would need to cut taxes (as well as councils) on housing? So shy would they do that if it erodes their revenue base?
What about decreasing demand?
The Federal Government could easily stimulate supply.
If they were truly concerned about housing affordability etc. they could borrow billions (interest rates are low) and give the funding to the States on the condition that the money is used to build public housing. Considering that there's literally tens of thousands of people on public housing waiting lists throughout Australia the supply would easily get swallowed up. I know we live in the neo-liberal era so it sounds crazy but that's literally what the Government used to do. However, since the 1970's the Federal Government slashed the funding towards public housing so there was only enough supply to take in the most disadvantaged and vulnerable instead of actual workers like it was originally intended for.
I suspect you'll be disappointed, about the submarines at least.
We will have to wait and see on that. I'll wager a nice bottle of Shiraz on it though.
Quote:
Remember, Turnbull has come to power within the Libs by claiming to be a better salesman for the Libs' *current* policies. He's had to shackle his own instincts on carbon-pricing and marriage equality in order to get the gig.
So he's hardly going to be able to turn around and become the Aussie version of Paul Krugman.
There will be more latitude if he wins the next election, but any practical effect of that is at least 2 years away.
True he has a conservative grass roots support base at branch level, but I think that voters expect more, and if they don't please the voters they won't stay in power.
I would like to think that the government will inject something into SA and Vic for their manufacturing industries. If you have a look at the unemployment and trajectory in Adelaide it's not looking pretty and we all know there are more job losses. See graph supplied.
Also if you look at new car sales its clear that NSW is doing very well, Vic pretty well, Qld so so, and the rest are doing quite poorly. Clearly some effort is required on the part of government. See chart.
Many thanks to Pete Wargent for his data.
zaph
18 Sep 2015, 12:18 PM
I was more asking about housing than the broad economy.
'High' house prices are a problem(?) - MT and SM have said a supply response is needed. The fed govt is in a very limited position to stimulate supply. The states are in a much better position to stimulate supply - but 'can' they; and why would they?
For the states to stimulate supply they would need to cut taxes (as well as councils) on housing? So shy would they do that if it erodes their revenue base?
What about decreasing demand?
I have heard that MT might increase the GST so that could fund some state revenue and take pressure off stamp duty revenue, and developer contributions. Of course it als increases the cost of providing houses, and furniture, whitegoods, carpet etc so I don't know whether the net effect would be worthwhile.
It would certainly require a rethink on funding and taxes. Whether Malcolm has the kahunas for that I don't know.
Chris
18 Sep 2015, 01:00 PM
Help what Peter? His own personal finances by the sound of it, and that by any measure is a conflict of interest and corruption. Having the ability either directly or indirectly , to manipulate a beneficial outcome for your own personal wealth with power instilled to you by the public.
They should all be forced to sell all IP's whether NG'd not
Not trying to have a shot at you Chris, but where are you going to find accomplished intelligent men and women who have been completely unsuccessful in business and life to run the country?
It's an oxymoron. We need smart intelligent experienced winners as our leaders and they all own property, shares, and have money.
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