Inflation at six year high
Mar 3rd 2008, 10:06 am
#16
has lost The Game
Thread Starter
Joined: Apr 2005
Location: Chippendale, Sydney
Posts: 8,735
Re: Inflation at six year high
Agreed 100%. I think that's what he'll do, he's a pretty shrewd operator, he'll fulfil his election promise but it won't be by handing out cash to all and sundry, John Howard style.
The $6000 credit for property investors charging 20% less than market rate on these new affordable homes he's just announced could be part of that.
The $6000 credit for property investors charging 20% less than market rate on these new affordable homes he's just announced could be part of that.
I have always believed that reducing the tax burden on Super would be a great idea. It would encourage people to save more earlier on in their lives, would provide a better quality of retirement, and is also not immediately inflationary as hand out tax cuts would be.
S
Mar 3rd 2008, 10:07 am
#17
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Joined: Oct 2006
Location: Pere Lachaise Cemetary, plot 666
Posts: 1,381
Re: Inflation at six year high
What he does have control over, however is the millions of dollars of tax cuts he promised us during the election campaign. Given the figures released yesterday, he may do well to consider the governments position with them, or consider applying them in a way that doesn't generate immediate inflationary pressure, such as reducing tax on super funds or similar.
Just a thought on that from a non economist. He could still give the tax cuts but at the same time increase the GST rate giving more revenue to the government. I seem to remember Thatcher doing the same with VAT in the past.
Mar 3rd 2008, 10:08 am
#18
(It's not my real name)
Joined: Sep 2002
Location: Ilukapool. WA
Posts: 12,468
Re: Inflation at six year high
Agreed, the exact opposite of what the criminal Gordon Brown did in the UK and boy or boy are our poor old compatriots going to pay for that in one generation's time, or sooner.
Mar 3rd 2008, 2:05 pm
#19
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Posts: 164
Re: Inflation at six year high
Yep, the tradition of painful Labour continues.
Mar 3rd 2008, 8:45 pm
#20
Where traffic lights rule
Joined: Aug 2006
Location: Brighton QLD
Posts: 2,460
Re: Inflation at six year high
Mar 3rd 2008, 8:55 pm
#21
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Joined: Sep 2005
Posts: 146
Re: Inflation at six year high
I'm not good at economics so bare with me. I'm in the NW part of the US. Average housing cost is about maybe $250,000, food is pretty dirt cheap, our interest rates are at 3% and inflation is generally 3.5% (.5% lower than aus). Is the US just digging itself a huge hole while trying to get itself out of a downturn in the economy in the short term...or what exactly are the differences between the countries and the way they're handing things
