Does Mr Hockey want to inflate house prices further?

Wed, 11 Mar 2015  |  

At a time when household debt levels are very high and rising, superannuation and retirement savings are too low as highlighted in the Intergenerational Report last week, and when house prices are growing at an uncomfortably rapid rate, Treasurer Joe Hockey has pulled out a plan that would boost household debt, erode retirement income savings and underpin house price gains.

Such is the absolute absurdity of the suggestion from Mr Hockey that potential first home owners be given access to their superannuation savings to help them buy their first house.

The last thing the housing sector needs right now is another factor to fuel demand. So troubling is the house price problem and a point spectacularly missed by Mr Hockey, is that the RBA is willing to let the rest of the economy flounder into its third straight year of sub-trend GDP growth and rising unemployment because house prices are too high.

If implemented, Mr Hockey's would be a disaster for the structural integrity of the economy and raise further questions about the risks building as house prices and household debt keep rising.

Dumb and misguided policy needs to be called out and Mr Hockey's plan is best left to Year 12 HSC economics students to critique in an example of where policy makers can get things wrong, even when they seemingly mean well.

Mr Hockey was and remains silent on the issue vital if house prices are to moderate to levels that first home buyers can more easily afford – new supply. If he can come up with an idea to address house price pressures through the supply side, that is more houses, he will be doing something to help housing affordability without destroying the retirement incomes of young people.

comments powered by Disqus



Wed, 29 Jul 2020



Covid19 has opened a door for Australians to positively accept significant changes that will lead to a shared good. This rare opportunity enables us to achieve sustainable economic and social goals that create a new ‘normal’ as our way of life.

These Ten Steps are presented as non-partisan recommendations to the Australian Parliament in the firm belief that, if they embrace them, the Australian economy and society will be greatly enhanced after the Covid19 pandemic has passed.

*A job for you if you want one.
A significant increase in part time and casual employment can be created that will enable you to enjoy a more creative and peaceful lifestyle and to live longer and better. The traditional age at which you would have been expected to retire will become obsolete as a result. An access age for pension and superannuation will become your choice. This will enable you to remain in paid work for as long as you want to, on a basis that you choose, while boosting the productivity and growth of Australia.

*You will get wage increases that will be greater than your cost of living.
A demand for enhanced innovative skills at all levels of employment will be created as the economy grows in strength, thereby enhancing your stature in the workforce and enabling executive salaries and bonuses to drop to levels that are accepted as justifiable by employees, shareholders and customers.

The misplaced objective of the government of delivering a surplus, come hell or high water, has gone up in smoke

Tue, 07 Jan 2020

This article first appeared on the Yahoo Finance web site at this link:   


The misplaced objective of the government of delivering a surplus, come hell or high water, has gone up in smoke

For many people, the cost of the fires is immeasurable. 

Or irrelevant. 

They have lost loved ones, precious possessions, businesses and dreams and for these people, what lies ahead is bleak.

Life has changed forever.

As the fires continue to ravage through huge tracts of land, destroying yet more houses, more property, incinerating livestock herds, hundreds of millions of wildlife, birds and burning millions of hectares of forests, it is important to think about the plans for what lies ahead.

The rebuilding task will be huge.

Several thousands of houses, commercial buildings and infrastructure will require billions of dollars and thousands of workers to rebuild. Then there are the furniture and fittings for these buildings – carpets, fridges, washing machines, clothes, lounges, dining tables, TVs and the like will be purchased to restock.

Then there are the thousands of cars and other machinery and equipment that will need to be replaced.