As the Reserve Bank of Australia (RBA) continues to increase interest rates ('$208 hit to hip pocket', Newcastle Herald 6/7), Australians are seeing the results of poor economic policy management over a number of decades. Indebted landlords are inclined to pass on the rise in interest rates to their tenants and to the taxpayer.
We will continue to see more homelessness as many hard-up tenants who cannot pay higher rents are evicted. As the cost of living rises, heavily indebted Australia is now in danger of suffering a recession, with job losses and more misery, ('Scared as hell', Herald 5/7).
It didn't have to be this way. Australia has more than enough housing stock to house everyone. Population growth is minimal. Net migration has been zero. In a wealthy country, I believe everyone should have a roof over their heads.
What if our federal government, like the national governments of other wealthy nations, had stopped tax breaks to the rich and funded public housing? What if, instead of tax breaks for rich home investors that merely added to the inflation of home prices, the federal government had instead given tax breaks to real investments such as green energy and medical research? Such investments would likely have had much bigger payoffs for all Australians.
With or without a world energy crisis, if the federal government hadn't neglected investments in renewables for a decade, Australia might have now replaced ageing and unreliable coal fired power stations with cheap renewable energy. Many more Australians might now be driving around in cheap-to-run electric cars rather than gas guzzlers. Australia might now be well positioned to sell cheap green hydrogen to northern Europe and the world. If we had funded better vaccine research and public health campaigns, Australian infections, debilitations and deaths from COVID might now be falling rather than rising alarmingly.
Geoff Black, Caves Beach
Economy must work for us all
I MUST point out that I have always said the use of interest rates is a very poor and blunt instrument to manage an economy, and that it demonstrates poverty in the thinking and application of economics.
Prior to 1970 full employment was the goal and we had a Commonwealth Employment Service to get people into work. In fact, if you could not find a job then you were sent to government departments to commence work there. The pension was then also able to sustain a reasonable standard of life as did the unemployment benefits; however since then the purchasing power of both of these government payments has diminished considerably by comparison, and housing affordability has become a real problem. The Reserve Bank is still following that policy of permitting unemployment to rise, and the job agencies require 'activity in looking for a job' or they can decrease unemployment benefits. The qualification for unemployment benefits to stop is way short of a sustainable wage, as just a few hours of work a week will classify you as being employed.
The lack of moral fibre of the successive governments to make sure that every Australian who wants and needs a job can have and find one suitable for their skills is totally appalling. Both Labor and Liberal governments have followed this policy direction and the government is now on track to do the same. My years of studying economics showed me the poor and entrenched economic policy directions of the supposed educated elite.
Training programs were not at a huge cost to the job seeker; apprenticeships were next to free to the participant. University courses that were leading to a profession did not saddle you with a huge debt to pay off over quite a number of years. The divide between the rich and the poor was not as stark as it is today. People on a modest wage could save to purchase a house on 25 per cent deposit and house prices were stable. All this has gone as the government has lost its way in really managing the economy for all.
There is a better way and we must engage in discovering the details of this way or we will have huge levels of unemployed, homeless and desperate people in our communities who will have little option but to turn to crime to survive.
Milton Caine, Birmingham Gardens
System biased and unfair
I RECENTLY received my home and contents insurance renewal which of course had increased over last year, even though I have remained claims free.
Out of the total amount requested 38 per cent of the premium was attributable to state and federal "levies".
No, they don't call them taxes. They were supposed to be deleted upon the introduction of GST. Levies are different, aren't they? Trouble is, those of us prudent enough to insure our property are the ones paying the emergency services levy, stamp duty and GST.
Unfair? You bet it is, because those not insuring can still avail themselves of emergency services yet don't contribute one cent towards the cost.
I also noted on my latest council rates a levy of $113, which goes into state government revenue. Why, I ask? No one can tell me. Guess if there is a change of state government, a complete re-evaluation of how taxes and/or levies are collected would be a really smart idea. At the moment I believe the system is biased and totally unfair.
Rob Bernasconi, Rankin Park
Thinking past dollars is sense
BOTH the federal government and Reserve Bank are still acting as if the national dollar is the only currency in town. No, I'm not touching crypto currency with a ten-foot pole. But Barter, TimeBanking, and LETS have communities of support and decades of practice. True, these are not turnkey solutions. Some modifications to enabling laws and some software rebuilding would be required. But why bother?
Greater flexibility. "Cost" and "profit" do not have to be in the same currency. Choose which one you use, for its beneficial quality. Plant your business/tree in the currency/soil that offers the best fit for it.
TimeBanking is available to support volunteers. This is important to note if unemployment is to go high. Volunteering can keep skills honed. The supply of "hours" credit is free, and infinite to not-for-profit organisations using volunteers.
LETS has zero cost to the purchase of capital, so businesses can use it for cost and use national dollars for profit. And I note that as a homeless person has the same spending power as the entire federal government in this currency, the UN development goal of eradicating poverty is a no brainer. The question is not about currency to spend, but whether it is accepted to purchase.
The RBA would have more than an interest rate lever. It could constrict the number of TimeBanking "hours" circulating by offering "sink" events - concerts, to lotteries, or issuing "negative interest money" (hot potato script), for the construction of major projects. In short, we are not stuck for options, just courage.
Andrew Spannenberg, Mayfield
SHORT TAKES
THE poor people in Windsor and those downstream of Warragamba dam. To reduce the height of flood waters, have the dam storage either pumped inland or have controlled releases over the spillways prior to these events. It won't stop the flood, but it will minimise the water levels. Fix the Windsor bridge too. There you go, Albo, some food for thought. Don't be scared to ask. You won't have to fly overseas to get the local gossip. Maybe you can donate some of those armoured personnel carriers you are quick to give to Ukraine to the SES to help those in need back here in Australia.
Graeme Kime, Cameron Park
ONCE again the NSW government is in the spotlight for all the wrong reasons. The appointment of a retired politician to the role of Trade Commissioner to the USA and the Americas poses heaps of questions despite his resignation. Firstly, why do we see the need for this position? Australia already has the federal Department of Foreign Affairs and Trade. Does the NSW government believe that we can do better? In my opinion DFAT does a brilliant job in seeking trade deals throughout the world and will continue to do so. Creating a new role to work in the best interest of NSW alone will be nothing short of duplication.
Stan Keifer, Arakoon
STEVE Barnett, (Short Takes, 4/7), I've tried some weird craft beers in my search for enlightenment but I'd draw the line at "Taliban urine". As for Adam Bandt, in my opinion he's just another privileged white male who wants us to think he cares about Indigenous issues. I'd prefer to listen to the amazing young Indigenous female senator Jacinta Nampijinpa Price, who wants an end to the virtue signalling and division and a real effort to fix real problems in some Indigenous communities.
Dave McTaggart, Edgeworth
YOU have got to hand it to the politicians, most of our press and climate catastrophists for gold medal stupidity. It is illogical that we in Australia are closing our coal-fired power stations while still exporting coal to China who are building more coal-fired power stations to make solar panels and wind turbines. We want renewables, but we are happy for some other country to burn coal and sell them back to us. China must be laughing at our stupidity in our rush to destroy our industries and jobs.
John Cooper, Charlestown
YES I do believe that history will tell it all: that the Morrison government was the worst in history, and Scott Morrison the worst Australian prime minister in history. Bravo, Mr Albanese.
Colin Rowlatt, Merewether
STEVE Barnett thanks for your revolting metaphor, (Short Takes, 5/7). I reckon Adam Bandt would also rather you drank 'Taliban urine' than share a beer with you. Please let us know how it tastes.
