Why not raise taxes to slow inflation?

[nut]

Yep same as someone cashing up to finally buy a place in the city

Maybe people should think before they over extend and leverage themselves and realise that money wasn’t always going to be lent out for almost nothing.

How do you that when property prices are increasing faster than wages and inflation over the last 30-40 years????

Our entire economy relies on house prices.
If house prices collapsed back to 2019 level, we’d be facing a depression like never seen before and double digit unemployment .. and tent cities.
It’s a Ponzi scheme … the name of the game is get in as early as you can.

When someone sits down with the bank and the BANK decides what you can borrow… you are then competing with people in the same boat… it’s BS to suggest that a single borrower can dictate the realestate market.

And by the way house prices are STILL increasing. It’s a scam!!!!!!

 

[royale with cheese]

The Morrison government dropping policies from the banking royal commission and relaxing lending rules, did more to push property prices up than anything else.

No, because this is a trend worldwide. You should see house prices in Vancouver.

The problem is the issuer of the world’s reserve currency has printed far too much money.

 

[Seeds]

Lol. can you imagine what it would do to interest rates if the Aus govt defaulted on its debt?

all would be dependent on how well the independent fiscal authority could maintain inflation.

such a body has never been set up before. The government is not taking over the money presses in this scenario like what usually happens. Plus the government wont care about interest rates as it never plans on borrowing money again.

 

[Seeds]

No, because this is a trend worldwide. You should see house prices in Vancouver.

The problem is the issuer of the world’s reserve currency has printed far too much money.

Its not a world wide trend. House price are extremely high relative to the past in australia, canada and the nordic regionsnd possibly china (i havent kept up to date on china). This hardly consitutes the world.

 

[Seeds]

How do you that when property prices are increasing faster than wages and inflation over the last 30-40 years????

Our entire economy relies on house prices.
If house prices collapsed back to 2019 level, we’d be facing a depression like never seen before and double digit unemployment .. and tent cities.
It’s a Ponzi scheme … the name of the game is get in as early as you can.

When someone sits down with the bank and the BANK decides what you can borrow… you are then competing with people in the same boat… it’s BS to suggest that a single borrower can dictate the realestate market.

And by the way house prices are STILL increasing. It’s a scam!!!!!!

And you stop that by increasing interest rates. End thread.

 

[Saint]

Housing prices/problems are not part of the RBA's remit. They're focused on KPIs linked to employment and inflation/wages.

They've been terrible at it.

And the Governments haven't helped. For many years the RBA was hinting that the Govt should be trying to help and Frydo and friends had a hissy fit and told them to stick to their knitting.

They stuck to their knitting and the situation deteriorated where interest rates were at all time lows for far too long because the Govt wasn't taking any action fiscally to help. Too busy funnelling money overseas and attacking unions and admittedly attempting to restrict wages while the RBA was trying to get wages to go up.

OP is right, Govts should be using their levers which can have much more immediate effect. A short-term increase in GST to 12% effective July 1st would do more than the RBA could in 10 more interest rate hikes.

And since most essentials are GST free, it will hit consumer spending without sending poor people to the wall.

 

[royale with cheese]

Its not a world wide trend. House price are extremely high relative to the past in australia, canada and the nordic regionsnd possibly china (i havent kept up to date on china). This hardly consitutes the world.

Name a first world country that this isn’t evident.

 

[royale with cheese]

all would be dependent on how well the independent fiscal authority could maintain inflation.

such a body has never been set up before. The government is not taking over the money presses in this scenario like what usually happens. Plus the government wont care about interest rates as it never plans on borrowing money again.

Everyone else who needs to borrow would care, though.

 

[Saint]

Name a first world country that this isn’t evident.

Housing affordability in much of the USA isn't a problem at all. Some areas can't give them away.

The reason it appears more acute in places like San Fran and LA is that California also has the best social support for homelessness, health care etc.

So these big cities have attracted not only lots of new residents for the businesses/jobs there, but also homeless people who can at least survive there compared to other places.

Here's how a real 1st world country fixes it:

Strategies to Help Fight Homelessness in Norway - The Borgen Project

Homelessness in Norway fought through government initiatives like Project Homeless, Strategy Against Homelessness, and others.

borgenproject.org

Many countries which are considered "first world" are happy to leave some areas in 3rd world conditions.

 

[Mofra]

Stiglitz actually proposes wealth taxes as a way of reducing inflation and government deficits, arguing that monetary policy has taken over some of the roles of fiscal policy for far too long in the OECD.

 

[faible]

Stiglitz actually proposes wealth taxes as a way of reducing inflation and government deficits, arguing that monetary policy has taken over some of the roles of fiscal policy for far too long in the OECD.

I find it fascinating how many people get upset about the idea of wealth taxes, yet are in no way likely to be impacted by them. Like how the super balance tax changes affected a tiny proportion of the Australian population but the was a disproporitonate amount of agitation because maybe one day, some people, if they're lucky, might possibly get close to having the amount that it would take to even meet the threshold where the changes start kicking in.

People also very consistently misunderstand how our tiered tax system works. That top bracket of >$180k should also really not be the top bracket, there should probably be another another bracket above that at somewhere north of $300k is my estimation.

 

[royale with cheese]

Housing affordability in much of the USA isn't a problem at all. Some areas can't give them away.

The reason it appears more acute in places like San Fran and LA is that California also has the best social support for homelessness, health care etc.

So these big cities have attracted not only lots of new residents for the businesses/jobs there, but also homeless people who can at least survive there compared to other places.

Here's how a real 1st world country fixes it:

Strategies to Help Fight Homelessness in Norway - The Borgen Project

Homelessness in Norway fought through government initiatives like Project Homeless, Strategy Against Homelessness, and others.

borgenproject.org

Many countries which are considered "first world" are happy to leave some areas in 3rd world conditions.

Norway is a heinously expensive place to live

 

[Saint]

Norway is a heinously expensive place to live

And yet they all have a roof over their heads and are 7th on the happiness index.

All of Scandanavia is expensive, yet all fill the top spots in almost any metric which might be considered important (except sunny days and quality of beaches).

Higher taxes correlate positively with happiness index.

That's true globally and also by state in the USA.

There's endless amounts of studies which show this.

https://australiainstitute.org.au/wp-content/uploads/2020/12/Tax-and-wellbeing-updated.pdf

The desperation for reducing taxes and services and small Govt is purely a selfish one driven by rich people and is an overall net-loss for any country. There's obviously bad spending and bad taxes, but overwhelmingly, the evidence is that most tax-and-spend Governments achieve better outcomes overall for their citizens.

 

[Mofra]

And yet they all have a roof over their heads and are 7th on the happiness index.

All of Scandanavia is expensive, yet all fill the top spots in almost any metric which might be considered important (except sunny days and quality of beaches).

Higher taxes correlate positively with happiness index.

That's true globally and also by state in the USA.

There's endless amounts of studies which show this.

https://australiainstitute.org.au/wp-content/uploads/2020/12/Tax-and-wellbeing-updated.pdf

The desperation for reducing taxes and services and small Govt is purely a selfish one driven by rich people and is an overall net-loss for any country. There's obviously bad spending and bad taxes, but overwhelmingly, the evidence is that most tax-and-spend Governments achieve better outcomes overall for their citizens.

.... Including the US who had incredibly high tax rates during the post-WW2 era

 

[nut]

Basically every tax cut goes to the rich and the banks…

 

[nut]

NAB half year profit … 4.3 Billion!!!!

Are we stupid???? Why are the banks profiting from mortgagees ?? Why do they get to profit from the fight against inflation????

Banks win.

NAB 2023 Half -Year Results media conference - NAB News

Transcript of a media call following the release of NAB's HY23 Results today.

news.nab.com.au

 

[Seeds]

Everyone else who needs to borrow would care, though.

But those people hadnt defaulted on their debt. Only the government. They shouldnt be all that impacted.

the smart way for the government to do this is to buy up all the foreign owned bonds and default when the only bonds left are held by domestic citizens. That largely avoids the external one off shock.

 

[nut]

Norway is a heinously expensive place to live

Complete garbage.

Not when you don’t have to pay for
-Child care
-education
-university
-healthcare
-a government unemployment insurance scheme if you lose your job.
- receive a strong pension

It’s expensive to visit … not to live. Norwegians are one of the most travelled people on the planet which shows their disposable income.

Where is the index on the per capita ownership of cottages and boats???

Australia is just expensive with out the all the trimmings.

 

[Kram]

Lol most of the US is a shithole.

 

[Seeds]

Stiglitz actually proposes wealth taxes as a way of reducing inflation and government deficits, arguing that monetary policy has taken over some of the roles of fiscal policy for far too long in the OECD.

I would rather just employ wealth taxes because they are far fairer then our current tax systems. Dont need any other additional reasons.

 

[burge13]

Lol most of the US is a shithole.

Somalia with wifi

 

[nut]

I would rather just employ wealth taxes because they are far fairer then our current tax systems. Dont need any other additional reasons.

They sound fairer … but they are failing in some countries because the rich just move to another country or use clever accounting.

 

[Saint]

The way the ALP is governing, they'll soak up what's left of the votes from the right to gather and the Greens' voting margin will go up to 15-20% at this rate.

 

[nut]

The way the ALP is governing, they'll soak up what's left of the votes from the right to gather and the Greens' voting margin will go up to 15-20% at this rate.

Yep … I think Labor are playing the long game at the moment. It has shifted right towards the the voters, which will eventually draw more voters left.
Not sure that makes sense.

The teals are a perfect in-between movement forcing the Coalition further right, making the LNP almost irrelevant.

The Greens are becoming more and more mainstream and will eventually move Labor left….

If Labor is cleaver and can hold out the next 4-5 years than I see a major shift in Aus politics.

The longer Dutton stays opposition leader the better…. Oh and Sky News is doing most of the heavy lifting when it comes to destroying the LNP.

 

[Mofra]

Complete garbage.

Not when you don’t have to pay for
-Child care
-education
-university
-healthcare
-a government unemployment insurance scheme if you lose your job.
- receive a strong pension

It’s expensive to visit … not to live. Norwegians are one of the most travelled people on the planet which shows their disposable income.

Where is the index on the per capita ownership of cottages and boats???

Australia is just expensive with out the all the trimmings.

Amartya Sen created the agency index which is a far better measure of what citizens can avail themselves of in society then simply GDP per-capita.

The ability to avail oneself of goods and services of far more important than a number.