Slashing and burning housebuilding and investment today will inhibit inflation a little in the short-run at the price of diminishing long-term supply – a sure way to breed more long-term inflation.
This is not an anti-inflation policy. It is a cynical transfer of income from people who did not cause the problem to people who are, in fact, profiting handsomely from it. And it is an excuse for further acts of vandalism on some of Australia’s important institutions.
I am not saying it will improve, i think its inevitable a lot of people will get hurt, those without likely. However a lack of common awareness is a big issue. Australia is affluent. Do people spend money easy…take a look at westfield most weekends, and tell me i am wrong. But she’ll be alright is used like an excuse to not deal with clear issues.
I know that there is disparity, been calling if for a long time but most people have been ok with this because their house price went up. The can has been kicked and kicked but debt has to be paid eventually. Thats the medicine.
I am not rich, I cannot afford a home in Aus, but I am also not ignorant to the conditions of those who struggle.