Former treasurer Joe Hockey says meaningful fiscal reform is not possible in Australia as it often conflicts with voters' economic self-interest. He says it will take a "crisis" for governments to enact significant budget repair.
It went bloody well for house prices, actually. Nationally by around 8%, Melbourne by up to 20%.
Commercial real estate saw incredible reductions in prices (nearly half). That was because there was huge speculation in commercial real estate, buying tower space in capital cities. When the RBA hiked interest rates, it popped that bubble.
The half of us who can’t afford Million-Dollar houses could really stand to see a similar correction in house prices today.
Ahh Joe Hockey. This observation says it all, really:
He oversaw the dismantling of a key aspect of the Henry tax reforms by abolishing the resources rent tax and the carbon tax, which significantly reduced the federal government’s tax haul.
When combined with his ditched spending cuts, the end result was a decade of deficits during the greatest resources boom in Australian history.
That single fact could well be overall legacy that the Abbott/Turnbull era is remembered by. We had all the opportunities to establish a sovereign fund similar to what Norway did with their GPFG. Had we done this, it would be worth Trillions today. We could still do this; but we won’t. The way our government is set up, anything like that is immediately spent as soon as the other party gets in.
Can you imagine a government who works for what is best for everyone, and not best for getting their party (re)elected? I’d love to see a government like that.
Yes, because the “recession Australia had to have” in the 90s went so well.
It went bloody well for house prices, actually. Nationally by around 8%, Melbourne by up to 20%.
Commercial real estate saw incredible reductions in prices (nearly half). That was because there was huge speculation in commercial real estate, buying tower space in capital cities. When the RBA hiked interest rates, it popped that bubble.
The half of us who can’t afford Million-Dollar houses could really stand to see a similar correction in house prices today.
Ahh Joe Hockey. This observation says it all, really:
That single fact could well be overall legacy that the Abbott/Turnbull era is remembered by. We had all the opportunities to establish a sovereign fund similar to what Norway did with their GPFG. Had we done this, it would be worth Trillions today. We could still do this; but we won’t. The way our government is set up, anything like that is immediately spent as soon as the other party gets in.
Can you imagine a government who works for what is best for everyone, and not best for getting their party (re)elected? I’d love to see a government like that.