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Old 18th Dec 2019, 04:05
  #65 (permalink)  
chuboy
 
Join Date: Sep 2009
Location: BNE, Australia
Posts: 279
Originally Posted by JustinHeywood View Post


No, donít ignore the potshot. By the convoluted reasoning in your original post, both major parties are incompetent (the Greens must therefore be the answer), anyone who bought a house 10 years ago is now rich (millions would disagree), and the only sensible solution is to stimulate the economy by giving money to cashed-up inner city renters (not the bogans out in the Ďburbs).

But youíre not a cashed-up inner city renter and Green voter, no sir, and if you are, then thatís purely a coincidence.
That's your convoluted reasoning, not mine. I don't think I ever accused the major parties of incompetence. They're worse - competent but self-interested.

And yes, there are not many people who purchased real estate before about 2017-18 who have not seen a remarkable increase in their net worth simply through capital gains in their property value. To suggest otherwise is nonsense.

I don't think I differentiated between inner-city and outer suburbs in my post either - that's just you filling in blanks to try and confect some kind of point or personal attack. I said anybody who is currently paying down a mortgage in this environment is going to bank any extra money they receive (be it through stimulus or wage growth or otherwise), not circulate it through the economy by spending it on a good or service. Meanwhile, unencumbered renters, especially the ones without much disposable income, are more likely to spend any extra money they receive. If you believe the teachings of Keynes, then in an environment where wage growth was not considerely likely and interest rates are already low, direct economic stimulus should be considered as a way to keep the economy ticking over.

Of course as I said, generating employment by investing in large infrastructure projects is another perfectly legitimate lever which could be pulled at a time like this.
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