The RBA must begin cutting rates hard to stoke a house price boom.
Given the Albanese Government’s and The Greens’ lunatic mass immigration program, Australian youth (and migrants) face the disastrous outcome of being sandwiched between skyrocketing rents and rising interest rates.
This preposterous circumstance will mean the simultaneous shock of homelessness, unemployment or if they can get a job, falling wages.
As Glenn Stevens made clear in 2013, a house price boom is the only way to deliver a supply response in Australia’s supply-constrained market:
Glenn Stevens was right. Rising prices did ultimately trigger a supply explosion, too late and poorly built but, at least delivered:
Such booms also deliver growth and employment via building, as well as consumption spillovers from wealth effects.
Of course, this is a rat-wheel economy where nobody gets ahead except Harry Triguboff and friends.
But there are no serious alternative proposals to fix the fallout from AlboGreens’ insane immigration levels. The bullshit being bandied about by the fake left is for its own benefit.
- The HAFF is tiny and irrelevant.
- Rent freezes will NEVER happen and would be counterproductive if they did.
Yes, the consequence is that migrants and youth will never own a dwelling. But that’s not the pertinent question any more. With the disgraceful AlboGreens in control, we must ask whether untenanted Australians can afford a roof over their heads at all.
I would add that for a long-term solution; it’s time to vote for any anti-immigration political party.
