In the wake of the Economic Reform Roundtable Gunnamatta and Deep T discuss the submission made by Deep T to the event.
Recorded last weekend (prior to the meet) the discussion ranges over the financialisation of Australian housing, from the way rising prices of houses mean that the banking system doesnt need to raise funds, while the Government carries the economic risk, and borrowers carry the immediate financial risk. This carries through to a very pernicious impact on Australian renters and divides particularly younger Australians into those who have access to capital and those who dont.
The overpriced housing on bank lending books means that banks are less inclined to lend for commercial or entrepreneurial purposes, and has led to an increasingly inward facing economy shaped by government funded employment and heavy immigration volumes, which bodes poorly for a nation looking at declining prices and export volumes for its raw material exports.
Deep T’s proposals include significant implications for banks, the RBA and APRA, and the taxation system.
Although we dont consider it likely that the current government will look at the proposals or consider anything remotely like it the issues raised and the dynamics identified will be thought provoking for all wondering about the never ending rise of Australian house prices, and Australia’s journey over the course of a generation into productivity based economic enfeeblement which we are on course for handing on as the bequest to the Australians of tomorrow.
The discussion runs about 90 minutes, and was recorded on 16 August. It accompanies the submission to the Economic Reform Roundtable