At his Press Conference with Costello yesterday, John Howard explained why Work Choices will keep interest rates low and contain inflationary pressure:
...one reason why we’re not concerned is that we have an industrial relations system that in fact contains wage pressure.That can only mean that under Work Choices wages will be lower than under the Rudd alternative. Yet he has been telling us for months that it is delivering real wage increases. He can’t have it both ways.
Coalition announces new tax package (The Australian, Press conference transcript, 15 October 2007)
I’ve been doing a little Maths about interest rates using the 6.5% figure rather than Howard’s slip of 6.25%.
Firstly, before the last 5 rises of 0.25% the rate was 5.25%. That means we have had an increase of nearly 24% in mortgage payments since the last election claim that the government will keep rates at record lows.
Secondly, an increase of 0.25% on a loan of $400,000 is $1,000 per year. The 1.25% increase represents $5,000 per year. Oooops…there go our tax cuts.
No apologies if the figures are wrong. Howard didn't but then he never apologises.
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