Thursday, November 8, 2007

Howard: Go for Broke


Falling interest rates show the government are good economic managers.
Rising interest rates show the government are good economic managers.

Mortgages have gone up more than 25% since the last election.

Do you still believe the Liberal Lies!

Post this image to any doubters!

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4 comments:

Damien said...

But as Sinclair Davidson and Alex Robson argue

"EVEN though the Reserve Bank of Australia announced an increase in its target cash rate of 25 basis points yesterday, it is still lower than it was when the Coalition came to power in 1996. And even if the bank increases it again next month, as many market participants expect, the target cash rate will still be at a lower level than the Coalition inherited"

And

"But the Reserve Bank's own data shows that even after yesterday's rise, banks' standard variable housing loan interest rates will still be lower than their average levels during each of the Whitlam, Hawke and Keating Labor governments."

And

"Daily cash rate data from January 1979 to October 2007 shows the median interest rate for the Labor years is 11.75 per cent, compared with the Coalition years (including Fraser) of 5.5 per cent."

And

"To make matters worse, Labor governments also tend to be associated with greater macro-economic instability. The data shows that interest rates have been more volatile during the ALP years."

http://www.theaustralian.news.com.au/story/0,25197,22720154-7583,00.html

Anonymous said...

As if to compound what damien has to say toss in the unemployment figures. Unemployment at the lowest level for over 25 years. So the battler has to manage low interest rates and low unemployment figures. Faced with such 'unpleasantness' one can but admire the stoicism of the battler.

Sorry but my memory works just fine. It extends further than the last 3-4 years.

Anonymous said...

Some interesting comments in there - I think in Howards desperation to make interest rates the easy path to victory, he (and many media commentators) are missing the point. Interest rates are one small part of the spectre that is housing (un)-affordability.

A more accurate guide to the status of housing and the importance of interest rates would be to examine how many times the average income, the average house is worth when comparing the ALP vs. the Liberals. Ie;

1970's - Average house price equals 3x the average income.

Early 2000's - Average house price equals up to 6x the average income.

Especially for young people...

Damien said...

Anon

But you could argue that house prices are a product of State interventions. Statistically, in Oz and the US, whenever states impose strict rules for building and land opening then that will drop demand and drive up price. This has got to be a factor.

http://www.ipa.org.au/files/news_1428.html

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