So their goal is to take money from a circular economy (where it creates jobs pays wages and improves the standard of living) and give it to the super-rich banks to hoard.
In part, the larger issue is they are trying to stop supply side inflation with high interest rates which doesn't actually resolve the issue. That tactic only works when its excess spending due to too much cash, like those millionaires have.
As the Global Financial Crisis unfolded I always enjoyed Stephen Long's analysis of what was happening; great to hear him again. On the topic in question; if "populists" were actually populist they would be throwing money at the most voters in the form of tax cuts and grants etc aimed at the bottom end of town, or promises of. Instead we're fed "The pain you're feeling is a good thing. It's for your own good. We'll give money to banks and rich people and they'll know what to do with it better than you poor peasants." It obviously works, people vote these @#$%! in every time
When the RBA increases a Nations cash rate borrowing costs rise for these banks, which are typically passed onto consumers in the form of higher interest rates Due to Federal Labor Policies keeping Australia's underlying Inflation rate above the RBA's comfort zone, we are unlikely to see a cash rate decrease till the end of 2025
Funniest thing is that negative gearing makes this problem even worse. All the lower quartile mortgagors houses' are owner occupied where as the highest quartile are all investment properties negatively geared so these rate rises are just passed on to renters and taxpayers.
The Australia Institute may have to do some calculations for the government and figure out which electorates the struggling mortgagors are located. Maybe if the parties could plainly see in black and white how helping people (in contrast to multinational corporations) could help them win seats, then maybe - just maybe - they would actually try. Nah, probably not - but I’d at least like to see that data. Thanks for another episode of Spin Bin to see off the year 🎉
Australia will stay a plutocracy with policy designed for wealth transfer out of Australia until the Greens get in or another party stops corporate donations
Nobody looks at the theft and fraud of our taxes by the leaders and govt contractors. Blame is always laid upon tax evading, no one suggests lower taxes and less fraud carried out by politicians. RBA lost $43billion in one year, who pays that back, the poor taxpayer.
When will economists stop thinking that the only way to deal with inflation is to raise interest rates. If you only have one tool in your kit and it’s a hammer, everything looks like a nail that must be hammered down. Look at Japan for a clearer example of high public debt, low interest rates and low unemployment. Therefore fiscal policy is a more important tool than monetary policy for dealing with inflation.
@@jinnantonix4570 Carefully crafted progressive income and wealth taxes would be a good start. Price controls in selected areas or sectors would also be another good thing. Breaking up of duopolies, oligopolies and smart regulation to stop profit gouging would also help. Nationalising certain public utilities would also help. Encouraging the states at the federal level with grants, to take control of providing cheaper social housing. In the building, pharmaceutical, energy and retail sectors there is much work to be done by the federal government to bring down prices. Stop government subsidisation of fossil fuels and mining.
@@waynemcmillan5970 none of these big government regulation and wealth redistribution schemes have anything to do with resolving inflation, and in fact do the exact opposite of what is required. Also the claim that government subsidises fossil fuels has been thoroughly debunked by RMIT fact check.
The previous government promised the stage 3 tax cuts. Albo and his lot could have said 'Sorry, that won't be happening now'. They had every right to defer them or cancel them all together but they have chosen not to.
I'd imagine if they did that, there would be a lot of lobbyists and media bashing them for it...and it wouldn't end their term well. The unfortunate reality of short memories and shit media policy.
@@zappy7393 Maybe but the stage 3 tax cuts were not the Labor party's proposition. Besides, the country has racked up half a trillion of debt since these tax cuts were first mooted. The government could also have increased the tax free threshold a bit and lowered the 19 cent tax rate as well. Now that would have got them some votes!!!
@@waynee6042Doesn’t matter the majority of Australian voters are like Lemmings they will vote them out on a whim. Remember we couldn’t even vote in a tax on our resource sector, just think about that.
No, you guys have it all wrong. It's haircuts, these middle/low income people are just getting too many haircuts, and it's really their own fault. Only the high income earners should look fabulous, how else are we going to single out the peasants!?!?
Would be cool to just link directly in the video comment to the documentation used in the video. I'll find it, but for next time. I'll print these out as placemats for the family.
Great point of view presented here. I see the next political hit (like the top pop charts) sounding off "supply will fix housing". Can we finally let that rest? Who's going to line up to buy more investment properties once that supply materialises? Who's going to have the better credit score and be able to take advantage of negative gearing? It's a cycle from where I stand
These two speakers put across a so introvertedly derived view of what the financial system should operate like but take no personal responsibility for any of what their views would accomplish or what the outcome would be. Do they have any workable solutions to the problem which will prevent loss of stability in the financial system like what happened in the GFC ? No they don't. In respect to Richard Denniss he is the same person who is pushing for abolition or reduction in negative gearing which will if done result in less investment into more housing and therefore lower availability of houses and higher rents. But despite that he speaks as if he is in the situation of being sympathetic to renters when he is clearly not. Both of them want to ignore the dire consequences of financial instability which will arise for those with aspirations of home ownership or renting if banks are sent onto liquidity.
If the RBA would take control of our currency….instead of allowing Private currency to infect our economy, the wholesale price of money would seriously reduce the requirement for tax on income. Don’t have an issue with GST.
Unfortunately, the traditional method of political thinking is that monetary policy will completely control the economy, while fiscal policy remains outside the scope. Since monetary policy doesn't have the necessary tools to do this, the whole system breaks down while the politicians stand around like stunned mullet. Interest rates are an excellent way to control discretionary spending, not so much non-discretionary spending and price gouging. Those require actual governmental responses, which have been sorely lacking for at least a decade.
The spending on essentials such as food and electrcity has nothing to do with causing inflation in consumer prices and we all know that. Nobody buys more food than they require, likewise electrcity usgae per household is relatively stable. Cheap credit is the main driver and goverment deficits. Businesses raise prices only as a result of costs, rarely does demand for products cause price rises. Typically business respond to increase demand via increased production, lowering their marginal costs per unit. Put an end to goverment deficit spending. Allow businesses to compete with limited government interference and we will see prices driven lower via competition.
It feels like punishment for the NO vote. I think the government forgets that most teachers are in the $100 000 range and can no longer afford their homes. This will have a massive impact on education in Australia. Teachers will quit and young Australians will not see the point of becoming a teacher.
??? The RBA is independent from the federal government. The voice vote doesn't have anything to do with whether the RBA raises or cuts interest rates, and they were raising interest rates before the referendum.
One of my first jobs was in a bank. My prospects were very good with the opportunity for accounting and professional qualifications. But alas alcohol consumption, gambling and other undesirable activities convinced me to seek a more wholesome lifestyle. The reserve bank is impregnated with destructive socialist philosophy and are usable to manage this countries finances. We need to stop compulsory futile superannuation and leave the money in the hands of those who earned it. Increasing interest rates only takes money out of motivated earners control and gives it to academics and fund managers who claim unrealised capital gain as income and portray a return that may never materialise. Other counties have different systems that promotes a motivated workforce to work to the upper limits of their ability and not at the level of the slowest unmotivated person so they are not shown up to be of lesser ability to their workmates.
What would be the consequence of increasing GST (instead of interest rates) to counter inflation? Many essential goods are excempt from GST so food, rent and mortgage wouldn't be notably impacted, discretionary consumer purchases would take a hit although that seems a lot fairer than the generationally divisive instrument of interest rate increases. I understand that inflation measure technically jumped when we introduced GST although inflation would also jump if mortgage payments were included in the inflation measure, this says to me its a problem of how its measured. Anyone with actual economic understanding have thoughts?
In an inflationary cycle, it is always the poorest who suffer. Regrettably, that is the only way we know how to arrest inflation. Fortunately while there is suffering, there will be very few insolvencies ... the banks and government will act to minimise this as it is a lose-lose scenario. However "funnelling money" to them is the last thing the government will do, because INFLATION. Duh! Only the Greens and the Australia Institute fail to see this obvious fact. This all has nothing to do with stage 3 tax cuts. The reason the major parties still intend to execute this policy, is because (1) it was an election promise, and the first party to break it will lose a lot of votes even in the targeted outer suburban seats, e.g. mature tradies and business owners on $200k+ who choose to live near their extended family, for example, and (2) it puts money in the pockets of these same people who spend on items other than basic necessities, which is good for business and the economy, and keeps lots of people employed.
I wonder what you think the ways that the government can combat inflation are. Taking money out of the economy - reducing people's ability to spend - is the way that you combat inflation - this is solved by a) spending cuts (therefore causing unemployment) b) raising interest rates, making borrowing more expensive, and c) increasing taxation. Their point about the stage three cuts is that if the government actually cared about inflation, they wouldn't be cutting taxes for those in the country that have the most spending power. This is the first day of first year economics.
@@CatastrophicalPencil increasing interest rates is a single, simple and very, very flexible mechanism that (a) takes money out of the economy, (b) increases unemployment and (c) makes borrowing more expensive - i.e. anti-inflationary measures (as you say, Economics 101). This increases bank profits, which is later collected by the government as company tax. That is why it is the government's primary lever to control inflation. It is also that is the reason why the stage 3 tax cuts have been delayed. I have given you the reasons why the stage 3 tax cuts will still be executed in the future, and you haven't addressed that point, which is hardly surprising. This is what you learn after 60 years on the planet, that you won't learn from the economic policies of the Greens and the Australia Institute.
@@jinnantonix4570 Ah yes - your 60 years on this planet which have seen company taxes reduced over and over again by governments both left and right. In that time economic inequality has increased and it is now near impossible for anyone under 60 to buy a home. Policy success!
@@CatastrophicalPencil changing the subject. Ageist too. Noting, that company tax in Australia at 30% is still one of the highest in the world, and clearly has nothing to do with Australia's anomalously high real estate prices.
Richard Denniss in his sarcasm would rather the banks go broke so that all of the superannuation savings they have invested in them for their future would become worthless. That would suit him fine despite the chaos it would result in by people being forced into relying government pensions that would make the other spending options for government like building new hospitals and roads and thinks like pensioner medical services and subsidised medicines. Nobody needs someone who is so spiteful as he is just to build up his own ego.
Yes, a system to keep power in the hands of the ruling class.
Always has always will.
Isn't Capitalism great?
So their goal is to take money from a circular economy (where it creates jobs pays wages and improves the standard of living) and give it to the super-rich banks to hoard.
In part, the larger issue is they are trying to stop supply side inflation with high interest rates which doesn't actually resolve the issue.
That tactic only works when its excess spending due to too much cash, like those millionaires have.
As the Global Financial Crisis unfolded I always enjoyed Stephen Long's analysis of what was happening; great to hear him again. On the topic in question; if "populists" were actually populist they would be throwing money at the most voters in the form of tax cuts and grants etc aimed at the bottom end of town, or promises of. Instead we're fed "The pain you're feeling is a good thing. It's for your own good. We'll give money to banks and rich people and they'll know what to do with it better than you poor peasants." It obviously works, people vote these @#$%! in every time
So, you could say that the RBA won't increase interest rates anymore because it might hurt the banks.
When the RBA increases a Nations cash rate borrowing costs rise for these banks, which are typically passed onto consumers in the form of higher interest rates
Due to Federal Labor Policies keeping Australia's underlying Inflation rate above the RBA's comfort zone, we are unlikely to see a cash rate decrease till the end of 2025
Funniest thing is that negative gearing makes this problem even worse. All the lower quartile mortgagors houses' are owner occupied where as the highest quartile are all investment properties negatively geared so these rate rises are just passed on to renters and taxpayers.
Boomers whinging. A fibro in Bankstown worth the same as a 3 bedrooms in Palm Spring CA is what you need to know about Australia.
Another uneducated statement.
The Australia Institute may have to do some calculations for the government and figure out which electorates the struggling mortgagors are located. Maybe if the parties could plainly see in black and white how helping people (in contrast to multinational corporations) could help them win seats, then maybe - just maybe - they would actually try. Nah, probably not - but I’d at least like to see that data.
Thanks for another episode of Spin Bin to see off the year 🎉
Even the kids in the special school could see the actions over the last 20 years would lead to here. There's no political solution.
That's an idea that could lead to your ruin.Such clear logic is never welcome.
Australia will stay a plutocracy with policy designed for wealth transfer out of Australia until the Greens get in or another party stops corporate donations
Nobody looks at the theft and fraud of our taxes by the leaders and govt contractors. Blame is always laid upon tax evading, no one suggests lower taxes and less fraud carried out by politicians. RBA lost $43billion in one year, who pays that back, the poor taxpayer.
Nicely done chap’s, happy holidays thanks for all your work this year 👍😁
9:25 oh the irony ! Why are our politicians so deaf
Cause they're paid to be.
When will economists stop thinking that the only way to deal with inflation is to raise interest rates. If you only have one tool in your kit and it’s a hammer, everything looks like a nail that must be hammered down. Look at Japan for a clearer example of high public debt, low interest rates and low unemployment. Therefore fiscal policy is a more important tool than monetary policy for dealing with inflation.
Which fiscal policy?
Economists are largly just paid mothpeices for the rich, economics is not even a science.
@@jinnantonix4570 Carefully crafted progressive income and wealth taxes would be a good start. Price controls in selected areas or sectors would also be another good thing. Breaking up of duopolies, oligopolies and smart regulation to stop profit gouging would also help. Nationalising certain public utilities would also help. Encouraging the states at the federal level with grants, to take control of providing cheaper social housing. In the building, pharmaceutical, energy and retail sectors there is much work to be done by the federal government to bring down prices. Stop government subsidisation of fossil fuels and mining.
@@waynemcmillan5970 none of these big government regulation and wealth redistribution schemes have anything to do with resolving inflation, and in fact do the exact opposite of what is required. Also the claim that government subsidises fossil fuels has been thoroughly debunked by RMIT fact check.
The previous government promised the stage 3 tax cuts. Albo and his lot could have said 'Sorry, that won't be happening now'. They had every right to defer them or cancel them all together but they have chosen not to.
I'd imagine if they did that, there would be a lot of lobbyists and media bashing them for it...and it wouldn't end their term well.
The unfortunate reality of short memories and shit media policy.
@@zappy7393 Maybe but the stage 3 tax cuts were not the Labor party's proposition. Besides, the country has racked up half a trillion of debt since these tax cuts were first mooted.
The government could also have increased the tax free threshold a bit and lowered the 19 cent tax rate as well. Now that would have got them some votes!!!
@@waynee6042Doesn’t matter the majority of Australian voters are like Lemmings they will vote them out on a whim. Remember we couldn’t even vote in a tax on our resource sector, just think about that.
You guys really unpacked the fullness of the insanity.
The rich men ( and women ) make the rules for the wise men ( and women ) and the fools.
All the RBA learnt from Lowes hatred is making all their meetings and notes private.
No, you guys have it all wrong. It's haircuts, these middle/low income people are just getting too many haircuts, and it's really their own fault. Only the high income earners should look fabulous, how else are we going to single out the peasants!?!?
Not punch down! Now that's a crazy idea!
Interesting watching this after the stage 3 changes.
Would be cool to just link directly in the video comment to the documentation used in the video. I'll find it, but for next time. I'll print these out as placemats for the family.
You guys should read the work of Fred Harrison !
Great point of view presented here. I see the next political hit (like the top pop charts) sounding off "supply will fix housing". Can we finally let that rest? Who's going to line up to buy more investment properties once that supply materialises? Who's going to have the better credit score and be able to take advantage of negative gearing? It's a cycle from where I stand
These two speakers put across a so introvertedly derived view of what the financial system should operate like but take no personal responsibility for any of what their views would accomplish or what the outcome would be.
Do they have any workable solutions to the problem which will prevent loss of stability in the financial system like what happened in the GFC ? No they don't.
In respect to Richard Denniss he is the same person who is pushing for abolition or reduction in negative gearing which will if done result in less investment into more housing and therefore lower availability of houses and higher rents. But despite that he speaks as if he is in the situation of being sympathetic to renters when he is clearly not.
Both of them want to ignore the dire consequences of financial instability which will arise for those with aspirations of home ownership or renting if banks are sent onto liquidity.
If the RBA would take control of our currency….instead of allowing Private currency to infect our economy, the wholesale price of money would seriously reduce the requirement for tax on income. Don’t have an issue with GST.
Who would've thunk it 🤷♀️
Single cell amoebas could've figured out the cause>effect process.
And what happens if you break down the Quartile of those earning less than 105k into say those earning less than 60k vs those earning over 60k?
Unfortunately, the traditional method of political thinking is that monetary policy will completely control the economy, while fiscal policy remains outside the scope. Since monetary policy doesn't have the necessary tools to do this, the whole system breaks down while the politicians stand around like stunned mullet. Interest rates are an excellent way to control discretionary spending, not so much non-discretionary spending and price gouging. Those require actual governmental responses, which have been sorely lacking for at least a decade.
Sounds pretty Australian to me!
So what you're saying is, if you shrank the size of government we could all get a tax cut?
That aged well...
The spending on essentials such as food and electrcity has nothing to do with causing inflation in consumer prices and we all know that.
Nobody buys more food than they require, likewise electrcity usgae per household is relatively stable.
Cheap credit is the main driver and goverment deficits.
Businesses raise prices only as a result of costs, rarely does demand for products cause price rises.
Typically business respond to increase demand via increased production, lowering their marginal costs per unit.
Put an end to goverment deficit spending.
Allow businesses to compete with limited government interference and we will see prices driven lower via competition.
It feels like punishment for the NO vote. I think the government forgets that most teachers are in the $100 000 range and can no longer afford their homes. This will have a massive impact on education in Australia. Teachers will quit and young Australians will not see the point of becoming a teacher.
??? The RBA is independent from the federal government. The voice vote doesn't have anything to do with whether the RBA raises or cuts interest rates, and they were raising interest rates before the referendum.
And the sideshow is responsible borrowers are being forced to pay for the speculators.
Responsible borrowers being forced to sacrifice..
One of my first jobs was in a bank. My prospects were very good with the opportunity for accounting and professional qualifications. But alas alcohol consumption, gambling and other undesirable activities convinced me to seek a more wholesome lifestyle.
The reserve bank is impregnated with destructive socialist philosophy and are usable to manage this countries finances. We need to stop compulsory futile superannuation and leave the money in the hands of those who earned it.
Increasing interest rates only takes money out of motivated earners control and gives it to academics and fund managers who claim unrealised capital gain as income and portray a return that may never materialise.
Other counties have different systems that promotes a motivated workforce to work to the upper limits of their ability and not at the level of the slowest unmotivated person so they are not shown up to be of lesser ability to their workmates.
What would be the consequence of increasing GST (instead of interest rates) to counter inflation? Many essential goods are excempt from GST so food, rent and mortgage wouldn't be notably impacted, discretionary consumer purchases would take a hit although that seems a lot fairer than the generationally divisive instrument of interest rate increases. I understand that inflation measure technically jumped when we introduced GST although inflation would also jump if mortgage payments were included in the inflation measure, this says to me its a problem of how its measured. Anyone with actual economic understanding have thoughts?
i wonder how RBA got that data?
Scomo had an annual "party" every year where the likes of karl stefonvic and the like were invited. A political vote for me party i think
Looks like someone in Labor watches RUclips.
In an inflationary cycle, it is always the poorest who suffer. Regrettably, that is the only way we know how to arrest inflation. Fortunately while there is suffering, there will be very few insolvencies ... the banks and government will act to minimise this as it is a lose-lose scenario. However "funnelling money" to them is the last thing the government will do, because INFLATION. Duh! Only the Greens and the Australia Institute fail to see this obvious fact.
This all has nothing to do with stage 3 tax cuts. The reason the major parties still intend to execute this policy, is because (1) it was an election promise, and the first party to break it will lose a lot of votes even in the targeted outer suburban seats, e.g. mature tradies and business owners on $200k+ who choose to live near their extended family, for example, and (2) it puts money in the pockets of these same people who spend on items other than basic necessities, which is good for business and the economy, and keeps lots of people employed.
I wonder what you think the ways that the government can combat inflation are. Taking money out of the economy - reducing people's ability to spend - is the way that you combat inflation - this is solved by a) spending cuts (therefore causing unemployment) b) raising interest rates, making borrowing more expensive, and c) increasing taxation. Their point about the stage three cuts is that if the government actually cared about inflation, they wouldn't be cutting taxes for those in the country that have the most spending power. This is the first day of first year economics.
@@CatastrophicalPencil increasing interest rates is a single, simple and very, very flexible mechanism that (a) takes money out of the economy, (b) increases unemployment and (c) makes borrowing more expensive - i.e. anti-inflationary measures (as you say, Economics 101). This increases bank profits, which is later collected by the government as company tax. That is why it is the government's primary lever to control inflation. It is also that is the reason why the stage 3 tax cuts have been delayed. I have given you the reasons why the stage 3 tax cuts will still be executed in the future, and you haven't addressed that point, which is hardly surprising. This is what you learn after 60 years on the planet, that you won't learn from the economic policies of the Greens and the Australia Institute.
@@jinnantonix4570 Ah yes - your 60 years on this planet which have seen company taxes reduced over and over again by governments both left and right. In that time economic inequality has increased and it is now near impossible for anyone under 60 to buy a home. Policy success!
@@CatastrophicalPencil changing the subject. Ageist too. Noting, that company tax in Australia at 30% is still one of the highest in the world, and clearly has nothing to do with Australia's anomalously high real estate prices.
@@jinnantonix4570 you're awfully sensitive for someone who's okay with bashing poor people for the sake of the "economy".
Richard Denniss in his sarcasm would rather the banks go broke so that all of the superannuation savings they have invested in them for their future would become worthless.
That would suit him fine despite the chaos it would result in by people being forced into relying government pensions that would make the other spending options for government like building new hospitals and roads and thinks like pensioner medical services and subsidised medicines.
Nobody needs someone who is so spiteful as he is just to build up his own ego.
Dunno why RUclips recommends me these left wing green sponsored channels.