Even as we spent less, the Reserve Bank kept raising rates – and now household disposable income is back to what it was in 2015

Guardian Economist Greg Jericho shows - with interactive graphs - how the RBA’s interest rate policies have missed the mark and depressed Australian living standards in an unprecedented way.

  • Aussieiuszko@aussie.zoneEnglish
    6·
    3 days ago

    The problem is we’re a nation bound to homeowners, when each year less and less of are able to afford such a luxury as a roof over our heads.

    Fuck the RBA and any “economic” wins that don’t translate to a better life for Australians.

  • ikt@aussie.zoneEnglish
    3·
    3 days ago

    where exactly did the rba get it wrong? spending is repressed because of the rba as he points out, but is he saying inflation isn’t a problem? that we are not spending too much even though inflation is up and the rba has indicators to suggest it’s us spending on services (remember the haircuts comment?) the article feels half finished to me

  • Geobloke@lemm.eeEnglish
    3·
    3 days ago

    The rba aren’t too blame, they have two tools and two missions. These missions were set and confirmed by multiple governments. We as a population have long been told and believed that the free market and government money will solve the housing crisis despite plenty of contrary evidence

  • incogtino@lemmy.zipEnglish
    41·
    4 days ago

    Inflation hits the most vulnerable the hardest. Their incomes and savings are eroded directly by inflation

    Those who already own houses or are mainly invested in stocks are able to weather inflation long term (while being affected short term by higher interest interest rates on debt)

    If inflation is still high, and unemployment not rising, in who’s interest would we lower rates?

    Is it such a bad thing for home borrowers (which is who we’re really talking about) to have less disposable income while preserving the purchasing power of those who at best would like to buy, or at worst are already living paycheck to paycheck on minimum wage?

  • Salvo@aussie.zoneEnglish
    41·
    4 days ago

    The problem is that the RBA increased interest rates to discourage individuals from borrowing more. The problem is that We had already borrowed so much that the increase was crippling.

    They should have only increased rates on new loans and reduced rates on existing loans.

    • ryannathans@aussie.zoneEnglish
      6·
      4 days ago

      That’s an interesting concept but not one the RBA has any control over. You’d have to freeze old loans somehow too to prevent people redrawing and consolidating debt into old facilities? And get all the banks to adopt it? What about international debt? Don’t think would be doable in practice

        • Hanrahan@slrpnk.netEnglish
          3·
          3 days ago

          I don’t know the details of how that works, but yeah, it’s possible for the vast majority of home borrowers to be on fixed rates.

          Essetially “socalism”, In the US Goverments backed Fannie Mae and Freddie Mac, so commercial banks had to compete for loans.

          We’d need a government bank to do the same, I think its part of The Greens policy to reestablish one and offer them? but we’d need way more voters to pivot Green, thay seems unlikely, so we’re left with the same stupid, repeating the same stupid mistakes… we sold the last Government bank off.

          Or legislation and that’s never going to happen with ALP/LNP.

        • Taleya@aussie.zoneEnglish
          4·
          4 days ago

          not just the yanks, I have a mate from france I caught up with earlier this week who could not comprehend how a home loan had a variable rate. She thinks we’re all insane.