Labor must not leave inflation fight to RBA   
2026-02-01
greens.org.au
Australians are bracing for another interest rate rise because Labor has turbo-charged the housing crisis and refused to tackle corporate price gouging, the Greens say.

With the RBA likely to raise rates this week, the Greens argue that millions of people will face an interest rate rise because the government has not tackled two major causes of inflation, spiraling housing costs and corporate profiteering.

Sen. Larissa Waters, Leader of the Australian Greens said:

“If you're a mortgage holder or a renter, you face being hit by the RBA to “fix” the government’s "inflation problem".

“Anyone with a mortgage will be giving more per month to the big banks. Renters are going to cop it as it will trickle down into unfair rent rises. That leaves you with less money to spend on food, or the things you enjoy.

“It’s hard enough right now to get ahead, you shouldn’t be doing it harder. It shouldn't be on you.

“This is about choices. The government’s priorities mean that you are copping the pain while banks, energy companies and property investors keep winning.

“If they’d taken them on, you wouldn’t be getting a rate rise.”

Sen. Nick McKim, Greens Economic Justice spokesperson said:

“Labor has chosen to leave inflation to the Reserve Bank instead of tackling some of the causes of rising prices - skyrocketing housing costs and corporate price gouging.

“If the Reserve Bank increases interest rates the Treasurer will wring his hands and pretend he shares peoples’ pain when in reality he is responsible for increasing pressure on the RBA to raise.

“If you have a mortgage you are going to feel the pain, while the big banks keep winning. If you’re renting, higher interest rates will flow straight into rent increases.

“Labor pretends this is out of their control. It isn’t. This is about political choices, and Labor has chosen to protect corporate profits while ordinary people wear the pain.

“Big corporations are driving up prices and making massive profits, and Labor refuses to make price gouging illegal across the economy.

“At the same time, Labor is handing out around $180 billion in investor tax breaks that push up house prices and rents.

“The big winners from rising interest rates are the big banks, which already make around $200,000 in profit on the average mortgage.

“Energy giants like AGL and Origin are also cashing in, with around a third of people’s power bills going straight to profit.

“We need to make corporate price gouging illegal, and we need to end tax breaks that help wealthy investors hoard housing.

“People deserve a government that fights for them, not one that leaves inflation to the RBA while protecting big banks and corporations.”

Sen. Barbara Pocock, Greens Finance, Housing and Homelessness spokesperson said:

“In the midst of a housing crisis, families across Australia are holding their breath in anticipation of another interest rate rise. Millions of people are already in mortgage stress, already hurting in a cost of living crisis.

“Australia’s inflation problem is being driven largely by rising house prices, caused by Labor’s failed housing policies.

“$181 billion worth of investor tax handouts are driving up the cost of housing. Investor lending is running hot and now economy wide inflation is in resurgence.

“Labor’s 5% deposit scheme, combined with their massive subsidies for property investors are spiking housing costs, which is the biggest driver of inflation.

“It’s clear that Labor cares more about investors with dozens of properties than it does about renters, first home buyers and homeless people.

‘The Albanese government must urgently slow housing inflation. Labor needs to stop treating housing like a game of monopoly. It needs to scrap the tax breaks for wealthy property investors and directly build social and affordable houses.”

Bobby. wrote on Feb 2^nd, 2026 at 4:20pm:


Yes, that's courtesy of mainstream Neoclassical economics, followed by Chalmers and Bullock - and you.....

Quote:


That's what happens when governments, forced to keep income taxes low (to get elected), try to find other ways to 'balance the books'.

Quote:


And you are supporting the "small government ' ideology which sacrifices low income groups on the altar of free markets and private ownership of housing.

Bobby. wrote on Feb 2^nd, 2026 at 5:39pm:


With the emphasis on "mug".....you are complicit in, eg,  FD's privatization ideology.

As for the entrenched Neoclassical economics ruling the world from the IMF down, TIAA (There Is An Alternative) as opposed to mainstream Neoclassical economists' assertion of TINA (There Is No Alternative) - hence the moniker 'dismal science'....

TIAA, as have shown you in the MMT thread. 

Bobby. wrote on Feb 2^nd, 2026 at 7:41pm:


Your error: the anachronistic 'Rothschild banking system' is a private-sector monstrosity.

Time for some of the private sector's debt money (ie interet bearing money) supplied by "money printing"  in private banks  (when they write loans), to be replaced by "free" money issued by the nation's treasury, on behalf of the public sector. 

The key is direct control of inflation by government, not the CB.

See MMT.  

https://www.abc.net.au/news/2026-02-03/reserve-bank-lifts-interest-rates-februar...





1h ago

The Reserve Bank has lifted interest rates by 0.25 percentage points, as had been widely forecast.

The new cash rate is 3.85 per cent, up from 3.6 per cent.

"While inflation has fallen substantially since its peak in 2022, it picked up materially in the second half of 2025," the RBA Board said in a statement.

"The Board has been closely monitoring the economy and judges that some of the increase in inflation reflects greater capacity pressures. As a result, the Board considers that inflation is likely to remain above target for some time.

If RBA hikes, you can't say it didn't warn us

"Capacity pressures reflect, in part, the greater momentum in demand seen in recent months. Growth in private demand has strengthened substantially more than expected, driven by both household spending and investment.


"Activity and prices in the housing market are also continuing to pick up," it said.

It said conditions in the labour market were also "a little tight" and had stabilised in recent months, in line with the pick-up in momentum in economic activity.

The RBA had cut interest rates three times last year as inflation declined. Its last rate cut occurred in August.

This is the RBA's first monetary policy meeting of 2026.

Bobby. wrote on Feb 3^rd, 2026 at 2:45pm:


Yes, whereas money creation should serve the public good, as well as private good.

Bobby. wrote on Feb 3^rd, 2026 at 3:02pm:


Yeh, while cashed up boomers - like you and me - are laughing all the way to the bank.

An evil system......

Captain Nemo wrote on Feb 4^th, 2026 at 7:56am:


Cranston - a mainstream Neoclassical economist pushing 'the dismal sicience' , is part of the problem not the solution. 

I showed Albo a copy of 'The Defict Myth' but he turned up his nose.

The author, Stephanie Kelton, recommends elected governments should take back control of  'independent' reserve banks, but Chalmers prefers to have some-one else to blame for a dysfunctional economy....

The chickens are comming home to roost....will ON become our next government, as people grow increasingly disillusioned with the majors?

Needless to say, PM Pauline Hanson won't be able to fix the dysfunctional economy either....

Sir Grappler Truth Teller OAM wrote on Feb 4^th, 2026 at 12:07pm:


You are ignoring the fact the CB, tasked with controlling inflation,  is independent of government.

Quote:


Labor's 'a fair go for all' narrative is already incapacitated by Neoclassical "austerity" economics.

Of course the Libs don't even pretend to believe in "a fair go for all", they are already  screamimg about maintaining tax arrangemets which overwhelmingly benefit the wealthy.


Quote:


Yes. see above.  

Quote:


All required as well, but governments captured by dysfunctional Neoclassical economics can't legislate fair taxes - eg, international resource extraction companies claim "sovereign investment risk". 

Dear TGD,

Jim Chalmers is trying to spin it some other way where he is not at fault -

in fact it is caused by his massive spending from money printing.

thegreatdivide wrote on Feb 5^th, 2026 at 1:45pm:



Explain to us your position on CGT discount again.

Bobby. wrote on Feb 5^th, 2026 at 6:01pm:


Your error: "money printing" by the RBA is confined to periods of economic emergencies:

(google)

"The Australian government issues bonds, and during specific economic crises, the Reserve Bank of Australia (RBA) has engaged in actions often described as "money printing" to support these bonds, particularly during the COVID-19 pandemic.

During the pandemic (2020–2022), the RBA implemented a Bond Purchase Program (BPP). It bought government bonds from commercial banks in the secondary market.

The RBA paid for these bonds by electronically crediting the commercial banks' Exchange Settlement (ES) accounts at the RBA—essentially creating new money "out of thin air".

By early 2022, the RBA had purchased $281 billion in government bonds.

Summary:

In normal times, government issues debt (bonds) to the private sector, to raise money.

[Note: This is an entirely unnecessary convention, because a currency-issuing government, by definition, doesn't need to borrow money. However, moving along...]. 

In economic emergencies, the RBA creates electronic money to purchase that debt, when normal  private-sector operations are too slow or dysfunctional (in the emegency).

The RBA stopped its bond-buying program in February 2022 and has since allowed its bond holdings to mature, reversing the "money printing" process.

ie,  reverting back to normal, with most money printing happening in private banks, when they write loans for credit-worthy customers. 

Quote:


The question is: in comparison to the money "printed" (ie created ex nihilo)
in private banks.

Then the governement would need to "show the books" to the electorate regularly, to avoid your concerns re a 'blank cheque'.

Quote:


The independent RBA "pisses me off" too...but for different reasons....

The elected government needs to manage costs (inflation) in the economy, by ensuring demand can be met by supply at all times.  not a task for an unelected 'independent' reserve bank.

Even at the age of 68 I still can't work this out.

"Inflation" is claimed to be caused by people spending too much money and the "idea" of interest rate rises is to slow down spending.

Is that right?

So, if people reduce their spending on shopping, holidays, etc., etc. doesn't that mean businesses may have to close (because of lack of customers) and workers lose their jobs?

Make it make sense.

I've suspected this for a long time but this whole financial system is a giant scam designed to keep the population in a constant state of panic which governments, banks and others are happy to see continue indefinitely because it diverts attention from their own massive incompetence, corruption and greed.

Bobby. wrote on Feb 6^th, 2026 at 11:33am:


Even when the government has to "print" money, to keep people alive in a locked-down economy?

Bobby. wrote on Feb 6^th, 2026 at 12:12pm:


Indeed: governments the world over are now experiencing democratic dysfunction because of the Catch-22 dilemma forced on them by Neoclassical 'balanced government budget' ideologues who think currency-ISSUING govt. budgets are like currency-USING household budgets. 

Neoclassical Catch-22: governments must increase taxes to pay for essential public services, but govts. must reduce taxes to get elected. 

Quote:


??  Keating started the national superannuation scheme to ensure you do have funds to spend in retirement.

(It's an entirely unnecessary scheme because currency-issuing government can't 'run out' of money, they just need to ensure basic goods and services will be available for retirees.


Quote:


So you are blaming retirees (past, present and future) for inflation...when it's total demand in the economy NOW which is causing inflation NOW.

thegreatdivide wrote on Feb 6^th, 2026 at 12:34pm:



Yes - the economy shouldn't have been locked down over a cold -

99% of those who died were in aged care homes -
people who were so fragile that even a common cold would kill them.

Did you know that every day, many of them fall over on soft carpet with underlay,
and break their hip or arm?

https://www.abc.net.au/news/2026-02-06/rba-governor-refuses-to-blame-government-...


Bullock says government spending not sole factor pushing inflation higher as political fight heats up

4h ago

She listed:

low unemployment,
rising real incomes,
falling interest rates,
tax cuts,
and government spending

among the many contributors to the pick-up in inflation in the back half of 2025.

Who's to blame for inflation returning?
In Canberra today, Ms Bullock faced numerous questions from opposition Liberal MPs about the link between government spending and inflation.

Ms Bullock said it was not her place to comment on the reasonableness or otherwise of the government's fiscal policy.

But she said government spending was a component of "aggregate demand" (the total level of demand in the economy), and aggregate demand was running a little bit ahead of aggregate supply at the moment

Bobby. wrote on Feb 6^th, 2026 at 2:36pm:


Did you miss the Catch -22?

How do YOU think governments should fund essential public services, to avoid anarchy in the streets? 


Quote:


You are incapable of learning: all money is "printed", most of it in private banks.

The question is how to balance total supply and demand in the economy, to avoid inflation. 

Try to understand that simple point, while governments around the world are failing to  ensure provision of essential services for all, resulting in electors everywhere rejecting mainstream centre L-R  politics.

Note:  in the 50s and 60s, before Neoclassical "small government " ideology, 'conservative' Menzies was able to ensure housing for all, even at a time of high post-WW2 immigration. 

Quote:


The problem is you are incapable of identifying the cause of  the current economic dysfunction we are witnessing around the world.

"How ya (ie, govt.) gunna pay for it" (ie, essential living costs), while keeping inflation low? 

Sir Grappler Truth Teller OAM wrote on Feb 7^th, 2026 at 11:57am:


We agree.

Now - how do you suggest we "take back the farm"?

lee wrote on Feb 5^th, 2026 at 5:51pm:


CGT discount favours the asset rich.

Bobby. wrote on Feb 7^th, 2026 at 1:42pm:


You are assuming the private sector would be able to replace those PS jobs, with above poverty wages.

Quote:


Your error:

(google)

Based on historical data, the Australian public service (including federal, state, and local governments) has experienced fluctuations, with notable peaks in the late 1960s to mid-1970s and another significant rise in the early 2020s.

Historical Peak (Late 1960s): In 1968, the ratio of Australian Public Service (APS) officials to the population was 1:58, which is significantly higher than recent ratios.
Recent Surge (2022–2025): A major expansion in the public sector occurred post-COVID-19. By June 2025, there were nearly 2.6 million public sector employees across all levels of government, constituting roughly 18% of all employees in Australia.

Context on Ratios: As of 2025, the ratio was one APS official for every 138 Australians, which is lower than the 1968 peak of 1:58 but represents a sharp increase from 1:161 in 2023.

The recent expansion has been attributed to bringing previously outsourced work back into the public service and increasing staff to handle services like the NDIS and health.

...as the population increases and grows older.


Quote:


Correct: govt. wants to preside over full employment.


Quote:


Your rumour discounted above.

But Catch-22: how does govt. "spend within the budget" and deliver vital public services,  while promising lower taxes to get elected?



Quote:


Simple English,  which  you apparently can't understand.

(google)

A major cause of inflation is when aggregate demand for goods and services exceeds aggregate supply

Do you understand those terms?

While excessive demand is a primary driver, modern inflation is often a mix of both excessive demand (demand-pull) and constrained supply (cost-push) inflation.

Do you understand those terms? Google will explain them for you.

Quote:


Your error - failure to note context: 

(google)

The early stages of the mining boom significantly funded the Howard government (1996–2007), providing a massive revenue windfall that helped secure budget surpluses. Between 2004 and 2007, the boom added roughly $334 billion in revenue, with a large portion of this used for tax cuts and middle-class welfare rather than infrastructure investment.

And misguided policies like CGT discounts and NG, now coming home to roost.

lee wrote on Feb 7^th, 2026 at 2:28pm:


(google)

Based on recent analysis in Australia, the 50% Capital Gains Tax (CGT) discount is heavily criticized for disproportionately benefiting wealthier individuals, thereby worsening wealth inequality and contributing to housing unaffordability for lower-income earners.

How It Impacts the "Poor" (Low/Middle Income & Renters)

Housing Inaccessibility:

The tax concession encourages speculative investment in housing, which drives up property prices, making it harder for first-home buyers to enter the market.

Increased Rents:

By encouraging investors to "hoard" property, the system reduces the availability of homes for owner-occupiers, keeping more people in the rental market, which can drive up rents.

Inequality of Labor vs. Capital:

The system allows individuals to pay lower taxes on profits from selling investments compared to taxes on income earned from working, widening the gap between wealthy asset owners and wage earners.

Lower Benefits for Lower Earners:

People on lower incomes who make infrequent or smaller capital gains see very little benefit compared to those with large investment portfolios.

Meanwhile, the counter-argument:

Investment Incentive:

The Property Council of Australia argues that reducing the discount could reduce housing supply by lowering incentives for investment, which could increase rents further.

....Yes, they would argue that, being "small government' ideologues who were responsible for governments abandoning public housing.

Conclusion:

The consensus from recent economic and social policy research is that the current 50% CGT discount is highly regressive, with benefits overwhelmingly flowing to the top 10% of earners while contributing to a housing system that makes homeownership difficult for younger and lower-income Australians.

My "opinion"?   

TGD,
Quote:


The Labor Govt. just wants the unemployment to be low
so they have a better chance of being voted back in -
all with money printing and borrowed money - fake jobs.

The fact that not even your great children will be able to pay it back -
they will still be on the hook for it - before they are born -
doesn't seem to concern you or the average Aussie punter.

People should be employed in businesses that create profit -
from a proper business model -
not by borrowing or printing money.
How about business to value add to our commodities?
We could extract rare earth minerals from mining ore.
We could sell Uranium fuel rods instead of Yellowcake.
We could have factories that produce things -
we don't even make shoes here anymore -
we export leather instead. 


Google AI:

Yes, Australia is a significant global exporter of hides, skins, and leather,
with exports valued at roughly $598 million in 2021.
The industry mainly exports raw (wet-salted) bovine hides and sheepskins,
along with kangaroo and goat skins, primarily to China, Italy, and Vietnam.

TGD,
Quote:

Govts will do anything to get re- elected -
even if they destroy the economy in the long term -
even if they bankrupt our unborn great grandchildren.
All they care about is having power for the next 3 years.


TGD,
Quote:

It's not what I hear.
9 out of 10 jobs advertised are in the public service now. 


TGD,
Quote:

I do - sorry.
We have just followed other countries down the easy path -
use the credit card -
all fiscal responsibility thrown out the window.
The Yanks and just about every Western Govt. in the world
are in a hell of a lot of trouble from it -
all living beyond their means.
The last time that happened was in 1939.


TGD,
Quote:

Only by printing money and causing hyperinflation.
is that what you want?


TGD,
Quote:

The easy path is to print more money -
solves the problem for now. 


TGD,
Quote:

I'd like to see it. 


TGD,
Quote:

We could still be competitive.
One reason is cheap energy in China.
They open a new coal fired power station every week. 


TGD,
Quote:

Not small -
$598 million of leather could be turned into say 5 billion of leather goods:
shoes, handbags, jackets, pants.

Australia's Economic Disaster | Peter Costello

Bobby. wrote on Feb 7^th, 2026 at 4:02pm:


True, hence the need to promise lower taxes and full employment.

Quote:


Several errors there, but you - being uneducable - keep repeating the same errors even after the solution is pointed out.

Quote:


Dummy lee - without addressing my arguments which are backed by google AI - demands I cite 'authorities' stronger than google AI; you want me to  accept "what you hear" ..... the 'comic duo' ( lee and bobby) at their excruciating finest...

Note: if the private sector isn't advertisng for jobs, that's a sign of a moribund private sector. The government is trying to get the private sector to work, without forcing workers onto lower wages and conditions.

Quote:


You should apologize; your misplaced concern re government debt is destroyng economies and democracies the world over, not just Oz. 

Quote:


You remain uneducable: for a currency-issuing government, 'fiscal responsibility' means balancing aggregate demand in the economy with aggregate supply, NOT balancing the (monetary) budget like households must do. 


Quote:


??

What happened from 1945 to the 60s, aka 'the golden age of capitalism" during the Keynesian 'welfare state' era? 

Quote:


See the latest MMT post: Musk is concerned about DE-flation. 

https://www.ozpolitic.com/forum/YaBB.pl?num=1645944963/1410#1411

Quote:


Correct - and forever....provided the govt manages a productive economy (in both the public and private sectors)  which supplies the goods and services we need. Money is no problem for a legal currency-issuer.

Quote:


The Conservative 'small government' ideologues have to get out of the way.


Quote:


One reason of many;  eg, the '1st world rust belt' developed (as a result of WTO Neoclassical 'free trade' rules) whiie the whole world  was still burning coal, and now China is transitioning it's economy to renewables at the fastest rate of any country in the world. 

(google)

China is currently undergoing the world's fastest and largest transition to renewable energy, with its renewable power capacity, including wind and solar, surpassing its coal-fired power capacity by August 2025. In 2024, China accounted for over 60% of new renewable capacity added worldwide, installing more solar and wind power than the rest of the world combined.


Quote:


Sure; and the value of Oz ore exports could be quadrupled by value-adding at home.
...a potential $700 billion or more, cf a piddling $5 billion for value-added manufactured textiles.

But Neoclassical free market goons reject government subsidization of industry and would let Whyalla, ets,  close, like they let the car industry close.

Deplorable.

TGD,
Quote:

I'm the one trying to educate you and all our readers. 



TGD,
Quote:

You are agreeing with me -
we need to value add as much as we can.
$5 billion for value-added manufactured textiles would be a nice little start.
Extracting rare earths could win $trillions.

I wouldn't mind all the borrowing if it was invested in say
a Govt mining scheme to extract and process rare earths.

Bobby. wrote on Feb 8^th, 2026 at 11:58am:


By insisting "money printing" is the cause of our economic woes, while you refuse to admit most "money printing" happens in private banks.

The fact is governments of complex  modern economies must manage  high technology infrastructure for the public as well as the private sector, as well as global  supply chains.

Back in the early days of the Industrial Revolution, govts.  played a very small role in the economy;  capitalists built their own factories and transport systems while public infrastructure was minimal  and kids worked in coal mines instead of going to school.

Even further back, we had Adam Smith's 'invisible hand' markets when, eg bootmakers competed with other bootmakers in the local market place; global companies making goods overseas and selling boots in local markets didn't exist.

Quote:


Yep, but read on...

Quote:


So...you don't mind government debt provided it increases the nation's wealth.

Congratulations; that's the MMT stance.

You (the govt) need to fund development of the clever tech required for sustainable ecological extraction and conversion of raw materials, in a 'circular economy.'

(google)

A circular economy is an industrial system designed to minimize waste and resource consumption by keeping materials in continuous circulation. Shifting from a linear "take-make-dispose" model, it prioritizes repairing, reusing, recycling, and remanufacturing products to maintain their value.

The private sector can't and won't do it, because the private sector wants increased consumption.....while competing with overseas value-adders.

thegreatdivide wrote on Feb 8^th, 2026 at 11:38am:


That can't happen with the fantasy of Net Zero being pushed by Chris Bowen et al.

lee wrote on Feb 8^th, 2026 at 12:58pm:


The global economy affects national economies, in a globalized economy.

And the Oz electorate is apparently hoping Pauline will fix the Oz economy.

The Neoclassical WTO has created the 1st world rust belt - which Oz largely avoided, because Oz could cope with loss of manufacturing while living off exports to China, which most developed countries couldn't do.

But now Chinese growth has slowed,  in a US-initiated trade war, and the Oz budget is faced with increasing deficits.

So the question remains : explain to us how Pauline can get manufacturing going again in Oz, without reducing  workers' wages and conditions (the Conservatives' wet dream).
while increasing the supply of private sector housing**, and funding the NDIS, childcare  and hospitals as the population ages.

**Your "small government" ideology is responsible for the loss of public housing in Oz during  the last several decades, as the private sector chases unproductive 'housing as investment' which - in the absence of stabilizing public housing, has pushed up prices which are now among the highest in the world.   

thegreatdivide wrote on Feb 8^th, 2026 at 12:52pm:



Our Govt should be investing in rare earths.
They borrow money for nonsense instead of business.
Look at what the Chinese are doing:

https://www.gtreview.com/news/asia/chinas-metals-financing-soars-in-record-year-...

China’s metals financing soars in record year for Belt and Road program

21 January 2026 15:16 GMT

By John Basquill



Chinese overseas investment in metals and mining through its Belt and Road Initiative (BRI) hit record heights last year, amid calls from western governments to reduce reliance on the country’s supply of critical minerals.

Investment and construction deals under the BRI programme totalled nearly US$215bn in 2025, the highest annual figure to date, according to a report published on January 19 by the Green Finance and Development Center, a think tank based at Shanghai’s Fudan University.

China’s engagement in metals and mining totalled US$32.6bn, of which 61% was directed to processing facilities such as smelters, said the report, co-authored by Australia’s Griffith University. The figure surpasses the previous record, set in 2024.

It described metals as an “important growth sector of strategic importance to China”, supporting the three key industries of electric vehicles, batteries and renewable energy.

Bobby. wrote on Feb 8^th, 2026 at 4:10pm:


Yes.


Quote:


Child care, education, hospitals, NDIS and essential infrastructure are not nonsense ... but the subs to fight China in the Taiwan straits ARE "nonsense"..


Quote:


Yes, it's called investing in the real, productive economy, not the fake Wall Street casino.  economy.

Hence Trump is now trying to do it in the US, funded by tariffs on everyone else to avoid raising taxes...... 

TGD,
Quote:


That's true but I bet we could find plenty of waste in all the public service jobs that were created?
We need a DOGE office - get Elon to run it for 3 months.

TGD,
Quote:

Trump and the Chinese have business minds.
Albo couldn't run a chook raffle in a pub.

thegreatdivide wrote on Feb 8^th, 2026 at 3:53pm:


And that is because of overspending, not reduced government income.

thegreatdivide wrote on Feb 8^th, 2026 at 3:53pm:


You keep coming back to that like a dog returning to its vomit. You have no knowledge. You believe MMT would fix it. But you have no proof of that. So until it is proven, it s merely supposition.

thegreatdivide wrote on Feb 8^th, 2026 at 3:53pm:


Ah - So public housing is now purely a large government domain?

The private sector chases unproductive housing? That would mean that there are large numbers of unsold private houses, being "unproductive", and that is demonstrably not true.

lee wrote on Feb 8^th, 2026 at 4:54pm:


Please show us where the government is "overspending"; note:  we are told the OZ debt is "approaching $ 1 trllion", you need to show us some hefty savings, rather than employing the opposition's trick ie, saying "we will show you before the election. not know, it's the government's job"...(because if we reveal it now,  you will have  time to work out we are frauds....).

Quote:


Hey -  I asked for your policies - other than reducing government spending which hurts those who depend on it. 

Please tell us how YOU would advise Pauline (just in case she DOES bcome PM....)..

Quote:


By definition: a decent public housing portfolio (say one million houses for starters) would amount to at least a  $500 billion public housing portfolio...big government (around the estimated size/cost of the Coal-ition's govt. funded nuclear plan....)

Quote:


Your error: housing is for living in; it's an essential good for all, as opposed to FOR PROFIT private sector investment in factories etc. which actually grow the economy.

The public sector's job to invest in not for profit  essential public goods (public infrastructure,  hospitals, schools etc etc.  AND public housing, which assist the private sector to make profit (when everyone is decently housed).   

thegreatdivide wrote on Feb 8^th, 2026 at 5:56pm:


Nope. Overspending is case of not balancing the books. Off-budget items are not counted, therefore it spending more than it is taking in. That is exactly what debt is. It doesn't matter whether it is household debt, company debt or Governmental debt, it is simply spending more money than is earned.

thegreatdivide wrote on Feb 8^th, 2026 at 5:56pm:
.

And yet there is far more expenditure on projects where it is not dependent. Solar panels, wind turbines, batteries. Those things go to those that can afford it.

thegreatdivide wrote on Feb 8^th, 2026 at 5:56pm:


And of course you would have to pay tradesmen. Something that is in short supply in Australia, because we now have the University educated unemployables.

thegreatdivide wrote on Feb 8^th, 2026 at 5:56pm:


You were the ones saying it was unproductive. So then all we would have is public housing.

thegreatdivide wrote on Feb 8^th, 2026 at 5:56pm:


But if private housing is unproductive, as claimed, where are the benefits?

flip page

lee wrote on Feb 8^th, 2026 at 9:24pm:


Govts,  ARE trying - by trying to reducing taxes (to get elected) and ignoring government debt (which greedy conservatives always  scream about) -  and faling all around the world. Do try to keep up.

Quote:


Yes, so why did you raise "off budget" funding (which is a fraud)) the question is how to fund the budget.

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The point is a currency-issuing government's debt is profoundly different to YOUR debt., for the reasons given. Your incapacited brain apparently  can't even consider the difference between a currency-issuer and a currency-user, in relation to debt.

Note:  a currency-issuing government can always  issue debt denominated in its own currency, (provided the economy remains productive).   

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No it doesn't: your brain - incapacited by Neoclassical "scarcity economics" -  can't begin to understand the capacity ofa currency issuer to subsidize consumption (when the rresources are available). 

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Education isn't "scarce" (there's that word again) , and the TAFE trained builders will be paid by the government.

Every point you make is based on the "taxpayer money" myth.


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Your error: (blind ideology or low IQ). Private housing is attractive/desirable for those who can afford it , they get to choose features and localities they like, not necessarily available with public housing.   

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Low IQ, apparently I need to define McMansions for you.

Meanwhile, everyone needs a house. Explain how the private sector, alone, can achieve this necessary outcome, when average wages can no longer buy an afforabl;ee house, and lower income groups can't even rent.

You already rejected free training and employment of home builders employed by the government.

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The debate certainly highlights the paucity of your Neoclassical "scarcity economics" ; there is no scarcity of resources in Oz  (including TAFE colleges)  which prevents the Oz government from delivering secure housing for all, ASAP.   

lee wrote on Feb 9^th, 2026 at 3:47pm:


Dummy, they are trying but failing, due to your blind, obsolete Neoclassical  'scarcity economics' ideology.

eg, Starmer's govt., like many,  is on the nose after a year, because Rachel Reeves can't balance the books without raising taxes or reducing spending.  See below.

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The public - because pollies want to conceal debt numbers - owing to YOUR obsolete "scarcity economics" trumpeted by ignorant mainmstream media and economists who are screaming  "balance the budget" - by reducing spending, of course. 


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Your errors:

1. a currency-issuer doesn't NEED to borrow, being an obsolete convention of obsolete Neoclassical "scarcity economics'.

2. Even so, Japan and the US prove massive borrowing and debt can stand without crashing the economy, bond vigilantes can't touch productive economies.    

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Correct, at last  .....(but why do I suspect you aren't using your brain to arrive at that correct statement....)

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Your errors: "available" means available for the government to purchase (including by nationalization), if the private sector can't mobilize the nation's resources to achieve  government goals eg net zero. Even Dutton wanted a government-owned nuclear industry in Oz.   

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More of your  obsolete "scarcity" economics....

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The myth is c-i government needs taxpayer money. Fact is a currency-issuing government ...oh, never mind...

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That's the mainstream's "scarcity economics"  mythology. Govt. only needs to levy taxes to incentivize consumption (eg raise fuel taxes to promote adoption of EVS) or discourage consumption (eg to reduce tobacco consumption)

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You could claim that,  if you don't understand HOW money is created, to whom is granted  the privilege of creating it, and why it is granted to that privileged group.