Tuesday, 14 October 2008

Australian Government Blows $10 billion

The Australian government today reminded its citizens that they belong to a welfare state announcing that they will waste approximately $10 billion worth of taxpayers money.

Firstly they will lob $4.8 billion at starving pensioners who can't feed themselves. Then another $3.9 billion down the drain for low and middle income families, so they can continue to go out and buy worthless crap they don't need.

But the icing on the cake is the increase in the first home buyers scheme. The payment under the first home buyers scheme will be doubled from $7,000 to $14,000 and first home buyers who buy newly-constructed homes will receive an extra $14,000 taking their total grant to $21,000.

So once again, the idiots in power have decided to keep houses unaffordably high for most people and entice the gullible to come in and take on huge amounts of debt. The best way to make housing affordable would be to take the first homebuyers grant away altogether. House prices would fall and the average Australian might have a chance of buying one and paying it off before they die.

But no, we are a nation of consumers who save nothing and depend on the government for a deposit on a house so we can go out and treat ourselves to a new plasma TV and other worthless crap we don't need. Through its actions the government encourages people to be fiscally irresponsible and punish those who save and spend prudently. All in an attempt to keep the debt driven consumerist society afloat.

Thankyou Mr Rudd, you've proven your lack of economic credentials.


Anonymous said...

Agree with your thoughts.House ownership has a status in Oz which has been a negative influence on the economy for many years.This latest effort is more of the same.Let's hope we don't run out of Coal and Fe!

aidee said...

Utterly agree with the sentiments of artificially propping up this damn housing bubble. The RE agents are talking this up as being good for affordability but I doubt this will make an iota of difference... Still early days of a crash though...!

Contrarian Investors' Journal said...

Hey guys!

There is a property price debate going right now at http://ourfinanceblogs.com/forums/index.php?topic=18.0

Professor Steve Keen and Michael Yardney is taking part as special guest experts in this debate.

mk said...

Totally agree with your points. The FHBG is a waste of time. In fact I think negative gearing and a lot of other policies to keep the housing market afloat are a waste of time. If they had just left things alone then we would be able to assess the true fundamentals

The Fundamental Analyst said...

Absolutely, negative gearing should go as well. However, I doubt the government's latest incentive scheme to prop up the housing market will work. Just as they have underestimated the extent of the economic slowdown coming ahead, they have underestimated the coming sea change in our addiction to debt and the darkening social mood.