There is always a choice.
How can household debt be the ReserveBanks/Governments fault when private individuals make their own choices within the parameters in place.
The policies in place have helped to keep economies keep going and so that people would not be on the scrap heap.
The Reserve has a dual mandate and is not perfect in timing as it is very complex to orchestrate.
I would say that they have done a pretty good job as Australia has had the longest unbroken run in GDP growth globally.
I prefer growth over recession because recession hurts those that can’t afford it.
People move to rural areas if they have to.
People do not use their finances wisely and try to live a champagne lifestyle on beer budgets.
I know people who complain they can’t buy a house and yet are regularly eating out, buying the latest clothes, buying coffees, streaming services, new phones and other devices, Amazon purchases, cars, motorbikes, holidays, etc. and so on it goes.
They cry poverty and then complain that they are worried and have difficulty sleeping and how will they ever be able to save up a deposit.
Others I know worked multiple jobs, ten to fifteen hour days, built up savings over a number of years and then went to uni and studied 80-100 hours a week knowing that a standard degree wouldn’t be enough and so wanted to be in the top ten percent and ended up with 99.5%.
This individual worked, saved, studied and worked again and bought a house and paid it off in three years and is looking to buy another one but is waiting for interest rate rises to take advantage of that.
What is needed is financial literacy, a good work ethic, some focus/goal and delayed instant self gratification.
There are too many people wanting others to carry them.
Watch with the coming rate hikes as people have over extended and after covid handouts now will expect to be looked after on the government/public teat to keep paying for their purchases.
People should be accountable to themselves and not expect others to fund their lives.
Immigrants from past know all about this, think European and Asian after the fifties.
Just because interest rates are at record lows and for extended periods doesn’t mean a person that may be successful in an application for a loan should max that out to buy an expensive house or car.
Buy a cheaper house in a cheaper area and work your way up the chain as others do.
There is always a choice in life, it’s just that it may not be popular or what is wanted and sometimes a want gets confused with a need, imo.
