In theory; interest rates being this low should increase consumer spending and reduce unemployment. But we're not seeing that.
I don't believe we're in a recession; the issue is we have extremely wealthy offshore investors increasing the property prices and causing huge pressure on first home buyers to save their money, even if the interest rates are incredibly low.
This wouldn't be so much of an issue if banks didn't demand 80% of the value of the home for a deposit; which, on the median Victorian property, is $129,000!
The real shame is that the international investors were only granted into Australia to establish businesses and create jobs (specifically in manufacturing). Instead, they bought up property and inflated the market, also inflating the general cost of living.
The government plan to create more jobs backfired and the average Australian is hurting because of it. It's unfortunate, but this is the global environment we must compete with.
MYR Price at posting:
$1.34 Sentiment: None Disclosure: Not Held
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