I must disagree and suggest if interest rates go up only money at call will cost more but long bonds won't cost the government any more interest. What would happens is that holders of those bonds would see the capital value of their holdings drop in value to accommodate higher market yields.
We could very easily pay back any debts by rezoning all National parks into resort zones or commercial zones and offer them.for sale to developers and so your fear of debt is not based on any facts. We could increase taxes on gold mining per gram even if Aussies don't own most mines.
Wages will drop if people want to keep their jobs in any prolonged recession because the other option is No pay whatsoever.
RBA wont increase interest rates unless wages inflation starts to become evident if we get closer to 5% ABS unemployment rates. We don't want any more people getting jobs now, we need a stalling of economy to keep a lid on interest rates but then Roy Morgan Research rates says true unemployment is 19.4% anyway. Don't stress, be happy.
