Nice one CrystalVoyager. My original post was a little simplistic with regards to the social benefit removal, etc, but it was used to bring home a point. I'm not that heartless, and wish to ensure that our nation can truly look after those who are in dire need of our help.
But unfortunately, there are a lot of people who are taking our generosity for a ride. And once on the welfare system, they then find that everything falls into place...just like that. Cheaper car rego, cheaper school fees, utility bills, free this and that. It has come to the point now where there is no incentive to work for a wage at the lower end, simply because you are much better off being unemployed.
But that is a double edged sword. By having such a strain on the welfare system, our taxes are now being stretched beyond what can be paid - hence the eyes of the nation are 'all' pointing towards the mining industry for some more of the 'good stuff'. Hence, our nation is borrowing in excess of 100 million dollars each day, every day (I still cannot believe that). Not only that, by removing the incentive for people to do menial jobs means that we all pay more for everything as a result - even the unemployed. That's right - the unemployed now pay more for everything because they are not working. If they worked, then everyday living costs would go down. Go figure!
So we bring in people from overseas to push down labour costs. Great, but then more money is now needed to buy a home, and longer travelling times are now a reality.
As for the housing grants, they do several things. They are the most politically correct way of bringing in today's new generation of workers into their own home without having a reduction in house prices. It also ensures that our economy won't go into relapse by avoiding a house price correction, That keeps the building industry ticking over nicely, and along with it strong employment.
The big danger for all of us here is high unemployment; First - since the GFC, Australia has increased its personal debt levels by a substantial margin. That means Australia now is more sensitive to financial shocks, such as high unemployment, a collapse in the mining boom, and a collapse of the AU dollar. Second - we have drawn in a huge amount of people from all corners of the globe. In some ways it's not a bad thing, but, what happens if unemployment really does spike? Are we going to send these immigrants back home? Or will they be more desperate to work harder, and for less than us. Will they displace us in the work force? After all, most of these people come from places where they did it tough. If anyone knows how to survive during extremely difficult times, it is our new Australians.
This is why it is absolutely critical that our housing market does not ever go backwards. It must maintain its healthy and prosperous image for this nation to keep "moving forward." And just like a dysfunctional marriage, our leaders will do their utmost to make us appear to be all rosie on the outside, just like that perfect couple you knew that divorced with fireworks.
I can't just help but feel a little concerned about our youth of today, that's all. And I truly believe that the good and honest adults of this nation are as well.
