Monday, November 12, 2007

Howard and Rudd, Economic Managers?

If you didn't laugh you would cry. The election is being fought, in a large part, on the relative economic managment skills of the Howard team vs the Rudd team. And they are roughly equal. Both are incompentent.

First, both pursue tax cuts causing increases in interest rates and further rises to come.

Then, they propose to solve the housing affordability crisis by encouraging buyers to, effectively, spend more. That is, they are simply encouraging increased demand without trully addressing the supply issues. Under both parties housing will just get more expensive.

Howard has done this once before with the first home buyers scheme. Such schemes only make housing more expensive, particularly if the supply issues aren't addressed.

I think I am going to have a cry.
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