Fixing the budget? Raising more funds?

They didn't ask me.

Which is good, because I'm neither 'top', nor an 'economist'.

And you didn't ask, either.

But I've never let that stop me, so here goes.

But first, I think 'efficiency' is a grossly overrated objective.

1/n

https://twitter.com/1petermartin/status/1641179314585759744

It's an academic wet dream (with genuine respect for our academics), but it's rarely as pragmatic as it should be.

I'd put fairness and effectiveness way above efficiency.

2/n

We need to stop the 'RBA Governor is out of touch' rubbish

Sustained high inflation is much worse than temporarily high(er) interest rates

You want his head on a pike for looking after the country?

Yet you're not taking the pollies to task for fiscal policy?

#ausbiz #auspol What would you have Lowe do?

Let inflation run rampant?

It's not like there is a good choice and a bad choice.

There are two bad choices. One is slightly less bad.

That's where we are.

Look, the tabloid responses are easy. And no-one likes the pain caused by rate rises. But here's the thing:

1. Inflation, left to spiral, will destroy our standard of living.

2. Higher rates, temporarily, beat higher prices, permanently

3. Of course it's painful.

1/n 4. It's also unfair that the burden falls where it does

5. The RBA has few other options: either high inflation or high rates

6. The choice is easy (see 1. and 2. above)

2/n

Truly dystopian.

A 35 year mortgage.

Let that sink in.

When I bought my first unit, the max length was 25 years.

A 40% increase in duration in a couple of decades.

And a huge additional interest burden.

Exhibit #3522 in 'Housing policy in Australia is broken'

#ausbiz

https://twitter.com/swrighteconomy/status/1622731507805876224

Making housing *more affordable* by adding 5 years and $115k in repayments would do Orwell proud.

So you can:

- Raid Super
- Extend your mortgage
- Get money from the government (which pushes prices up)
- Let the government own some of your house

That, apparently, is 'policy'.

The rates conversation is - should be - complex.

Some thoughts, in an interest rate 🧵

#ausbiz #rates #RBA

1/n There's a decent 'chart crime' - or at least a meaningful misdemeanour - on the AFR's homepage this morning:

2/n

Today is Vietnam Veterans Day,

We remember those who served, suffered and died; those who made the ultimate sacrifice, those who bore the physical scars of their service, and those who returned, but never really left.

Welcome Home.

Lest We Forget.

Why today?

Australians commemorate Vietnam Veterans Day on the anniversary of the Battle of Long Tan, on this day in 1966.

Today's editorials in the @smh and @FinancialReview come to different conclusions, but with the same frustration that neither party has any stated policy ambition.

This, from the SMH, captures it nicely.

#auspol #ausbiz

1/n @smh @FinancialReview We have the toughest economic outlook in decades (COVID was a surprise), and neither party has a serious plan to lift productivity or to drive economic growth.

Neither party has a serious plan that goes far enough on climate.

2/n

For all of the problems of democratic capitalism - and there are plenty -- don't miss the forest for the trees.

Don't get sucked into the false binary choice between neoliberalism or socialism.

Capitalism works.

It needs to be well (better!) regulated but it works.

#ausbiz

https://twitter.com/SHamiltonian/status/1523209419680407554

The for-and-against arguments centre on extreme views:

"It's better than socialism"

Or

"It's not working properly"

Newsflash: Both are true.

But throwing out the baby with the bathwater would be a crazy outcome.

Argue for a better system. Improve the system.

The cost of living is rising and will continue to do so as interest rates rise in the not-too-distant future.

So here are some ways to save, if you're interested (no pun intended).

A 🧵

#personalfinance #saving #money #CostOfLiving Get a better interest rate.

Seriously, #getabetterrate

Almost by definition, given the hundreds of loan products available, you're paying too much.

Your bank doesn't deserve your loyalty and you could save thousands.

Do your research. Then call them. Today.

This is about reason #35 why we should reform taxation of Super payments.

Keep franking credits, but tax *all* income (including the pension) using marginal rates above a generous tax-free threshold.

1/n

bit.ly/37LRxgp Set the tax free threshold for over 65s above the pension level (essentially meaning the pension would be untaxed), but if there's extra income, from working, Super or anything else, it gets taxed at a marginal rate.

2/n

We lionise the artist, but give precious little attention to the craftsperson.

I think that's both a shame and a big mistake, in terms of fairness and, perhaps more importantly, what we can learn.

A short thread. 🧵 I love artists.

The sheer creativity and innate ability to conceive of something unique where there was nothing is incredible.

Now, I'm no art connoisseur, but in a business sense think of the vision of someone like Steve Jobs, or some of the great inventors like Edison