Slashing and burning housebuilding and investment today will inhibit inflation a little in the short-run at the price of diminishing long-term supply – a sure way to breed more long-term inflation.
This is not an anti-inflation policy. It is a cynical transfer of income from people who did not cause the problem to people who are, in fact, profiting handsomely from it. And it is an excuse for further acts of vandalism on some of Australia’s important institutions.
I don’t disagree. But this is not a problem that has just arrived. Its been a long time building, with so many people could see it, and voiced it. But people voted for house prices to the moon, meaning more debt for everyone. Meaning less investment to businesses. The can got kicked and kicked. No one wants to see the country in a downward economy but its likely that the result is baked in now. I didn’t make this mess, I cant fix the mess, i’m just the person who points out that its been a long time coming and the consequences need to happen.