And while this hurts mortgage-holders and renters, it leaves people who own their homes outright relatively unscathed…and hence, they have cash to splash!
And because inflation still isn’t under control, some economists, like Rand Low from Bond University, are politely suggesting cashed-up Aussies – who he calls the “have-lots” - should do their bit to curb inflation by cutting back their spending on discretionary items.
By doing so, we could deliberately force the country into a recession and finally crush inflation, the forced, DIY recession we have to have.
The thinking is that by forcing a DIY recession, it’ll be way less painful.
All this hoo-ha comes as the RBA prepares to meet to discuss rates. Although a hold is expected, rumours are swirling that future rate rises are on the horizon.
So, is it fair to expect Australia’s homeowner “have-lots” to close their wallets? Or should they be allowed avocado on toast and private jets on tap?
