Just an observation.

The news today that the RBA is holding the interest rate at 4.1 percent, should not be a surprise. When are we, the ordinary people, going to wake up to the fact that interest rates are not the problem, at this time. Since early 1970, my mortgage rate stayed at around 7.0 to 7.5 percent until about 2000, although peaking at around 17-17.5 % during the mid 1990's.

The problem is that just before the Second World War (1936), the government introduced tax incentives, which included the start of negative gearing. The spurios reason was apparently to address the developing housing shortage. It has never worked for that purpose, but has definitely benefitted the higher income earners (ie. capitalists) who have prospered ever since. Unfortunately, our party politicians, very quickly realised that with the generous incomes and added funding they were awarded,they could cash in, and did. To this day, it appears that a number of their senior members are still benefitting, with some apparently holding in excess of 20 properties at this time.

While most of the population would agree, that we need a tax overhaul, it is obvious that our party politicians will never review that issue. One Labor politician tried about three years ago, tried, but got no support. Brave man?

The fact that today, the cash rate remains unchanged, yet immediately property values jumped, indicates where the problem lies. Just another reason to remove all our political parties from our Parliament. Become a member?

www.movementforbettergovernment.com.au