It is almost as if the economists who advise the government don’t understand economics.
If you pay more for a thing, it makes it more expensive, it is Economics 101.
And don’t get me started on the Reserve Bank and interest rates.
“People have too much debt; let’s make their current manageable debt into crippling debt so they can’t survive at all! That will stop them from borrowing more money.”
It is almost as if the economists who advise the government don’t understand economics.
If you pay more for a thing, it makes it more expensive, it is Economics 101.
And don’t get me started on the Reserve Bank and interest rates. “People have too much debt; let’s make their current manageable debt into crippling debt so they can’t survive at all! That will stop them from borrowing more money.”
I highly doubt the economists in Treasury were advocating for this. It’s 100% a political decision.