this post was submitted on 14 May 2024
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[–] [email protected] 4 points 6 months ago (1 children)

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.”

[–] [email protected] 5 points 6 months ago

I highly doubt the economists in Treasury were advocating for this. It's 100% a political decision.