I'm not suprised by the situation described in this article, but it doesn't make it any easy to read. What a candid description of what is happening at the moment. " I don't understand why households with a mortgage are forced to do the heavy lifting in reducing inflation for everyone."
I don't understand either.
Some says the RBA has no choice, or no instructment, to reduce inflation apart from the "blunt" tool of raising interest rate. Well, may be we need to have a look at the system, or the tools that are actually available. May be the RBA should be given access to those tools that are currently beyond its reach. Just like in any crisis, for it to be war, COVID lockdowns, it is the orindary people, the citizen Joe, that suffers.
You really can't blame him for taking out a mortgage of 750K in 2019, it was just around the median house price in Melbourne at the time. He has a decent income, well above the median income according to the ATO. So, what has gone wrong??
