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Keep socialist blog En Passant going - donate now
If you want to keep a blog that makes the arguments every day against the ravages of capitalism going and keeps alive the flame of democracy and community, make a donation to help cover my costs. And of course keep reading the blog. To donate click here. Keep socialist blog En Passant going. More... (4)

Sprouting sh*t for almost nothing
You can prove my 2 ex-comrades wrong by donating to my blog En Passant at BSB: 062914 Account: 1067 5257, the Commonwealth Bank in Tuggeranong, ACT. More... (12)

My interview Razor Sharp 18 February
Me interviewed by Sharon Firebrace on Razor Sharp on Tuesday 18 February. http://sharonfirebrace.files.wordpress.com/2014/02/18-2-14-john-passant-aust-national-university-g20-meeting-age-of-enttilement-engineers-attack-of-austerity-hardship-on-civilians.mp3 (0)

My interview Razor Sharp 11 February 2014
Me interviewed by Sharon Firebrace on Razor Sharp this morning. The Royal Commission, car industry and age of entitlement get a lot of the coverage. http://sharonfirebrace.com/2014/02/11/john-passant-aust-national-university-canberra-2/ (0)

Razor Sharp 4 February 2014
Me on 4 February 2014 on Razor Sharp with Sharon Firebrace. http://sharonfirebrace.files.wordpress.com/2014/02/4-2-14-john-passant-aust-national-university-canberra-end-of-the-age-of-entitlement-for-the-needy-but-pandering-to-the-lusts-of-the-greedy.mp3 (0)

Time for a House Un-Australian Activities Committee?
Tony Abbott thinks the Australian Broadcasting Corporation is Un-Australian. I am looking forward to his government setting up the House Un-Australian Activities Committee. (1)

Make Gina Rinehart work for her dole
(0)

Sick kids and paying upfront

(0)

Save Medicare

Demonstrate in defence of Medicare at Sydney Town Hall 1 pm Saturday 4 January (0)

Me on Razor Sharp this morning
Me interviewed by Sharon Firebrace this morning for Razor Sharp. It happens every Tuesday. http://sharonfirebrace.com/2013/12/03/john-passant-australian-national-university-8/ (0)

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Unemployed first home owners?

The Government’s generous first home owners scheme has been a success.  So says Kevin Rudd.

The grants have trebled and the number of new home buyers has increased by 26 per cent.

I am not an economist.  I am a pamphleteer.

So I have a question or two.

Unemployment predictions keep on blowing out. The latest estimate is 7.5 per cent (an extra 350,00 or so) by June next year.

As I have written before, double digit unemployment is a real possibility, and if you factor in underemployment, about 13 per cent of our workforce is currently unemployed or underemployed.

Some newly unemployed will presumably be first home owners encouraged into the market by Rudd’s grants (and low interest rates).  Where will the money come from to pay the mortgage if they don’t have a job and/or interest rates rise?

And won’t they be just a tad cranky with Rudd and co?

And it’s not just new entrants lured into the market who will be affected. Long term mortgagors will also suffer the same fate, adding to the stock of homes on the market.

Another question that builds on this.

Will increasing unemployment see a surfeit of houses on the market and a consequent fall in housing prices? If so that should make middle aged home owners pretty cranky too.

Unemployment is the issue. 

Rudd doesn’t have a clue about what to do.  Turnbull has no idea.  And the ACTU is lost.

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Comments

Comment from Dallas Beaufort
Time March 12, 2009 at 5:15 pm

Answer: A labor/green government bailout via the lefts optimum result driven agenda, mortgage and home nationalization would level the field and rewrite all loans at say 3%, that will keep the prices going up for a while until we hit the roof.