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Location: Interest Rates
Discussion: Interest Rates & Superannuation
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Anonymous |
Interest Rates & Superannuation
Mar 31 2008, 9:08 PM EDT It is reputed that a third of Australians have a mortgage, a third pay rent, and the other third own their own homes. The reserve bank is trying to slow the economy by reducing spending through raising interest rates, which mostly effects only those Australians families with a mortgaue ( plus some small businesses ). It appears that the reserve banks wishes to reduce spending by $50.00 a month for every 0.25% rate increase which mostly benifits the banks. If the Federal Govt. simply increased the superannaution contribution by a similar amount, (which could be a mix of employee & company contribution) it would have the benifit of:- Not only reducing spending, but the employee gets to keep their own money, & recieve interest as well. The banks and institutions would still have money to invest albeit through funds gatherered from superannuation contributions. If the economy slows too quickly either the Interest rate could be reduced or the Superannuation contribution reduced. The unions would be happy because they are pushing for an increase in the Super rate. Business would not be too disadvantaged by a 0.25% contribution increase & it would slow their spending. I employee over 35 people The actual slowing effect would have a greater over all effect because all workers would be in the mix, not just those with a mortgage. This would mean that the dollar value may be less than current $50.00 per month per 0.25%. Retirees would have a bigger nest egg on retirement, and if they still had a mortgage they would have more money available to pay off the family home. The Federal Govt. would be seen as doing something positive instead of the reserve bank being seen as the bad guys. To me this seems like a win win win win for everyone concerned. I am sure that such a suggestion would need some fine tuning to get the numbers right, but workers would get to keep their own hard earned money & be paid interest as well. 4 out of 10 found this valuable. Do you? |
 trgh |
RE: Interest Rates & Superannuation
Apr 17 2008, 10:39 PM EDT Great suggestion. I can bet that the Reserve Bank would not be interested in your proposal - funny that, and since our government trusts the Reserve Bank with their life (and all our lives too), and will not take up their constitutional responsibility of issuing and regulating money, then I think that your suggestion, much like many of mine, will be ridiculed - even by well meaning people who think they understand. This world has the monetary system at its apex, and those that set it up that way will do anything to protect their power. However, people like you must continue to let their voice be heard - and I for one will join you - I will not go away ! Do you find this valuable? |