mhaze,
>You say inflation is a temporary matter caused by supply-side problems.
Not quite. I say a large component of the inflation is a temporary matter caused by supply side problems. There is also some conventional inflation that can be dealt with by increasing interest rates or tightening fiscal policy, but that solution won't work for what's caused by supply side problems; it would just result in stagflation.

>I know that you are wedded to the concepts of Modern Monetary Theory and
>think that governments can borrow and spend without consequence.
No you don't know that - you IMAGINE it.

In reality I have NEVER claimed tat governments can borrow and spend without consequences. In fact I've previously said that only a complete idiot would make that claim.
What I've said is the consequences are often not what you think they are, and are always the result of the deficit not the debt.

I'm certainly not wedded to the concept of MMT; it's just that so far it always fits the facts and I've no reason to believe it won't continue to do so. Most of the criticisms of it are based on strawmen. MMT people would agree that "The notion that we could borrow money, spend it willy-nilly and not suffer consequences was always bonkers".

MMT people do tend to be more dovish on inflation than mainstream economists. That's due to the values they hold rather than MMT itself, though it's undoubtedly informed by the fact that inflation has little effect on a generation's standard of living.

Talking about inflation I started wondering just how much it effected me personally, & my kids.

I bought this place 30 years ago. Since then it's "value" has increased by conservatively $1,200,000, & perhaps by 1,5 million. So being conservative it is earning me, or my kids, at least $40,000 a year & perhaps $50,000. Of course the greedy council wants a chunk of this, although they have spent precisely not a cent on our district in that time. The $340 a year rates are now $3700, for which we get 3 hours of library truck 46 times a year.

A mate of mine bought a 1,5 acre block in a near by subdivision 5 years ago for $45,000. All up a house & the land cost him $360,000. He sold it a couple of months back for $840,000.

I would hate to be a kid trying to get into the market today, unless they have inherited from a dad like me or my mate. We need to stop population growth, fulled by migration right now to give our kids a chance.

In this up coming election I will be voting only for candidates or minor parties who are strongly anti immigration. I don't need my place to inflate another half a million.

Good talk- thanks all.

Hi there Hassy,

You aloud to one of the problems in society. We have the state supported, with aged welfare, landed gentry such as yourself sitting on vast estates, whilst the young and refugees can't get a look in. Would it not be better if we moved people like you into bed/sits in Moonie Ponds, and devided your vast estates among the young and displaced. You would have no inflation problem, as there would be no compensation for you, just cold beans and food stamps.

How typically communist Paul.

Wouldn't it be better if those who earned the money to pay for a property were allowed to do what they wanted with it.

Wouldn't it be better if we stopped giving handouts to useless bludgers who aren't prepared to make their country of origin a decent place to live, & those born in a decent country got off their buts, took advantage of a free education system & developed a meaningful life for them selves, rather than bludging on others?

If those like me could split off a few blocks, now we don't have kids horses to graze & train, & sold them for a reasonable price, it would be a much cheaper world.

Wouldn't it be much better if councils & state governments got their grasping fingers out of developers & buyers pockets, so the cost of developing a block of land could come down the $45,000 they add to the costs with fees & charges doing nothing.

Why not wait just a few more years until we have Australians go to other countries by claiming refugee status !
If Labor gets in again it'll be even sooner !