Tax cuts, not rate cuts, necessary

first_imgHousing Industry Association senior economist, Geordan Murray, said there had been market improvements lately which has not yet transferred to new housing.“The recent uptick in the market for established homes should allay concerns that further falls in home prices and the housing wealth effect could continue to apply a brake on household spending.”This as CBA Economics predicted RBA would cut again by 25 basis points in February 2020, if not sooner if unemployment figures did not pick up, to an unprecedented 0.5 per cent.“Any desire for monetary stimulus beyond that point would require a much worse economic outlook and probably manifest itself through unconventional policies and QE.” FOLLOW SOPHIE FOSTER ON FACEBOOK Economists warn the only thing rising is dwelling prices, again.CBA Economics chief economist Michael Blythe said “certainly some economic commentators and business leaders question the effectiveness of rate cuts in the current environment”.More from newsParks and wildlife the new lust-haves post coronavirus11 hours agoNoosa’s best beachfront penthouse is about to hit the market11 hours ago“Our view for a while now has been that interest rate cuts are of limited use: households tend to leave their home loan repayments unchanged, so little additional spending power is unleashed; the potential boost from a lower AUD is limited by still high commodity prices and the move to a current account surplus; and the negative impact on business and consumer confidence. Income tax cuts are a better response to the pressures in the household sector and the weakness in consumer spending.” RBA Governor Philip Lowe has indicated that the RBA board is prepared to cut again. Picture: Amos Aikman/The AustralianPressure is mounting for the Federal Government to step up with income tax handouts for families as economists warn the RBA racing to the bottom on interest rates will only increase dwelling prices, not jump-start spending. Number of homes sold for profit set to rise Beach house hits market with jawdropping price MORE: Housing set for fresh record highs Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 0:58Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:58 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD432p432p216p216p180p180pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenHow much do I need to retire?00:58 The RBA board yesterday cut its policy rate to a historic low 0.75 per cent, with Governor Philip Lowe confirming they were prepared to cut further “if needed”.RBA’s hand was forced by a global trend to lower interest rates, and its desire to support employment, income growth and keep the dollar steady.CBA Economics warned “debate about the desirability of the move has heated up”, with one area — dwelling prices — getting a boost especially in Sydney and Melbourne. Video Player is loading.Play VideoPlayNext playlist itemMuteCurrent Time 0:00/Duration 1:40Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -1:40 Playback Rate1xChaptersChaptersDescriptionsdescriptions off, selectedCaptionscaptions settings, opens captions settings dialogcaptions off, selectedQuality Levels720p720pHD540p540p360p360p270p270pAutoA, selectedAudio Tracken (Main), selectedFullscreenThis is a modal window.Beginning of dialog window. Escape will cancel and close the window.TextColorWhiteBlackRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentBackgroundColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyOpaqueSemi-TransparentTransparentWindowColorBlackWhiteRedGreenBlueYellowMagentaCyanTransparencyTransparentSemi-TransparentOpaqueFont Size50%75%100%125%150%175%200%300%400%Text Edge StyleNoneRaisedDepressedUniformDropshadowFont FamilyProportional Sans-SerifMonospace Sans-SerifProportional SerifMonospace SerifCasualScriptSmall CapsReset restore all settings to the default valuesDoneClose Modal DialogEnd of dialog window.This is a modal window. This modal can be closed by pressing the Escape key or activating the close button.Close Modal DialogThis is a modal window. This modal can be closed by pressing the Escape key or activating the close button.PlayMuteCurrent Time 0:00/Duration 0:00Loaded: 0%Stream Type LIVESeek to live, currently playing liveLIVERemaining Time -0:00 Playback Rate1xFullscreenQuestions for Millennial home buyers01:41last_img read more

CARICOM to boost entrepreneurial culture among youth

first_imgLocalNews CARICOM to boost entrepreneurial culture among youth by: – October 29, 2011 Share Sharing is caring! Share Sharecenter_img Tweet 11 Views   no discussions BASSETERRE, St Kitts (SKNIS) — Youth and adult experts involved in entrepreneurial development, anti-gang activity, education and youth work throughout the region are in St Kitts and Nevis to craft the CARICOM Secretariat’s “first formal intervention in the area of youth entrepreneurial development.” Representatives from the Barbados and Dominica Youth Business Trusts, Junior Achievement Bahamas, and other agencies have joined with Secretariat organizers as well as officials from the Ministry of Youth Empowerment and the National Entrepreneurial Development Division (NEDD) in St Kitts for the October 26-29 workshop.CARICOM’s deputy programme manager responsible for youth affairs, Dr Heather Johnson said that the sessions are designed to develop a short, practical and hands on training module to equip “at risk” or vulnerable youth with entrepreneurial norms, values and basic business skills.As such, participants are establishing the regional context for youth risk and vulnerability and for youth entrepreneurial development; and reviewing existing training materials. This task is considered extremely important given the findings of the 2010 Report of the CARICOM Commission on Youth Development (CCYD), which noted that youth unemployment levels throughout the region are among the highest in the world.In accepting the report, heads of government declared that youth entrepreneurial development is critical in countering youth unemployment, mitigating drug abuse, crime and violence and fostering economic resilience.“The Community sees its role as institutional strengthening and capacity development, with particular emphasis on forming strategic private/public sector and civil society partnerships as well as facilitating Regional policy coordination and programme harmonization,” Johnson revealed. She thanked the participants for their hard work over the past few days and explained that the module and collaborative process will foster a culture of entrepreneurship as more young people prepare to capitalize on the opportunities of the CARICOM Single Market and Economy (CSME).The CARICOM Youth Entrepreneurship Material Development Workshop is a follow up activity to a Second Chance project that was piloted in the Bahamas, Jamaica and St Kitts and Nevis last year. This project included a skills training and alternative dispute resolution component and was implemented by the CARICOM Youth Ambassador Programme.Caribbean News Nowlast_img read more