Headwinds for the housing markets especially Sydney/Melbourne

I still don't get what the point of measuring GDP growth is, when it's not measured per capita. It's like predicting my retirement income without adjusting for inflation.

 

So that we can measure Australia's total growth and make overall comparisons to where Australia sits relative to other countries.

 

We can still compare per capita growth to other countries by calculating their per capita growth?

 

I’m sorry, but you do realise that reducing government spending & increasing taxes is a drain (ie negative) for GDP and growth right?

Those proposals would slow economic growth further and likely require i/r cuts or monetary stimulus.

 

Those measures are supposed to be done together with "printing money" or what they call stimulus/monetary easing...

Cutting spending and increasing taxes would result in budget surplus that can be used to pay down gov debt. Of course this should be done in stages to not shock the system.

At the moment we are just easing without regard for spending and debt reduction. This may reverse the deleveraging and downturn, but longer term will result in a worse cycle of deleveraging when it comes about.

And as shown by other countries, like the European PIIGS, negative rates doesn't do much for an unproductive highly indebted ecoNomy.