I see Labor wants to go for an immediate increase in the super guarantee Well it might be attractive to voters but is it in their immediate best interest.
We've got the cancellation of negative gearing, bound to be a contractionary influence on the housing market. Now we have a big whack of spendable dollars about to be quarantined into the future.
Together these two enticements dangled in front of the voters represent a contraction of aggregate demand at a time when the RBA has got nowhere to move.
Not to worry. Maybe it's time for everybody's houses to be insulated again.
