Lies, lies and lies. This is what is presented to us by the Howard Government today. For the upcoming election in November, many of you may be wondering who to vote for. Who has the better tax cuts, which has better funding for superannuation, who is putting money into OUR key services? Well this juicy article will reveal to you the truths about the Howard Government, from his false claims of growing a better economy and the governments true spending of tax payer's money. .
Mr John Howard has been the prime minister of Australia since 1993. Howard has looked towards the US for support and protection, and has led Australia into the Iraq war, recently causing the death of a soldier. One of Mr Howard's main claims for support for this upcoming election is that he has created a good economy for Australia. This is simply false. Let me tell you something about the upcoming election…
The recent rise in interest rates is directly related to the current crisis on the American financial market. In the coming election both political parties will campaign on interest rates. The reality is in 2007, as it was in 1929, is that Australia's prosperity and interest rates is influenced far more by global economy than by domestic economic adjustments.
Over the last 5 years Australia banks and home loan companies have borrowed in order to finance their home loans. Much of this borrowing has been in the US. In the last month or so the home loan boom in the US has begun to slide into a recession. Interest rates in the US have gone up. Australian banks and home loan companies such as RAM's and Aussie home loans will have to pay more interest on the money they borrowed in the US. This increase is passed on the Australia by higher interest rates.
During a period of marked US prosperity, American banks and finance companies gave loans to people who might struggle to make repayments. A slight decrease in US economy has seen families unable to make repayments and have therefore lost money. Even if they put the houses purchased or built with home loan money on the market, the economic downturn means that housing prices fall and the lender does not get back the full value of the loan. Australia companies have therefore suffered and part of the rise in Australian interest rates is linked to the financial situation in the US. This also means that the previous decreases in interest rates were not caused by the control of domestic economy but by the global economy itself.
The government has recently spent a load of money into defence, hospitals and superannuation. What the Howard government forgets is one critical factor which is essential for the future success of the Australia economy. Transport. Our transport systems are, simply put, disastrous. Many of us who get to and from work everyday understand the difficulties faced with public transport. We both know how troublesome it is to come home from work and have a late train. First of all, the train and bus timetables do not match. This means that to catch a bus, followed by a train or vice versa, it is hard to predict the time of arrival. Secondly, there are simply not enough train and bus drivers. We lack efficient public transport, something which the Howard government has not tried to improve during his time as Prime Minister.
Before casting your vote in November, I suggest you take a second look at what the politicians offer. Their promises aren't always kept. Just like how Howard promised Peter Costello his spot as Prime Minister two years ago. Thanks for reading.
