20 ways how to F—k up an economy!
By our Local NT Government. (witnessed and written about by me, a lowly peasant, oops I mean citizen, but I don't want to steal their limelight, they did all the work... proudly.)
Don’t get me wrong, continuously I’ve discussed economic factors and events with several sitting and aspiring politicians and pundits from both sides of the isle.
To say Holes and Homes is their main concern would be an understatement, but forgiving the lack of economic and financial intelligence by both the local bureaucracy and the ignorant presented for us to vote for, what we have seen is that they can’t even get the Mining and Housing sector right, so we didn’t stand much of a chance for anything else.
For those blaming either side for the problems, I say, they have both been as bad as each other, but given that we currently have a government with a massive, albeit, unstoppable majority of 18 members and an opposition of 2, this current government could really make some changes to fix things, but lets reflect first on both sides F-ups.
I’m releasing one at a time, then I’ll provide 20 ways they might make some positive changes, so in the new year we might be able to re-invigorate our currently sitting government to get back to work and maybe represent the people again, as most who know me can attest, I have a critical mind, with a positive outlook.
Number 4 - Direct competition with investors (the private Sector)
After several years of massive increases in Power, Water, Sewerage, Rates and Stamp Duty (taxation) something had to give. Not only did the holding costs of a property go up substantially, due to the increase in costs, many left the Territory (oh gosh, why?) so the amount of vacant properties increased and the rents started to drop.
What did the Government decide to do?
Build more apartments! Oh my! Way to compete guys!
I’ve read many different BS figures from so many sources that I can categorically say its easy to lie with statistics, but I’ll give a basic example.
A house in Darwin in 2013 got $600 per week and it wasn’t a flash house on Brolga Street. By the end of 2014 it got $550 per week. It now gets $400 in 2017. That’s a 33% drop in rent and during that time the holding costs soared by over 55%.
Great one dumb ones! Now that’s how to motivate investors ….. to run the other way.
(There was another way, but I'll tell you about that another time)