Minggu, 22 Maret 2009

A light through the FHOG (or: Down with the Boost)

In a couple of recent posts, I have grumbled about the First Home Owners Grant (FHOG) and, especially, the First Home Owners Boost.

These criticisms have been rather incidental to other issues of concern here at the Tenants' Union; for a more sustained discussion, please head over to Steve Keen's Debtwatch blog, where Steve has just posted his analysis of the FHOG. It's devastating; I commend it to readers of the Brown Couch.

And if you can't make it to the sustained discussion, I'll offer just a couple of things you might add to your own thinking on the subject:
  • prospective first home buyers: is it really such a good idea to borrow a lot of money to buy an overpriced asset at the start of a recession? Does an extra $7 000 or $14 000 really make it any better an idea?
  • Housing Ministers: is it really fair to use first home buyers to try to prop up overinflated house prices? Leaving aside fairness – how can it actually work?

(Down with the Boost!)