ABC News about 2nd jobs

[tsn]

If people getting 2nd jobs or exiting retirement. What on earth is the rationale behind continuing to increase interest? Seems like the people above dont feel the pain. Edit: asking if RBA is doing the right thing or not, and why is it right/wrong?

Also, how is everyone going? Edit: just asking how your lifestyle changed prior to and after

Solo, ~$10-15 per meal
Before: takeout 2-4 per week, for B, L, D
After: takeout 1-2 per week, for D

Doesn't include my partner, so just double the cost.

Edit: my question I'm curious about.
IMO: they should just extend it to 4 years instead of forcing it for 2, kinda like how repayment programs work in a loan, e.g. more manageable payments for longer duration, as apposed to killing society payments in lesser duration.

Edit: sorry guys, guess i suck at wording my thoughts

 

[homeowner]

@tsn I'd love to be this smashed right now

 

[ishchuk2003]

@tsn "Solo, ~$10-15 per meal Before: takeout 2-4 per week, for B, L, D After: takeout 1-2 per week, for D"

Hi, I'm going ok thanks, but I'm not really sure I understand this section of your post.

 

[jrminoh]

@ishchuk2003 I don't actually understand any of it

 

[lietuva]

@jrminoh I think the link to the ABC News article will help. Took me a few times reading but something about breakfast, lunch and dinner.

 

[geoffreyatkinson]

@ishchuk2003 There's some solo stuff, then for bussy, love-making you of course need the D.

 

[johntheblack]

@tsn Interest rates will continue to rise until demand declines.

Demand is fueled by residential savings and extra spending (income savings after expenses).

 

[bigpicture4]

@johntheblack The thing that I've been slowly realising (as a non-economist... don't judge) is that inflation is not like... a problem with not having enough money, it's a problem with lots of people wanting the stuff they were used to having already. As long as people want to live the way that they did when there was more stuff to go around, costs will go up. Raising wages only works relative to other people competing to buy the stuff that you want. I.e., if everyone gets a raise, no one gets a raise...

 

[johntheblack]

@bigpicture4 Yes but a solution to supply can solve a lot of problems.

 

[cassandralee]

@tsn

Edit: sorry guys, guess i suck at wording my thoughts

No I think you worded your thoughts perfectly.

 

[dpardue]

@cassandralee maybe they need to work on thinking their words

 

[geoffreyatkinson]

@dpardue I think their words represent their thoughts quite accurately.

 

[dpardue]

@geoffreyatkinson savage burn

 

[melissa43]

@tsn The main reason they increase rates is to increase the cost (and reduce the amount of) loans for business and individuals. Hurting people's discretionary spending and reducing consumer demand, just works in their favour as well.

We use fiat money, so the change in the amount of it vs the amount of goods and services produced, changes the value of the money.

 

[tsn]

@melissa43 Thanks, clears up the why, but sadly it seems to be the equality approach rather than equity.

 

[melissa43]

@tsn It depends.

For a renter saving for a house, high interest rates probably suits them over inflation. It stops the cost of housing from increasing faster than they can save or being required to take on lots of debt.

For someone with a million dollar debt for a house, they might rather inflation over high rates as their loan is inflated away.

For a retiree with a large amount of cash from super, they want high interest rates as it maximises their low risk bond returns.

High interest rates hurts people with credit and puts downwards pressure on asset prices.

The rental crisis is more to do with a supply / demand imbalance as societies' living preferences suddenly changed into smaller numbers per household. It's less to do with interest rate changes.