If Howard is a good manager of the economy why did he allow 10 Interest rate rise in a row?

Question

Either he isn't that good or he has little control over interest rates . Both question his argument that the Liberals are the best to manage the economy.
If they are so good why didn't they manage to at least restrict the rises? Maybe they aren't so good after all!!
Also if they have little control, then if Labor get in it will have little impact on the interest rates. For example the Reserve Bank has acknowledged that Howards promises will only put inflationary pressure on the interest rates forcing them up.Second they have said that Labor's plan to address the skill shortage will help reduce the pressure on interest rates!
Also why didn't the Howard government listen to the Reserve Banks 20 warnings to address the skills shortage to reduce the pressure on the interest rates, Howard ignored them and 10 rate rises later with more predicted is the result!!

This govenmnet hasn't managed the economy well. They came in during the mining boom, cut funding and sold public assest!!!

tolazyto.... isn't it past your bedtime. I have a Uni Degree with a major in Politics. Work out 17% interest on a house in the 80's and 90's then work out 8% on a house today and being the genius you are should work out that people are paying nearly 3 time the amount of interest!!!. Politics has changed so much between now and back then that is almost uncompareable. The world was suffering high interest rates back then it wasn't just Australia. The rate is based on the money Aussie banks borrow from Overseas (usually USA) to fund our HomeLoans.
PS. Get your own thoughts and stop being brainwashed by your parents!!

Nomorekr.....I am asking for how other people see it! Why they feel this way and to provide a little yin to their yang!

I am also making a statement, plus there are many swinging voter if you read many of the answers to the questions.

Answer 1

As some people have said, John Howard is not responsible for the interest rate rises. But that of course means that John Howard is not responsible for keeping interest rates low either. He can't have it both ways. If he's responsible for the low interest rates, then he's responsible for the rate rises. If he's not responsible for the rate rises, then he's not responsible for keeping interest rates low.

Answer 2

Much as it would be good to point a finger at little Johnny for interest rate rises, they actually don't have a far lot to do with him at all really. Interest rates are set by the movement of capital in the global economy as much as by the strength of the local economy. The fact that Howard won the last election by scaremongering heavily mortgaged middle class voters that interest rates would go up under a Labour government is more the issue for me. He set himself up as being able to control interest rates, which is plain wishful thinking in the global economy. And now he will pay the political price for it because voters have not forgotten. Let's keep reminding them. Howard may actually be a decent economic manager, but he is a liar and now he has been caught in the lie. What a shame he secured a whole term of government because of that lie.

Answer 3

John Howard is not to blame for interest rate rises... Its plain and simple if people stopped spending we wouldn't have a need to borrow money now would we? If people actually spent their own money and not put anything on credit we wouldn't have a rise in interest now would we? Its common sense! John Howard does not control people's spending!!! He does not control how the economy works... Our economy is influenced mainly by that of America and other countries follow suit... America too are experiencing interest rises but like the other person has said its been pretty much the same... Our standard of living has changed...things are more expensive than that of the past and the economy has to cater to that.. Stop living in the past... get with the program and get yourself educated... Economies do change to fit the time... and people have a habit of spending...

Answer 4

Just goes to show how desperate Howard is,

The RBA warned him again that all his big spending is going to put interest rate up and inflation up as well, has he heeded the RBA no, as usual he never listen but that's Howard way,

The RBA know who is the better at the economy manager and that under a Labour Government they will listen to the RBA and heed its warnings.

Also the RBA has highlighted the are's that Kevin Rudd has noticed and is putting those regards into place while John Howard didn't bother during the last 11 years .

Now it will take a labour government to fix all of the Liberal Parties Mistakes,

John Howard economy what a joke more like a high inflation, high interest economy. just to suit themselves .

But the scare tatics the libs will trot out now will be interesting to see

Go Kevin Rudd

Answer 5

KT interest rates are going down in the U.S.A. they have gone down twice in the last two months.
Yes one reason interest rates are going up is the skill shortage this puts upward pressure on wages and hence interest rates. And yes Howard did ignore the RBA.
Howard's tax cuts create more consumer spending which puts upward pressure on inflation hence interest rates

Answer 6

I can see why some would be a little annoyed with what John Howard promised at the last election, however who would turn to a politician for advice on interest rates. I'd be consulting someone qualified to do such things.

Anyway, who is to suggest that Kevin Rudd will do any better. Since when have labor been economic conservatives at any level of govermenment. If there is anyone telling porkies in this campaign its Rudd and his bunch of union mates just itching to get there hands on some of your cool tax dollars.

Answer 7

We have had the introduction of GST,the privatization of some of our major companies and the biggest mineral and gas boom that Australia have had for years even Ned Kelly could have managed to keep the economy out of the red.
Now when we should have been making hay while the sun shines I wonder how much we have left in the coffers for a rainy day.
Not much I would say.

Answer 8

The talk of the economy is exactly where politicians want us to be. Forget human rights abuses in West Papua. Forget Australian soldiers supporting the US occupation of Iraq and Afghanistan, forget refugees locked up in camps. Think only of you and your hip pocket. Rudd and Howard are different factions of the same party. Neither deserve power.

Answer 9

They reckon we'll get the government we deserve, I am a worker but I know we have to have business or we don't have jobs,in my 60 years I have only been affected twice by the government of the day.......1st, Keating labour government cost me my home in Greensborough.........2nd I have made a comeback due to being employable over the last 15 yrs which I put down to the booming economy created by the liberal team (not a particular person,it's not a popularity contest) I won't be giving labour another chance to wreck so many people for a significant part of their lives. PS interest rates are not controlled by the government.

Answer 10

I totally agree with you KT but the Libs can't have it both ways. I voted for John last time because the alternative was appalling. But the fallacy of the Lib's interest lie has been shown up and it is time to get rid of a tired government.