Chris Richardson

I love it all too much.

It is, absolutely.

They have been sweating this for a long time.

Australians have some of the biggest borrowings as families in the world relative to our incomes.

We now know that they should have just left them where they were and we'd have been in better shape.

To be fair to the Reserve Bank at the time, it looked as though it was relatively safe to cut rates.

Sadly, though, the story began to change.

Inflation began to pick up again and the Reserve Bank began to sweep.

Well, you could make more money come out of wages and go into super.

Now, that would require a change to the way we do it.

At the moment, the super comes out of your employer's money rather than yours.

This extra bit that we're talking about would have to come out of yours.

Right.

And it's worth noting, true of this idea, true of all of them,

If you think of inflation as too much money chasing too little stuff, basically the amount we're spending is running ahead of the ability of the Australian economy to produce.

That's what drives inflation.

And interest rates, in effect, suck money out of the economy.

This is, you get less in your pay packets and more goes into super to be tucked away for the future.

It's just another way of having some pain now, reducing our ability to spend today.

Oh, it absolutely could.