Labours House Policy in-action
We have talked at length about the plain ole porky pies the current Junta a spewing out.
So perhaps its timely we a take a quick recap of some of the laws they have passed that have just plain not worked, were/are inconsistent with common sense, or had proven to be failures elsewhere n the world before the clown circus decided that, in their arrogance, they will work here. We have done the Covid ones to death (get it – black humour – see what I did there), like Mask mandates and mandated vaccines that don’t protect you, so these will be omitted.
Policy Intent: Control property prices
Loss ring-fencing: Tried in the UK and Australia, as both a federal tax and on a State by state basis. Even in a consumption based economy like Australia these did not work. One state, Victoria, was able to monitor the cash lock up and damage done to the cash cycle (money flow) and imposed them and removed them before they became effective as landlords put up rents and stopped spending in the rest of the State economy to save up for the tax. FAILED
Removal of Interest deductibility. Current law in the UK. Several universities have done studies around the effects of this change. Several obvious behaviours have emerged. As above landlords have bumped up rents and locked up spending elsewhere in the economy. As most people rent , increased rents have also locked up spending from tenants in the wider economy damaging the innate value of the ‘market’ as a whole. Landlords have also stopped spending on the properties themselves with UK central banks observing house price deflation which was the intent of the policy, but was more to do with the growth in poorly maintained housing stock, as opposed to buyer preference and other economic forces (Ironically still buyer preference as who wants to buy a shithole previously rented out and not maintained). The UK are looking at reinstating Interest deductibility as this policy has FAILED.