The big-spending economic plans put forward by Labor and the Coalition in the election campaign have been dismissed as “dismal” by one veteran commentator.
The economics editor of the Australian Financial Review, John Kehoe, told Today this morning the “ridiculous housing policies” released by both parties risked pushing up prices and debt levels.
“This is the most dismal election for economics in my 40-odd years,” he said.
READ MORE: Labor and Coalition’s housing policies explained
The Coalition policy for tackling the housing crisis revolved around generous tax breaks that could save a first-home buyer $11,000 a year, or $55,000 over the maximum five years.
It has budgeted $1.2 billion for the plan, but some economists say it could cost as much as four to eight times.
Labor’s also ready to splash the cash in a bid to make housing more affordable. The party unveiled a $10 billion policy aimed at building 100,000 new homes over eight years.
But it also involves providing free lenders mortgage insurance to all first-home buyers, which currently is required by one in three. And if those loans go bad, the Aussie taxpayer will be left picking up the bill.
READ MORE: The top five issues affecting young voters at this year’s federal election
Kehoe says he risks “sounding like an old crank”, but Anthony Albanese and Peter Dutton are showing little sign of the economic leadership of former prime ministers Bob Hawke, Paul Keating and John Howard.
READ MORE: Where Anthony Albanese and Peter Dutton have been on the campaign trail
They weren’t afraid of making “hard decisions” the current leaders were backing away from.
“Now all we’re seeing is short-term sugar hits.”
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