Suggestions to fix the economy...

[Stav]

I got to thinking as I went for a long walk today as to why theeconomic times are tough..Having studied business /commerce /accounting at tafe as well as having passed a semester of law at Sydney uni I believe that I have a good idea to get this economy back on its feet.

Firstly the economy has been demised some 24 months ago by govenrment constraints/taxes on the housing market. These land taxes and restrictions brought a stop to rising home prices and a close to collapse in the building industry.Building approvals plumeted as investors pulled their funds out of property because of this. All levels of government literally pulled the rug out from out of the mum and dad investors and then used their open market operations via the reserve bank by raising interest rates .The repossessions went up,people were losing their homesAs a result many Australian families were pushed to financial ruin and bankruptcy. The repurcussions of this was well documented on current affairs programs and media.
I believe that the stimulus package is not effective due to the general handout nature of the execise.

If these politicians and leading economists were serious about stimulating this economy back to a good level that they must stimulate the housing market.This is the main reason for existng problems here .The global market problems have compounded this.Despite the global economy banks have still posted record profit amounts and so it leaves the educated economist wondering why? The answer is quiter simple..they are not affected by the so said crisis and are milikng the average mum dad investor as far as possible.

The solution to fix these problems is not handouts because it does nothing to get the primary problem fixed...housing. The solution to fix this economy is to abolish capital gains tax and reduce if not eliminate stamp duty on sale of property. This in turn would inject hundreds of millions of dollars into the economy and kickstart a healthy cycle of spending and consumer confidence.
The goal of raising interest rates was to control inflation...it has done such a good job that its stuffed the economy..but maybe if they read my post here maybe theyll do something that works instead of pussy footing around.