The Reserve Bank’s biggest worry at the moment is that households will cut back further on their spending in response to slow income growth and falling house prices.
The Conservative Party says a victory for Bill Shorten and Labor at the May election, with his plans to hit retirees and property investors, will make things even worse.
The ABC reports, given that consumer spending makes up something like 60 per cent of Australia’s economic activity, any downturn in this sector is likely to lead to a slowdown in the broader economy.
This has already happened over the past two quarters, where GDP data from the Australian Bureau of Statistics revealed a dramatic drop-off in economic growth, with activity per person actually falling over the past two quarters in a ‘per capita recession’.
That’s why the Conservative Party supports further tax cuts to stimulate the economy and put more spending power back into the hands of taxpayers as opposed to government.
If you support tax cuts and common sense government, vote “1” Australian Conservatives in the Senate this May election.