LETTER TO THE PM – Glen Stevens: Hero to Zero in 7 years 133



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Kevin Latta, a member of our Starts at 60 community, felt strongly enough to write to Tony Abbott’s office this week and asked us to share his letter with the community to see if you agree with him.  

“I believe Glen Stevens and the RBA are damaging the Australian economy by creating very low interest rates. I also believe retired people should speak out and communicate their views to their elected representatives,” said Kevin Latta from New South Wales. “If you and others agree with the contents of my email to Tony Abbott, see below, send him an email, if you don’t agree send him your views at www.pm.gov.au“.

My big gripe is that Australian voters are too apathetic, they complain to each other about what government does or does not do, but they don’t communicate those ideas to their elected representatives.

Unfortunately, what is needed to fix the economy and other social issues cannot be reduced to a 30 second sound grab. In my opinion too many Australian voters spend more time deciding on what socks they will wear today than who will govern the country for 3 years. Everyone is entitled to vote for the party of their choice, not because they have always voted that way, but because they have looked at and decided the party they chose to vote for can actually deliver their promises.

To those who say both sides are as bad as one another so what is the point, the response to this issue is that we the voters put those people into parliament, we the voters support by default the system that selects unsuitable candidates, we the voters give a person a well paid job for three years, because of what they said in a 30 second pre-election advertisement.

If we the voters demand better answers, then before voting next time, properly evaluate the performance of our elected representatives and or the people who want to be elected, we will get better government.

“Dear Mr Abbott,

In 2008 good management by the RBA helped protect Australia from the worst of the GFC.  Today in 2015 the RBA are damaging the Australian economy by continuing to
lower interest rate.

If lowering interest rates actually did stimulate the economy by now the Australian economy should be experiencing the greatest boom in history.
Yesterday the ASX all ords went down 90 points, a vote of no confidence in the RBA decision. ( Since I sent this email the market has fallen a further 130 points 200 in total)
The Australian economy is soft because Australian citizens are just not spending, here is some reasons why.

Self Funded Retirees: They have less income due to lower interest rates caused by RBA decisions.
School leavers: Youth unemployment is between 12% and 30% depending on the region, with no job they have no spare cash.
The Under Employed all ages: Neither the current or previous ALP government published numbers on under employment, so I don’t know how many there are. Due to now having a full time job they have no surplus income.
Young Couples: They are saving madly for their first home, again no spare cash to stimulate the economy.
First Home buyers: They have such a big mortgage they have no spare cash.
Second Home buyers: Their mortgage is just too big to have spare cash
40 to 50 year old citizens: Fear they might loose their job, so they are saving for a rainy day.
50 to 60 year old citizens: The realisation that they will need to use some of their superannuation to pay off their mortgage.

Unemployment and or fear of unemployment are a major factor that is holding the economy back. For older citizens fear of not having enough in their superannuation account to support them in retirement is holding the economy back.

Yours sincerely


Do you agree with this letter to the PM and the impact the RBA’s decisions are having on Australia today?  Share your thoughts.  

image: ABC

Kevin Latta

Kevin Latta is a retired Starts at 60 Community member. An accountant by training, he has been a CPA 40 year pin, so I has been involved in finance for some time.

  1. This government seems to have put lots of time and penalties in place for not working but has not put any real time or effort in creating real jobs so people can earn a living and feel confident in their financial future.

    3 REPLY
    • Maybe , however , miss Gillard certainly did us no favours , she created the mess we are in and now labor continue to destroy us by not allowing any reforms in the budget to get us back on track . I’m sorry that their are people who don’t see or understand that you cannot go on spending money you don’t have . I often wonder is this how citizens live ? Spending constantly without having cash , just credit , credit credit .
      They must , other wise more people would realize you cannot continue to keep spending , with out any revenue or cuts backs . This attitude is going to bring this country to its knees .
      And creating jobs ?? Well when you tax big companies out of the country , of course jobs go . I never understand why people don’t get it , you don’t work Long hard hours for NO profit , shareholders want dividends , and dividends add profit to retirees funds , and yet we are calling for government to tax big companies MORE , let’s do that !! Then when they pack up and take their toys out of this country , so they can make a profit and not prop up the government , who will whinge and whine loudest ?? The very people who want them taxed out . Of course this also means no jobs for many many people .more tax depleted .
      It’s like being caught on a round-a-bout . It has to stop .

      1 REPLY
      • Well, this government is solving the problems all those who blame Labor refer to. It’s looking after the big companies and the tax evaders and the high income earners, and it’s taking away part pensions from those who worked hard, lived frugally, and tried very hard – coming close to success – to fund their own retirement. Now they will have to live on less than pensioners have so full pensioners – many of whom are full pensioners because they spent like drunken sailors in the working life – can have more. There’s no incentive, now, to save for retirement unless you are wealthy, because the battlers who go without when working to try to build a nest-egg for old age are forfeiting the lifestyle they worked so hard to achieve, while the rich are indulged with obscene tax concessions and the big companies are dodging tax and handouts to the spendthrifts and cheats are increasing.
        It really won’t matter much how low the interest rates fall because anyone with savings – except the very rich – is going to have them confiscated or have to spend them to survive. Somehow, this doesn’t seem consistent with claimed Liberal policy, and it certainly isn’t consistent with a desire to encourage responsible economic management by citizens. It also seems to me that it will increase the aged pension bill long term, not reduce it, because people who now have to live on their savings will run them out and need a full pension rather than building them up to graduate off the pension later. And it will surely reduce spending by a significant sector of the community, thus impacting on job growth. But then again, they are giving more to those who spent all their earnings gambling, drinking, driving flash cars, and having expensive holidays, so maybe their increased spending will help job growth?

    • The Ones that created the mess are the current party by doubling the deficit so they could buy planes from their USA buddies, destroying the car industry in Australia, by giving new purchases such as submarines to overseas companies, by looking after their rich mates by allowing their companies to import cheap labour instead protecting Aussie families and the local workforce.

      1 REPLY
      • You are so right Elizabeth, The previous government went through the world crisis.
        Other countries did not follow our lead to keep people employed and have regretted it ever since.
        They still have thousands of people out of work.
        This government went completely the wrong way.
        They have put thousands out of work, whether it be public servants or car manufacturers .
        The negative attitude from Abbott and co has stopped investment.
        They just do not get it.
        People in work pay taxes hence revenue goes UP.
        Business confidence creates work more Jobs .
        Stop blaming the previous government and stop back flipping on every promise.
        Then may be revenue will start to rise.
        The more you hurt the little people the more people will vote you out.

    • Anyone holding their breath for big business to “trickle down” profits to workers is misguided. That theory was first propagated in the 1970s. At about the same time executive salaries shot through the roof and, when challenged, decided to tie them to share results. The easiest way to cut costs was to reduce labour costs either by sacking employees or moving production offshore.

      Both LNP and ALP governments are wed to this myth and will only change if voters tell them to change or get out. In the meantime they talk economic rubbish and blame each other to cover their support of the 1% “super rich”.

  2. The UK elections give an inkling about what is wrong. UKIP with 3.6 million votes gets a single representative; SNP with 1.5 million votes gets 56 members, the Conservatives with 30% of the popular vote get a majority. Australia is not quite as bad because proportional voting ensures that we have a parliament more representative of the electorate…but it could be improved as states are not equal in numbers of voters but each has the same number of senators.
    The bottom line however is that regardless of the numbers, it is the intent of those who are elected which counts. A parliament dominated by individuals influenced by big business is not representative of the electorate, and the situation is compounded by a lack of ethics that allows ‘bought’ politicians to continue to vote on issues on which they have financial and ‘power’ interests.
    Australia is beset with issues and we have a government that is blind to each and every issue; and ignores the lessons of the past; as throughout the world we are seeing.
    QE and bailing out banks has FAILED
    Austerity has FAILED
    Pandering to business interests has FAILED
    The next step is blood in the streets such as we now see in Athens, and throughout the US
    This corporation governance will end badly…for everyone.

    1 REPLY
    • So true Maszki. Doesn’t seem to matter who we elect or what their original promises were, once in power they kowtow to big business interests. They then retire on bigger pensions than most people work hard to earn and also have their seats on various boards that strangely seem to be closely related to the way they voted while in government.

  3. This was the lucky country. Now that the investors own & run Australia. We have no chance of recovery. Industries have all but gone. Who can afford the luxury of Australian made. Government has sold off Australia to the highest bidders. It has allowed foreign investors to buy 90% of new housing. What chance is there for 1st home buyers? Who will be running the rental industry? We should all just cower down live in caravans caves or tents & be happy with our lot. History was, this country was born from nothing and now it’s going back to nothing.

    1 REPLY
  4. I Agree one hundred percent. If the elected government of the day does not realise the same points we are in real trouble. Come on Tony Abbott wake up and look around. We have no industry left, farmers are walking off the land, young school leavers are finding it hard to get jobs, and pensioners are battling to live. Costs and normal day to day living expenses are on the rise. Low interest rates are doing nothing for the retirees. Mr Abbott if Australia government was running a normal business it would be officially declared bankrupt. This is what is happening to a lot of Australian small businesses, they cannot and will not survive under your government. WAKE UP ALL POLITITIANS.

    12 REPLY
    • Just remember you can pull a house down in no time but it takes a lot longer to rebuild it, same thing with the economy. Labor pulled it down, Libs have to put it back together and they are doing a lot to do this where they can (Senate criminals) so be patient.

      1 REPLY
      • Actually, Mick, Labor didn’t pull it down. The deficit is mainly due to tax cuts that Howard and Costello gave, 80% of which benefited the wealthy. But this Government won’t touch the beneficiaries of those cuts, but wants the poor to somehow find the cash to pay the debt. You can’t get blood out of a stone – as the Senate forced them to realize. So now they are victimizing the part pensioners who worked hard and saved carefully to fund a decent retirement, but were never ”wealthy” and couldn’t quite make it to fully self-funded status given the pathetic investment returns in the current economy. Those people will now be worse off than pensioners and will have to erode their savings away – which probably doesn’t matter much since they weren’t getting any returns on them anyway. But it seems to me that this group is carrying the load for the entire nation, because they have suffered one massive reduction to their income after another, and now have copped the final body-blow of being kicked off benefits altogether, at least until they spend enough to re-qualify – which they now have a perverse incentive to do quickly!

    • You are the problem Cheryl and people like you forget what Abbott was like in opposition also you will never acknowledge the good work done by labor during the GFC

    • Totally agree with you this country is headed for recession, instead of creating a million jobs, hundreds of thousands have been put out of work

  5. i believe Politics and Parliment waste a hell of allot of time and money repeating rubbish in each of Parliment sittings because each member self interest wants something out for them instead of addressing Australia’s current and future problems that must be dealt with. I also believe that they should refuse pay rises when the independent tribunal gives them an extra twenty grand for stilling failing to perform plus their pensions are ridiculous and they treat the rest of Australia with contempt by telling us to constantly tighten our belts. Far to much money is wasted Parliment should sit twice a year get motions that benefit Australians dealt with then go back to respective electorates they represent and make sure what has been passed in the two longer sittings each year actually get done.
    If nothing gets done they were voted in to do they should resign without any perks because they have failed to deliver. In any employment if you don’t do you job your employed to do you won’t be there long you just get terminated.

    A real exposure to all yearly costs of Our representatives in Parliment must be made transparent and all spending Published so Australian people can see where funds go.
    Advisors consultants dinners rented premises who owns the premises used hire cars are plane costs accommodation costs dinning out and the profit and loss per quarter of each Parlimentsrians
    port folios.

    Nothing to hide simply supply what has been tabled. I am sure the Australian public could find some considerable savings if this was actually done. Politicians need to be accountable to the Australian public.

    1 REPLY
  6. All very true, nobody has enough confidence to go out and spend, just paying for the basics is too much. Australia has taken a wrong turn and we need government capable of getting us back on track.

    3 REPLY
    • And we dont have that choice do we. There is no party that can sort out such a mess. We are being taken over by foreign entity. Wont be long now

    • Yes government in most of the democratic countries seem to have been high jacked by big business. In Australia we are selling the country to a communist government, employing 457 visa holders rather than Australians and through trade agreements allowing foreign governments to dictate to us, closing our industry and obtaining major government contracts. Neither major party seem to have a good plan to move Australia forward.

    • You have hit the nail on the head, we need to stop these other counties from taking over our country and by stopping them buying our houses and land maybe we can start

  7. This government does not make decisions based on facts but ideologies only, people voting for the libs are more likely to listen to the spin rather than

    5 REPLY
    • Dont be silly. Dont you listen dont you look. Enterprise is shutting down walking out . There are no jobs being created by private sector. Wages too high real estate too high too many fees, insurànces, bonuses, licences .

    • Real Estate gurus are really doing a huge amount of damage to this country , they are lower than a snakes belly and twice as dangerous. People’s priorities have also begun to change though. Materialism is waining, there is areal concern for the future of our Environment and sustainable clean energy sources. The Abbott’s of this World are demonstrating that like all ideologically driven people they are out of touch with the sea change that is gaining momentum.

    • Our roads are a mess in qld and public transport barely exists. You have to change trains wait forever for connection as they dont connect closely. Transport is for 10klm within city after that it barely works. Living in lockyer valley there is no trains or other transport. Same with people living in Toowoomba. Its a disgrace. So how would unemployed get to work if they dont have a car. We have a uni at Gatton and a non functional train station.

    • Lol um sorry but that sounds so funny !! I used to vote labor and my husband was a big labor person . So until we researched and studied what was happening realizing that labor had no intelligence in politics . Ex teachers ( those that can do those that can’t , go into politics) ex union members ( they get told what to do from corrupt people ) silver spooners ( never worked a real job in their lives , come from money ) .
      That’s when you realize Labor have time and time again dropped us in it , big time , they are fair weather people. No real policies of their own they always recycle lib policies ( just change the words to suit them ) and they are STILL doing this today . They have absolutely NO IDEA HOW TO MANAGE MONEY !! !! Never throughout history have they shown any responsibility with money , their wasteful ways has always meant we have to cut back when the LNP Get back in ,.we don’t like it when we are faced with this time and time again , but they always bring us out of the debt hole .
      Then the welfare abusers get on board again . Gets labor back in , course we gave some funds now , so shopping spree give away time back , Whoopee.
      That’s how we get to this point , ( put in a shorter version so people can grasp it ) we have to cut out spending what we don’t have .

      1 REPLY
      • Well, it’s all put right now, Carolyn. The people who worked hard and scrimped and saved to accumulate a nest egg to fund a comfortable retirement, but can’t quite make self-funded status in the current economic environment – with investment returns so low – are now being punished severely for being responsible and doing what successive governments urged them to do. They will be worse off than pensioners and will have to spend their hard-won savings to get by. Not so bad for those in their 80s and 90s, but for the 65s -70s, who face maybe 30 years of inflation, it’s devastating. And it will ultimately probably inflate the cost of aged pensions because people who otherwise might have continued to build their savings will now spend. There’s no incentive to save. Younger folk will see that those who saved are worse off than those who didn’t. Now we see people shouting that the family home should be included in the means test, so there will be no incentive to try to pay off the mortgage. Yep! This Government has sure got it right! If they want us to all spend like drunken sailors and then put our hands out for benefits, they will get their wish. It’s what they are encouraging everyone to do.

  8. Who the hell is going to fix this mess? No-one on either side is capable. Heaven help us all. I’m a pensioner and it can be tough…all the time.

    1 REPLY
    • I think that’s the trouble, Lyn, we only look at the Lib/Lab lot. There has never been a better time than now to choose the next government. We need to read all the policies of all the parties and see if there is a party that suits us better than the present shower.

  9. I agree with all points covered, the increased cost of putting food on the table doesn’t leave spare cash. The fact that industries in Australia are closing down…look at the car building industry for one. Many business’s are being sold to overseas companies, even our own Government is outsourcing to overseas companies, hence none of this money is staying in Australia.

    1 REPLY
    • Governments send a lot of contract work overseas ,so other country’s will wonder about why the Australian don’t get some of those Contracts?.

  10. When interest rates are so low it’s a sure sign our economy is very sick and it will take some time to recover even if both political parties worked together to find some common sense solutions , unfortunately from both parties all you get is the blame game!

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