Rather than increasing interest rates which kills the housing market, forces the people who over extended themselves out of their homes, brings down the stock market (it must considering there's talk of a rate cut and the market jumps 3%)...
Wouldn't it be a better idea to just increase the compulsory super contribution from 5% to 6%? Is it even compulsory at 5% or just the default.
I'd much rather lose 1% of my pay to my own retirement rather than to greedy banks. As a result of the increase in super contributions, there would be more money in the stockmarket hence companies will be better off. More money for the retired people, therefore less of a burden to governments to pay for pensions.
Interest rates would probably fall if anything. Houses will be affordable thanks to interest rates being lower. Spending will still be curbed therefore less pressure on inflation, people would be more able to save for a house etc etc.
And then governments could unlock your super to buy houses as a common thing meaning less borrowing and more saving in super (even above the compulsory).
Seems a better idea than artificially jacking up prices thanks to the first home buyers greant, borrowing money you don't have etc. to help people buy houses.
What are peoples opinions? Has it been discussed before?