Australia needs to boost infrastructure, not reduce immigration

Cities in Australia are reeling under pressure and the infrastructure needs to be boosted. The scarce infrastructure becomes increasingly apparent with population growth. Decreasing immigration does not offer any solution.

Tony Abbott had proclaimed himself to be the infrastructure Prime Minister. However in 2 years to 2015 September, the federal spending on infrastructure yet declined by 17%. His government also reduced the spending on education and health. The same path is being followed by the Turnbull, as quoted by the Red flag Org Au.

The infrastructure woes for Melbourne extend much beyond. Most of these can be accounted to the burn and slash policies for the 1990s Kennett era. The subsequent Labor governments also failed to reverse the harm.

The argument that immigration results in increased prices of houses also does not hold good. 7 out of 10 fresh immigrants to Australia either live on rent or with friends. Notwithstanding the record growth of population in Sydney and Melbourne, housing prices in both the cities are of late declining.

The core issue at the heart of problems in Australia is that after the 1990s there was a large credit expansion. Along with this, the policies are favorable to the investors. This has resulted in enhanced speculation. Parallel to these factors, the direct contribution of the national and state governments in Australia to public housing has also decreased.

Thus, immigration cannot be blamed for the choked state of Australian cities. As usual, immigrants are just the scapegoats.

The basics for resolving the issues are the mass public investment and social planning. It is a remapping of the priorities for the politicians. The blank cheques to HNI investors, toll road operator, and developers must be stopped. Instead, the government needs to tax the affluent and spend huge on public transport and housing.

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