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Couple of thoughts on this, the first one is that we should have allowed a mild recession to happen when the GFC hit.

Borrowing money to give away is just silly and shows just how foolish that Govt was. By all means, use the surplus money that was available after the election but to borrow money to have a party is unforgivable.

By having a mild recession when they could blame it on the GFC was quite acceptable politically, Rudd was supposed to be Howard lite and got elected on that policy so when he went feral the polls shot him down.

By not allowing a downturn the next gens were denied the educational experience of doing it tough for a year or so. Consequently many of them are completely unaware of the fact that this is as good as it gets and have no concept of delayed gratification or saving for a rainy day.

Their CCs are maxed permanently so there is no way to increase their spend.

On the other hand, mortgage holders are in two camps, some are meeting their payments, others are behind. I have read that most keep paying the same amount when interest rates fall, some use it as a way of catching up and the others use it to get ahead.

No increase in spending there either.

Something that has changed in the past 20 years is that BBs have had the opportunity to build assets, no wars, no big recessions in Oz, getting old, lets save for our old age.

Unfortunately, the RBA has not worked out that times have changed, for the past 100 years the world has been in debt with real money (gold standard) and people really were struggling.

Not today's "struggling" I mean really struggling, like whole families living in tents, camping in bush, sleeping in garages etc

Now there are just as any people using interest to fund their lifestyle as people in debt, we know that people in debt keep their payments the same (if possible) but the people who are retired adjust their spending to their income.

Every time interest rates go down the economy slows, has been doing it for the past few years, will keep on doing it until the RBA adjusts its thinking to the new world.

0% interest rates quite simply did not work anywhere in the world, Japan has been doing it for years, made no difference. What needs to happen is they need to work with Govt to create new rules and situations that encourage employment.

There should be savings accounts that offer the same rates as inflation, then people will start to spend again.

Of course, the best spenders are those on benefits, give them an extra $5 a week and you can bet it will flow instantly