Key points
- Supporting Small-Medium business sector
- Creating more jobs
- Support for public housing
Mr. Esho says that in last year's interview with SBS Assyrian, He explained how countries around the world are trying to revive the economy. He says "We saw this year, the government was trying to borrow money as much it could, to be invested into jobs, businesses, to reduce unemployment".
The government knows, the more jobs are created; the more families can manage their financial affairs. So, the focus now is on creating jobs and reduce unemployment.
As for incentives for small and medium businesses in this year's budget, Mr Esho says, "many people who are not self-employed and work for a company or a factory, they look at the government’s support for self-employed and owners of small business, they ask themselves why?"
Pter with Netflix founder Mark Randolph Source: Medium.com
The reason is, now, the unemployment rate is six percent, the government tries to lower the rate to four percent, obviously to achieve that is to create jobs. The best and easiest way to create jobs is through small and medium business.
Mr Esho says it is very hard for large businesses (The top one hundred like Woolworths, Telstra and so on), to employ more people, but a small business owner who have 2-3 employees, is easier to him or her to increase their employees to 4-5 people.
Now interest rate is very low to an unseen level before. If someone goes to a bank and wants his 20-30 years hard earned savings to be invested in the bank, he or she will be lucky to get one present or even half a percent interest on their investment.
So, countries like Australia who have an open business structure, try as much as possible to strengthen the small and medium businesses and help them to increase the number of their employees, then those workers, will gain enough experience to start their own business.
Regarding the effect this budget will have on the house market, Mr Esho says “I have been talking to many of my friend, relatives and business associates here in Australia and in many overseas countries in the US and Europe, they all agree that house prices are going up”.
Peter on ABC Source: ABC.jpg
Mr Esho recalls his interview last year and says he mentioned the most important thing about the house prices, is the loan or mortgage value. In other words, interest rate.
Many investors are focusing on real estate, not only in Sydney, but in Melbourne, Brisbane and in other states.
Now interest rates are the lowest than ever before. If people go to a bank and want their 20-30 years hard earned savings to be invested in the bank, They will be lucky to get one present or even half a percent interest on their investment.
When the cost of a mortgage is low, the value of other things will increase. Mr Esho says, “when people have a stable job with regular income, They can go to a bank and borrow money with low interest and use it to invest”.
Many investors are focusing on real estate, not only in Sydney, but in Melbourne, Brisbane and in other states.
As for the budget reply by the opposition, Mr Esho says for the first time we see there is a mutual understanding between the two parties to work together in helping people be employed.
The opposition did very well in announcing more money spent on public housing. Mr. Esho says.
Peter in his podcast wealthi Source: wealthi.com
In conclusion, Mr Esho things any government, in whichever country, must work hard to create jobs and reduce interest, so people can invest in real estate and revive the economy.
