Have we lost the plot on negative gearing?
There’s a meme about official interest rates that’s been around since the financial crisis, and it goes like this: Central banks have already cut rates to almost zero (or actually zero) but advanced economies are still languishing.
Therefore, cutting rates even further won’t achieve much.
There are a number of problems with this idea.
One is that it’s a nice illustration of the post hoc ergo propter hoc (‘after this therefore because of this’) fallacy. It ignores the counterfactual.
Maybe we would have spent a decade