The Queensland state government is paying a higher interest rate than most Queenslanders are on their mortgages. To make matters worse, debt is becoming problematic in rural areas with incomes and asset values down, and debts, unemployment and underemployment up.
Without improved state government debt arrangements, and policies to alleviate stressed industries and communities, Queenslanders income and wealth will suffer.
A destructive dynamic is at work in government, rural and urban debts. As debt servicing bites, consumption falls, stressing businesses and their employees. Public and private interest payments crowd out jobs and business investment.
The interest rate on Queensland government debt is currently 5.2% per …
Read the full article at: http://theconversation.com/the-queensland-government-is-paying-more-for-its-debt-than-the-average-mortgage-holder-87586