The economic boom is primarily the result of the mining boom in WA, as far as I can see. By quickly ripping out the finite resources of a country, and selling them, of course we will get short term gain. It's obvious that this is not going to be very sustainable beyond a decade or two.
And when house prices increase as far as they have done in the last decade, any savings anyone makes from lower interest rates quickly gets eaten up by the larger amount they had to pay for their house in the first place. I only know of one of my friends obviously in my rough age cohort, who has been able to buy an apartment, ever. The rest of us get by on renting.
May I remind you of the global economic situation? Take a look at how the various countries mirror each other in chart 1 of http://www.bis.org/speeches/sp060512.pdf
. To give John credit for the global interest rates would be a bit misplaced. And then, finally, the old myth of interest rates under Labor circa 1996. In 2004, I saw a graph showing the interest rates since the 1960s, overlayed with each change of government. Not being an economist and knowing how to find the average interest rates over the past 5 decades, I'm not going to produce such a plot today, but I did go searching and found this
with an link to an image that no longer exists on the web anymore. Furtunately, the internet archive does remember:
If you doubt this, you may care to do such data analysis yourself -- should be relatively easy. If your hypothesis that Labor governments cause high interest rates is correct, then the red areas of that graph would correspond to increases in interest rates, and presumably the blue areas decreases. Instead, we see the Liberal government "causing" an increase in the rates, Labor coming into power, and it varying up and down, then finally a systematic large decrease, following by the Liberals being elected when the interst rates are already low in 1996, and them keeping it that way. So Liberals only ever cause it to stay the same or get worse, whereas Labor cause it to stay the same or get better. I know who I'd prefer. I'd also prefer house prices to remain managable in the first place, so I'd have any hope whatsoever of being able to aquire a house as a first home owner.