$950 government handout

[Speedz]

OK my 2 cents...

The selfish side of me wants the $950...

But I like so many intelligent members here knows that this is spending the cash borrowed on credit, and the interest will be increased tax in the future to make up the deficit...

There are ofcoz better ways to spend the money, but the $12.4 bil handout is more or less a vote buying exercise much like the predecessor govt...

I agree with the opposition, backed by financial analysis and economist the package is way too big for the current economy which is shrinking but not to the point where we need to sink in 42 bil...

We should instead split up the package and target strategic areas that create job opportunities which hopefully creates a ripple effect and creates even more jobs and you then have increased consumption which is what the economy needs... (or as Turnbull puts it, leave some ammo in the cabinet...)

Thats how the US got out of their 'Depression' in a nutshell they hired 17 mil soldiers, hire lots of people to work in the govt thus was able to recreate consumption again... (but we know this cant happen now since private entity back then were not big enough to hire so many people...)

[Suprathai]

Fighting a lost cause and in denial... *sigh*

Yet somehow the government believe all this money will be re-invested into the economy?? This is an absolute joke if you ask me. Also if everyone thought the same then we wouldn't be in this disaster in the first place, people are scared/afraid which sometimes you just can't blame them. Poor job security and mortgages don't go hand in hand.

[IMB055]

(Note:This isn't my entire view on the issue, but a joke never hurts, eh?)

"This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format:

"Q. What is an Economic Stimulus Payment?

"A. It is money that the federal government will send to Taxpayers.

"Q. Where will the government get this money?

"A. From taxpayers. And banks. Actually, we really don't know yet.

"Q. So the government is giving me back my own money?

"A. Only a smidgen, but don't worry, we'll get it, and more, back off you.

"Q. What is the purpose of this payment?

"A. The plan is that you will use the money to purchase a high-definition TV, thus stimulating the economy.

"Q. But isn't that stimulating the economy of China?

"A. Shut up."

Edited February 10, 2009 by IMB055

[SuperDave]

I wonder if the current Governor-General is willing to sack another PM?

42B is enough money to get a lot of infrastructure projects started and running across the country for at least a year. Money is then injected into the economy via some useful means. The money then flows into the other non-construction based industries and there is my engineering economics kicking in. Once the infrastructure is in place the country becomes more efficient and is able to turn more money. Look at what America did in the 30's? Look at what Japan did in the late 40's and 50's? A common theme is forming...

[apg39]

Both me & partner get it so were putting 1 payment on debt & 1 payment on furniture for the house......or car stuff if she lets me....

[Speedz]

The Govt General will never sack Rudd, she owes him the job...

GG earns more than the PM FFS!!!

of the 42 billion only 30 billion is put into some form of infrastructure such as insulation, classroom upgrades etc... the cast handout costs 12.4 billion alone...!!!

not to mention Rudd sort to push up our credit limit to 200 billion...

_____________________________

that aside i read Turnbull's plan cost 175 billion but dont know the details...

some ppl are saying its the pot calling the kettle black again lol...

[Leroy]

The selfish side of me wants the $950...

And that's exactly what Rudd and Co. are playing on. The average consumer needs some cash now - but does not have the foresight to realise that all that cash now means a massive interest rate and tax hike 2 terms from now, or that they won't get their highways/trains/hospitals etc upgraded for some time to come. Does anyone remember the 18% of the late eighties?

As Superdave said, infrastructure is the only way to go. If you build things, it keeps and even creates jobs. It also ensures that, after all this has blown over, you and I have facilities to use rather than a 50yr old train service covered in scorch marks and graffiti. In the case of commercial buildings, it even sustains future demand without jacking the price sky high as a result of competition.

Hell, I'd even be inclined to offer a generation of youth a free university/TAFE education - just like our current government and generation of vice chancellors received. No, I'm not talking sour grapes because they got something I didn't... By subsidising education you 1. relieve the financial pressure on students and their families, meaning they will spend more of their disposable income in the present (rather than on text books and fees)... and 2. increase the chances of Australian's getting decently paid jobs in the future, rather than having to contract imports (who will inevitably take that money back their overseas families) due to a skill shortage.

What's even more disturbing is the lack of care put into this bailout package. Had it been pushed through, we would all have spent 2.52 billion on defence housing rather than 242 million due to a typo.

As an ending rant, all you that voted Labor at the last election have little cause to whinge as you brought this on yourselves. I sincerely hope you have learnt a lesson and savour that $950 bucks, because its gonna be a while before you have money thrown at you again.

Leroy

(and thanks for the glowing endorsement, DHC09 :D )

Edited February 11, 2009 by Leroy

[nate11six]

I'm going to build a tree-house.

[SuperDave]

Should this thread really be in the car section? Should it not be in the general section.

[Mr ZR]

well, i started this topic and it interesting to see what people really think and the more i thought about it i agree with super dave, and the suggestion that tax eating dole bludgers should do work??? so now i actually put some thought into it i might just donate my money to the melbourne fire disaster and give it to those in need, that way my handout is going back into aussie hands that need it and i know will do something responsible with it. think about it it'll take years for insurance companies to pay out those who have lost their homes and belongings. as for those dole bludgers maybe they should be sent to help the clean up, maybe i dunno. like they say "more hands make light work".

[Mr ZR]

whoops my bad super dave,

[spillige]

I'm going to build a tree-house.

top call

i have a question, how would infrastructure work if people dont have the money to purchase these products or services?

[Speedz]

I think its more like govt giving money to schools and in turn they get the contractors to fix up watever its needed to be fix...

[Kenneth]

I'm going to build a tree-house.

top call

i have a question, how would infrastructure work if people dont have the money to purchase these products or services?

infra being roads, train tracks, better public transport, port and anything civil (correct me if im wrong) you dont buy roads but instead you USE them so that makes you benefit from the improved infrastructure. The economy works because one person's spending is another person's income (basic year 10 economics) so if you spend it through infrastructure you will have the money flowing to different sector ranging from the people that build the road, to the new shops or servo thats built because of the new roads and to the new supermarket that will hire more people, create more job, encourage more spending.

Sounds like a pretty crap example but i think the general idea is there.. if you just give people 950 dollars, you not only risk the chance of them not spending the money but it might goto things like alcohol, drugs and what not which WILL NOT have a positive effect on the economy. Spend it right and you will see it work wonders..

[Grey-Rolla]

The current package is the Labour governments plan to resist reccession, i think its stupid, it would only stimulate the economy temporarily if it does go according to plan. If our economy is going into reccession there is nothing anyone can do, all we can do is to toughen it out untill the reccession is over and economy stregnthens. The money comming from tax payers, i think all this tax money can be spent elsewhere eg. hospitals.

Ive always been a Liberal supporter because they dont splurge money...!

cheers

[Kenneth]

Ive always been a Liberal supporter because they dont splurge money...!

[MT]

I miss Mr Howard

[mick0082]

I miss Mr Howard

Here here!

Mr Howard did do a pretty good job, although I am totally not into politics.

[Evo7]

if it does go through and happen, i would be looking at a few performance upgrades :P

EDIT: instead of the government giving out this 'free' so to speak money, why don't they give us our taxes back early :P

Evo

Edited February 12, 2009 by Evo7

[Leroy]

if it does go through and happen, i would be looking at a few performance upgrades :P

You mean like foglights? B)

[DJKOR]

I miss Mr Howard

Here here!

Mr Howard did do a pretty good job, although I am totally not into politics.

I don't really follow politics either but my vote was for Howard. Everything seemed fine at the time and if it ain't broke, don't fix it.

[thegourou20]

Rudd Government agrees to alter stimulus package

* February 12, 2009 - 12:30PM

The Rudd Government has agreed alter its $42 billion stimulus package, reducing cash payments to eligible taxpayers by $50 dollars to $900 after pressure from crossbench senators.

- Reduced cash payments

- Senate debates bill

- Midnight vote deadline

[spillige]

I miss Mr Howard

x2 but if he was still in youd be complaining bout that too, i voted howard, like i was telling every one better the devil u know....

[mrs.sportivo]

lols i joined that facebook group thingo

I'll be using the money for Uni textbooks :)

[Kenneth]

I miss Mr Howard

he knows his stuff...