Stimulus package or bush fire

[Buzz]

I may be jumping the gun but i heard this mornign that the govt was giving $10m in a relief fund for the victims, $400 per family etc etc. where is the perspective in this when average joe blow family. household will get $950 and most of that will be pissed up against a tree!
Has the Govt Lost the plot!
Im giving any stimulus money to the victims. im sure they need it a lot more than me. They have lost everything.

 

[Happynuts69]

This money should be better spent, schools, hospitals, pensioners and yes off course for the bush fire victims, as you mentioned it will most probably be spent on absolute crap, think the government needs to get their heads out of the sand

 

[swingingstories]

I have the utmost sympathy for those who have been devastated by the bush fires, when I was a small child my biggest fear was that my house would burn down. We lived in Victoria and I would hear of fire stories and it terrified me that it would happen to us. The loss of life in this particular tragedy has me being almost unable to watch the news.


Having said that, Should these people not have been carrying insurance for their homes and belongings and then the insurance will fix everything. I understand they probably need immediate help, right now and thats where the govt will help, but ultimately, rebuilding their lives should be the responsibility of their insurance companies.

Love
swingingstories

 

[Petronius]

Actually the reason that recessions turn into depressions is that people stop spending. Don't forget, the amount of money in the economy hasn't actually changed. If everyone sat on what they have, the economy would stop and everyone would lose out. Spending makes the world go round (or, more technically, the velocity of money is the driver of economic growth).

 

[Petronius]

We need to baton down the hatches and wait for the storm to end.

The storm *is* people battening down the hatches. That's what a depression is - people get scared they might not get paid, so they stop spending money. Then the products that money would have bought doesn't get sold. The manufacturer notices falling sales and cuts back on production. The workers get their hours cut, so they don't spend as much. The orders for raw materials get reduced too, so the ore mines and refineries also lower production and reduce their labour force.

You're right in that Australia is a pretty small percentage of world demand, but that doesn't mean the principle is wrong - it just means that the rest of the world needs stimulus as well. I don't agree with the cash handouts though, because they'll just get used to pay off debt (which is what I'll be doing with mine). Maybe the government should instead offer everybody a few hours of subsidised bookings with the luxury lady of their choice. I'm not sure who'd have more orgasms - the punter or the headline writers on the financial desks.

 

[svengali]

Yep, this is just basic Keynesian economics page one, chapter one.

Use Government money to stimulate demand through an increased public works programme. Build that new hospital, school road and, in the process create jobs for the workers employed directly and for those in industries supplying related goods and services. Their wages flow into increased demand for other goods and services and keep other industries ticking along. They also provide the government with a bit more tax to pour into more public works.

The weakness in this strategy is that, when things overheat, the Government has to back off but their bloated bureaucracy makes this difficult - Keynes never allowed for "Big Government", certainly not on the scale we have in this country. Still, the accellerator is what we need now, the brakes can wait.

By any measure another "cash splash" is economic stupidity. It will benefit Coles, Meyer and the other retailers but only in the short term and it will save the Banks chasing up a few dodgy debts but once the cash is spent the Government's cupboard will be as bare as Mother hubbard's and we will have zilch to show for it. Far better to put it into public works and at least have something concrete to show for it afterwards.

Snag is that the useless Greens and their blind idealogical hatred of the Libs will probably ensure that the Government's package gets through with a few "greenie sweeteners" added.

 

[Bluegrass9]

I do feel sorry for the fire victims. However many of the houses should not been built where they were. Also good fire breaks are required. Of course we all love nature and all the animals and plants it has for us to enjoy-but enough is enough. Cut down those trees, clear away the undergrowth! If they did this there would be more bush still untouched and not as many people in pain over the loss of their homes and loved ones.

 

[Cluboz2]

Good point Bluegrass, and well just look at the hills properties in Perth alot of them have expemtions to not have fire breaks ete its a fire hazard in the waiting. When will people realise and secondly why do certain councils grant these exemptions. *IF* and we hope it does not happen, a fire broke out in the hills area of Perth, the councils would distance themselves and would take NO responsibility at all.

Firebreaks, Tree clearing and Back Burning is the answer.

Another one that urks us is you used to have to have by law a 1.5 metre mininum distance between your house and your fence line to allow access for the Fire Department if for example the house next door was on fire. Now in alot of suburbs they have done away with this law and houses are being built right on the fence line, stupid and no forethought at all.

Prevention is better than Cure.

 

[Tannerone]

As it is a "Stimulation" package, that's what I am likely to spend it on. If the girl(s) I spend it on choose to send it to the Bushfire Appeal (less tax & GST), we all benefit - and the girl(s) can claim it on Tax as a Charitable Donation !!

Tannerone :angel1: :angel12:

 

[wazza-55]

You have to spend money otherwise the economy grinds to a halt.Think about the repercussions people lose jobs, more people on gov benefits , less tax coming in to gov coffers, people with jobs end up paying more tax, business pays more tax less people employed and so the cycle goes on. If you have some extra cash spend it on australian goods and services.

 

[wazza-55]

I am giving half to the appeal and spending the other half on a dirty weekend with my partner.

 

[jj086]

Hmmm i think the stimulus could of been poured into the country in more direct ways such as local works etc. Just not sure the buying that plasma tv is going to benifet us as much, but sure looks pretty lol

 

[svengali]

Watch this space.

The cash splash, as predicted, propped up retail figures for the quarter but we are now facing the "second wave" of unemployment. Every highly paid worker laid off is one less tax payer and once more Centrelink recipient.

Mr Swan must be chewing his nails hoping the economy will turn the corner before that vice closes too tightly because there isn't much in the kitty to fight it and the next election is on the horizon.

 

[boxhead123]

now look at our debt

 

[james.robertson]

Thanks Kev... Intrest rates next!

 

[james.robertson]

And then the Boat people!!!

 

[tiger80_au]

I gto the rudd money then a tax bill that took it away, they may as well have kept it and saved the admin costs.