Discussion in 'Markets & Economies' started by slavaja, Mar 12, 2020.
$17.6 billion in handouts
Damn, this must be a nightmare....I thought Rudd was long gone!
Politics over economic management. Oh well, lets kick the can down the road a bit further until the Govt can't borrow or print any more money and the RBA has no room for rate cuts. Welcome to the next Greece in waiting....Hello is that the IMF, one austerity funding package to go please.
"And the more economic activity that we see through the June quarter, in particular, will be important."
The government knows that the coming March quarter will be negative GDP, thanks to the effects from the bushfires and the Coronavirus. So the aim is to splash the cash in the June quarter, so it encourages more spending to keep that quarters GDP positive, thereby technically avoiding a recession.
Ladies and gentlemen, window dressing at its finest.
Wouldn’t be as effective as giving the money back to taxpayers.
The idea is that when a government operates a surplus, it’s taken money out of the economy which causes a private shortage. The government is intending to give some handouts to small business (usually this comes at a cost ie small business owners have to firstly spend money in order to receive any benefit) but it’s focus is mainly welfare recipients. Those guys don’t pay any tax nor are they productive so as far as I can see it’s not going to help in any way because from my understanding these people are not subject to the same market rules that apply to workers ie the function of taxation is to control inflation and the available money supply in an economy built on meeting the needs of consumers as efficiently and effectively as possible.
This is really an example of fiscal policy operating in a democracy. It’s designed to keep certain members of society happy at the expense of others.
Honestly I was expecting payroll tax and income tax cuts for this financial period. Arms wide open to receive whatever else they've concocted though. Got my eyes on some silver, maybe some platinum as well.
We’ll probably have to wait for the budget for that, and/or when the RBA get to 0.25% and Lowe publicly pressures the government to extend their fiscal policy response. The ALP and The Greens are going to jump up and down naturally. They’re retarded.
Don’t forget cash. The 3 month outlook for Australia isn’t good in my opinion. The virus is most deadly and contagious at 5-15C.
We are lucky in that I can just post my gold to Bullion Now and get a deposit in my account if desperate for cash. My cash requirements are minimal compared to most, outgoings probably under $1000 AUD a month.
So the poor average working joe doing a 9-5 and pays their taxes gets stooged again - lol, no surprise.
Giving a$750 one time payment to welfare recipients....a large portion suspected to be spent on drugs, alcohol and cigarettes ...2 of the 3 taxed rather highly....
Yup, either bullion gold or cash. The main risk from any recession is not money (even in the worst of times, 90% of people are still employed), but the psychological impact. The more buffer the better. With the virus, it's a double whammy since social distancing and quarantine will add to the psychological impact.
Well this pointless "stimulus" will guarantee a recession. Keep an eye out for rule changes, central banks always get their way.
That old pesky global warming might be the salvation of us!!
likely because the gov Knows they will actually spend it.
Vs the regular Joe who is a bit smarter and would likely just save it, which wouldnt stimulate the economy.
So I guess they need to give it to a demographic who will definitely waste it on shit they dont need, but as a result is stimulating the economy which is keeping the smart guy employed.
Ps I think I still have that grand from Rudds stimulus in my bank account lol
so might be some merit behind giving it to the wasteful demographic
The poor are always most likely to go out and waste it on TVs and cell phones, cigs, beer. They dont save, that's why they are poor. Think about it.
They wont give it to anyone that might save it.
What a waste of tax payers money!
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