goverment bonus

[coyote]

The money would be better spent on infrastructure like hospitals, schools, roads etc. That way you create jobs not only in the building of same but also when the projects are completed. Once you give it out in handouts it's basicly gone with not a lot to show for it. At least with infrastructure it'll be there for many years.

Bob.

I agree completely Bob, the problem is that takes a bare minimum of 6 months to get those kinds of projects into full swing. Just look at China, they announced a $900B infrastructure package two months ago and are yet to see the benefits. They will, it will just take time.

I don't like the government, but I do like the package. Three quarters is the kind of longer term stuff you are talking about, but a quarter is short term. The short term stuff can't be well targeted, but December 2008 retail sales grew by 3.8% after the first one. That's the biggest jump in almost a decade and the kind of domestic demand that keeps a country going when international demand is gone. It's impossible to say how many jobs that saved, but it would be quite a few.

Remember that 10% of retail sales go straight back to the government and roughly 30% of wages paid to people still in jobs goes the same way. It costs less to keep people in jobs than pay them the dole and it also means we don't lose the capacity to recover when demand improves.

[CheesyMong]

i dont think im entitled to anything..
single income family perhaps ...

Joel, our banking industry is one the highest regulated industries in the world.

Fair point I was aiming that more at the US which is what has put the world into financial crisis.

You are quite right about our industry but I still think that people in Oz being approved for credit cards and $1 million loans when it is clear that they can not repay them is not good business......

I think my 3 year old nephew would get a credit card these days

[loweart]

The money would be better spent on infrastructure like hospitals, schools, roads etc. That way you create jobs not only in the building of same but also when the projects are completed. Once you give it out in handouts it's basicly gone with not a lot to show for it. At least with infrastructure it'll be there for many years.

Bob.

Moggy for PM

+1

[loweart]

The money would be better spent on infrastructure like hospitals, schools, roads etc. That way you create jobs not only in the building of same but also when the projects are completed. Once you give it out in handouts it's basicly gone with not a lot to show for it. At least with infrastructure it'll be there for many years.

Bob.

I agree completely Bob, the problem is that takes a bare minimum of 6 months to get those kinds of projects into full swing. Just look at China, they announced a $900B infrastructure package two months ago and are yet to see the benefits. They will, it will just take time.

I don't like the government, but I do like the package. Three quarters is the kind of longer term stuff you are talking about, but a quarter is short term. The short term stuff can't be well targeted, but December 2008 retail sales grew by 3.8% after the first one. That's the biggest jump in almost a decade and the kind of domestic demand that keeps a country going when international demand is gone. It's impossible to say how many jobs that saved, but it would be quite a few.

Remember that 10% of retail sales go straight back to the government and roughly 30% of wages paid to people still in jobs goes the same way. It costs less to keep people in jobs than pay them the dole and it also means we don't lose the capacity to recover when demand improves.

Some great points there Coyote

[honkas]

some fair points there coyote.. but where does the money actually come from?? Obviously the govt.. but the govt collects money through taxes which are in decline due to the global credit crisis... and the govt. will be in deficit to provide assistance to those in need.. It's fine to quote $42B worth of assistance.. but the money has to be fronted from somewhere initially before it hit's someone's pockets..

America sneezes and Australia catches a cold!! Cash is KING!!

Governments just gotta be seen doing something and not sitting on it's hands!!

[moggy]

Trouble is all that debt gets passed down to your kids and their kids for years to come. That's what Turnbull is on about, he's not against the package as such..just the amount of money we'll have to borrow.

Bob.

[coyote]

Sorry guys, but $42 Billion is probably not enough. Remember that Howard and Costello went into the last election promising $34 Billion in tax cuts and had cut taxes (during an expansionary fiscal cycle) every budget since they were elected. We didn't need them them, but we need this now.

Not only do tax cuts take a long time to take effect, but they favour the higher income earner, who is less likely to spend the money on the basic commodities that keep the economy ticking over. Furthermore, they are permanent because no political party will go into an election on the promise of increasing taxes. What we need is a temporary stimulus ... a big and fast one.

Economies work in cycles and it's not $10 Billion of cash stimulus and $30 Billion of capital infrastructure works that will plunge us deep into deficit, it's the chance that the country goes into a depression because spending and therefore jobs just dries up.

Turnbull is not an idiot and he knows this. He also knows the legislation will be passed because the Greens will pass it and all you need to do to get fruit cake Independents to pass legislation is blow up a few pokies or bash a few gays (neither of which I'm completely opposed to).

Once it is passed, Turnbull will claim it was a case of poor economic management and take that into next years election campaign. It's very clever, because if we have a deep recession he will claim the stimulus package didn't work and if we don't, he will claim it wasn't needed.

The interesting thing is, if we do go into a deep recession then our deficit will be much larger than $42 Billion simply due to lost taxation revenue (potentially over $100 Billion) and the only way to limit it will be to spend nothing on roads, schools, hospitals, etc.

Our kids will pay for that a lot longer than they'll pay for $10 Billion in cash bonuses.

It's smart politicking for next years election, but it is anything but responsible.

[Mano™]

Either way... if I get it, it will be on STI parts hahaha... thanks KEV 07! lol

[coyote]

I had a long discussion with my local federal member about this last night and told him that he has lost my vote for going along with this stunt of Turnbull's.

It is a shame, because he is a top bloke and good politician.

[Spec B Wgn]

i see POKER machines being big winners out of this..