Another stimulus package could be on the way..

[Auzgurl]

Wednesday, January 14, 2009


The impact of the slowing world economy will be felt in Australia’s jobs market, with the latest figures due out on Thursday, Treasurer Wayne Swan says.

Mr Swan refused to rule in or out the need for a further economic stimulus package or to bring forward $4.5 billion in tax cuts due in July 2010.

But Mr Swan said the notion that Australia was better placed than other economies to deal with the global economic crisis fallout had been borne out by Standard & Poors’ reaffirmation of Australia’s credit rating.

“There’s no doubt there is a marked slowing of world growth. That’s impacting on domestic growth. That will lead to an up-tick in unemployment in this country,” Mr Swan told reporters on Tuesday.

Housing Finance figures to be released on Wednesday would also give the latest indication of extent of the softening of the domestic housing market.

Mr Swan said it was too early to say whether another economic stimulus package, similar to the $10.4 billion in payments to families and pensioners announced in October was needed.

The payments, which began on December 8, were still flowing through the economy and would continue to do so this quarter and the next.

“We will observe its impacts as we move through the early part of the year,” Mr Swan said.

“We will take whatever measures are required to support jobs and to strengthen the Australian economy in the face of a slowing world economy.”

Opposition Leader Malcolm Turnbull repeated his call for the 2010 tax cuts to be brought forward as an incentive and a way of preserving jobs.

A $3.4 billion tax cut is already locked in for July 1 this year.

“The great virtue of tax cuts is that they provide incentives to hire, incentives to invest and they provide those incentives right across the economy,” Mr Turnbull told reporters.
Mr Turnbull singled out employment as the most important issue this year and the test of the government’s economic management.

Mr Swan pointed to the S&P assessment which he said described the Australia economy as resilient and one of the strongest economies in the world.

“We’re not immune from the global financial crisis but if there was one country in the world where you’d want to be in the middle of a global financial crisis it is Australia,” Mr Swan said.

“And that is reaffirmed by the credit rating given to Australia by Standard and Poor’s.”

[Jovial Monk]

Uturnbull is a twit. Generally tax cuts give little bang for the buck, fiscal stimuation wise.

The mooted tax cuts are for low income people, they will spend what they get, no choice!

[mantra.]

Yes Turnbull is a twit. He thinks he's such an expert on running an economy and some assume because he's wealthy - he would be good as future PM. As you said in an early post JM (I think it was you) - Turnbull was lucky and managed to withdraw his investments in the nick of time - no doubt a tip off. His mates haven't been so lucky.

Who knows whether a stimulus package would help. Can we afford it? I would think that with the predicted unemployment looming - the government will need every spare cent just to pay people the dole.

[skippy]

I know what you mean about saving money for the dole mantra, but the gov would be thinking that by stimulating the economy they may save jobs lets hope the're right.

[Auzgurl]

I know what you mean about saving money for the dole mantra, but the gov would be thinking that by stimulating the economy they may save jobs lets hope the're right.

I was hoping it might help the job situation too skippy..but perhaps monk is right..

Its said the effects of the last stimulus are still flowing thru the economy so maybe its a bit early to tell if they have been successful or not?

[skippy]

I know what you mean about saving money for the dole mantra, but the gov would be thinking that by stimulating the economy they may save jobs lets hope the're right.

I was hoping it might help the jobn situation too skippy..but perhaps monk is right..

Its said the effects of the last stimulus are still flowing thru the economy so maybe its a bit early to tell if they have been successful or not?

Yea thats what I meant too, I just didn't make it very clear.
As for the stimulous package, I'm sure it is still filtering through, I know we didn't get ours until the 18th of dec so I'm sure many others were the same and that also means I would't take to much notice of Joe Hockey and the opposition when they say "it didn't work" because it never made a huge diff to december figures, it never had a chance to, lets look at jan and feb figures first, and then we can panick.

[Auzgurl]

I know what you mean about saving money for the dole mantra, but the gov would be thinking that by stimulating the economy they may save jobs lets hope the're right.

I was hoping it might help the jobn situation too skippy..but perhaps monk is right..

Its said the effects of the last stimulus are still flowing thru the economy so maybe its a bit early to tell if they have been successful or not?

Yea thats what I meant too, I just didn't make it very clear.
As for the stimulous package, I'm sure it is still filtering through, I know we didn't get ours until the 18th of dec so I'm sure many others were the same and that also means I would't take to much notice of Joe Hockey and the opposition when they say "it didn't work" because it never made a huge diff to december figures, it never had a chance to, lets look at jan and feb figures first, and then we can panick.

Sorry skippy I got my wires crossed..I meant perhaps Turnbullls assertions are correct..

Uturnbull is a twit. Generally tax cuts give little bang for the buck, fiscal stimuation wise.

The mooted tax cuts are for low income people, they will spend what they get, no choice!

That is supposing spending is what will stimulate the economy the best for the near and longer term.
We do need to protect employment prospects.

[Jovial Monk]

Without spending there is no economy, no investment decisions (new equipment, more inventory or whatever) and so no employment.

A lot of crap has been talked about the bonus. It was given to people who have bugger-all discretionary income, they HAVE to spend what they get. Some of it was used to pay bills, some flushed down the pokies, some on consumer goods etc. All useful bar the pokies.