Is the Xmas bonus good for the economy?

[mantra.]

We have a total of 9 million working families - so how do the rest of the population support themselves? While our infrastructure falls apart, 6 million people will receive $10.6 billion to spend how they please. Some families will receive up to $12,000 tax free or more.

As more and more people lose their jobs over the next 12 months and the government goes into deficit - how will the government's welfare bill stand up to the increased unemployment & family payments?

Or maybe we could be like the US and just print more money? As the US forks out trillions to prop up various markets, you have to wonder where's it coming from? Are their mints working overtime or do they have a hoard of savings stashed somewhere.

Obviously the more cash that's printed, the lower the value of it . Perhaps one positive about Rudd is that he's considering doing some borrowing/trade in Saudi Arabia in Euros - and maybe this could protect us in the future when the US becomes a third world country and they cling to their (petro) dollar.

[xbz]

We have a total of 9 million working families - so how do the rest of the population support themselves? While our infrastructure falls apart, 6 million people will receive $10.6 billion to spend how they please. Some families will receive up to $12,000 tax free or more.

As more and more people lose their jobs over the next 12 months and the government goes into deficit - how will the government's welfare bill stand up to the increased unemployment & family payments?

Or maybe we could be like the US and just print more money? As the US forks out trillions to prop up various markets, you have to wonder where's it coming from? Are their mints working overtime or do they have a hoard of savings stashed somewhere.

Obviously the more cash that's printed, the lower the value of it . Perhaps one positive about Rudd is that he's considering doing some borrowing/trade in Saudi Arabia in Euros - and maybe this could protect us in the future when the US becomes a third world country and they cling to their (petro) dollar.

"Some families will receive up to $12,000 tax free or more."

Slight exaggeration there mantra the payment is 1400 to most pensioners and less for others like carers. I think it is a good idea for the lowest income earners in Australia however I do not agree with how they have done it in a lump sum. Increase it permanently. Or ask them to live on it.

[freediver]

It is good macroeconomic policy. It should not be made permanent, because it is to deal with a temporary problem. Families are probably a good target for the money, because they would otherwise be the first to stop spending abruptly and trigger a recession.

[xbz]

It is good macroeconomic policy. It should not be made permanent, because it is to deal with a temporary problem. Families are probably a good target for the money, because they would otherwise be the first to stop spending abruptly and trigger a recession.

Poverty is a temporary problem?

[Auzgurl]

We have a total of 9 million working families - so how do the rest of the population support themselves? While our infrastructure falls apart, 6 million people will receive $10.6 billion to spend how they please. Some families will receive up to $12,000 tax free or more.

As more and more people lose their jobs over the next 12 months and the government goes into deficit - how will the government's welfare bill stand up to the increased unemployment & family payments?

Or maybe we could be like the US and just print more money? As the US forks out trillions to prop up various markets, you have to wonder where's it coming from? Are their mints working overtime or do they have a hoard of savings stashed somewhere.

Obviously the more cash that's printed, the lower the value of it . Perhaps one positive about Rudd is that he's considering doing some borrowing/trade in Saudi Arabia in Euros - and maybe this could protect us in the future when the US becomes a third world country and they cling to their (petro) dollar.

Yes mantra...I know of one family who currently has 9 children under the age of 14..thats 9 thousand just for that one family. I think the Govt thinks the stimulus package will offset any rise in unemployment, isnt that why they are doing this?

If this is so then they will need to stimulate us more than once and wont that be exciting eeerrr- again.?

[freediver]

It is good macroeconomic policy. It should not be made permanent, because it is to deal with a temporary problem. Families are probably a good target for the money, because they would otherwise be the first to stop spending abruptly and trigger a recession.

Poverty is a temporary problem?

The imminent threat of a recession or a depression is a temporary problem. Of course, if ti eventuates, it may not be so temporary.

[TomB]

Once again there is a whole sub-set of society who earn, pay taxes and contribute positively yet are discriminated against just because they haven't produced any blood sucking leeches (commonly referred to as kids). So fuck 'em, if they suddenly decided to give me the money I'd be well tempted to just burn it.

[freediver]

yet are discriminated against just because they haven't produced any blood sucking leeches

That's not the only reason. It's also because they tend to worry less and complain less. In a recession they would be the last ones to stop spending.

[mantra.]

Once again there is a whole sub-set of society who earn, pay taxes and contribute positively yet are discriminated against just because they haven't produced any blood sucking leeches (commonly referred to as kids). So fuck 'em, if they suddenly decided to give me the money I'd be well tempted to just burn it.

That's a bit drastic - but yes it does seem unfair that only selected people receive it, although a percentage of those would desperately need it. The means testing limit is for those on incomes less than $86,000 - which is ridiculous because single/married people without children usually have a basic wage of less than half that once they've paid tax.

Slight exaggeration there mantra the payment is 1400 to most pensioners and less for others like carers.

That is true xbz - but as Auzgurl pointed out there are some very large families out there and if you take into consideration a single parent with half a dozen children, or even an unemployed couple with a lot of children they would be laughing all the way to the bank as their income would be greater than the average working single/married person without children. Why bother working?

As far as it being good for the economy - I just heard some woman on the news representing families (probably from ACOSS) saying that for the government to really make a difference to the economy it needs to repeat this exercise in April. Where do these people think the money's coming from?

[TomB]

.... although a percentage of those would desperately need it.

Those who desperately need it are already deep in the red and either aren't going to spend it frivolously as the govt wants or are going to make no difference to the overall situation anyway. The money should be administered to those who are in a position to spend it if the goal is to boost the economy.