Is the Xmas bonus good for the economy?

[Auzgurl]

.... 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. The money should be administered to those who are in a position to spend it if the goal is to boost the economy anyway.

True tomB..a lot of pple will be squirrelling this money away..not spending it frivelously.

[mantra.]

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.

Those who are deeply in debt will be forced to spend it, probably on the basics in life - repairs, bills, school clothes for the children perhaps. Although this isn't frivolous it all goes into the economy. If the goal of this bonus is to waste it on non-essentials - it's only going to provide a small temporary lift.

Families are probably a good target for the money, because they would otherwise be the first to stop spending abruptly and trigger a recession.

Families won't stop spending because they can't. They have children to raise, although many of them have helped create this mess anyway by believing they could buy everything they wanted on credit. It's not going to be a temporary glitch in the economy FD - it hasn't even hit us properly yet and it will probably last for a few years.

Australia is in too much debt to get out of this lightly and there was more bad news today - China is slowing right up in importing our iron ore and this is predicted to stall altogether next year. Our economy is very reliant on these mineral exports and the employment that comes with it. Once this falters - it will become even more difficult to pay our debts and those in receipt of this bonus who don't need it, but spend it anyway - will wish they had saved it.

[freediver]

You don't have to be in debt to need the money desperatly. In fact the most desperate people don't usually get the loans that allow them to get deep into debt. Except of course in America, but that's a different issue. Anyway, the desperate will spend it, and whether they buy potatoes or a playstation it still helps the economy. It doesn't have to be frivolous.

[Auzgurl]

An online survey re: the stimulus package say that most Aussies will be saving the money they get.Some will..some will relent and give in to the charismatic lure of consumerism at Xmas...Im not sure which one I will be yet.

I want to be strong.

[Jovial Monk]

The bonus package is 1% of GDP. Apparently you need a stimulus of at least .5% of GDP to make a difference.

This will be followed up by infrastructure spending (which always takes a long time to get started.)

I love the whinging from those not getting any bonus. What a entitlement culture did Howard inculcate eh? Normally people earning money would scorn asking for a handout (even if in a temporary bind when a handout would be useful) but after 11 year of the Rodent EVERYONE wants handouts and sulks if they miss out.

The Rodent, what a mongrel, stuffed the whole fucking country and corrupted its people!

[Hebe]

T

he Rodent, what a mongrel, stuffed the whole fucking country and corrupted its people!

And made lots of us ashamed to be Australian. Bastard.

We do get a payment, for a change (disability) - and it's going straight back into the economy. I don't think I'm even getting a present out of it. All good by me.

[TomB]

I love the whinging from those not getting any bonus.

Whinging? Maybe I am but it has nothing to do with a culture of handouts, none of which I have ever received for what it's worth, and everything to do with discriminating against 'the independent'.

[mantra.]

Whinging? Maybe I am but it has nothing to do with a culture of handouts, none of which I have ever received for what it's worth, and everything to do with discriminating against 'the independent'

You have every right to complain and there are a lot of people doing the same. Howard started this "culture of handouts". Welfare used to be for the needy now it's for all those who needed to be bribed to get the coalition back into power.

This country can't afford it.

Even driving around my area, which is fairly low on the socio-economic scale - the stuff people are throwing out is incredible. Where I shop there's a single mother (I presume) with a few children and her house is always littered with expensive bikes, prams, toys etc. all left out near the footpath in all sorts of weather. She must have moved out a couple of days ago and left out her "junk" for the council. She had thrown out all these new, but neglected items to be crushed by a council truck.

This has become so typical now. People don't appreciate what they don't earn. Our landfill is overflowing with adult & children's toys alike that people have discarded. People don't sell them, give them away, repair them or donate them to charity - they chuck them.

Rudd - right at the beginning should have brought in means testing. People on low to average incomes used to manage quite well bringing up kids with just a small fortnightly child endowment payment, now families who drive expensive cars, live in MacMansions and send their kids to private school receive welfare in the form of family payments.

[Jovial Monk]

I love the whinging from those not getting any bonus.

Whinging? Maybe I am but it has nothing to do with a culture of handouts, none of which I have ever received for what it's worth, and everything to do with discriminating against 'the independent'.

So, you never got any tax cuts over the last 11 years?

[skippy]

Well its good for my economy, I intend to spend every last cent of it on consumer goods, if everyone does the same the economy will kick on, if the punters hold on to it they will make things worse.