I read yesterday that the Government are going to be giving out these one-off handout things in order to help the economy. For example, if you are on less than 80k a year, that you will get a payment of $950. If my memory serves me correctly the sum decreases as the wages go up.I am not at all economically minded, and I was wondering how this all works. This is a genuine question-- how does doing this boost the economy? How would me getting $950 help anything?
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The gov't here in the US did that last year. I can't remember the amount but the idea behind it is that you will take this "extra" money and spend it on goods and/or services and this will give businesses a boost, therefore giving their employees a boost and we will all keep spending more money. This is coming from my very 'un-economic' mind so I may not have it correctly.
In the US it didn't really do what the gov't hoped it would do. I guess many people used it to pay down debt or put it in savings instead of just spending it.
Hope it makes a difference in Australia.
When there's a fearful economic climate, there's a loss of spending and that's when unemployment rises, because sectors like retail and manufacturing will lay off heaps of staff.
They want us to spend to keep the economy going.
I think its as lu and sophg put it - economic downturn is in large part connected with consumer confidence. If people don't feel secure enough to spend money on discretionary items, businesses go under, people lose their jobs and it spirals from there. The government is trying to halt that spiral, or at the very least slow it down. The cash injection will make people feel more comfortable with continuing their spending.
So the best thing you can do for this country? Spend that cash bonus on Australian goods and services!
Though I don't think that's what I'll be doing with mine...
Okay, well thanks. That does make it clearer. I guess I don't quite see how just a one off thing would make that big a difference.
I like though that it would be basically unpatriotic to not spend it! My first thought was, oh well, better chuck that in the savings account-- but it looks like we gotta spend it. Sweet.
My brother works for the rba and he says that 40% of the handout money will be rolling around in the Australian economy within a couple of months.
We tend not to actually save it, even if we plan to.
yeah, but if you multiply that one off thing by the population of various demographics in australia...well you get the idea.
Yeah, I guess that does make sense. I wonder why they don't do this more frequently?
Actually don't get your hopes up. Turnbull's planning for the Coalition to block the bill in both houses...
I assume you're talking about Turnbull. Don't shoot the messenger;)
messenger or not, if he's going to keep me from my giant hamburger..
Messenger?! As the leader du jour of the Liberal party, i am very sure there is a specific political agenda motivating these actions.
Greedy Liberals.
How dare the working class get a handout?!
Give more to the rich and bugger the masses...They can't scratch anyone's back so they don't deserve attention, damnit!!!
Excuse my cynical rants but you gotta admit....
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