Huldra Forsvant (Theodor Kittelsen)

Huldra Forsvant (Theodor Kittelsen)
Huldra Forsvant (Theodor Kittelsen)

Thursday, February 5, 2009

Stimul-me, Stimul-you, Stimul-US!

Well, the stimulus package is looking a little more certain, after a 15 hour debate in parliament through the night. 15 hours!! That would have been a barrel of laughs to attend. Anyway, the most important thing is that I'm one step closer to my giant hamburger.

Out of interest, you know how the Opposition's argument against the package is that it will have a negative affect on the next generation (because of high taxes or something), how does that work? Is this a valid argument?


Pedro said...

Benno. We are already one of the highest taxed economies in the world.

There are two different trains of thought on the way government money should be collected and spent.

There are also a couple of different versions of outcome should it hit the proverbial fan. The economy that is and sink further into 'recession'

On one hand, our current government is of the belief that, we have a surplus, lets use it. Thats what its for, in times of need. If we boost the economy then the unemployment rate may stabilise and the fear of borrowing may abate and confidence in the markets etc. will
not continue to drop and continue on in a downward spiral.
Thats the theory,
i think it makes sense.

The other thought (Mr turnBULL's)is that if we get further into national debt then our children et al will have to pay for it further down the line.
This is a almost ineviatble outcome IF everything in the economy remains as is now..
However and I don't think someone as well to do as Mr turnbull (who will NEVER be short of a dollar for the rest of his life) has foreseen the possibility of what may happen if the economy continues to slide without any boosting..

Jobless rates increase. People get scared and desperate. Spend less. Borrow less. More jobs get lost. Mortgages are defaulted. Investment reduces. Again, more and more jobs lost. Property prices fall through lack of affordability. More jobs lost. People get more and more scared and all the while, what happens when people lose their job?
Welfare....where does tyhe money for that come from? The taxpayer...thsi means higher taxes, less take home income...less spending and so and so on..

So, as always, the liberals are on one side and labour on the other.

No one can predict what may happen, but nice to know that getting something FROM the goverment for once may just reinforce their reason for being...

Make your own mind up.

Bonnie said...

I read on SMH, something along the lines of:

The Libs want tax cuts instead of the hand-out, reasoning that they will have a similar impact, but not decrease the surplus as much.

Labour doesn't want to give more tax cuts (they've already given some) as they reason that by doing so it will be much harder in the future to re-build that surplus if we cut taxes even more, lengthening the time we're in a budget deficit.

Colinmac said...

Nothing for me again as I obviously do not need any stimulus from Mr Dudd

Stuart Heath said...

I love your willingness to admit ignorance on these matters, Ben, while the rest of us pretend we know what's going on and try to remember a smart line we heard on 'Money Box Live' or 'The Insiders'.

Ross Gittins had a pretty clear explanation of it in the SMH:

Meanwhile, there's a great campaign running in the UK at the moment. I'd only seen the posters, but a quick Google search reveals there are also TVCs:

Ben McLaughlin said...

Thanks for your info and oppinions guys.

ps- Stuart, what may at face value seem like ignorance may actually all be part of a grander, deeply calculated scheme. When I ask my baby daughter what sound a monkey makes, do I really not know what sound a monkey makes?

Mwuu ha ha haar!

Anonymous said...

Apparently it's a good thing little e wasn't born in Britain - or she'd be asking you for a bit of extra pocket money - nice to see some nasty politics in play, it's very entertaining.

It'll be interesting to see how this potential bit of extra dosh may or may not change things. All I know is that the way I'd spend an extra $1000 at the moment won't do the financial crisis any favours.

Ben McLaughlin said...

so your motherland comes second, huh?

Anonymous said...

hey, bills are bills, and money's money...

Maybe the better way to phrase it is: i've been pumping my money into the economy already in 'I Owe U's', and I'd use the extra dosh to catch up on a couple of yellow stickers here and there.

Ben McLaughlin said...

nah, i'm with you bro. The motherland comes about 18th on my list.

Anonymous said...

right after picking up frozen peas on the way home from work