New Government stimulus package - $950 to those who earn under $100k per year

[L2P]

$42 billion spent to kickstart economy with Budget going into deficit | Business | News.com.au

Thoughts? I don't know how effective it will be but hey... it's $950.

[Stoneville]

That's it, it's oly $950 or part there of, if I read correctly, not worth spending on it's own, just chuck it in the bank with the rest

[ashmo]

Sweet im not gonna complain when that comes in

[TYSON]

That's it, it's oly $950 or part there of, if I read correctly, not worth spending on it's own, just chuck it in the bank with the rest

^^ That kinda defeats the purpose of it

[Bendito]

Assuming I get my $950, I'm gonna spend it on bike bits from the US

[dr00]

the ineptitude and extreme socialism of this government is astounding and scary but not really surprising. oh well, we'll all suffer the consequences.

[L2P]

I agree, it does defeat the purpose of giving people $950 but with teh way a lot of peoples situations are, handing out $950 to hope that they are just going to go spend it at the shops is a pretty big assumption I think most people will be doing what Stoneville will be and putting either onto their mortgage, bank account etc. just in case things get worse.

Band-aid solution but I've got nothing ebtter to suggest either

[cowasaki]

I much prefer to wait for this announcement

RBA: Cash Rate Target

Policy Interest Rate
Target for the Cash Rate

4.25%

Inflation Rate
CPI Year to December 2008

3.7%

[Taylor]

We should really have a stimulus party. Theme will be extravagance, overindulgence, poverty and innuendo.

[PatB]

My thought is "Oh bollocks. More free money I just miss out on being eligible for".

Then again, I'm in a single income family so I might still get it, so I can stop putting cash aside for a washing machine and start spending it on going racing instead .

Yes, I am a selfish bastard.

Seriously though, I can see the sense as the money is highly likely to be spent, more or less immediately and so will keep the economy ticking over. Trouble is, it's not hard for the individual or family to burn $950 fairly quickly, so I would worry about the effect tailing off fairly rapidly in the medium to long term.

I can't help thinking I'd rather see the money go to major national infrastructure projects like, eg increasing the capacity of the east-west rail line, instituting a proper broadband network so my connection speed exceeds that available on dial-up in developed countries, or building a fucking huge solar thermal plant or two to prove the technology works (two birds with one stone there). Whatever. Something that needs engineers anyway .

Failing that though, I'll be happy enough to pocket (and spend) $950, should it come my way.

[cowasaki]

N thar she blows... 1%

Policy Interest Rate
Target for the Cash Rate
(effective 4 February 2009)

3.25%

Inflation Rate
CPI Year to December 2008

3.7%

[Captain Starfish]

Didn't we collectively bag the shit out of Pauline Pantsdown's policy of "print more money"??

Plz assplain how this is any different.

[L2P]

RBA dropped by 100 basis points

Edit: Beaten

[Barfridge]

It's working for the USA. I still don't get how the have just printed a few extra trillions, without affecting the value of that currency.

[Taylor]

I don't think it's working in the US.
Qualifying that:
US is so scared of deflation at the moment that they are skipping the Hover years of the great depression and adapting the FDR method of spending your way out. Problem is that it's deflation that's maintaining the value of the currency at the moment, interest rates are at 0% so all they can do is spend and they can't risk a drop so they spend big. Hyperinflation in the US is coming. Either Hyperinflation or WW2, take two.

Is there a graph which shows the US economy vs war?

[MadDocker]

It's working for the USA. I still don't get how the have just printed a few extra trillions, without affecting the value of that currency.

This gets me also, makes no sense.

[g0zer]

whats the govt trying to achieve by handing out lump sum cash to people?

what real difference will $950 make to anyone on a personal basis?

is Australia's economic downturn going to suddenly turn around as a result of this action?

for lack of a concrete product from this, why do it at all?

[Nath]

what real difference will $950 make to anyone on a personal basis?

500cc barrels from the USA.. oh wai..

[PatB]

the ineptitude and extreme socialism of this government is astounding and scary but not really surprising. oh well, we'll all suffer the consequences.

It would appear that those well known socialist organisations the Chamber of Commerce and Industry and the Housing Industry Association disagree....

Initial praise for Govt stimulus package - ABC News (Australian Broadcasting Corporation)

[g0zer]

500cc barrels from the USA.. oh wai..

you should be buying australian nath.. support your local economy!

from
Initial praise for Govt stimulus package - ABC News (Australian Broadcasting Corporation)

ANZ senior economist Katie Dean says without the package the economic outlook would be much worse, but warns the boost to the economy will only be short term.

thats exactly what im thinking.. as inflation and the cost of living rises and at the same time unemployment.. is the govt going to continue to make larger and more frequent lump sum cash payments to their populace?

its unsustainable.