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Second stimulus package discussion

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cookiedude said:
Something I found floating around on the internet, sums it up nicely:

Sometime this year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that I will explain using the Q and A format:

Q. What is an Economic Stimulus Payment?
A. It is money that the federal government will send to taxpayers..

Q. Where will the government get this money?
A. From taxpayers.

Q. So the government is giving me back my own money?
A. No, they are borrowing it from China. Your children are expected to repay the Chinese.

Q. What is the purpose of this payment?
A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.

Q. But isn’t that stimulating the economy of China?
A. Shut up.
Click to expand...

Thats awesome, now only if the daily telegraph would print that on the front page, maybe the uneducated masses would see how bad this plan is
 
Beej said:
As for the purpose of the Future Fund, well that's arbitrary - it's for whatever the government of the day decides to use the money for.
Click to expand...

In a general sense, I agree with you except that Parliament must agree to certain legislative amendments where organisations and special purpose funds are established. On that basis, don't underestimate the Senate.

It happens to be one reason why I like the "unrepresentative swill" as one of our former acerbic Prime Ministers described that State-centric institution. Then again he did attribute Australia as being at the "**** end" of civilisation and he does like French clocks.
 
From Crikey.com.au -

US Reserve committee tips up to six years of downturn
Glenn Dyer writes:

According to members of the US Federal Reserve, the American economy faces four to six years of sluggish growth ... a period of downturn longer than has been forecast by any other economic policy setting group around the world.

The minutes of the latest meeting of the Fed's key policy group, the Open Markets Committee (which sets interest rates), show that at best the US economy can expect four years of below-trend growth, high unemployment and no real worries about inflation.

The Fed indicated it expects gross domestic product to decline by 0.5% to 1.3% this year, significantly worse than the October forecast of -0.2% to positive 1.1% growth. Unemployment is forecast to rise from 8.5% to 8.8%. GDP fell by 3.8% in the fourth quarter of 2008, and unemployment hit 7.6% last month, a 17-year high.

According to the minutes, some members of the Open Markets Committee don't see any relief on unemployment until well into 2011.

In the outlook section of the forecast, the minutes read:

Looking further ahead, participants’ growth projections had a central tendency of 2.5 to 3.3 percent for 2010 and 3.8 to 5.0 percent for 2011. Participants generally expected that strains in financial markets would ebb only slowly and hence that the pace of recovery in 2010 would be damped. Nonetheless, participants generally anticipated that real GDP growth would gain further momentum in 2011.

FOMC participants viewed the outlook for economic activity and inflation as having weakened significantly since last October, when their last projections were made.

Participants projected that real GDP would contract this year, that the unemployment rate would increase substantially, and that consumer price inflation would be significantly lower than in recent years.

Given the strength of the forces currently weighing on the economy, participants generally expected that the recovery would be unusually gradual and prolonged:

All participants anticipated that unemployment would remain substantially above its longer-run sustainable rate at the end of 2011, even absent further economic shocks; a few indicated that more than five to six years would be needed for the economy to converge to a longer-run path characterized by sustainable rates of output growth and and unemployment and by an appropriate rate of inflation (my bolding).

Participants generally judged that their projections for both economic activity and inflation were subject to a degree of uncertainty exceeding historical norms. Nearly all participants viewed the risks to the growth outlook as skewed to the downside.

It's not Fed policy and there was certainly no sign of a mention of this in a separate public speech by chairman Ben Bernanke today. But it does indicate how gloomy some of the major policy setters in America's most important financial institution have become.

And it's an important point because without a strongly rebounding American economy, we won't get a bounce elsewhere. If America's rebound is slow and tepid, then we face a much slower recovery here and around the world.

No-one in Australia, from the Government to the Reserve bank, is thinking along these lines, but if the Americans are right to any degree, the recovery here expected towards the end of 2009 and into 2010 will fade away.
Click to expand...
 
THE Federal Government has rejected research which shows its $42 billion economic stimulus package will not save jobs unless Australia's immigration intake is slashed.

In a paper to be released today, demographic experts warn that new permanent and temporary migrant workers will soak up the 90,000 jobs the package is supposed to support.

That is because the immigration intake will exceed the number of jobs the Commonwealth was trying to protect, The Australian Financial Review reports.

The experts advocate cutting the skilled intake to between 40,000 and 50,000 visas - down from a projected 133,500 - and forcing employers who want to import staff to prove that local skills are not available.

"It seems to me that this research could not be right,'' federal Employment Minister Julia Gillard told ABC Television.

"We are expediting the immigration of people who have the skills that we need.''
Click to expand...
http://www.news.com.au/heraldsun/story/0,21985,25081628-5005961,00.html

Ahh. Of course. Ms Gohard is more of an expert in these matters than the "experts".

"Saving face" seems to be just as powerful an instinct for Oz pollies as for their honorable Japanese counterparts. :banghead:
 
Calliope said:
NewsCom Headline

Reserve Bank minutes suggest Government stimulus will work

Well they would...wouldn't they?
Click to expand...

Unfortunately, history shows that it NEVER worked. The Japanese have acted far faster and in greater "numbers" when their economy tanked due to excessive debt and speculation. What happened? Still in a technical depression.
 
Temjin said:
Unfortunately, history shows that it NEVER worked. The Japanese have acted far faster and in greater "numbers" when their economy tanked due to excessive debt and speculation. What happened? Still in a technical depression.
Click to expand...

Tell you what if thats how stupid the Reserve Bank board is we're in worse trouble than I thought.
 
in the asian crisis of 1989/1990 Japan waited too long before a stimulus package was in...not done until 1995...it was too late...by 5-6 years....then they built concrete paths everywhere.as their share in infrastructure..and to provide jobs...they had a job for life program..so even if the employer was going broke he could not sack them...there is a very old population and no immigration...
its all out there for everyone to see..just google it...
so since Japan had all these problems for almost 2 decades...they are just doing now ..what they should have done almost 20 years ago...
but until Japan changes its attitude...its stuck in a rut...very bad management on all levels...
all the young ones have to look forward to ,,,is looking after all the olds...what a basket case
 
kincella said:
in the asian crisis of 1989/1990 Japan waited too long before a stimulus package was in...not done until 1995...it was too late...by 5-6 years....then they built concrete paths everywhere.as their share in infrastructure..and to provide jobs...they had a job for life program..so even if the employer was going broke he could not sack them...there is a very old population and no immigration...
its all out there for everyone to see..just google it...
so since Japan had all these problems for almost 2 decades...they are just doing now ..what they should have done almost 20 years ago...
but until Japan changes its attitude...its stuck in a rut...very bad management on all levels...
all the young ones have to look forward to ,,,is looking after all the olds...what a basket case
Click to expand...

Aged care is still one of the growth industries here too
 
The Liberals must be looking back with yearning for the good old days when they controlled the treasury benches, and Howard and Costello cemented their position as top economic managers by handing out unearned and unmerited largesse in the form of baby bonuses, first home owner's grants and other goodies.

The chickens they hatched have to be continually fed with borrowed money to win and retain the Top Economic Manager trophy. And the number clamouring to be hand-fed increases every day the downturn and bad economic management continue. One feeds off the other.
 
kincella said:
in the asian crisis of 1989/1990 Japan waited too long before a stimulus package was in...not done until 1995...it was too late...by 5-6 years....then they built concrete paths everywhere.as their share in infrastructure..and to provide jobs...they had a job for life program..so even if the employer was going broke he could not sack them...there is a very old population and no immigration...
its all out there for everyone to see..just google it...
so since Japan had all these problems for almost 2 decades...they are just doing now ..what they should have done almost 20 years ago...
but until Japan changes its attitude...its stuck in a rut...very bad management on all levels...
all the young ones have to look forward to ,,,is looking after all the olds...what a basket case
Click to expand...

Acting in front of the curve is the general point most miss.

Acting well behind the curve as you point out above means you are generally screwed and there is no room for error.

The other point is that its treasury and RBA advice currently driving Labors moves that comes from the memory of missing the boat in the last decent recession (they acted behind the curve)

But of course we are all smarter than the collective knowledge of treasury and the RBA.
 
when are we likely to receive the second stimulus, April?

jsut wondering as i have festival tickets to buy in upcoming weeks
 
Guys,

is this still included in the stimulus package? for sure 100%?

Small Businesses and General Business Tax Break

* A 30 cent in every dollar investment tax break for small and general businesses buying eligible assets.

How can i check what asset is classed as being eligible?
i want to buy a video camera to film my online shop products and add a small clip to each product. this would be ok yes?
 
This will explain it all:
Shortly after class, an economics student approaches his economics professor and says, "I don't understand this stimulus bill. Can you explain it to me?"
The professor replied, "I don't have any time to explain it at my office, but if you come over to my house on Saturday and help me with my weekend project, I'll be glad to explain it to you." The student agreed.
At the agreed-upon time, the student showed up at the professor’s house.

The professor stated that the weekend project involved his backyard pool.
They both went out back to the pool, and the professor handed the student a bucket. Demonstrating with his own bucket, the professor said, "First, go over to the deep end, and fill your bucket with as much water as you can." The student did as he was instructed.
The professor then continued, "Follow me over to the shallow end, and then dump all the water from your bucket into it." The student was naturally confused, but did as he was told. The professor then explained they were going to do this many more times, and began walking back to the deep end of the pool.
The confused student asked, "Excuse me, but why are we doing this?"
The professor matter-of-factly stated that he was trying to make the shallow end much deeper.
The student didn't think the economics professor was serious, but figured that he would find out the real story soon enough.
However, after the 6th trip between the shallow end and the deep end, the student began to become worried that his economics professor had gone mad. The student finally replied, "All we're doing is wasting valuable time and effort on unproductive pursuits. Even worse, when this process is all over, everything will be at the same level it was before, so all you'll really have accomplished is the destruction of what could have been truly productive action!"
The professor put down his bucket and replied with a smile, "Congratulations. You now understand the stimulus bill."
 

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