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Stimulus package

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Do you realise there are people out there spending up big time and although I'm not one of them I get stuck with part of the bill ? - this is BS.......

Cash splash lifts sales

Update The Government's cash splash is paying off with consumers driving retail sales higher than expected in March. Department stores were the big winners.

Sales climbed 2.2 per cent, seasonally adjusted, in March as consumers spent $19.3 billion for the month, Australian Bureau of Statistics figures show, reversing a 2 per cent slump in February. Economists had expected a 0.5 per cent increase.

''It's a big shock in retail sales,'' said JP Morgan economist Helen Kevans. ''It was a lot stronger than expected.''

''In anticipation of the cash handouts that were to be received in April and May, consumers went out and spent a lot on discretionary items,'' she said.

The Federal Government announced a second fiscal stimulus in February, aimed in part at shoring up consumer demand and averting a deeper recession. Big cuts in interest rates by the Reserve Bank and lower petrol prices have also freed up household budgets.

''The RBA has been stressing that they want to assess the impact of the stimulus on the economy and it looks from these numbers today that (it is) are working,'' she said.

Treasurer Wayne Swan was quick to claim credit for the strong sales figure, telling reporters, ''these numbers demonstrate the government's efforts ... are working,'' Mr Swan said.

He called them "undeniable proof that the government's economic stimulus package has been extremely successful in supporting a retail sector which employs over one million Australians.''
 
Yep, and they will all announce the recession is over!

But actually, I have been spending more recently, but it was not related to the stimulus package anyway. There are so many great, heavily discounted deals out there thanks to the recession!
 
The herds aren't really spending the stimulus.

2.7 billion was handed out in March.

2.2% growth in retail sales shows that about $400m extra was spent from Feb.

What about the other 2.3 billion??

Most people are saving it, or paying it off their credit cards/mortgage.
 
But actually, I have been spending more recently, but it was not related to the stimulus package anyway. There are so many great, heavily discounted deals out there thanks to the recession!

I agree. Just wait to the end of financial year sales come around too will be huge discounts!
 
I agree. Just wait to the end of financial year sales come around too will be huge discounts!

I think you're right there prawn, the sales this year will be the biggest of all time in all probability, it's their last chance to lift their annual figures and they will GO FOR IT !
 
Rudd has in effect put money on our credit cards (those who didnt recieve the hand out ) and given it away.
Why are only low income earners getting this anyway ? low income earners should be encouraged to save not spend, why not give it to the rich too, they would be more inclined to spend it because the dont have to save.
 
Rudd has in effect put money on our credit cards (those who didnt recieve the hand out ) and given it away.
Why are only low income earners getting this anyway ? low income earners should be encouraged to save not spend, why not give it to the rich too, they would be more inclined to spend it because the dont have to save.

Everyone knows you will only put it in your money room and swim in it, Mr Burns.
 
Rudd has in effect put money on our credit cards (those who didnt recieve the hand out ) and given it away.
Why are only low income earners getting this anyway ? low income earners should be encouraged to save not spend, why not give it to the rich too, they would be more inclined to spend it because the dont have to save.

Because Mr Rudd would like to appear to be doing something constructive, while also directly buying votes.
 
But actually, I have been spending more recently, but it was not related to the stimulus package anyway. There are so many great, heavily discounted deals out there thanks to the recession!
Agreed there.

I've got the paperwork here right now for the free solar panels I'll be putting on the house and will post it tomorrow. The government rebates cover 100% of the cost so it's literally free - they've even supplied postage stamps to return the forms.

And I've just been offered a $300 (per person twin share) 5 night trip to the Gold Coast. That includes airfares (from Tas) and accommodation. I haven't looked into it but it does seem to be a legit offer that's ridiculously cheap.
 
Agreed there.

I've got the paperwork here right now for the free solar panels I'll be putting on the house and will post it tomorrow. The government rebates cover 100% of the cost so it's literally free - they've even supplied postage stamps to return the forms.

And I've just been offered a $300 (per person twin share) 5 night trip to the Gold Coast. That includes airfares (from Tas) and accommodation. I haven't looked into it but it does seem to be a legit offer that's ridiculously cheap.

Well you do need to go to queensland to see what the sun looks like before installing solar panels.... think of it like a research project.
 
I agree with Mr Burns. I do not understand why we are getting $900 to waste. I could have asked for mine to go to the broken hospital bed my girl friend had to stay in emergency at RPA on the weekend or the IV drip with broken wheels that I had to carry around when she needed to go to the toilet. Maby they should have spent it on basic services and infrastructure instead of buying votes for when the tough times come. The money is not going to be there for the infrastructure projects they are proposing in the term of this government. Why stimulate the corporate greed that caused the problem in the first place?
 
I agree with Mr Burns. I do not understand why we are getting $900 to waste. I could have asked for mine to go to the broken hospital bed my girl friend had to stay in emergency at RPA on the weekend or the IV drip with broken wheels that I had to carry around when she needed to go to the toilet. Maby they should have spent it on basic services and infrastructure instead of buying votes for when the tough times come. The money is not going to be there for the infrastructure projects they are proposing in the term of this government. Why stimulate the corporate greed that caused the problem in the first place?

because the general public, the average voter has a me me me attitude.

Have you not noticed that we live in a welfare society, where people's wants and needs are provided to them by government handouts?

I agree, the problem needs to be solved by moderating consumption, both at a retail and housing level, but our government will try to spend its way out of a problem which overspending caused. All in the attempt to avoid the R word, and to protect Kevin Rudd's ego.
 
I agree with Mr Burns. I do not understand why we are getting $900 to waste. I could have asked for mine to go to the broken hospital bed my girl friend had to stay in emergency at RPA on the weekend or the IV drip with broken wheels that I had to carry around when she needed to go to the toilet. Maby they should have spent it on basic services and infrastructure instead of buying votes for when the tough times come. The money is not going to be there for the infrastructure projects they are proposing in the term of this government. Why stimulate the corporate greed that caused the problem in the first place?
Agreed 100%. I'd have been quite happy for the deficit to be increased to the level it is soon to reach if the money had been spent on essential services.
But it infuriates me that it's being handed out to many whose thinking will go no further than that it means Mr Rudd is a Great Bloke and they will therefore vote for him.

Rudd is the ultimate pragmatist. I despise him absolutely.
 
I despise him absolutely.

I don't think I've ever despised any leader of ours but this is the exception, the mere fact he is applauding people for going out and blowing money given to them for nothing, the only reason being to go and blow it, is just 100% wrong, this is despicable.
 
Good to know that 16,000 payments of the $900 were made to deceased estates.:(
 
Good to know that 16,000 payments of the $900 were made to deceased estates.:(

Yah that sucks.

I also heard a lot of Family Trust's with annual income flows in excess of 1/2 a million bucks claimed 5 or 6 payments for income-splitting beneficiaries. That sucks too!

Things are never quite as they seem! ;)
 
I don't think I've ever despised any leader of ours

Now you know how half the country felt about Howard - particularly over the past 5 years...... You either loved him or despised him, there was no middle ground. And by the way, Howard gave one off cash payments out as well on several occasions...

Re the stimulus payments, yea it kind of sucks. I got nothing and I pay/have paid a crap load of tax over the years. But it's not worth getting too worked up about because:

1) It's just a tax rebate - low income earners pay heaps less tax as a % of their income compared to higher income earners anyway, so just think of it as a temporary tax cut for those that got the rebate. I mean we don't go around seething/venting constantly about paying 40/45% marginal tax rates when you earn enough cash to do so do we? (Maybe you do Mr Burns! LOL). Personally I don't see the point in getting too worked up about such things. Also I don't recall too many high income earners offering to hand back the massive tax cuts received under Howard and also from this latest Rudd/Swan budget..... I can say that in my case I get more than $900 stimulus cash payment extra EVERY year from now on due to this years tax cuts.

2) About $22B has been spent in cash stimulus; it's not the primary cause of this years ~$30B deficit, or next FYs $58B deficit, or the general run up of commonwealth debt over the next 4 years. The debt is primarily caused by structural decline in general tax revenue, so we either get the debt, or we all get slugged with significantly higher taxes and cut backs in government benefits/services right now. The problem is this would kill the economy when it is already down.

3) Whether people spend it or save it who cares? It's provides economic benefit either way.

If none of this makes any sense have a read of Ross Gittins from SMH here for a good overview of what's actually going on: http://business.smh.com.au/business/stimulus-strategy-sorted-down-to-a-t-20090529-bq7g.html

From that article:

Clearly, you have to strike a compromise between timeliness and worthiness. Too few of the people blathering on about the stimulus spending understand that need for compromise and the clever way Rudd and Wayne Swan tackled it.

Their stimulus spending has gone through three stages: first, the cash bonuses announced in October last year and in February this year; second, the small "shovel-ready" capital works (on primary schools, road black spots, rail crossings, roof insulation and public housing) announced in February; and, third, the larger and longer-term infrastructure projects (on road, rail, ports and broadband) announced in the budget.

The cash bonuses' main virtues were that they were timely (they could be paid out within a few weeks) and, particularly in the case of the December payments, targeted at the people most likely to spend them because they were needy.

The shovel-ready capital works were timely (work could begin within a few months) as well as producing ongoing benefits to the community. They were targeted in the sense that they were selected to be quick-acting, needed and of social benefit, and also in the sense that there's no risk of the money being saved rather than spent in the first round of payments.

The major infrastructure projects are temporary (no commitment to further spending once the projects are completed) and targeted (in the sense that only the most beneficial projects were selected) but not timely (there will be delays before the projects are commenced and they may not be completed until well after the recession has passed). But, of course, they score highly on worthiness.

Because they came first and were more visible, many people have the impression that most of the stimulus spending has gone on "cash splashes". In truth, cash bonuses account for only $22 billion, a third of the $67 billion, with capital works and infrastructure accounting for most of the rest.

Cheers,

Beej
 
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