People seem to have an extremely narrow view of the Rudd Government's recently announced stimulus package. The item that is undoubtedly capturing the most attention and attracting the most debate is the one off 950 dollar payment to those earning under 100k per annum. Rudd has said the Government is willing to spend over 200 BILLION DOLLARS to get out of this mess.
Consider that for a moment...200 billion dollars, from where?
This is a debt that I will be paying off for years, my children will be paying off, and even their children will be paying off. Where is the sense in stimulating the economy in giving spooked consumers more cash which they will likely stash away?
In my opinion money should be invested in business and jobs, reducing ridiculous red tape and draconian taxes such as payroll tax (which penalise employers for employing people...wut?) and land tax (which was supposed to go out with the GST). Get those unemployed working again, they will start spending again, deposits will be made into the banking system and we will finally have consumption again. This current method proposed by Rudd is like resuscitating a dying man by massaging his foot. Stimulate the heart of the economy - business.
DS
Sunday, February 8, 2009
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