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Rudd's $42Billion Rescue Plan

Discussion in 'The Economy' started by Jacque, 3rd Feb, 2009.

  1. Jacque

    Jacque Team InvestEd

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  2. davo6253

    davo6253 Well-Known Member

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    The size of this package is interesting, much larger than the previous stimulus package but still I see it as only a temporary solution. Once the cash handouts dry up surely the drop in demand will eventually hit, I mean they can only keep up the handouts for so long.
     
  3. Jacque

    Jacque Team InvestEd

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    Agree but the whole point is to recirculate that money back through the economy, to keep it bumping along. Adding to the budget deficit in tough times is a perfectly acceptable way for govts to handle spending and that's just what Rudd and Swan are doing. Not everyone is going to agree with the specifics, that's for sure.
     
  4. dudek

    dudek Well-Known Member

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    I have a feeling I already saw it once or twice in my live before. Mega hole in the budget and nothing achieved but talk, silk talk. Can someone enlighten me as of how this meant to help us to create jobs in Australia? Are we ever going to see real action and real projects coming our way? Where is NBN, education revolution and housing projects?

    Government gets big “F” from me.
     
  5. davo6253

    davo6253 Well-Known Member

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    This is why I am concerned with the cash handouts, very short term fixes that have absolutely no way of fixing the core problems if this global recession lasts as long as many are predicting it will.
     
  6. dudek

    dudek Well-Known Member

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    It looks like our government is just coping US. They also applied bandaids for the last 18 months ending up in bigger hole.
     
  7. dudek

    dudek Well-Known Member

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    My conspiracy theory is that our government is buying time and waits for the moment where we can jump on recovery ban wagon and claim credit for heroic handling of the crisis. All it takes is to dig and send some dirt to China to fix budget hole.
     
  8. Chris C

    Chris C Well-Known Member

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    The stimulus is not meant to be a long term fix, it is just meant to temporarily lighten the severity of the recession by marginally increasing government spending - ie pump the economy up for awhile until such a time when private spending and investment are restored and the economy begins chugging along again.

    This stimulus package is actually a mutli yeared stimulus package so obviously the government is looking to prop up the economy for quite awhile....

    :rolleyes:

    That said I will never understand why people look to government for support in times of crisis, they are sub standard managers in the best of times, and let's be honest, we have a treasurer with an Arts degree in public administration, and a Prime Minister with an Arts degree but can speak Mandarin. Am I the only person in Australia that cringes when old mate Swanny steeps up to the mic and attempts to talk economics and about how his government shall provide salvation. Ugh...

    At least with Howard, Costello, Keating, Hawke, you had a couple of successful law grads, a three time honorary doctorate recipient and a Rhodes scholar, respectively. The credential of the people that run this country have definitely taken a turn for the worse of late...


    This is quite debatable.

    Governments have a long history of making poor investment decisions. Usually they either opt for vote winning projects or party aligned interest projects. Ultimately the best thing government can do is generally get out of the way of the economy and look to make reforms that allow the economy to better self regulate, or if need be add the regulations required where the market fails. That's the best thing a government can do.

    However I can completely appreciate that it is in the governments interest to make sure the population is close to full employment. Revolutions are rarely kind to government that have left their citizens poor and hungry.

    :p

    No conspiracy theory there, that's the bread and butter of politics - passing the buck for mistakes and claiming superior governance when dumb luck falls their way. However Ruddy will be pretty lucky to see a full scale recovery by the end of 2010, though I don't think the public will crucify him for that assuming he doesn't do anything moronic.
     
  9. Billv

    Billv Getting there

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    I am not worried about the global recession, it will pass.
    I am annoyed that our taxes are just given away to be spent when we have massive underfunding of our infrastructure.

    There are not enough roads in our cities, many of our interstate motorways are still single lane, our railways are ageing and there is no long term plan for replacement and ofcourse there are no fast trains between our cities.
     
  10. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Giving money away is just a cheap way of fudging the numbers - makes the headlines look better: "economic activity improved".

    I would much rather the money just got spent on our hospitals, schools, roads, rails (v.fast trains please!), like it should have been in the first place (I think Howard govt was a bit too thrifty here - a lot of the money they hoarded should have been spent on infrastructure).

    It's time for some nation building, not for some populist politics and throwing cash at people with instructions to go spend it.
     
  11. Billv

    Billv Getting there

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    I know... it will make his next quarter look good and then what?
    Politicians get judged on what they do but also on what they leave behind.

    Kevin Rudd will be remembered as the primeminister who had the money and could have done something productive with it but instead decided to boost westfield profits......:eek:

    Why do we vote in people who have no vision for this country?

    John Howard will be remembered as a primeminister who also had the money and could have done something productive with it but instead he decided to hand it back to the tax payers.....:eek:
     
  12. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Turnbull opposes Rudd's 'reckless' package

    The 7.30 Report - ABC

    http://mpegmedia.abc.net.au/730report/av/podcast/20090204-730-stimulus_video4.wmv
     
    Last edited: 17th Sep, 2016
  13. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  14. Chris C

    Chris C Well-Known Member

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    Welcome to the welfare state my friend - the worst progression of democracy's evolution yet!

    Unfortunately all those infrastructure expenditures will take months if not years to plan and get underway by which time the crisis will have reached undesirable depths, but may well be over, leaving some ugly looking figures running into an election in 2010.

    And let's be honest as if the general public as a whole is really clued into what the best course of actions are, and even if they did know it's hard to turn down free and easy money, until you realise that the money is free or easy, but rather was already taken from you in the form of taxes or added to a debt which we are obligated to pay. The public doesn't understand that it was their excessive spending (or excessive borrowing to be more precise) that is really what caused the problem, but the government will be left holding the bag with the label of "poor economic managers".

    What Australia needs is forward thinking and honest government - unfortunately both are impossible at this stage with terms lasting only 3 years ruling out a governments ability to be forward thinking and all governments have vested interests that take precidence over public interests, so there goes honesty.

    Most of them aren't worried about what they are leaving behind, they are worried about being re-elected.

    He is only a year through his term, I don't think anyone is thinking about how he will be remembered at this stage.

    Because those with vision propose change, many people don't like change, and I'm not just talking about the voting public either. There are a lot of players in the game that are profiting very nicely from the way things are set up and don't want "change". Plus most "genuine" political visionaries end up assassinated.

    :rolleyes:

    Don't get me wrong, I dream of voting for a leader of this country that can make the reforms that are required to see us grow and prosper to levels that are to date unthought of, but at the same time I can just appreciate that it takes such a RARE individual to first make it into such a position and then step up to the plate. They'd literally put their neck on the line for the betterment of pretty much everyone other than him or herself plus they need to continue to appease all the encumbants. And let's be honest, you don't really gain or earn a lot being an honest PM of this nation (approx - $300,000/year). Anyone with the skills to be PM of Australia would make a crapload more in the private sector.

    Johnny Howard did a good job, he brought about reforms that definitely improved the country. The only thing I would have liked to have seen was Australia become a republic and more done on this front.
     
  15. Billv

    Billv Getting there

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    And so he should, I am very annoyed with this irresponsible spending.

    Even roof insulation could have waited till there was money to do this but Kevin probably had to please the greenies in his party....:eek:
     
  16. Chris C

    Chris C Well-Known Member

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    I completely agree! Though not for the same reasons...

    I mean how else can Malcolm prove to Australia that Ruddy is a terrible economic manager if he allows him to keep giving cash handouts all the time to help prop up the GDP figures to avoid a technical recession.

    :rolleyes:

    If Malcolm can just slow things up for a week or two, that should ensure most of the $950 is sent out right at the very end of March, rather than start and therefore have little impact on Q1 GDP figures.

    Ahhh politics, well played Malcolm, well played.

    :D
     
  17. AsxBroker

    AsxBroker Well-Known Member

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    Wow, all these payments will go towards the construction industry. Insulation and buildings in schools...I wonder why they don't give it to the NSW Health as their hospitals can't even pay bills...(Can a state government be insolvent?). If they paid some debts that would get money straight into the Australian economy! Obviously the Construction union has a bigger say than the Nurses union...
     
  18. AsxBroker

    AsxBroker Well-Known Member

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    Kerry had Malcolm over a barrel in that last one...
     
  19. Billv

    Billv Getting there

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    Don't worry about that, Kevin's spending machine is ready to go and money will reach us in a couple of days. :D.......:eek:
     
  20. Chris C

    Chris C Well-Known Member

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    You bet it can...

    With most states requiring multi-billion dollar bailouts, this problem could potentially lead to another multi trillion dollar bailout of the states...

    I think I read somewhere that California is on the brink and will need 100+ billion in the short term.