Recession/Interest rates. This is going to end badly!

[silversands]

I wish it was mandatory for all new workers in a small business to read something like this.
We've had workers who think it's ok to swipe stationery, use the phone excessively for private use, let their friends have staff discount or freebies, put their hands in the till, complain that they don't get enough comfort breaks to go out and smoke in, whine about working the occasional weekend when they have happily stated they will do it when they apply for the position, and phone to say they can't come in to work because their pet gets freaked out in a thunder storm and they have to stay with it! The list goes on and on.

To some reading this would make no difference whatsoever, but to others it might make them think twice about how "Lucky " the owner of the business they work for is.

 

[boz]

OK, following on from Granev's excellent lead. Here's a little food for thought...




Michael

Things are not so simple, generally I agree completely that help to businesses is much more nedeed then grants for spending and to fuel price bubbles. In any case, depend what the business is about. Also why should be bother working so hard if you get the same item from hard working chinese for a fraction of the price? may be it is much better to sell the chinese what they need to build what all we need and tell them how to do it and check they do it well. At the end we are all happy and we don't get to work too hard.
The difficoult point is that you have to analise what businesses you have in australia and what they do. When you look at the company lists, a part mining company, farming and car industry where enough has been done (like devaluating the AU$ for miners and farmers and subsidy for carmakers), I can see big retail giant like david jones, woolworth, etc, or big banks. What is best for them then flog any australian with cash? same thing for small businesses lie plumber or handyman etc.
The system in Australia is not too bad, was just that in the last 10 year the spending got over the edge and first or later will have to be set to a sustainable level, the government is probably just try to get a soft landing.
I am not sure it is the right choice as they throw away a lot of money and hard landing is not much worse then the soft landing, after all, 42 bil$ is a lot of money could have been spent towards the new unemployed. I remember that with 42 bil$ is a LOT of money, something like 20k$ to 10% of australians (2,1 mil australians) for 1 year...

 

[TheAnalyst]

hard landing is not much worse then the soft landing

I agree. The cancer has to be removed. The ointment can not cure the cancer.

 

[MarkB]

The argument could be made that the "heart" of the Australian economy is actually the public sector.

According to Treasury's Pocket Guide to the Australian Tax System Australia's total tax take [read "income of the 3 levels of government combined"] is ~ 30% of GDP (the reference is for 2005 figures).

They then spend it where they see fit (and every 3 years or so you all get a chance to tell them how good or bad at that they are), and I guess it is both the raising and distribution of those taxes, that MW's post is objecting to.

One point I will make about deadbeat solo mums (example in MW's post) is no amount of tax relief for the disgruntled entreprenuer will ever get her off her bum and into meaningful employment.

And I very much suspect her capacity to save is close to nil, so virtually every dollar handed to her will end up in someone else's pockets.

I'm not saying Government's shouldn't do more to help businesses, but if you want to help all in society (that is what advanced nations do, they aim to help all) sometimes, quite often even, you have to start at the bottom.

 

[buzzlightyear]

I'll admit I'm biased, but I can't comprehend why so many people couldn't see Labor doing this all over again.

And just in case people didn't think old Labor (movement) is actually new Labor (movement). Food for thought.

Trade protectionsim and old union rhetoric around 'foreign workers' undermining employment standards. Yes, it is 2009 not 1959.....

 

[Ajax]

UK-Bank of England key interest rate cut 0.5% to 1%

http://www.ft.com/cms/s/0/74806140-...uid=70662e7c-3027-11da-ba9f-00000e2511c8.html

UK interest rates cut by half a point to 1%
By Norma Cohen

Published: February 5 2009 12:00 | Last updated: February 5 2009 13:17

The Bank of England’s monetary policy committee on Thursday cut its key interest rate by a widely-expected half a percentage point to 1 per cent

 

[Nathan]

http://www.ft.com/cms/s/0/74806140-...uid=70662e7c-3027-11da-ba9f-00000e2511c8.html

UK interest rates cut by half a point to 1%
By Norma Cohen

Published: February 5 2009 12:00 | Last updated: February 5 2009 13:17

The Bank of England’s monetary policy committee on Thursday cut its key interest rate by a widely-expected half a percentage point to 1 per cent

YUM!

*dumb extra sentence to pass minimum characters*