Stimulus Package
- Thread starter letiha
- Start date
hi all
interest rate drops do not make everything fixed.
for me this will make no difference at all
and they can do another 2 x 1% drops and that also will do nothing.
you need to increase the lending not reduce the interest rate.
reducing rates increases cash flow with borrowers that already have a loan.
but does not increase confidence nor development or increase spending into other areas
it will decrease if anything the available cheaper properties and for me fuel higher rental as the disposable income is put into moving up the rent food chain
for me unless you understand the problem and have a way of fixng it dropping rates is just a bandaid and not a good band aid at that
if mr swan does not know or mr rudd
how to get the economy moving give it to some one that does
who that person is I have not got a clue but from what I have seen so far these guys have not got a clue and think just keep reducing rate until it get to 0
maybe they have been going to the us to much
interest rate drops do not make everything fixed.
for me this will make no difference at all
and they can do another 2 x 1% drops and that also will do nothing.
you need to increase the lending not reduce the interest rate.
reducing rates increases cash flow with borrowers that already have a loan.
but does not increase confidence nor development or increase spending into other areas
it will decrease if anything the available cheaper properties and for me fuel higher rental as the disposable income is put into moving up the rent food chain
for me unless you understand the problem and have a way of fixng it dropping rates is just a bandaid and not a good band aid at that
if mr swan does not know or mr rudd
how to get the economy moving give it to some one that does
who that person is I have not got a clue but from what I have seen so far these guys have not got a clue and think just keep reducing rate until it get to 0
maybe they have been going to the us to much
1% interest rate is great 
YAY more saving towards an IP
as for the $950 I'm not sure?? How does it work if you are self employed. Both hubby and I are in the $$ figure for the handout I don't know how it being actually paid?? Are we going to get it at end of year?? If not *shrugs* I wasn't expecting anything.
Happy about the building inititives though...the flow through effect of that will be much better. (Gov't build "stuff" ...employs..tradies...they get wages...they spend wages...(might buy screens, blinds etc for their houses)...we get more work...we spend money...shop staff keep job...get wages...they spend wages...etc etc etc etc etc ...
YAY more saving towards an IPas for the $950 I'm not sure?? How does it work if you are self employed. Both hubby and I are in the $$ figure for the handout I don't know how it being actually paid?? Are we going to get it at end of year?? If not *shrugs* I wasn't expecting anything.
Happy about the building inititives though...the flow through effect of that will be much better. (Gov't build "stuff" ...employs..tradies...they get wages...they spend wages...(might buy screens, blinds etc for their houses)...we get more work...we spend money...shop staff keep job...get wages...they spend wages...etc etc etc etc etc ...
I agree with grossreal. This is a bandaid. One off payments do not fix anything and nor do lower interest rates. The first Home Buyers will be losing their jobs if they haven't already. What good is a home when you haven't got a job.
The Age of The Interest Rate is over.
This is now The Age of Unemployment. Maybe a fiercer enemy.
I also have a laugh at ploughing more money into the lower tax income earners when small and big businesses alike are feeling the pinch and buckling. Business owners such as ourselves are going to have to lay off those very people who received their silly one off payments and tax incentives so we can try and protect our own families from suffering any further losses and going under.
I wonder what Howard would have done differently? I doubt very much he'd be wasting money in handouts. People have to think of the economy as a pyramid. What starts at the top spreads out to the bottom. Without employers there are no employees.
Something about "biting the hand that feeds you" comes to mind.
Regards JO
Regards JO
The Age of The Interest Rate is over.
This is now The Age of Unemployment. Maybe a fiercer enemy.
I also have a laugh at ploughing more money into the lower tax income earners when small and big businesses alike are feeling the pinch and buckling. Business owners such as ourselves are going to have to lay off those very people who received their silly one off payments and tax incentives so we can try and protect our own families from suffering any further losses and going under.
I wonder what Howard would have done differently? I doubt very much he'd be wasting money in handouts. People have to think of the economy as a pyramid. What starts at the top spreads out to the bottom. Without employers there are no employees.
Something about "biting the hand that feeds you" comes to mind.
Regards JO
Regards JO
If it doesn't work in terms of economic outlook then so be it...I tend to also agree with GR on this point. I think the only part of the package that makes any sense in terms of generating growth is the money they are throwing at school infrastructure and the like...creating jobs and at the same time setting up a sector that has been badly neglected for years.
however anytime anyone wants to save me a few hundred bucks a month in interest payments and give me a few thousand because of my work and family situation - I am all ears!!
however anytime anyone wants to save me a few hundred bucks a month in interest payments and give me a few thousand because of my work and family situation - I am all ears!!
Sorry, but you are wrong. With every working Australian receiving money then a fair proportion of that is going to trickle back into the economy. A fair proportion of that is going to be spent in retail, which is Australias biggest employer. If retail trade is maintained then people in retail keep their jobs. Like you said, it's like a pyramid, employers need people with money to spend, without the people out buying in the shops then the employers won't need employees and it trickles down the pyramid, the delivery driver doesn't do as many deliveries, the suppliers don't supply as many goods and lays off staff, the company that makes the packaging doesn't make as much packaging, the people who pack the boxes lose their jobs etc. etc.
What isn't spent in retail will be spent in other areas by people like me (and no doubt many on this forum) who will use the money to put towards property improvements (I''ll put this money towards updating a kitchen ) which I would otherwise not have done. Clearly all this helps support employment. And yes, it is a band aid solution, it's meant to be! We are trying to stop the wound from getting any more infected while waiting for it things to heal up!
These one off payments are a good idea, because if they were delivered in the form of tax cuts to stimulate spending then the government would have forever forgone revenue. This "one off silly payment" adds money to the economy while still maintaining government revenue through taxes. I also think delivering the money in one hit is a much smarter idea and has a far greater impact than the effect of an extra $10-20 a week in peoples pockets would have had.
yeah nice! i always draw the comparison about that joke with 10 blokes eating dinner, and they get a discount for being regulars, then it all turns to sht.
Ssshhh!!!...don't tell anyone...I haven't finished buying yet.
On a serious note you are absolutely correct....new developments in residential property is at an all time low due to tightened lending! So rents will continue on the upward trend.
Till confidence returns....less buyers of homes also!
All good from my perspective.
On a serious note you are absolutely correct....new developments in residential property is at an all time low due to tightened lending! So rents will continue on the upward trend.
Till confidence returns....less buyers of homes also!
All good from my perspective.
This stimulas my not work for the economy but its working for me. My IP is now cashflow positive and I'm closer now to the second. I should be able to swing this within the next 6 months.
I was going to put insulation in my house anyway just haven't got around to it but I guess if Mr Rudds buying then I'll do it now
All this extra cash is just going towards buying more assets for the long term. I'm happy!
I was going to put insulation in my house anyway just haven't got around to it but I guess if Mr Rudds buying then I'll do it now
All this extra cash is just going towards buying more assets for the long term. I'm happy!
Hi all,
Josko,
In the US with the conservative government, they gave $700b in their TARP package, handouts to banks and corporations. Most of that money just disappeared into the debt black-hole. It did not seem to stop those companies from shedding workers, nor did it return confidence to the system, nor did it free up credit markets. Yet apparently it did allow some companies to pay out executive bonuses (in the $millions).
As Howard liked to follow Bush's actions, do you really think doing like-wise here would have helped the economy??
bye
Josko,
In the US with the conservative government, they gave $700b in their TARP package, handouts to banks and corporations. Most of that money just disappeared into the debt black-hole. It did not seem to stop those companies from shedding workers, nor did it return confidence to the system, nor did it free up credit markets. Yet apparently it did allow some companies to pay out executive bonuses (in the $millions).
As Howard liked to follow Bush's actions, do you really think doing like-wise here would have helped the economy??
bye
Couldn't have said it better myself, Sue.
Complete waste of my money. I would rather have seen one off payments go to Hospitals and the health system.
There is more than $12 billion in tax and cash bonuses to low and middle income families. $12 BILLION! I'm glad for the farmers and very low income earners but believe the middle income earners should have been left out in favor of small and big business.
My single income sister with 4 illigitimate children who lives in housing commission will be pleased...she'll be able to get more tattoo's for herself and her eldest child and then they can have a huge party with free for all alcohol. I suppose it is going back into the economy!
Strannik, Here it is in a Nutshell:
A $42 billion package consisting of:$14.7b for school infrastructure and maintenance;$6.6b for community and Defence housing;$2.7b small business tax break;$890 million for community infrastructure and road improvements;$8.2b tax bonus for those earning under $100,000;$1.4 billion for single income families;$20.4 million for farmers in hardship;$2.6 billion for children going back to school;$511 million for students and unemployed returning to training;Free ceiling insulation for around 2.7 million homes;An increase to the solar hot water rebate of $600 and a doubling of the Low Emissions Plan for Renters to $1,000.
Good for schools- very needed, as well as infrastructure. This will keep Council's happy and a small base of community laborers. What's the deal with ceiling insulation?
In regards to small business:
Gee wiz! Woopee! No need to worry about sacking three employees...we can buy a new computer!
What is the point of new computers if there is no work. REALLY!
Just cranky.
THEHEATH, the proof will be in the pudding!
Regards JO
I guess that's all we can do.."guess".
I see what you mean about the Bonuses, but there must be someway for employers to account for how the money is distributed.
If for example we could cut GST in half for small business, maybe raising the bar from 2 mil to 5mil as a SB requirement, this would solve the problem of cash handouts.
I'm obviously not the Treasurer but anyone can see this is a snow job.
Regards JO
Strannik-lethia's thread was referring to just that.
And by the way, letiha...I don't mean to direct any of my frustration at you and hope the bonuses are needed.
Regards JO
as long as the tax paid by banks on CC interest, and the tax +GST paid by those spending it make it's way back to the IMF through repayments for our deficit (didnt the IMF just BORROW 250bil from Japan...? WTF?) then all you working stiffs on PAYG will be slaves to the system, forever and ever, amen.
