unions needed a swift kick in the behind. you cant hold a country's infrastucture projects to ransom and not expect retribution.
Stimulus Package
- Thread starter letiha
- Start date
the truth is most ppl only think about what the money will do for them. It's not free money. So ppl spent more money in december? what has that done for the economy? will it stop the job losses? will it create new jobs?
even tax cuts won't help ppl without a job. It's a short term fix but the problem is that there won't be any money for a long term solution if we keep increasing the deficit.
Countries that are worse off than we are...there's no stimulus package. They are not 'throwing away' money.
The money should definately go towards schools, pensioners, small businesses etc
PPL are celebrating low interest rates, free money, FHOG etc but can't you see how desperate the situtaion is? that is why this is happening and nothing to be happy about. A lot of people are going to struggle...maybe not you personally but spare a thought for others.
I have so many friends in UK who have been made redundant or their jobs are on the line. It's pretty obvious that Oz is going to follow suit. Even with the FHOG, agents are finding the market very tough atm. Properties are not moving.
What is with Oz and these hand out mentalities? yes we are in a lucky country but sometimes it really sickens me. Women complaining coz their kids are just shy of 4y.o so won't get the $950 per school child.
But nothing will prevent this recession that we have to have because it's a correction...maybe will even finally correct ppls mentality that debt is not a good thing to get yourself into. All the great MBA students that learn that debt is good if you can use it to make more money and they get employed by huge corporations and drive it to the ground.
even tax cuts won't help ppl without a job. It's a short term fix but the problem is that there won't be any money for a long term solution if we keep increasing the deficit.
Countries that are worse off than we are...there's no stimulus package. They are not 'throwing away' money.
The money should definately go towards schools, pensioners, small businesses etc
PPL are celebrating low interest rates, free money, FHOG etc but can't you see how desperate the situtaion is? that is why this is happening and nothing to be happy about. A lot of people are going to struggle...maybe not you personally but spare a thought for others.
I have so many friends in UK who have been made redundant or their jobs are on the line. It's pretty obvious that Oz is going to follow suit. Even with the FHOG, agents are finding the market very tough atm. Properties are not moving.
What is with Oz and these hand out mentalities? yes we are in a lucky country but sometimes it really sickens me. Women complaining coz their kids are just shy of 4y.o so won't get the $950 per school child.
But nothing will prevent this recession that we have to have because it's a correction...maybe will even finally correct ppls mentality that debt is not a good thing to get yourself into. All the great MBA students that learn that debt is good if you can use it to make more money and they get employed by huge corporations and drive it to the ground.
lol exactly! I spent more in dec than I did in the space of 3mths
the govt is squandering billions and creating a budget liability that will take years to recover from and I haven't seen a red cent. If my child was over 4, or if I was a farmer, or if if if... why all these dam arbitrary lines in the sand? If spending money is good just print a wad of $100's off and send it to everybody. Then we can all go buy some imported rubbish that will be landfill in 3 months time. who needs infrastructure when you can have a new pair of Nikes? hey I'm a farmer... cough up
LOL! Yeah and no Government (state or federal) has the ability to squander this?
The fact is a big part of why we are in better shape because of our low levels of foreign debt. It puts us in a much better position then most. You can twist that any way you want but it is fact. And in the lead up to the last election Labor criticised the Liberal Government for this! They are very quiet on this point now Howard would be doing EXACTLY the same thing as Rudd, and Rudd would be the one crying that it was irresponsible.
The Howard government was the most generous benefactor of middle class families EVER. He would be splashing the cash around for sure
People...who gives a rat's about what Howard would or wouldn't have done...he's not in power so its purely academic.
It's what this governement is doing with our money in their moment of panic that we should be concerned about. If this package gets through , then of the 50 odd billion (10 before Chrissie & 42 after) some 22B is going in cash hand outs.
I have a huge problem with this!
The problem with such handouts is that it's a "guess" as to whether or not it's going to work. They are hoping that it will stimulate the economy. Its kind of like a business advertising because they think it will be good - if it isn't targeted then its guaranteed to be a waste of money. This is just throwing money out there to see what will happen.
Well, that's not good enough!
It's what this governement is doing with our money in their moment of panic that we should be concerned about. If this package gets through , then of the 50 odd billion (10 before Chrissie & 42 after) some 22B is going in cash hand outs.
I have a huge problem with this!
The problem with such handouts is that it's a "guess" as to whether or not it's going to work. They are hoping that it will stimulate the economy. Its kind of like a business advertising because they think it will be good - if it isn't targeted then its guaranteed to be a waste of money. This is just throwing money out there to see what will happen.
Well, that's not good enough!
Nate, I think you've misunderstood it.
December is always a big retail month. I assume what they mean is that spending in December 08 was 4% higher than in December 07. That would make sense to me.
Scott
You are right scott... but i still think that the arguments raised regarding massive drop in IRs, and it being a very lean year up until then are valid.
I know i personally spent a lot more in xmas 08 than i did for xmas 07 - purely because i had more money in the back pocket thanks to lowered interest rates. I didnt receive ANY govt handout.
I would suspect that the majority of th eboosted xmas spending was from middle class families (who received no govt handouts). They just got the interest rate on their $400K-600K mortgage slashed by 2% over a couple of months, and suddenly the household budget is better off by around $800/mth!!
I dont know about you, but if I was a parent and i'd just had a stressful and lean year on >8.5% rates, and suddenly had my rates dropped 2% giving me another $800/mth, right at xmas time - i'd go out and shower my kids and family with pressies to make up for the rest of the year being so tight.
I dont think the govt handout really made the difference they claim it did. I believe the drops in interest rates had more to do with it.
Yep, the falling interest rates were definitely a factor.
I know Gerry Harvey said he didn't benefit, but if the Harvey index didn't show anything, I bet the Liquorland index did.
Interestingly, 75% of people who were on variable loans and able to reduce their payments opted to not do so i.e. they kept their payments high to chip away at their principal. And of the 25% who did reduce their payments, many used the resulting cash flow to pay down CC and other debt.
I thought the fact that 75% of people didn't bother to reduce their payments was amazing - so much for mortgage stress.
Scott
I know Gerry Harvey said he didn't benefit, but if the Harvey index didn't show anything, I bet the Liquorland index did.
Interestingly, 75% of people who were on variable loans and able to reduce their payments opted to not do so i.e. they kept their payments high to chip away at their principal. And of the 25% who did reduce their payments, many used the resulting cash flow to pay down CC and other debt.
I thought the fact that 75% of people didn't bother to reduce their payments was amazing - so much for mortgage stress.
Scott
I am reading the article again.
Did it mean 4% jump from November or 4% jump compared to December 07?
It is kind of unclear.
Did it mean 4% jump from November or 4% jump compared to December 07?
It is kind of unclear.
Do you have a link for that info? That is extremely surprising...
The 4% jump is seasonally adjusted.... so they aren't comparing it to November '08.
It looks like the stimulus is being saved rather than spent.......
Westpac had this to say
I doubt it did either. Waste of money! Don't get me wrong, I don't begrudge those who got it - my parents are pensioners - but it was never going to do what they intended it to do. Even if it did, it's no more than a blip on the radar, as will this next $12B waste be.
If I'm struggling as a retailer, will one brief boost of sales in December then back down again really save me from going under if that's the direction the business is heading?
sorry need to remove this
Last edited:
As well as the wedding industry! I am currently planning a wedding and every wedding type business I speak to say they are doing extremely well.
There was even a segment on one of those 'non-biased, fact driven' current affairs shows about weddings holding the economy together..
It doesn't surprise me.. thousands of weddings each weekend, average cost of a wedding 20k ..
AVERAGE IS $20K?
Try $35K and above average. People are not shocked at being told to pay $180 each person for the reception these days. It is insane. I still feel the pain for paying $2,500 for my dress.
Try $35K and above average. People are not shocked at being told to pay $180 each person for the reception these days. It is insane. I still feel the pain for paying $2,500 for my dress.
