Australian stimulus package or bailout
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As most of you who read my Hubs may have noticed I have steered away from writing anything political, other than the odd corny shot at our leading Politicians.
Well that has now changed forever, we cannot sit back and let this great country of ours be run into the ground.
Yesterday the 3rd of Febuary 2009 the Australian Prime Minister Mr.Rudd announced that his government would dish out $42 billion on a "Nation Building and Jobs Plan" to support jobs and invest in future long term economic growth.
This is on top of the $14billion he already doled out in December 2008.. More about that later.
The new $42 billion Package
It is estimated that the Nation Building and Jobs Plan will support up to 90,000 jobs in 2008-09 and 2009-10. News has just come out that the unemployment rate has risen over 5% with a sharp increase expected.
Mr Rudd announced that Key measures will be funded by the Nation Building and Jobs Plan include:
Free ceiling insulation for around 2.7 million Australian homes
Build or upgrade a building in every one of Australia’s 9,540 schools
Build more than 20,000 new social and defence homes
$950 one off cash payments to eligible families, single workers, students, drought effected farmers and others. It is possible that families will get more than one cash payment.
A temporary business investment tax break for small and general businesses buying eligible assets
Significantly increase funding for local community infrastructure and local road projects.
The Government claims that for every $1 spent providing immediate stimulus to the economy the Government has invested more than $2 on long term investments that will generate future economic growth.
Previous package
Don't forget it was only in October 2008 that Mr Rudd's Labor Government dished out A$14.2 Billion, in a hand out to Pensioners etc.
The Previous Package which was called
Economic Security Strategy
The Rudd Government delivered a $4.8 billion down payment to Australia's four million pensioners, carers and seniors - providing them with immediate financial help in the lead up to comprehensive reform of the pension system.
The $4 billion down payment for pensioners was made available through a lump sum payment of $1,400 to single pensioners and $2,100 to pensioner couples, which has benefited:
- Age Pensioners;
- Disability Support Pensioners;
- Carer Payment recipients;
- etc.
At the time the Package was heavily criticised because it was believed it would have been better paid out in a fortnightly amount in the payments.
The response was that the Government wanted to get the money out before Christmas so that the Retailers , Harvey Norman, Myer, David Jones etc. would get the extra spending, and stimulate the economy.
Well guess what happened. Oh yes you guessed right.
It has been anecdotely reported that up to 60% of the hand out was sent offshore for some reason or other. and the amount of money going through Poker Machines increased by $16million . Go figure.
The next hurdle for the Rudd Government is to get this massive Package through Parliament.
At first it looked like it was going to be a Bi partisan approach, but our illustrious Opposition Leader Mr Tunbull has said. Hold on there Pardner, what about all my mates who earn big dollars they don't get anything out of this little lot. How about we throw in some Tax Cuts while we are at it.
So on the 4th day of Febuary our great and fearless leader got his first big oops
So stay tuned folks
This Hub to be continued....
Updated 11.th Febuary 2009
If you are not aware Victoria has experienced over the last weekend the worst natural disaster in our history by nature of a massive firestorm which has claimed many lives and demolished many houses and animals.
I have written a Hub if you are interested called "Today-we had a visit from Hell"
Parliament has been suspended because of the tragic circumstances of the Victorian Bushfires.
Update 12 Febuary 2009
The Stimulus Package was defeated in the Senate by one vote after the Rudd Government could not convince Independant Senator Nick Xenophon to vote for the package.
The ABC has a full report on the Defeat of the Government Package.
Wheels and Deals will be spun and the Bill will be resubmitted later today.
13 Febuary 2009 Friday
After doing a deal with the Government for nearly a $1 billion to carry out work on the Murray-Darling Basin , Senator Xenophon voted with the Government to pass the Stimulus Package. The Government is busy today in Parliament painting the Opposition as the Black Hat bad guys.
14 Febuary 2009 Saturday
Lissie another Hubber much more attuned to the details than myself has published a blog outlining in more details, what will be available in the Stimulus Package.
17 Febuary 2009 Tuesday
A fall out from the bad showing of the oppositions handling of this situatation is the resignation of deputy opposition leader Julie Bishop from the position of Shadow Treasurer. She retains the Deputy Leadership position.
Malcolm Turnbull has appointed "formidable communicator" Joe Hockey as the new Shadow Treasurer, should be an interesting time in parliament.
It looks like Peter Costello has not got over his little "dummy spit" as yet!
21 April 2009 Tuesday
Today it was announced by the Governer of the Reserve Bank of Australia that Australia is officially now in Recession. We are not expected to have any recovery any time soon.
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Comments
Pam thanks for the comment, it was actually your great hub that gave me the inspiration to go Political. I think it is time for people to stand up and be counted.
Thanks for the motivation and taking the time to read my Hub.
Ag
These are interesting times we're living through. At least your government is trying to do something even if it turns out to be the wrong thing. In a way they're damned if they do and damned if they don't. Our dear Mr Brown is announcing new schemes left, right and centre. Most of them are quite useless and doomed to fail, but I suppose he has to do what he can. What a pity he flogged off our gold reserves at rock bottom prices before the economy hit the skids!
Amanda-- you are so right, they are damned if they do, damned if they don't. Obama has been in office barely two weeks and already the news media is laying into him for not fixing this mess and for trying to push through the stimulus package. After two weeks! lol! Talk about harsh...
The Republicans are hedging their bets here, hoping that if they oppose the package and it passes and fails, they will look like heroes in the next election. I hope people here aren't that stupid.
I think the fact that so many countries are throwing so much at the problem all at once shows the fear and desperation behind the actions. Here, we all know that if the stimulus doesn't help, we are so cooked. Really, there's no other ideas out there.
G'day Amanda,
These times we live live in have gone way past "interesting". The words "desperate", "stuffed" and as one of our ads for lamb chops? says "the economy is "rooted' ??? loll.
Kevin Rudd has gone on national TV postulating about how he is going to hit this problem with everything at his disposal. In my book he is putting his position on the line as he has only been in power for a little over 12 months.
I do not like to comment on other countries woes but from what I am gathering from yourself and other Brits your Mr Brown is not endowering people with confidence??
Amanda are you sure you do not have some gold bullion stacked under that bed of yours?
Remember we must still find time to have a laugh. ;-[)
yes then you have sweet Queen Pelosi who from what I read somewhere costs the taxpayers 480,000.00 dollars a month for her to fly Calif. for her 3 day job...thousands of gallons of gas on the 200 seat jet she uses...non-stop...she wants us to conserve our carbon footprints...hummm? And it makes me sick when I think of our military families here doing without while she spends our tax dollars for her comfort...
I am not one to get into these political discussions either..so I better stop...G-Ma :O) Hugs & Peace
Pam, although you say that Mr Obama has been in office for 2 weeks, from our perspective (me) it does not look like he is doing a lot. (now I do know that is not true, it's just how it looks). It looks like he needs a PR fix, you know, come out bang the table, get tough. "this is what we are gonna do" sort of stuff?
I don't know if would work in America's case but when Mr Rudd got into power he immediately called a "gab fest" over one weekend with people from all walks of life attended, I believe about 2000. It was over one weekend and well organised.
It was lambasted in the media as a waste of money, but it is only now that some of the benifits are bearing fruit. It just might be worth a try?
G'day G-Ma J, wow I had not heard about your Q/Pelosi , she must be really important to warrant that sort of treatment, I get p...d off about this carbon footprint thing.
G-Ma things must be pretty bad when people like you and me ( the silent generation) are stirred to make political comments. My personal choice is to lead a nice quite life with my family.
But I have realised (albeit a bit slowly and some prodding by some friends here like Pam and Earnestshub) that it ain't gonna happen.
So G-Ma lets do what we can and tell these guys that we want to leave this world to our grandkids in a better way. Not just economically but ecologically to?
G-Ma , :O) Hugs & Peace right back at ya :-[)
Awww...thank you Angel...I am with you totally and all the way...G-Ma :O) Hugs & Peace
Aus $ 42 billion seems like pocket change compared to USD 900 Billion. I guess Australia is doing much better than US hence no need for massive bailouts. Nice information. Btw can you send me your email address?
I usually don't make political comments, either. Well, we *would* be getting the stimulus package if Malcolm Turnbull hadn't held it up in the senate. You'd think, using the Bonsai's (aka Howard) words here, he has a mandate or something. Must email his office and tell him what I think of the Lib's hypocrisy in pushing bills through the Senate in their last couple of years in office.
What has amazed me is that most of the Australian public *believed* the Liberals when they said that we'd ride out any recession because of the minerals boom. That was never, never, ever going to be the case. I tried to tell my friends as much and it fell on deaf ears. My family has been in the mining industry (coal) for three generations, and it's always been boom or bust.. Right now with demand waning in China we are headed for bust, big time.They will be seeking cheaper markets to get their minerals from, and I'm betting that will be Africa or maybe South America.
The works programs that Kevin Rudd is trying to implement are basically the same way they combated the Great Depression. Those works programs were to keep food on the table, but they didn't create sustainable work. They are a stopgap, no more. Waiting for better times. The irony is, of course, that the Depression only really started to lift because of World War 2. I hope this doesn't come to that. :-(
ps: Countrywoman, we don't have the kind of cash the US does. We've only got a population of just above 20 million. I suppose you can only work with what you have.
countrywomen thanks for your kind comment.
Although it does not sound much per capita it is a very big package and will certainly drive us into deficit for a long time.
If you email me through the contact agvlupes button I'll get in touch with you, I have tried to email you before and it did not work?
Hovalis, thanks for dropping in and adding to the discussion, as I said above this hub was to be continued.
I do agree with you that Mr Rudd got his mandate but that does not mean that the opposition should just sit idly by letting every piece of legislature go through without debate.
Even the Greens have come out now and not agreed with some aspects of the package.
Today I was not impressed with Rudd's bully boy tactics against Turnball, he should learn to play they ball not the man.
If he wants people on his side tell them what they want to know and don't be afraid to say "oops OK I'll change that".
I also don't like the way they have said the package is going to be implemented.
"Fast Tracking" everything and overriding existing laws and authorities!
I agree with you wholeheartedly about China. I believe they will tear up a contract at the drop of a hat.
China is not traveling as badly as some people may think, they only tell us what they want us to know.!
I can remember the results of the depression and I believe that some guy with the initials AH used it to great advantage. We do not want that to happen again!
Call me cynical, but that's the way the game is played in Canberra. Name calling and pontificating is all part of the game. It's been happening since I've been knee high to a grasshopper, and for the most part I ignore the mudslinging. The Liberals did the same thing when they forced the WorkChoices legislation through. What concerns me the most is that there doesn't seem to be a really good alternative strategy from either side of the fence. They are *all* flapping in the wind trying to prevent the slowdown. You remember all the bitterness about Keating telling the triuth about the "Recession we had to have"? Well here it is again. I just hope we can ride out the worst of it.
Personally, I don't believe anythng they do will stop the fall. Lessening the impact, though is what we need. I don't have an answer and I don't think anyone in Canberra does either.
I agree with you about China. Everything coming out of there is heavily censored. We all know that. What I think will happen with the mines is that the contracts won't be renewed. And orders will drop. Those two things combined will see the end of the boom.
You're in Melbourne? I hope you've got some cooler days coming soon! I'm in Sydney and we're about to get the tail end of that heatwave you've been having. I'm not looking forward to it at all.
Great hub agvulpes, I have been waiting for you to come out of the corner and blaze away at our poor pollies. Shame! How could you even suggest that our illustious leaders could get it wrong! Seriously I fear we will be giving all the money over to fill a bottomless pit of debt that originated offshore and was always going to be too big a patch for our small economy to cover. I will be waiting to hear more and hope we can finally flush all the debt out and see how much we really owe.
Hovalis, yes I don't think name calling ever broke any bones, but it just makes me wonder why Mr's Rudd and Swann are so hell bent on pushing this package thru without proper scrutiny. When you think about it we are going to be in deep do-do for a long enough time as it is, so lets at least get this package as good as we can get it.
As far as I am concerned Mr Keating can take his "recession we had to have" and his Banana Republic (which almost caused a recession on its own) and go and jump in that proverbial lake!
You know one good thing about the China problem is that when all this is over the resources that China are not buying will still be in the ground ready to be sold to someone else. The money that is being lost on the stock market is gone Pht up in smoke!
Yes it is going to be hot tomorrow they are forecasting a record here tomorrow, about 44-45C.
President Obama was out yesterday banging on the table, as you say! lol!
Seriously, he met with all his greatest oppostion over and over these past two weeks and now that it dawns on him they aren't going to do anything by create trouble he's taking the gloves off. My perspective is, they had the last 30 years to get it right, and this is what they gave us--so if they have to sit on the sidelines for 4-8 years, it's fine by me. But he wanted everyone to work together. Ain't gonna happen.
In fairness, I think all of them, both parties, are behaving like children. Here we are facing Great Depression II and all they care about is how they look in front of a camera. It's kind of sickening.
earnestshub, why should I let you youngens' have all the fun.
I and my generation worked bloody hard to make this country what it was, and I reckon you must have too.
We just cannot sit back and let these white collar boys tell us to tighten our belts while they grant themselves pay rises whenever they feel like it.
If these pollies want my respect let them have a meeting and say "OK people we know that everyone is hurting, we are going to do our bit and take a 10% pay cut"
When do you think that will happen? ROFLMFAO :-[)
ANd this is the reason I usually steer clear of politics. Believe it or not I'm your classic swinging voter. I don't favour any political party, but the Howard government left a bad taste in my mouth, and I've not found anything to wash it out. They were complicit with what is happening now; their policies brought a lot of it on. I will fully admit to being very biased against the remnants that remain in Canberra. And I'll fully admit it's an irrational bias. I don't trust them as far as I can throw them, To tell the truth I have not that much more trust in Labor, but there you go!
Now we all have to sit back and see what happens. But if I think that Turnbull is just grandstanding with no reasonable solution in sight then I will email his office and have my say. I'll do the same for Rudd, Democracy in action. I've emailed my local member before, but that was on a totally different matter, a conscience vote that I believed strongly in (The RU486 conscience vote).
I hope you're somewhere with aircon, and that you don't get the blackouts you've been having. We've only got a forecast of 42C for tomorrow, and 44-45C for Sunday. I'm hanging out for the southerly change. My aircon picked now to break down.
Pam, thanks for taking the time to comment,
I think that Pres Obama must still have his gloves on when he bangs the table.lol !
Do you think that it has finally dawned on him that he will not get the honeymoon period usually afforded to most incoming leaders?
I think you are being too kind to these guys , in my book they have had since WW 2 to get this right ( and I am not just talking USA here) and what have they done . They have well and truly "stuffed" it.!!
Pam you are so right it sure makes a person want to puke when you see them get up for their 30 sec grab on TV.
Postulating like kids
They way it is heading the Great Depression will seem like a Tea Party!
Ag you're getting very heated Down Under, and I'm sure it's not just the weather by your tone. This recession is sweeping the globe, and all our assorted governments are trying hard to deactivate a ticking time bomb. I was talking to a relative in Southern Ireland earlier this week, and things are not so great there either. We're going through a period of radical de-construction. The edifice of civilisation as we know it was built on shifting sands, and it's time for a re-think. The biggest thing that has to happen is that the wealthy and great need to start re-distributing some of their stockpile, either through philanthropy or taxes, I don't care which.
Amanda thanks for your comment I am hot under the color in more ways than one.
I am writing another Hub to let everyone know that Victoria as I write is in one of the worst bushfire threats in our history. Keep your eyes peeled in about 1 hour?
I have relatives in Shepparton and Benalla. Are things really that bad?
I am listening to the radio at the moment. I can tell you the Hume Highway is closed around Broadford. I do not think the fire is as far North as Shep or Benalla.
Keep in touch and I let you know if I hear anything.
Thanks Ag
Wow updated fire news in Australia on hubpages - now I've seen everything! At least Rudd is giving cash - I may be wrong but isnt the US only bailing out companies?
G'day Lissie, it's my way of letting off nervous tension, we have been on knife edge all day watching smoke on 3 sides of us.
I think you are correct as far as I know US is not giving money to individuals.
Mr Rudd, if the bill gets past is putting most of the money into infrastructure and low income people.
I think that throwing money at this server no useful purpose, and the 200 billion will be gone in no time.
From there, it's not to far too a trillion dollar package if they repeat the process a few times.
(But I'm probably pissed off because all the wackers who didn't give a rats about insulating their homes are now going to get it done free of charge, courtesy of the australian govt)
Oh well, there'll be planty of employment for insulation installers.
Giving money to low income earners and putting into infrastructure sounds like a sensible approach. Much better than giving it to the bankers to spend on bonuses and parties!
Eric, you mean courtesy of the Australian Taxpayer?
Not to mention the profits and profiteering opportunities for the manufacturers.
But where did you get the 200 billion figure?
Pulled it out of my hat. Like the trillion dollars.
Just to see if anyone was taking notice.. You've won a mintie. :-)
Eric, thanks for the mintie, send it by email, I'm starting to stockpile any non perishable food stuff.
Yes I do read my comments and take them quite seriously, even the funny ones.
It does look like the US is gonna burn that money does it not?
;-[)
i'm studying full time doing a 6 month course and have worked all of 07/08. Will I be eligable for the education and work cash handout? I earned unde the tax free threshold?
ivan, I cannot offer you any advise as I am not a financial advisor. I would suggest that you visit the Centrelink website. I have put a link here:-
LOL agvulpes welcome to the online world of stupid questions. I admit that I have been flogging this one for the traffic for a while and am now fully-informed as to who is going to get what! BTW its not just low income earners - you could have earned up to $100k last year and staill get a payout - and you also need to have earned around $11k otherwise you won't have paid any tax - so the above quesioner won't get a payout on income but may get one if they have Austudy or Youth Allowance - read all about it in my self-promotional link here http://australia.today.com/2009/02/13/payout-bills
G'day Lissie , I thought I would let the question go through to the Keeper. lol I just wonder how someone who has earned $100K a year will spend their money, maybe they will buy another case of Cab/Sav perhaps. I guess that should help the economy? I often mull over the question of where the pollies get the information from to make up these plans. Maybe it is compulsary to sit down and watch reruns of "Alice in Wonderland" and "Father Knows Best" ? As they say in the classics Lissie "one good link deserves another".
I'll include your link in the updates above!
Lissie, I have just picked up on the news that USA has finally passed their own package of goodies. I heard a figure of $1.1 TRILLION being mentioned, just a tad bigger than ours. Of course they are in deeper doo-doo than us and on a larger scale. On a larger scale it seems similar to ours in the construction of the hand out .
Have you had the time to do any analysis?
I thought the US bill was more about bailing out large corps and some tax cuts - while in Australia its more about putting in cash in people's pockets as early as next month. I know I'l be saving mine LOL
Oh, my mistake, I thought it was government for the people, not the corporations.
I stand corrected.
I have heard that Senator Saxaphone would not have Voted for the package if Rudd had not increase the money for the Murray-Darling. I wonder what Mr.Fudd and his merry band of chooks would have done then.
I reckon that Turnbull did the right thing, at least he is "keeping the bastards honest".
So if you combine the interest you get from investing your savings with your earnings from Hubpages, when will you be heading to the Bahamas. lol
Cheers mate!
not evryone who recieved a payment december last year put it through poker machines, some of us do have a brain and paid things like car rego, school clothes for children for 2009 and more.
tcj, thanks for your comment. You are quite correct, not everyone did put their payment through the pokies. Even if they did, it WAS their money, there where no conditions attached to the handout!
My concern is the amount of money that allegedly was sent over seas. There is no benefit to the Australian economy in that, is there?
There is an update above:-17 Febuary 2009 Tuesday
Lets all try and get this right and consider thinking outside the box. The dam banks with their lax attitude towards lending, encouraging people without the financial means to borrow are part of the cause, all governments should nationalise banks, or at the very least set binding laws on their behaviour and management. Also this should apply to sharebrokers etc. How these fat cats reward themselves is beyond my comprehension, its sheer greed and selfish thinking. The money that has been given to banks, tax payers money what security does the government have, a bank wants your home as security. The very least the government should have is the right to take them over.
G'day Bill (aust), I don't disagree with your attitude. The problem we have though is the NEED for the banks to APPEAR to be making profits for their shareholders! The bottom line is all omnipotent !!!!!
Now in Australia the Government does have some control over the banks that are qualified to be called "banks". I believe it is something to do with the amount of cash they hold and where it is held. I think there is about 5 or 6 at the moment. They are the banks that the Government have given a deposit guarantee to protect the deposits up to a $1million.
Thanks for dropping in and adding to the discussion , feel free to comment any time, the more these things are talked about the better.
Cheers mate!
Through all the talk by politicians, economists and pundits, about bailouts, stimulus plans and economic recovery scams, I have waited in vain to hear or read the one thing that would bring a smile to my face and make me think that something positive was actually being done.
As politicos bemoan the lack of funding available to do all the things that need doing, especially in amerika, they rob the coffers of every imaginable public program and speculate endlessly on what much needed service or agency they should cut or eliminate next.
Never, under any circumstances, does anyone even hint at the possibility of tapping the military budget for so much as a penny.
This is especially ludicrous in the case of amerika, considering that just the amount disclosed by the government, and it is only a fraction of what is actually part of military expenditures for the purposes of empire building and mass destruction, is greater than the military spending of the next top fifteen nations combined.
The u.s. accounts for almost fifty percent of the WORLDS military spending.
http://www.warresisters.org/pages/piechart.htm
Obama has increased the visible military budget for his first year in office. Defense stocks surged when Gates announced the new budget proposal.
What portions of this astronomical amount of money are lost to sheer corruption, waste, misappropriation and mismanagement is anyone’s guess. Nonetheless, no one will even hint at the possibility of cutting the budget that provides the greatest wealth to the corporatocracy.
Just a quarter of that money would be enough to fund healthcare and education. If the nations of the world, especially amerika, would turn their focus from conquest and war to unity and peace, there would be far more money than needed to tend to all the needs of everyone, everywhere.
The modern nations of the “first world” could help transform Earth into a peaceful, safe and prosperous place for all. Instead, they strive to turn it into a barely habitable rock where a surviving human population, if there is one, will likely be reduced to a desperate struggle for daily existence.
Meanwhile, until even they lose control, an elite group of parasites will live in opulence, in guarded, gated and isolated communities, while the majority of humanity huddles in tin roofed hovels and picks through the land fills of the royalty for scraps of food.
The information provided is really helpful to those like me who have no idea about such things ever exists.
It is an eye opener.
pgrundy says:
10 months ago
Wow, it's just like what is going on here in the U.S. but a bit smaller--our stimulus package is now around $900 billion--a mind-boggling number.
They're doing it because they don't know what else to do. I don't think it will work. I hope I'm wrong, but I think we are about to see a collapse that is so big there just aren't words for it. It's scary.
Thanks for the hub. At least we aren't the only ones with a mess.