Stimulating the economy - in the right places?
Now a bit of a crack at the federal Labor Government - I can understand them wanting to stimulate the economy - in tough times that makes sense [you can even argue that is the obligation of government - see articles below], but I question the way it is being done.
1) firstly, there's a A$10bn handout to old people and low income earners - nice idea, but there is an argument that a lot of that money will be spent on paying off credit cards, not giving the economy an immediate boost, which is the plan - I guess the jury's out on this one.
2) Then there's the payment of roughly $6bn to subsidise the inefficient car industry - presumably in the name of saving jobs. I would have liked to see a little more analysis of where that $6 bn could be better invested [especially in terms of the number of jobs generated vs the $ amount per job]. And secondly, are there not better uses for the money - especially when independent industry experts estimate that much of the $6bn will be sent offshore to the US parent companies, which are in dire straits themselves?
For example, the health sector is crying out for increased funding - the various medical associations estimate that they need $3bn urgently - why not invest part or all of that $6bn in health? Has anyone estimated the benefit to employment, not to mention the benefit to the community, of spending that money on the health system, instead of an ailing, inefficient car industry?
3) Lastly, there were news reports in the papers this morning that the Government is planning to help car dealerships next - generally not seen as the most socially responsible contributors to society - you've got to be joking! I have a small publishing business, and am too small to take on employees - why not help me out? With $500k I promise to take on at least two employees, seriously!
Sadly, I am already beginning to have my doubts about this government.
-A
1) firstly, there's a A$10bn handout to old people and low income earners - nice idea, but there is an argument that a lot of that money will be spent on paying off credit cards, not giving the economy an immediate boost, which is the plan - I guess the jury's out on this one.
2) Then there's the payment of roughly $6bn to subsidise the inefficient car industry - presumably in the name of saving jobs. I would have liked to see a little more analysis of where that $6 bn could be better invested [especially in terms of the number of jobs generated vs the $ amount per job]. And secondly, are there not better uses for the money - especially when independent industry experts estimate that much of the $6bn will be sent offshore to the US parent companies, which are in dire straits themselves?
For example, the health sector is crying out for increased funding - the various medical associations estimate that they need $3bn urgently - why not invest part or all of that $6bn in health? Has anyone estimated the benefit to employment, not to mention the benefit to the community, of spending that money on the health system, instead of an ailing, inefficient car industry?
3) Lastly, there were news reports in the papers this morning that the Government is planning to help car dealerships next - generally not seen as the most socially responsible contributors to society - you've got to be joking! I have a small publishing business, and am too small to take on employees - why not help me out? With $500k I promise to take on at least two employees, seriously!
Sadly, I am already beginning to have my doubts about this government.
-A
Labels: Australian politics, economics
posted by Crema-editor at 1:48 PM
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