cisco said...FormulaNova said...jetstream said...
For crying out loud, doesn't anyone understand why there was an economic stimulus payment, and that it didn't really matter too much on what it was spent on (other than paying off the mortgage)? It mattered more that it was fast.
Anyone that doesn't understand what it is about, please say so now, and I will try and educate you. I'll do the best I can.
I am ready for education on this topic. It just seemed like a "blow the dough deal" or "vote buying" to me.
No worries, glad you asked
We were heading for a recession, not because of our actions, but because of the rest of the world. Led from the financial problems in the US.
When people see or think that there is a recession possible, they tend to stop spending. They are worried for their own jobs, and their own debts. As a result they spend only what they have to.
This reduction in spending flows on to the rest of the economy as others think that a recession is on the cards and they too stop spending.
Owners of businesses see this drop off in their income, so they too stop spending, and stop employing extra people, and if they think the future looks bad, will let people go.
All this starts to add up, and before you know it you HAVE a recession. People have stopped spending, and the economy slows. For no other reason that people 'thought' there might be a recession on the way.
How do you stop this? You inject money into the economy. You inject it fast to make the public think that the good times are here and that there is no chance of a recession happening here. It seems to have worked.
When people have this idea that they have no worries about the economy, they keep spending. They spend on things that generate income for other people in the economy.
You don't have much time to do this either, in case the public decide that there really is a recession looming.
What happened was the government injected money. It almost doesn't matter what it is spent on, as long as it gets out fast. The exception to this is if people save it away at home, or spend it on something that doesn't demand a product or service from anyone else.
I expect any government in power at this time would have done the same thing, and spent. It is the only responsible economic thing to do. If the government had waiting and decided to fund more public works instead, it would be a case of rebuilding an economy instead of keeping it running along. It would have been too late.
I didn't get any of this stimulus spending, which is probably a good thing as I would have just taken the money off the mortgage, which wouldn't have made much difference to the economy. If I had spent the money on smoking or drinking, or bought a wide screen TV, it would have done more for the economy.
Anyhow, if you think that there wasn't a risk of recession, maybe its proof that the government did the right think at the time. I think there was something recently in the media about economic gurus from around the world applauding the Australian response to the GFC.
. labour is only for the dole bludgers and any other simple person who wants **** for free and not work for it[}:)]
Orders out too 2015 for equipment, and I don't mean spare change type, type that has six figure sums attached, and in multiples on the order books, not ones and two's. Parts freight demands that are unable to be unpacked and supplied in the normal shipping and supply time frame (24 hours) we demand but out over 4 days
