government handouts in Australia

[leatheroo]

With the tough economic times, our government has taken a bit of a different approach to the problem, they are giving money to the people not the big companies. Before xmas all families with kids receive $1000 per child as well as pensioners and carers. The reason being, if the general public have money, they will spend it, thus helping businesses across the country..i personally bought a new lounge suite. The government has just announced another round of handouts, due in march/april...$950 per household with income under $80,000 and $950 per child for families. This means i will get $2850 for my family, bring the total to $4850 that i will have received They have also offered large rebates for home insulation for low income earners so their power bills will be reduced. There are other projects similar to this but i cant remember them all at this time.

How does this compare to other countries efforts in these hard times? Do you think this is a good approach to the problems at hand?

Edited February 3, 2009 by leatheroo

[tonyc1]

About time they gave us some back! They've been taking it off us left, right, and centre for years. I'm glad to see they are giving something to Australian residents instead of propping up other overseas countries whose goverment ministers get the biggest cut out of what we taxpayers send them.

Tony.

[Bree]

I seriously doubt if these giveaways are anything other than deficit inflating bandages. They do little to solve systemic problems. Quite the contrary, I think they create many more problems then they solve. The kids will be paying for all the goodies that we purchase.

We have stimulus giveaways here in the States. I think it's just a legal way to buy votes.

My $.02.

[tonyc1]

I think you could be correct, Bree.

[Art]

Hi Roo,

I take another view of economic stimulus. I don't believe handouts really work, on the last round more people saved then spent dollarwise. Instead, target the industries needing help with indirect tax incentives.

For instance, lets take the auto and home industries as an example. If you purchase a new car (American of course, parts and car) you get a $2,000 tax credit. If you buy a house, $10,000 (the numbers might be different, but still have to be significant nonetheless).

But we will still have to do more to stimulate this economy. Just GIVE money to the individual States and tell them it has to be spent on finished physical projects (not burning it in the school systems) that will be complete start to finish in 6 months. Then make sure (with jail time if they don't) that they do it.

This package we have going through congress is just a bunch of ideological projects like health care and other stuff that won't do anything to help the economy, but instead just furthers a political agenda. Some of the spending is years from NOW when we need it. They can do all they want (that they can get through) in a separate bill that can be haggled over. They want to slip all this stuff through because they see this as a perfect opportunity to get it through without decent vetting because "we need this stimulus package right now".

My, My, maybe you shouldn't have asked me a question like that.

Art

With the tough economic times, our government has taken a bit of a different approach to the problem, they are giving money to the people not the big companies. Before xmas all families with kids receive $1000 per child as well as pensioners and carers. The reason being, if the general public have money, they will spend it, thus helping businesses across the country..i personally bought a new lounge suite. The government has just announced another round of handouts, due in march/april...$950 per household with income under $80,000 and $950 per child for families. This means i will get $2850 for my family, bring the total to $4850 that i will have received They have also offered large rebates for home insulation for low income earners so their power bills will be reduced. There are other projects similar to this but i cant remember them all at this time.

How does this compare to other countries efforts in these hard times? Do you think this is a good approach to the problems at hand?

[HarryB]

I think at this point in time. WE'RE SCREWED! I make enough to survive on so I make to much to qualify for any "programs" from the government. I agree; handing money to individuals only help a little but makes you feel good. BUT, giving billions to the big companies for "bailouts" doesn't help us at all unless we happen to be one of the big wigs with one of the companies. Then we get to spend millions on re-decorating our office, retreats and bonuses! DON'T GET ME STARTED!!! PS, I'm posting my basketweave stamping tutorial right after I calm down a little (just kidding). Hopefully I can figure out how to download a pictures.

Edited February 3, 2009 by HarryB

[Ian]

In the US, giveaways are handed out as payment to entities that work towards yoiur election. Many, many people worked hard to get this crowd elected, and now it's time for them to collect. It's not just unions and big companies and Hollywood that paid for this election, it's also the non-profits such as A.C.O.R.N. who registered over 700,000 new voters (so what if a good portion where fictitious) for Mr.Obama. So, of course, they'll be get multiple billions for their efforts. Hollywood gets to write off half the cost of making movies. National Public Radio gets a big thanks through increased funding, as does the NEA, and, of course there's plenty in there for the unions who gave almost a half billion to the Democrat Party. Just wait until you see what taxes, fees, penalties and fines they have in store for us to pay for it all.

[ferret]

Can't say I know a lot about economics, but then neither do the useless at westminster. Giving taxpayers money back to the taxpayers, so they can spend it to stimulate the economy may not work, but it's worth a try. Over here future generations will be paying taxes to pay for the bailout of the bankers that got us into this mess.

[electrathon]

The money that is "given" to people is borrowed money. You can not, and never will be, able to borrow yourself out of debt. The only system that has ever historically worked is cutting taxes so that people can spend their own money and all will prosper.

Dinner & Taxes

I was having lunch with one of my favorite clients last week and the conversation turned to the government's recent round of tax cuts.

'"I'm opposed to those tax cuts," the retired college instructor declared, "because they benefit the rich. The rich get much more money back than ordinary taxpayers like you and me and that's not fair.'"

"But the rich pay more in the first place," I argued, "so it stands to reason that they'd get more money back."

I could tell that my friend was unimpressed by this meager argument. So I said to him, "let's put tax cuts in terms everyone can understand."

"Suppose that every day 10 men go to a restaurant for dinner. The bill for all ten comes to $100. If it was paid the way we pay our taxes, the first four men would pay nothing; the fifth would pay $1; the sixth would pay $3; the seventh $7; the eighth $12; the ninth $18. The tenth man (the richest) would pay $59."

The 10 men ate dinner in the restaurant every day and seemed quite happy with the arrangement until the owner threw them a curve. "Since you are all such good customers," he said, "I'm going to reduce the cost of your daily meal by $20." Now dinner for the 10 only costs $80. The first four are unaffected. They still eat for free. Can you figure out how to divvy up the $20 savings among the remaining six so that everyone gets his fair share? The men realize that $20 divided by 6 is $3.33, but if they subtract that from everybody's share, then the fifth man and the sixth man would end up being paid to eat their meal.

The restaurant owner suggested that it would be fair to reduce each man's bill by roughly the same percentage, being sure to give each a break, and he proceeded to work out the amounts each should pay. And so now the fifth man paid nothing, the sixth pitched in $2, the seventh paid $5, the eighth paid $9, the ninth paid $12, leaving the tenth man with a bill of $52 instead of $59.

Outside the restaurant, the men began to compare their savings. "I only got a dollar out of the $20," complained the sixth man, pointing to the tenth, "and he got $7!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar, too. It's unfair that he got seven times more than me!"

"That's true," shouted the seventh man. "Why should he get $7 back when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison. "We didn't get anything at all. The system exploits the poor."

Then, the nine men surrounded the tenth man (the richest one, paying the most) and beat him up. The next night the richest man didn't show up for dinner, so now the nine men sat down and ate without him. But when it came time to pay the bill, they discovered something important. They were $52 short!

"And that, boys, girls and college instructors, is how America's tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up at the table any more. There are lots of good restaurants in Switzerland and the Caribbean."

[Washroad]

In the US, giveaways are handed out as payment to entities that work towards yoiur election. Many, many people worked hard to get this crowd elected, and now it's time for them to collect. It's not just unions and big companies and Hollywood that paid for this election, it's also the non-profits such as A.C.O.R.N. who registered over 700,000 new voters (so what if a good portion where fictitious) for Mr.Obama. So, of course, they'll be get multiple billions for their efforts. Hollywood gets to write off half the cost of making movies. National Public Radio gets a big thanks through increased funding, as does the NEA, and, of course there's plenty in there for the unions who gave almost a half billion to the Democrat Party. Just wait until you see what taxes, fees, penalties and fines they have in store for us to pay for it all.

Yeah, it's an obamanation, isn't it?