(Photo by Michele Mossop, Getty Images)The economy is in need of cash injection.
THIS IS HOW … the Coronavirus has put a hole in the Australian Economy …
AUSTRALIAN BUSINESS is now screaming … because they have been so reliant on China!
WILL they now diversify, and help restore Australian manufacturing … that would improve our economy by creating local jobs and more $$ spent in our Australian Economy!
NOW with the CORONAVIRUS they cannot get vital components for …. goods … appliances … etcetera, etcetera …
Nor can they import … China’s factories have shut down!
Those on NEWSTART urgently need a raise … because they will spend all their allowance … to circulate and lift our Economy!
Will the Scomo Government do the right thing?
SHARE AND TELL OTHERS …
EXTRACT: The government is being urged to forget the surplus and put money in the hands of Australians, as the coronavirus looks set to punch a hole in the economy
JACK DERWIN MAR 3, 2020
- It’s time for the government to open up the coffers and spend some money, economists have urged ahead of the RBA rate decision on Tuesday.
- While the RBA is widely expected to cut interest rates to 0.5%, its impact won’t come quickly enough to help offset the coronavirus.
- Any cut must be supported by government spending, according to economists from Domain and the Commonwealth Bank.
It might be time for the government to cough up.
As the coronavirus looking like it will punch a hole in the Australian economy, and the Reserve Bank of Australia (RBA) set to cut the interest rate, it’s the Federal Government that has to step up, according to Domain economist Trent Wiltshire.
“There needs to be a two-prong approach. It can’t all be left to the RBA,” Wiltshire told Business Insider Australia on Tuesday, ahead of the RBA’s rate decision.
‘While the government has previously ruled out the idea of Kevin Rudd-style handouts, there is a “strong argument” for it, Wiltshire said.
It certainly appears the government is slowly coming around to the idea. In a video conference with Treasurer Josh Frydenberg and RBA Deputy Governor Guy Debelle on Monday, Prime Minister Scott Morrison hinted there was a stimulus package coming “in the not too distant future”.’
IS this because the Government’s long running promise to return the budget to surplus is no longer credible? Let alone possible?
-the summer bushfire season
-the outbreak of the coronavirus
-and the economic damage wrought on a soft economy
Wiltshire suggests thee are many forms that government spending could take e.g.:
-a business investment allowance
Wiltshire and others suggest:
–boosting Newstart and rental assistance for people who have a high propensity to spend
-tax cuts would be less effective
Even the RBA GUV has broken ranks with the utmost diplomacy to call for the government to forget its surplus!
As does the Commonwealth Bank!
THE CV has blown a hole through Chinese output and demand … negatively impacting Australian tourism, education and export sectors
WILTSHIRE said he thought the RBA cut too late; that is why the economy has not improved, and why wage growth remains weak