misty, do you think the cash handouts are providing "bang for buck"? the RBA expects the stimulus package to be modest in the short term and since then we have seen retail sales which bear out that view.
Do you think throwing $10 or $20bn untargeted cash rally makes a zack of difference to our economy which is so subject to the vagaries of the world economy? I believe by the time the stimulus kicks in the world economy will be on the mend anyway.
Of course if we're in for a prolonged and severe recession the $42bn won't be enough to save us anyway and we can expect revenues to deteriorate much further and outlays to acclerate. That's going to leave a huge deficit to finance which will hamstring the recovery, when it comes with or without artificial stimulus.
If we're in for bad times I'd like to see the government keep some powder dry for those in need (targeted welfare).
It's why I bang on about how this money is being spent. IF the government is hell bent on this kind of rescue package, at least spend it in areas that will benefit future generations, after all they'll be paying for it.
I haven't seen any strong arguments that pink batts are the answer. Of all the areas crying out for money - health, education, transport infrastructure - they come up with this? Who thinks pink batts are the best use for this money?
