IMHO we need an effective government as opposed to a popular one. Anyone can spend $10.4b question is can they come up with a strategy to recoup it when economy picks up.
I doubt it!
Stimulus payments 'generated moderate spending'
A consumer survey has found most people who received cash as part of the Federal Government's economic stimulus package used it to cut debt or pay for living expenses.
The Australian National Retailers Association found the $10.5 billion spending package generated moderate spending.
It says 16 per cent saved the money, while about 20 per cent used it to reduce debt.
The Association's chief executive, Margy Osmond, says about 60 per cent of the recipients were careful not to spend the windfall in one lot
"They were very concerned to make sure they could pay off debt," she said.
"They're keeping the levels of their mortgages high in terms of repayments, and they were paying off credit cards with a little bit going on Christmas presents, but not nearly the amount that a lot of pundits would have expected."
Ms Osmond says it is not surprising people were wary about splurging in the shops
"I think the prospect of job losses going into 2009 has made everybody a little reluctant to put their hands in their pockets," she said.
"Having said that, there was a surge in spending over Christmas and that too a degree relates to a combination of the bonus and cuts in interest rates."
