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spend, spend, spend (Read 1477 times)
tallowood
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spend, spend, spend
Dec 8th, 2008 at 6:18am
 
Quote:
With just over a fortnight to Christmas, the Prime Minister yesterday suggested it was the patriotic duty of recipients to use the money to go shopping, but warned tough times were ahead.

And economists admitted it did not really matter what pensioners and families spent the money on, as long as they did not hoard it.
...
The Government is handing over a total of $4.8 billion to pensioners and $3.9 billion to working families.
...
Malcolm Turnbull, who has previously suggested tax cuts might have been a better option to stimulate the economy, said it was a matter for individuals how they spent the cash.
...



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Sprintcyclist
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Re: spend, spend, spend
Reply #1 - Dec 8th, 2008 at 8:43am
 

thought overconsumption got us into this trouble in the first place ??

Things cant ALWAYS grow anyway.
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freediver
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Re: spend, spend, spend
Reply #2 - Dec 8th, 2008 at 10:06am
 
This is the dilemma. It is in the country's interest for people to spend that money, or at least some of it, so the economy doesn't take too much of a dive. But it is in the individual's interest to save it.

Overconsumption did get us into trouble in the first place. 95% of the time the government is trying to get people to save more money (eg super). It is only occasionally that it can cause problems if everyone turns frugal.
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mantra
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Re: spend, spend, spend
Reply #3 - Dec 8th, 2008 at 10:39am
 
There are a lot of people in big financial trouble, regardless of the decrease in interest rates, petrol etc. 

Economists are saying that this money should be used to pay off debt - credit cards, mortgages and personal loans.

This Christmas will be very quiet for many people who will be too scared to overindulge in presents.  It will be interesting to see how much is spent over the next month in comparison to previous years.

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Sprintcyclist
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Re: spend, spend, spend
Reply #4 - Dec 8th, 2008 at 11:00am
 

Better off if people go broke and are homless ASAP.
Houses will get "right priced" ( ie about 1/3 theur current prices)
Rather than letting it drag on for a decade.

A quick amputation, rather than letting the limd slowly go gangrene.

2 of the 3 US car manufactureres should close up shop ASAP
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Re: spend, spend, spend
Reply #5 - Dec 8th, 2008 at 11:06am
 
But sprint, the opposite happens in practice, like with the great depression. The harder a recession hits, the longer it lasts, because people overcompensate by being too risk averse for much longer. People get scared, and it takes a lot longer for them to start investing and taking risks again. Plus, life gets very hard when a large percentage of the population loses their job. A drop in house prices under that scenario would not be permanent. Rather, the richest people would snap them all up, then get even richer when the next boom comes.
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Sprintcyclist
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Re: spend, spend, spend
Reply #6 - Dec 9th, 2008 at 8:25am
 

Good to see the property market listens to sprint Smiley




"PROPERTY prices in Surfers Paradise have collapsed by more than 45 per cent as the credit crunch continues to hit the Queensland housing market.

Surfers Paradise recorded a fall of 45.1 per cent in the latest Real Estate Institute of Queensland survey, while other Gold Coast suburbs such as Burleigh Heads (31.1 per cent) and Runaway Bay (30.3 per cent) also fared badly.

The survey shows the median house price on the Gold Coast fell 4.8 per cent to $466,500 over the September quarter.

Read more on this story at the Gold Coast Bulletin"

http://www.news.com.au/couriermail/story/0,23739,24772911-3102,00.html
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