[dkabab]

im no pro on economics... but im just watching the news and they government keeps pushing everyone should spend the $1000 they are giving out.. not to save the money.
not sure about anyone else, but in tough times, surely the smart decision would be to hold onto the extra cash instead of wasting it and getting into debt again. i know its only $1000 but its a lot for some people.

[AshSimmonds]

I was reading the news article just a while ago - maaan I just had to laugh!  And the comments section omg - unexplainable!

[app]

im no pro on economics... but im just watching the news and they government keeps pushing everyone should spend the $1000 they are giving out.. not to save the money.
not sure about anyone else, but in tough times, surely the smart decision would be to hold onto the extra cash instead of wasting it and getting into debt again. i know its only $1000 but its a lot for some people.

Their argument is that spending stimulates activity in the economy - it's basically the equvilient of the government spending money. I know this sounds so obvious to some, but can you see where I'm coming from??

My view is that it will work, people will spend it. Having an economics education, I've learnt that if you give bulk transfers to citizens, they are likely to spend it all straight away on luxuries such as tv's and computers etc. However, if you give it to them in increments, they are not likely to buy expensive things, instead buying necessities.

However, it is not enough to stimulate economy. Giving $1000 to selected families is not going to do much.

Furthermore, it is probably not worthwhile holding onto cash with low interest rates.

[AshSimmonds]

However, it is not enough to stimulate economy. Giving $1000 to selected families is not going to do much.

Yeah but the shit they spend it on will all be Chinese crap - in the end we're all on the same planet though.

Furthermore, it is probably not worthwhile holding onto cash with low interest rates.

LOL - can you imagine someone that is in dire straits for $1,000 waiting for interest to come to term?  Even if it's 100% interest, who's going to leave that money alone when they "need" it?

Actually that'd be a cool Brewster's Millions type of experiment...

[app]

LOL - can you imagine someone that is in dire straits for $1,000 waiting for interest to come to term?  Even if it's 100% interest, who's going to leave that money alone when they "need" it?

Nope - why do you think the pension exists??

People don't know the meaning of "save". People live for now financially, not the future.

[AshSimmonds]

People don't know the meaning of "save". People live for now financially, not the future.

Me too.

"Saving for retirement" doesn't fit into my life plans - it's more along the lines of "make more than you can possibly spend before you die".

[app]

Me too.

"Saving for retirement" doesn't fit into my life plans - it's more along the lines of "make more than you can possibly spend before you die".

I don't save for retirement - I save to set myself up for life. I want to be financially comfortable. But I'm also capable of finding a balance, I know how to spend and have a good life, save enough and not save too much that I'm a tight-ass.

I've seen so many people who stash money away and never spend it even in their retirements and die as miserable multi-millionaires and makes you wonder what goes through their heads. I know some people are happy without money, but I'm talking about the kinda people that are so miserable because they worry so much about saving money and never do anything with it.

[mondi]

Well, I think that a lot of people will be spending up big.

One thing that gives me the shits, well I should say it doesn't worry me too much but just a little annoyed, is the baby bonus. When I had my kids(or the wife  ), the bonus was $800. It was just enough to pay for all the doctors bills and hospital, and some left over for a "cheap" bottle of wine.

Now they get $5000(or around this). I know so many people who now have big screen LCD TVs, etc, etc, etc, etc.
Not that there is anything wrong with that, at least the TV will distract them and stop them popping out more Ruggies.

I believe that it should be used for the raising of the Rug rats, as in put aside for education, etc, etc and not spent on luxury items.

But that is just MO.

[dkabab]

Well, I think that a lot of people will be spending up big.

One thing that gives me the shits, well I should say it doesn't worry me too much but just a little annoyed, is the baby bonus. When I had my kids(or the wife  ), the bonus was $800. It was just enough to pay for all the doctors bills and hospital, and some left over for a "cheap" bottle of wine.

Now they get $5000(or around this). I know so many people who now have big screen LCD TVs, etc, etc, etc, etc.
Not that there is anything wrong with that, at least the TV will distract them and stop them popping out more Ruggies.

I believe that it should be used for the raising of the Rug rats, as in put aside for education, etc, etc and not spent on luxury items.

But that is just MO.

the smart thing to do would be give them vouchers for things, such as free checkups for the first year, 1000 free nappies etc...

[AshSimmonds]

One thing that gives me the shits, well I should say it doesn't worry me too much but just a little annoyed, is the baby bonus. When I had my kids(or the wife  ), the bonus was $800. It was just enough to pay for all the doctors bills and hospital, and some left over for a "cheap" bottle of wine.

I think people care too much about what other people are getting and what they're doing with it - seems petty and bitter when you see people ranting about other people's "entitlements" vs their own.  I used to work in a Govt office and the bitching about other people vs themselves took up a majority of a lot of people's time - I decided not to date "admin chicks" anymore cos you get really tired of the "oh but she doesn't do this and I have to do that and they don't turn up until blah blah", so many folks in admin roles who are more focussed on what's going on around them to complain about rather than doing their own role well and looking to get somewhere.  It doesn't surprise me the incompetence that undermines most Govt agencies and large private corporations.