Are those in the economic driving seat up to the task? Its nearly three months since the Prime Minister Scott Morrison and Treasurer Josh Frydenberg foreshadowed a plan to "keep Australians in Jobs" with "economic hibernation", and that would "building an economic bridge to recovery". Then came a series of spends with the aim of keeping the economic afloat. A little spend at first, a bit of a sop to business and pensioners. Then came the big ones 'Jobkeeper 1500', at first estimated to cost $130 billion for 6.5 million workers, now revised down to $70 billion for 3.5 million, and Jobseeker 1100' where the dole was instantly doubled to $1100 per fortnight as 600,000 hopped on board in April. With both the Jobkeeper and Jobseeker programs due to end in September, and debt mounting by the day, what is the long term economic prospects for Australia during the possible two years before an election is called?

Paul1405,
Does it really matter what this Govt does ? You et al will criticise whatever action they take anyway ! Instead of asking what will happen in the future why don't you simply tell us what you'd do at this time ? For once, suggest a plan !

Dear Paul,

Of course it matters what the government does.
The bushfires, the corona virus, and their
consequences have taken their toll. However
the Reserve Bank tells us that the country's
strong regulatory institutions, its ability to
respond to global changes, its diversification,
services-based economy will continue to underpin
its sturdy growth.

Our economy we're told is the world's 14th largest.
Rated AAA with a stable outlook by all 3 global
rating agencies. We can only hope that the forecast
for growth will end up delivering us from the debts
we're currently incurring.

Fingers-crossed.

I can picture Soot and the fellas sitting around the bushfire in the evening as Soot dressed in his newest Hawaiian shirt pulls out his ukulele and starts singing:

"Throw another billion on the Wu-han fire
Cook me up some cor-ron-a-vir-us too
....................................... Come on! Singalong Australia!"

We need men like Soot as well as great mathematicians like Josh Frydenberg and great sports organisers like Bridget McKenzie if we expect to succeed as a nation.

Hi Indy and Foxy,

I want to see a concrete plan for jobs and development in Australia placed on the table. The statement from the money people is all well and good, it makes for a feeling of confidence in the community but contains nothing of substance when it comes to action, and we need action if we are going to minimise the economic damage. If as it seems Australia has access to $60 billion or more of extra borrowing power why not put it to use with some real investment in the future. 'Infrastructure Australia' is in place, it has a propitiatory list, mostly of road works and a few other minor ideas. How about we put 'Infrastructure Australia' onto financial steroids and kick off some real nation building projects.

One the other side there is industry where jobs can also be created if we can identify and invest in new or expanded businesses. That can be in partnership with private investment, or it can be purely government run business. In my opinion only if private enterprise is unable or unwilling to be involved in real job creation then government should take the lead.

It appears not a lot heard what caused the extra $B60 amount.
A poorly designed form, no doubt done in a rush, meant some
employers put the amount they were claiming into the box for
the number of employees.
It was as simple as that.

Bazz,

The buck (in the case 60 billion of them) stops with Josh Frydenberg.

He needs to stand up in Parliament and explain why he was unable to prevent this from happening, especially given that he talked the entire House into supporting the expenditure of $130 billion dollars in the first place.

But wait Bazz! I think I have the answer: He tell everyone that he had planned it all along because he was still working on getting a surplus. It's brilliant!

Ohh Gawd !

Oh god, our diversified economy. A very few of us dig stuff out of the ground & a few others grow stuff, & a few give out degrees to Chinese who can't actually read what is on the bit of paper, & that is about it. Those few have to earn the income for all the rest of us. Not only do the bureaucrats, the pensioners, dole, single mothers & the rest, but all those in major cities shuffling bits of paper around, driving a bus or building houses for the migrants we most definitely don't need, all depend on just a few who actually add value.

We can only take in each others washing, [service economy], for so long before we run out of Monopoly money. If the Chinese stop buying our iron ore, coal & beef, pretty soon there is no money to pay the cop handing out speeding fines, or the clerk doing the paperwork.

There probably won't be anyone speeding anyway, as we won't be able to buy the fuel for our cars & trucks.

Find new markets they say, but you can bet there are a few millions being spent monthly on trying to do just that right now, by the big miners & others. I'm sure you can find people who want the stuff, but finding those who can & will pay for it AINT so easy.

If this lock down goes on for much longer, my advice is get the hell away from the big cities. They won't be healthy places to be, & it won't be because of any virus.

Dear Paul,

I think your suggestions about "Infrastructure
Australia," are excellent. Look at what the
Victorian Government is doing with its infrastructure
projects( roads, rail-crossings, bridges, et cetera).
Surely the federal government can follow suit once
the pandemic crisis support aid is no longer needed.

Foxy the last thing we need when we have no money to pay for it is feel good Infrastructure projects. You can see that Victoria is now totally captured by the unions, when its premier wants to spend money he doesn't have on jobs that employ highly paid unionists.

If governments want to throw borrowed money about the least they could do is throw it at something that can earn enough return to pay the interest on the borrowings. That isn't much right now, but if we happen to get another Labor national government, don't bet we won't have Keating type 17% interest rates again.

Our girl up here has announced a similar splash of cash, building things we can do with out, particularly with less transport required for many months if not years, that will give work to the large contractors & their union "workers", but will earn not a cent to cover the interest on the borrowings required.

One simple question. If you were getting reduced income due to this lock down, with less than great prospects of getting more, would borrow heaps to build a large nice, but unnecessary extension on your house? If you would wait until things, including your income had picked up, why do you suggest the government do the opposite?

Belt tightening must be a state & national activity, not lust a private citizen action.

Phil,

Obviously you haven't seen the latest news.

Victoria is getting the CCP to provide all the infrastructure for the jobs and growth we all want so much.

Apparently the US doesn't like the idea of Victoria signing up to China's Belt and Road Initiative to get the funds for all this development. Mike Pompeo is saying the US is looking at getting rid of Australia from its inner circle of allies because we are too connected with the CCP.

I said "Go on do it! See if we care!"

Phil,

Do you get the feeling Australia is caught in the middle of a tug-o-war between China and the US? Each has hold of an arm and pushing and shoving from each side, leaving us with nowhere to go.

I think China will win. There are a lot more Chinese in Australia than there are Americans and China has a card up its sleeve: Andrew Forrest.

Dear Hassie,

We've got the extra funding federally that Josh Frydenberg
over estimated and surely investing in jobs and employment
would result in enriching the economy for us all?
To do nothing and wait will only result in the situation
worsening.

until we mine more coal and uranium we are not serious about wanting future generations to prosper.

I'm a bit concerned when lefty's come out and promote spending to deal with problems. I tend to agree with Hasbeen here. But Kevin Rudd did ok during the GFC- basically infrastructure projects- I haven't had a chance to fully understand the reasons for its success- but it seemed to have factors related very specifically to the home loan market. We should probably wait until the social restrictions are over and the economy rises in Australia before starting in my view- relaxing of restrictions will stimulate the economy. We should look at potential opportunities- see what happens. There are already stimulus packages for business and individuals. Retailers are really suffering because they have to pay rent during the crisis without income- I really feel for them- but there doesn't seem to be a solution. I've occasionally seen the left promote spending for tactical reasons- classical military strategy- if you can convince your enemy to misuse their resources you can destroy them.

Foxy,

We don't need that $60 billion any more!

We can get all the money we need signing up for China's Belt and Road Initiative like Victoria has done.

If it works for you Victorians why can't it work for the rest of us? There might even be enough left over for Phil to buy a new yacht or racing car.

All we have to do to repay such generosity is open our borders to the tens of millions of people the CCP is trying to reunite with their families in Australia. That's not a big thing to ask in return for more jobs and growth. As Tony Abbott would probably say between munching on raw unpeeled onions: "It's good for Australia, It's good for jobs."

What do reckon Foxy? Maybe Andrew Forrest could buy some TV time for his mates to tell all about the benefits of the Belt and Road Initiative.

Isn't amazing the number of people wanting to spend that $B60 that we
never had in the first place !
No wonder there is such nonsense pushed out when that is the level of
the knowledge displayed by even some Labour pollies !

Bazz,

You are spot on China!

I think you should be the first in line to sign up to the BRI. China will give us all that money and more. All we have to do is open our borders so that the CCP can reunite all of those people in the PRC with their families in Australia.

I know what you're thinking Bazz. You're thinking it's just another Trojan Horse.

Bazz, Bazz, Bazz! What would Andrew Forrest do if he caught you thinking like that? Why he would shove you off the intellectual podium of life!

A media release was put out by the Prime Minister
and Treasurer with the Morrison Government
announcing its economic plan to keep Australians
in jobs, keep businesses in business and support
households and the Australian economy as the world
deals with the significant challenges posed by the
spread of the corona virus.

The government does have things under control -
with its stimulus package.
Conspiracy theorists can relax.

http://www.pm.gov.au/media/economic-stimulus-package

Foxy,

What conspiracy theorists?

Mr O,

The irrational thinkers.

Doh!

So, people still think a National Service is out of place ? People still think our bureaucrats aren't paid too much ? Still want negative gearing to continue at full steam ahed ?
Still think no need to address the welfare rorts ? Still think it's ok for incompetent public servants to remain in the positions they're incapable of fulfilling ?
Still think we should continue to tolerate the Peter Principle ?
If people want change for the better then they need to oppose the above !
Start with joining Ratepayers Associations in their locality !
We need to rid ourselves of the deadwood in the swamps of Govt & Opposition !

Individual- I generally support your view on national service. Some are of the view that it would bring bad traits into the ervices.

Hi Foxy,

The original $17.6 billion government 'stimulus package' was, I don't know what it was really, I assume it was a small dose of economic medicine followed by a larger dose with 'Jobkeeper' and 'Jobseeker' and financial measures taken by the reserve and private banks etc to aid business. At the moment the economy is being "protected" in a limited way by government intervention with stop gap measures. These measures will run out shortly, and with a do nothing policy the economic outlook for Australia and most of the world, notably America is bleak. However there is a window of opportunity for Australia to get on the front foot and reorganise our economy in such a way that at the end of it all we are a stronger nation than we were going into the pandemic.

BTW; good news, all 33 Brisbane City libraries have reopened, if only in a limited way, can borrow online and pickup at nominated branch, without paying the normal 80c transfer fee. I have a couple of books pending, one on John (Jack) Thomas Lang, the greatest Australian politician never to be prime minister. Some politicians today could take on the elements of the 'Lang Plan' as he proposed in dealing with the Great Depression in the 1930's.

that it would bring bad traits into the services.
Canem Malum,
That really should not be an argument because in that case the whole of society is at risk in every thinkable sector. I argue that a NS would in fact achieve the very opposite, it'd instil a greater sense of responsibility & actually increase the positive traits.
We really need to get to a point where good performance & behaviour are rewarded not frowned upon as a weakness !

"Morrison says reopening the economy over the next three to five years will be more difficult than closing it down, as Australia faces the "most challenging domestic and global economic environment" outside of wartime." I agree with that statement.

Today at the National Press Club, Morrison announced yet another program to boost the economy, calling it 'Jobmaker'. The thrust of this announcement was aimed at two areas of concern, one, vocational skills training, and two, industrial relations The reality is the short term economic support programs, particularly 'Jobkeeper' and a winding back of 'Jobseeker' must end relatively soon, and without support many Australians are going to fall over a financial precipice. 'Jobmaker' although of some benefit, is small beer when considering the difficulties that millions of Australians could find themselves in.

WHERE IS THE LABOR PARTY ON THIS? Albo needs to stick his neck out and call it as it is, start talking about the big daddy of programs 'Jobdestroyer' and how to fight that one. Big problems, need big thinkers, with big ideas! As yet nothing of substance has been put into the arena. Like the coming of the pandemic, time is of the essence, and our politicians need to stop beating around the bush and take real decisive action, now!

"Morrison says reopening the economy over the next three to five years......
I just hope he's seeing the present situation as the best opportunity ever to get away from present policies & mistakes.
This is a once in a lifetime only chance to reassert just about everything to do with the running of the nation & its economy !
Now is the time to stop listening to experts & engage with people who know !

Indy, we don't often agree, but your above post is 100% correct. This is not time for tinkering around the edges. I listened to the so called 'Jobmaker' speech from Morrison yesterday, as he doled out the rhetoric and a few platitude. I waited for the bold announcements that would be aimed at building the economy, big plans, big ideas, with the objective of turning things around. I waited, and I waited, and all I got was a couple of wishy-washy announcements about vocational training and industrial relations, nothing earth shattering, nothing of real substance. WHERE IS THE LABOR PARTY ON THIS?

Indy, I may not totally agree with your national service idea, and I have said that to you in the past. I can't support national service as a form of punishment for the disadvantaged, or as means of shelving unemployed youth, but introduced with the objective of better equipping young people for the future, as a properly tailored to ones needs program it has merit. Done as an integrated program with real education and real career targets and outcomes, it could be a positive. I certainly would not want it to contain any sort of military training, and I would want it to be universal, no exemptions for the kids of the better off's, none of this I'm exempt, daddy is going to make me manager of one of his cheesy factories when I turn 18, kid your in! What do you say to that?

national service as a form of punishment for the disadvantaged
Paul1405,
How so ? Providing the unemployed & generally misguided with shelter, food, direction, insight,
instil a sense of responsibility & belonging etc. is punishment ? Providing young people with a platform into adulthood is by no stretch of the imagination punishment !
I fully agree with you re the privileged 18 year olds. They really should serve as well but to begin with it's the unemployed & underprivileged who need the the first tickets to the show ! The military part is not in the picture as the modern military requires switched-on educated, capable people who already proved that they they have the mentality that the others still have to acquire.
I view the whole scenario similarly to a Bradfield scheme, long-term & gradual until it snowballs but with positiveness from the very beginning !

Paul1405,
> no exemptions for the kids of the better off's,
So you don't want it to be a form of punishment for the disadvantaged, but you're happy for it to be a form of punishment for all the young?

There is no justification for arbitrarily destroying people's freedom!

Did anyone see the news article on the web where Xi yesterday put China on a war footing alerting the Chinese military to prepare for war as a consequence of the Wuhan Bat Soup pandemic?

I don't think he is doing it because of expected antagonism from other countries over the impact of the pandemic for which they blame China. I think it is a first step in a long planned act aimed at reclaiming lost Chinese territories particularly HK and Taiwan which they are determined to bring under the direct control of the CCP.

Foxy, I suggest you keep that Chinese name of yours because I reckon you are going to need it.

Paul, Aidan, your ideology gets in the way of common sense.

The US defense force is a form of national service, which acts as a training ground for vast numbers of prospective trades people who can find it hard to get civilian trades training. They train vast numbers of people, most of whom move on to civilian jobs once trained.

Our defense force could do the same. They train large numbers of people, but make the mistake of not giving civilian qualifications when their training is complete. Training is expensive & I think our underfunded defense forces are doing this to try to hold on to those they have trained. Change this to encourage the trained to move into commerce, & we would have a large resource of well trained people, with diverse skills, that are hard to obtain in civilian areas.

BHP in Newcastle, when steel making was very profitable used to over man their plant, with both trainers & apprentices. Their policy was to dismiss all apprentices as soon as they qualified, to make space for more apprentices. The training was very high quality, making the newly qualified much sort after & quickly employed elsewhere. We no longer have industry able & willing to do this, hence our importation of skilled people.

I doubt a civilian national service could do the job of the US military. With our greeny interference we would concentrate on creek bank beautification, & pretend it was land care, along with parks recreation facilities. Such an organisation would not have access to the high tech areas where we need trained & competent people. While it may offer some opportunity to some needing it to prosper, it could not offer the high tech training the country needs. It is only the military that can do that, but only if the policy were changed to something more like the US.

There is no justification for arbitrarily destroying people's freedom!
Aidan,
So, what you're saying is force people to pay Tax to support the those not inclined to pull their weight but don't ask the recipients to chip in ?
That sounds too much much like socialism where only one side pays for everything everyone takes advantage of !
Destroying freedom you say ? I say two years of getting exposed to decency & responsibility is the smallest prize any young person can pay in return for a Life of pretty good security !
All you're doing is advocating bludging !