Impact of the Global Recession

Nightly we are hearing on the news about the impact of the Global Recession, about unemployment rates, the growing Que for the dole, and the amount of business’s struggling to make ends meet and to keep people employed.

In Australia we have had numerous stimulus packages designed to try and save our slumping economy. The idea is to give low income earning families some extra money so they will in turn go and spend the money which will help keep business’s afloat, keep people in jobs and help our economy.

Really, though if you where struggling to pay the rent or the mortgage and someone handed you an extra $900 would you go and spend it on something un necessary or would you pay your over due bills? I think the answer is simple. Each Saturday the local newspaper here advertises job vacancies and as I’ve noticed over the past month how job numbers are dropping in each issue of our newspaper. With circumstances like this we will not be spending an extra sum of money but saving it or paying our bills!

There has so far been two stimulus packages handed out with a possibility of another in the future. As well as recent talk of paid maternity leave! If business’s are struggling to keep employee’s how does the government think they can afford to pay each pregnant woman extra whilst they are on leave as well as paying relief staff to cover them. The Australian government is giving money out left, right and centre and by the looks of it putting our economy into an even bigger hole.

And then what happens, once every one has this extra money and our country goes into more debt? We will all end up paying it back with higher tax levels and interest rates!