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...if people like yourself and my goodself, who are what is known as middle class, where to receive this money then the most likely way it would be spent is on reducing debt. Most middle class people are in a position where they can afford some luxury items. Low income people can usually afford bugger all. So these low income households, and granted that many of them are indeed bogans, would likely spend it on big ticket items within Australia. Yes some are likely to spend it on drugs and booze and not personal or household items. But, the majority of these low income families are likely to buy stuff they could never afford in a million years. The pensioners are more than likely to buy food and pay water/electricity/council rates or whatever they can't always pay on time or get usually.
K Rudd is correct in handing it out to these people because they will indeed put more of it back into the economy than middle class would. I know that I I did receive that kind of hand out it would be spent on reducing financial stress which really does not go back into the economy.
Think of it in another way, bogan family gets enough of a hand out to buy a bug screen TV, something they normally would never be able to afford. Good, because they just spent that at say Dick Smith, and that means Dick Smith made a profit, people who worked there got paid, the person who sold it probably got a commission and at some point those employees will spend their earned cash on goods and services from other companies and so on down the economy production line, thus the economy keeps ticking and we don't face a depression. It's been done before and will be done again all around the globe and not just here in Oz.
*now exiting University Lecture Mode*
§evqui§
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AUTHOR OF THIS MESSAGE
§evqui§
MESSAGE TIMESTAMP
10 december 2008, 23:08:48
AUTHOR'S IP LOGGED
60.242.150.78
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