Just when I thought Great Rudd and the Ruling Class couldn't get any more stupid, they go ahead do something like this.
CHRISTMAS is coming, but the cupboard won't be bare. Millions of Australia's cash-strapped families, black and white, are about to get the biggest pay day of their lives.
The money, which comes under a Rudd government package to stimulate the economy, will begin to arrive from Monday.
The sums involved are considerable: parents will receive $1000 for every child in the family (the benefit is means-tested); single carers, pensioners and veterans will get $1400; coupled pensioners, carers and veterans will receive $2100. In some remote Aboriginal communities, where families live in extended kinship arrangements, between $10,000 and $20,000 will be deposited per household.
Luckily enough, Australia isn't in budget deficit yet (or so they tell us). First, some comments, then some maths.
1) This is tax money.
2) The report states that millions of families will receive this benefit.
3) The report further states that these families will be poor families.
4) For arguments sake, let's say that there are one million poor families, each with a single child. According to the article, these families will be given $1000 per child. That's another ONE BILLION dollar bite into the budget surplus. That number is very generous, as a lot of families have more than one kid, there's probably a lot more "poor" families than one million, and the calculation doesn't account for pensioners or veterans.
It's probably not a stretch to say that several billion dollars are going to be distributed in this scheme.
Now, you're probably thinking "So what?! Poor people get an extra buck! Isn't that a good thing?"
My answer would be: for the poor people, maybe, and ONLY in the short run.
Firstly (and you'll scoff at this) Lord Rudd is playing favorites by stealing from the rich (well, everyone, really) and giving to (only) the poor, in true socialist fashion.
Secondly, what happens when these several billion dollars enter circulation? An increase in the money supply. The direct cause of inflation. Prices are going to rise EVERYWHERE, so the benefit that the poor families gain at Christmas is going to be immediately mitigated when prices "stabilise" in January. So, the poor don't gain or loose anything, technically, and the slightly better off people just have to cop the price rise.
Thirdly, and finally, when you tally up this policy with all the other bits of government spending that Divine Rudd wants to introduce, you'll notice that the budget surplus is quickly disappearing. When it finally goes into deficit, we'll have to do what the Americans are doing. First, we'll have to borrow from the Chinese (but seeing as they've already lost all of THEIR cash in the US, they might be reluctant). When that avenue is closed, you know what they have to do? They have to PRINT the money. Poof! Whole budgets out of nowhere!
And the Weimar Republic comes home to Australia.
Oh, and if you think this COULDN'T happen in modern times, watch Mr. Mugabe put a scowl of disapproval on your mug: http://en.wikipedia.org/wiki/Hyperinflation_in_Zimbabwe
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