Wednesday 11 February 2009

Business as usual.

A lot of people are having doubts about Barak Obama's recovery plan in the US - just as some wonder if Kevin Rudd's forty two billion dollar handout will bring a permanent answer to this recession.

A worrying sign is the attitude of the big American banks and finance houses. They are the very people who caused this problem with their greed and doubtful ethics, and now they have been bailed out with public money they are heading right back into the same practices - and rewarding executives who should have been fired with huge bonuses.

The danger is that we could see a similar outcome to the ten billion giveaway to pensioners and families that Rudd conducted last December 8.

There was a jump in pre-Christmas retail sales and this saved the jobs of huge numbers of employees - and then retail feel off a cliff !

This new incentive is a mixture of giveaway and money for projects. Work on projects such as the refurbishing of schools will return a benefit and work will be extended over a period of time - but when the money runs out and the work finishes - will we return to where we are now ?

The gamble is that this injection of money will kick start the economy, the banks will resume meaningful lending, people will have jobs and be able to pay their mortgages - and the economy will gain strength and return to health.

If it doesn't we will have imposed a crushing debt for our children and grandchildren to repay - and all we will have achieved is to delay the inevitable !

If nothing will stave off a depression then we would be wise to tackle it head on - take the pain that an army of people out of work will suffer and let natural forces restructure the economy and allow a healthier system to emerge.

Tinkering with an ageing and corrupt economy is only going to perpetuate the cause of this crash - and the actions of the Greens and independent Senators in pushing their political barrows as a bribe to passing legislation is part of that decay.

Maybe now would be a good time for all sections of politics to meet in goodwill and put together a plan to get us out of this mess.

The wisdom of many is preferable to action courses dictated by political dogma !

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