The Coronavirus stimulus payment has now been rolled out for the 2.6million Australians. By Tim Brian Tufuga

The Coronavirus stimulus payment has now been rolled out for the 2.6million Australians forced out of work due to the COVID 19.
Roy Morgan Single Source October 2005 – April 2020. Average monthly interviews 4,000.

Unfortunately, for me, since I was working for too many different Security Companies throughout the years I do not meet the Jobkeeper payments. So, I join the 5 million or so in the normal unemployment payments. Annoying the heck out of me.

The stimulus payment is doubled the normal dole payments.

Why is this so?

The Australian Government has adopted the Social Democratic ideological approach to confronting the more likely threat of Stagflation. What is stagflation? It is the threat of sudden spike in unemployment and with it, the sudden reduction in supply of goods and services, which leads to a sudden spike in demand for goods and services. This then leads to high inflation rate in goods and services, as costs for scarce products dramatically increases to curtail diminished supplies.

John Maynard Keynes, introduced his Keynesian system during the Great Depression, in 1929 etc. The Keynesianism system was manifested in FD Roosevelt's New Deal policy which saved American jobs and economic depression. In Britain, this was called the Beveridge Plan. The macroeconomic stimulus package saved the Western Nations bacon from the Great Depression.

In Germany, the Great Depression led to the rise of the Wehrmacht, the Germans stimulated full employment by building the German War Machine. We all know where this led to.

During the COVID 19 economic recession and the sudden spike of unemployment of 2.6 million Australians out of work, the response was not to force people to work like the American Tennessee Valley Authority (TVA) hydroelectric Dam building scheme and energy infrastructural development throughout America under FDR, the COVID 19 reply is to stimulate the economy with injecting more monies to the Welfare State system so that the welfare state system will stimulate the economy through consumerism.

Consumer led recovery is the aim of the sudden injection of money into unemployed people's bank accounts so that people will spend it on consumer goods and services. Buying goods will stimulate private business and private business will help the Australian economy recover.

This marries the Friedman trickling down pareto optimality economic stimulus formula with the Keynesianism with stimulating full employment with the welfare state rebuilding the economy by lending a hand to the private sector.

Therefore, it is expected by Government that people on welfare will spend their money given to them to help the economy recover from the COVID 19 economic impact.

Roy Morgan’s unemployment measure for April shows a massive 2.16 million Australians were unemployed (15.3% of the workforce), with an additional 1.32 million (9.4%) under-employed.

Tim Tufuga


Source

http://www.roymorgan.com/findings/8393-australian-unemployment-estimates-april-2020-202005010502?fbclid=IwAR2Jrhx9CwqifqbWcmzY2nN0H22Jg12C70XjLc_Scn0lyhQdt1JmBsihj_0