Blog Day 62: Sunday 24 May 2020
A few things to talk about today. First up, yesterday's blog was abbreviated because I went to Mornington for lunch with Jackie and Sharon. This was the furthest I had been from home for at least 8 weeks and possibly 10. Usually the drive from Bentleigh East to Mornington is a bit of a chore but yesterday it was like a road trip, I felt like I should have checked the oil and water before I left home. Anyway it was nice to be out and about and have some company for the afternoon.
CD (or DD) has this morning announced some further easing of the corona virus restrictions. As from 1/6 we will be allowed gatherings of up to 20 in private homes including the residents and maintaining social distancing, likewise pubs, cafes and restaurants will be allowed 20 patrons but must be able to maintain social distancing. We can still only go to a pub for a meal not able to just have a drink at the bar. These restrictions will be further eased on 22/6 when 50 patrons will be able to attend a venue and gyms and the ski fields will be allowed to open.
There are a whole lot of other changes but the one that really interests me is that galleries, museums etc can reopen on 1/6 allowing 20 patrons 'per space'. This limit increases to 50 from 22/6. I am wondering what this means for the Shrine and whether we may be back there sooner rather than later, although I doubt whatever happens that we will be seeing any school groups in the immediate future.
On Friday the Federal Government announced that the ATO and/or Treasury had made a mistake with the calculations for the Jobkeeper allowance and instead of costing the country $120 billion it was only going to cost $60 billion. Now although this was a blunder of monumental proportions at least it was working in the government's favour in that it meant the government could borrow $60 billion less or had an extra $60 billion to spend or a combination of both.
Now, the funniest show on TV on Friday night was the ABC news in which the newsreader and reporter were trying to make the mistake in the costing of the Jobkeeper allowance into the biggest disaster to have ever hit the country and what a terrible thing the government had done in allowing this to happen. They couldn't bring themselves to admit that the country had just saved $60 billion, it was hilarious.
And of course Albo had to put in his two bits worth, has anybody else noticed that Albo has a whiny little voice, he will never be the great orator that Comrade Gough was.
I reckon as a result of this little debacle there might be some folk from the ATO/Treasury registering for Jobseeker on Monday, if this isn't the case if should be.
We are reporting one death nationally in the last 2 days, in the last 24 hours New York recorded 84 deaths, the first time that they have recorded a daily death rate of less than 100 since March. Sorta put it all in perspective, doesn't it.
Corona Virus Daily Stats: Day 139
Vic: 1,603 (+10 from Friday) - 19 deaths (increase 1)
Aus: 7,114 (+19 from Friday) - 102 deaths (increase 1)
Recovered: 6,494
World: 5,271,047
Why would the govt want to "save" money right now?
ReplyDeleteThey can get it at historically low rates, use it to stimulate the economy and create long term stability... Honestly if they are not going to throw everything and anything at the largest economic crisis to hit Australia, possibly since the great depression, then I think they are doing it wrong. If we get this wrong then we could go down the path of the USA which currently has almost 15% officially unemployed. I'm centrally no MMT proponent, and debt can be an issue, but at current rates and conditions I would assume no crowding out, good value for spending, we could certainly look at some project to increase long run aggregate supply and... sorry I'll stop there. I've been getting a little excited lately since we're teaching Economics at school again...
The govt won't be saving the money they will be borrowing less, isn't that a good thing? But I do agree if they can use it on some productive things such as infrastructure that will also provide employment that wouldn't be a bad thing. But it will need to be a shovel ready project not something that is going to hit the deck in 5 years. Otherwise I wouldn't object to some of the funds being used in "targeted" job support, but not just open ended handing out of funds.
DeleteIt's a bit sad when your life has got to where you are getting excited about teaching economics.
We actually want the govt to be spending as much as they can - so borrowing more to increase consumption and employment is a very good thing (Up until the point in which it creates inflation). Considering that the economy is far off capacity, borrowing and spending will lead to increased consumption, which increases employment. It can also increase our productive capacity and therefore increase our ability to produce things in the long term. All of this means increased tax revenues over the long term which could even offset any borrowings. Downside is potential devaluing of the dollar and inflation if we get it wrong. But there's upsides there as well. It's complex, but essentially we should throw the check book at the problem now, otherwise the alternative is far worse.
DeleteI am very glad that you are back teaching at school. Oh, and by the way the correct spelling is CHEQUE!
DeleteSo true - as a history teacher I should know that...
DeleteCassie & I went for 6.5 klm walk today (seemed more like 12) and I reckon there was not a person stopping home today. Only allowed to launch boats in own postcode and I reckon there was more than 20 cars and trailers at the Sth Burnie ramp. People walking and riding everywhere. Friendly lot, a hello etc. from everyone as they passed even if it was from a distance. Bunnings car park packed. It looked like nobody has been out for months, oh that's right we haven't.
ReplyDeletewe are gradually being let out here as well.
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