Originally Posted by
ECAMACTIONSCOMPLETE
Perhaps a travel voucher system (such as Tasmania) will help kick start the domestic tourism economy post pandemic.
Household saving has increased to 19.8% up from 6%. Yes there are those that have lost their jobs, but those that haven't have been stuck at home for the best part of a year and have cash to burn.
Given we are in the aviation industry we probably have a skewed view of the doom and gloom as we all personally know dozens of people that have lost their jobs, but there are many industries which have not been nearly as affected.
Been through many recessions?
Despite the few extra dollars being squirrelled away Australian households are still the second most indebted in the world. The margin calls on mortgages and the downward drag on wages takes years to really have an impact. Those few extra dollars saved either as a result of government policy or prudent spending shouldn’t be used on discretionary expenditure.
Sure, the government will encourage you to spend and even borrow in an attempt to kick the can even further down the road, and they may even be successful. Briefly.
Borrowing, whether by individuals or governments, is simply spending tomorrow’s money today. Eventually we have to transition into a tomorrow that has less money as yesterday spent a lot of it.