@ISIDEWITHQuestionseconomyStarted 11yrs agoActive 2wks ago

Should the government use economic stimulus to aid the country during times of recession?

After the 2008 financial crisis The Rudd Government passed two stimulus packages in an effort to revive the Australian economy. The packages were worth more than a combined $50 billion. Mr. Rudd argued that they helped sustain the economy by boosting retail sales and saving tens of thousands of jobs.

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Answer Overview

Response rates from 2.5k 3000 voters.

87%
Yes
13%
No
71%
Yes
11%
No
5%
Yes, but in the form of increased spending on infrastructure
2%
No, recession is a natural cycle that purges excess
4%
Yes, but in the form of tax breaks for all citizens
0%
No, and the government should drastically reduce spending during recessions
3%
Yes, but in the form of assisting sectors most heavily hit by the recession
3%
Yes, the government should intervene to boost a recovery
1%
Yes, but in the form of tax breaks for low income citizens
0%
Yes, and collectivize all industry

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Other Popular Answers

Unique answers from 3000 voters whose views went beyond the provided options.

 @9ZFCJX4answered…2wks2W

Depending on how much trouble our economy is in and how long we've been in a recession for but as a whole I think no

 @9DNJPSJanswered…1yr1Y

Personally I think Government should assist at times to help business`s but I have no faith in them at all to actually do what is required or would work

 @8ZFGSBZanswered…3yrs3Y

Yes, to aid recovery and avoid suffering but with conditions to ensure effectiveness

 @8Z49VT5answered…3yrs3Y

Yes but only so much as that the debt will not increase beyond 90% Debt to GDP

 @8KMKT6Danswered…4yrs4Y

Yes... by tax breaks for low income and economic aid to disability, carers and elderly (only if they financially need it)

 @kristoanswered…4yrs4Y

Economic Stimulus is vitally important to ensuring the economy and industry can survive through a crisis -- government spending should be carefully targeted to sectors with reliable returns and those which boost spending by all citizens, chiefly those with the least money to spend.

 @8F953DTanswered…4yrs4Y

Yes, but spending on infrastructure that benefits the common good & provided jobs in creating common good assets - like social housing & public transport.

 @97ZF7LJanswered…2yrs2Y

Yes, but get the high income earners to have a specific tax that requires a portion of their funds to be donated to community services and education

Latest News

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  @lemans3427 from California submitted…9mos9MO

Commercial Real Estate Crisis Threatens Global Economy

Recent global events have sparked fears of a commercial real estate crisis in Europe, mirroring situations in Japan and the US. Notably, Deutsche Pfandbriefbank AG faces significant downturns due to the real estate market's weakness.The past week has witnessed significant downturns in the stock values of several banks worldwide, particularly those with substantial exposure to commercial property loans. Mirroring unsettling developments in Japan and the United States, Europe is now facing the prospect of an emerging commercial real estate crisis. Some senior officials at the European Central Bank say Germany will inevitably be a special focus as they examine CRE risks at banks across the region.“There is more pain to come in real estate valuations, so what does that mean for lenders and does that mean there is the potential for a crisis?”German banks have the most commercial real estate loans in the European Union, along with their French peers, but they have classified a relatively small portion of those loans as non-performing. Recently, however, that share has been rising while it declined in several other countries.“This is definitely not just a US problem,” said Valeriya Dinger, a professor of economics at Germany’s University of Osnabrueck. “I wouldn’t be surprised if we see a wave of loan loss provisions for German banks on their domestic commercial real estate exposure,” she said, even if there’s no systemic risk.German property values are particularly vulnerable to higher borrowing costs because capitalization rates — or the potential return on a real estate investment — were pushed lower there than in other markets during the cheap money era. That reflected in part the fact that yields on German government bonds, a benchmark for investors, were negative at the time.

 @ISIDEWITH submitted…9mos9MO

China Creates A Global Economic Shock

The first China shock came after a series of liberalizing reforms in China in the 1990s and its accession to the World Trade Organization in 2001. For U.S. consumers, this brought considerable benefits. One 2019 paper found that consumer prices in the U.S. for goods fell 2% for every extra percentage point of market share grabbed by Chinese imports, with the biggest benefits felt by people on low and middle incomes. But the China shock also piled pressure on domestic manufacturers. In 2016, Autor and other economists estimated that the U.S. lost more than two million jobs between 1999 and 2011 as a result of Chinese imports, as makers of furniture, toys and clothes buckled under the competition and workers in hollowed-out communities struggled to find new roles. A sequel of sorts appears to be under way. China’s economy expanded 5.2% last year, a subdued rate by its standards, and is expected to slow further as a drawn-out real-estate crunch crushes investment and consumers rein in spending. Capital Economics, a consulting firm, thinks annual growth will slow to around 2% by 2030. Beijing is seeking to engineer an economic turnaround by plowing money into factories, especially for semiconductors, aerospace, cars and renewable-energy equipment, and selling the resulting surplus abroad. Protectionism might shift some of the deflationary impact to other parts of the world, as Chinese exporters look for new markets in poorer countries. Those economies could see their own fledgling industries shrivel in the teeth of Chinese competition, much as the U.S. did in an earlier era.

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