New program set to play a huge role in economic recovery could only work if everyone participates
Due to the current circumstances, budgets had to be adjusted to fully cater to the needs of individuals within a particular state. This “giveaway” budget was driven by the current situation. It wouldn’t have been possible a year ago – but because of the pandemic, things have changed.
The Morrison government is encouraging businesses to invest so more jobs can be created. Incentives are given to businesses as a way to provide support in these troubling times. In the same way, consumers are encouraged to spend some more to keep the economy moving.
Over the coming months, the government is said to provide more financial support which could be considered quite generous. The modest cash payments for pensioners are actually directed to boost consumption. The payments will be made in two – the first one will be by December, just in time to buy Christmas presents which would definitely help the retail sector.
The rise in unemployment is just one of the many effects of the pandemic. So many employers, to keep their businesses, had to decrease the number of their staff. While others were able to continue just by working from home, not everyone was lucky enough to be given such an opportunity. The government released subsidy for businesses to employ young people because of the fact that recession will hurt this generation due to the recession that’s happening not just in Australia, but all over the globe.
The more gets to be part of the labor force, the faster the recovery of the economy. However, the effectiveness of the program is yet to be found out. Employers can be wary of taking on more staff because of the financial difficulties they may be facing, so the JobSeeker program could really go either way. How much the JobSeeker payment will be set is also yet to be announced.
Not only were the younger people hit by the pandemic. Women were terribly hurt as well. The budget notes that a $240 million initiative was allotted for the “women’s economic security statement”. However, economic support must continue and not just a one-time thing. But of course, it could still be wound back even if extensions are necessary. Different mechanisms to support the economy have to be deployed eventually.
It’s a good thing that the government has implemented projects to help people who are struggling, but the road to recovery is going to be very hard – and could possibly take years.
Until a vaccine is in place soon.