Australians who have lost their jobs are getting a fortnight subsidy while small businesses are getting cuts on equipment and allowances to keep them running.
All these measures will cost the federal government tens of billions of dollars, however it will be necessary to ensure we come out the other side of Covid-19 in a good place. But one economist has proposed a pretty radical idea to ensure a recession is avoided.
Professor Steve Keen of the University College of London has told Daily Mail Australia that a huge sum of money should be given to everyone to keep the economy ticking along.
“Give $100,000 per person as a flat rate to everyone to eliminate the private debt”, he said.
“We let ourselves get into the biggest debt bubble in human history.”
Those without private debt would also be given the $100K in Professor Keen’s proposal to make everything fair, but the main aim would be to help those with burgeoning credit card debt as well as mortgages.
If the adult Australian population were to receive that massive chunk of change, then the country’s private debt could be reduced to 90 percent of GDP. If that number doesn’t fall then we could be in a very bad position financially as we emerge from the coronavirus pandemic.
The federal government has helped people with large private debt, like mortgages, by deferring them for six months. In total, around $200 billion worth of mortgages have been deferred.
That will allow many who are struggling through the pandemic to worry less about their repayments and concentrate on putting food on the table and having a roof over their heads.
Source: Lad Bible