Who is funding the government’s stimulus package? Is it a loan or generous economic relief?
"I believe the long-term effects of the stimulus package will be more catastrophic than the coronavirus pandemic. To repay the debts, the Australian Government will have to generate more tax revenue and decrease its funding into the health, education, defence, social security and welfare. This will slow our economy’s recovery once this pandemic is under control.
The government must repay their debts to an independent bank entity known as the Reserve Bank of Australia (RBA). The RBA are legally empowered to print money and control cash flow in the economy. Also, empowered to put a cap on interest rates offered by lenders. Through the adjustment of interest rates, the RBA effectively dictates the spending of borrowers in a bid to avoid a spike in the inflation rate.
By doing so, the Australian currency strengthens, increase in employment and achieve economic prosperity. Theoretically, the RBA prevents the Australian economy from going into an abyss. But hold on a second, why does the RBA have the power to print money and loan it to the government? Wait what charge interest as well?
I believe this pandemic will expose Central Banks around the world for scavenging on people’s vulnerability during this crisis. We have queues that stretch out a kilometre outside Centrelink offices to receive financial relief, financial relief that they are expected to repay by way of taxation.
The economic mechanisms that our economy functions in accordance with are not designed to achieve economic prosperity instead are designed to keep you under financial hardship. You thought as a human being you should be afforded the right to have access to essentials necessary for survival? Hilarious.
Even if the coronavirus virus did potentially reach the point of apocalyptic devastation the system would have no regard for your life."
- AT
