Australian cash registers ring in âmanna from Kevinâ
Published: 26/04/2009 05:00
Cash registers are ringing across Australia as more than seven million economically-stimulated consumers raise their wallets in thanks for âmanna from Kevin.â | |||||||
| A total of A$7.7 billion (US$5.5 billion) in cash bonuses from Prime Minister Kevin Ruddâs government is pouring into bank accounts this month as part of an aggressive plan to kick-start the ailing economy. Rudd and his treasury have given up to A$900 to all students and everyone earning less than A$100,000 a year â“ and told them it is their patriotic duty to go out and spend it. Local media dubbed the gifts âmanna from Kevin,â but the conservative opposition says the bid to bolster economic activity is little more than a âone-off sugar hit.â For most, however, the payment is an unprecedented gift from the recession gods as countries around the world struggle with the worst economic downturn since the Great Depression of the 1930s. Social networking site Facebook was flush with âthanks Kevâ messages as the cheques rolled in, with many promising to do their duty and hit the shops. Overseas travel topped the list for a large number, while laptops, bicycle parts, hiking shoes, webcams, shares and dental work were also high priorities. Sydney student Maeve Marsden rattled off a list of spending dreams: travel, cookware, gardening equipment, âa shiny, fancy cameraâ or an apartment. âBut for the moment there shall be no spending, no sir, the stimulating buck stops with me,â she said. âI have a love affair with my savings account and I am stimulating her. Sorry Kevin.â Many said they would put the money straight onto their overloaded credit cards, while others planned to donate it to charity. But in an ironic twist, some at least intend to use it against Rudd. Mithra Cox, an environmental activist, said she would use her bonus on a trip to Copenhagen, where she plans to travel with husband Martin Cubby in December to protest at a summit of world leaders on climate change. âWe figure itâs really important for Australian politicians to see that Aussies care enough to follow them halfway around the world,â said Cox, 29, who believes Ruddâs commitment to reducing greenhouse gases does not go far enough. âBasically, itâs now or never, and if the world doesnât get it sorted in Copenhagen then weâre all screwed. âItâs a long way to go to a protest I know, but someoneâs got to do something,â she told AFP. The pet industry has reported a surge in business, as people splurged their cash on grooming, care and accessories for their furry friends. âIâve had a number of reports of people sharing the stimulus package with their pets: a new kennel perhaps, or a clip and groom for the dog,â said Joanne Sillince, from the Pet Industry Association of Australia. Retailers were quick to capitalize on the flood of funds, launching a series of targeted ads flagging stimulus deals. One enterprising television maker, Kogan, urged shoppers to blow their cash on a specially branded and priced A$900 âKevin37â plasma TV with a 37-inch screen. Every set came with a free promotional Kevin37 T-shirt, emblazoned with the phrase âhigh definition stimulus,â said company founder Ruslan Kogan. One Sydney man allegedly caught with a cache of weapons and drugs in a police raid told officers he had used the stimulus cash to buy a .44 caliber pistol on the black market âfor self defense.â A St. George Bank survey this week showed fewer than half intended to spend all or part of the cash, with 35 percent saying they planned to pay down their credit cards and 9 percent putting it toward mortgage repayments. The first A$10 billion round of cash bonuses to low and middle income earners, announced by Rudd last November, boosted retail sales by an estimated A$1.3 billion, according to the National Retailersâ Association. Their survey about how consumers planned to spend the second and much broader round of bonuses found there was an even split between saving and spending. Shane Oliver, chief economist with AMP Capital Investors, said the scope and immediacy of the rollout was unprecedented in Australiaâs history. âThese sorts of payments directed at households have not, that I can recall, been undertaken in such a significant fashion if at all in the past,â Oliver said. Relatively high debt levels and expensive housing meant Australians were quite vulnerable to an economic downturn, Oliver said, adding that if households hadnât received the stimulus payments they would have cut back their spending.
Source: AFP | |||||||
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