In just the last few days and weeks, businesses have been closing down, workers are being stood down and people are queuing miles long outside Centrelink. Looks like our economy is falling apart like a house of cards!
Hindsight is a great weapon. If only we all had this advantage.
To see our government so taken aback by the impact Covid-19 shutdowns are having on our economy, lead us to ponder if they saw any of this coming, and if they were prepared for this!
Consider this. The hugely talked about cash flow support for small and medium businesses to support them in keeping people employed;
As a result of this misplaced policy, on one side large number of businesses have no money to pay wages and on the other hand a number of other businesses which are not impacted by COVID are enjoying free money! Why reward the toilet paper makers or grocery stores who are already milking this crisis?
If only a little financial common sense could prevail.
It's not that we didn't know what was happening in the financial markets across the globe? A step by step analysis would help.
If you do it right, and minimise the scope of exploitation, most businesses will do the right thing. There will be fewer stood downs, largely reduced stress of living costs, businesses trying harder to survive rather than choosing the easy way of closing down, and the government under much less pressure to do something!
But what about the huge cost of mortgage and rent, both residential and commercial.
Let's take a step back. Our Prime Minister has been vocal about saying that in this period of financial crisis all our balance sheets will suffer, be it mom and dad household, small to big businesses or indeed the governments. He possibly missed out one key economic player, our banks! Banks are being asked to defer mortgage payments, but they are going to accrue interest for the deferred period, and charge interest on interest. I thus fail to understand what sacrifices are they making to help our community get through this catastrophe?
Better would have been to 'hibernate' the economy, as Scott Morrison keeps alluding to. Again some suggestion to do the trick.
So what does it take, to take the right decision? As always, strong political Will.
When the going gets tough, the tough needs to get going!
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