In 2009, the world experienced a Global Financial Crisis (GFC) which caused recession in most advanced nations around the world. In an effort to combat this, the Australian Government created a Stimulus Package to increase aggregate demand. The treasurer, Wayne Swan proposed that $42 billion would be given to both individuals and businesses to lessen the impact of a recession. The package included a one off $950 payment to low and middle-income families, individuals, famers, students and other groups. The Stimulus Package was also aimed at the construction of new buildings and upgrades, as well as roadworks. The Government also intended to give 9,540 schools around the country, a grant to build a new hall or canteen. Businesses were also offered investment tax breaks to purchase new assets.
The GFC affected Australia’s Economic growth, Unemployment rate and Inflation. These three elements of the economy are all interrelated and affect one another. In 2008 Australia had been experiencing exponential growth for 10 years at an average growth rate of 3.6%. Unemployment was at an all time low of 4.5%. Australia was experiencing this large amount of growth mainly due to the resource boom at the time and the expansion of macro and microeconomic policy which was being run by the Government. Inflation had been maintained at 2-3% after the recession in the 1990’s. The exception to this was in 2000 when the Goods and Services Tax was introduced. Overall, Australia’s economic health was good and had been experiencing a boom.
Economic growth can be defined as the increase in the volume of goods and services that an economy can produce over a period of time. It is meas...
... middle of paper ...
... invested into the stimulus package by the government.
The Stimulus Package assisted Australia in staying out of a recession. The money given to consumers and businesses stimulated economic activity in the economy, which gave businesses more profit and allowed them to hire more employees and expand, which in turn gave consumers more confidence to spend more money. This injection into the economy lowered the amount of unemployment, while increasing economic growth. Although inflation has remained steady, the increase in consumer expenditure may inadvertanly cause an increase in inflation down the track (this can be seen in Figure 1.4 where aggregate demand has expanded and created an inflationary gap labeled as CD). The Stimulus Package accomplished the Government objective of keeping the country out of recession.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Background context The assessment task is catered towards year 7-mixed ability students at a girls-only, public school in the Western Suburbs. Students will sit the exam in term 2 near the end of the unit on food and hobbies. The school allows for a variety of different Asian language choices and these girls chose this language due to interests in the culture and language of Japan. However, the girls are de-motivated to study due to family problems and stress that occurs in low socio-economic families (Moll et.al, 1992; Matthews, 2008).... [tags: Assessment, Summative assessment, Evaluation]
1111 words (3.2 pages)
- The tertiary sector gives an incentive of a higher profit margin as compared to the rest of the two sectors. A firm needs to achieve productive and allocative efficiency in the case of primary sector; as profit margins are slightly low in this area. In the same way, transformation of raw materials into goods has been the task for the secondary sectors. E.g. manufacturing and assembling steel into car. ‘Slower labor productivity growth in Europe than in the United States since 1995 reverses a long-term pattern of convergence.... [tags: Economics]
892 words (2.5 pages)
- A growing government is opposite to America’s economic interests because the various methods of financing a government - taxes, borrowing, and printing money have harmful effects upon the economy. There are many reasons why there is a high deficit in the United States such as extensive spending. This is true because government spending is often economically destructive, regardless of how it is financed. There are many causes of the steady growth in U.S. trade deficits. There are many people are against the high deficits especially economists.... [tags: Economics]
1252 words (3.6 pages)
- The principles of Buddhist Economics are extremely different from the capitalist society we live in, so I thought that I would have a lot of conflicting opinions with this particular article. Surprisingly, I understood and even agreed with many of the points made in this article. Perhaps a shift in thinking would make it easier for our society as a whole to behave more sustainably, but I don’t believe that the ideas proposed in this article are able to be implemented into our society because we have been told in every aspect of life that growth is good.... [tags: Economics, Economy, Ecological economics]
1028 words (2.9 pages)
- 1) The current recession is the longest since the Great Depression in the 1930's. We are still far from a recovery with unemployment at about 9.7% and weekly new jobless claims at 442,000+. In your view, are we about to grow out of the recession or will it continue. In addition to the unemployment data, support your positions with such economic indicators as: new housing starts, used home sales, GDP growth, etc. The current recession or financial crises began in United States of America and created a domino effect of creating instability in the financial markets the world over; the spark of this recession ignited fire around December 2007.... [tags: Economics ]
1023 words (2.9 pages)
- Social studies is a huge part of the elementary curriculum. Without social studies, elementary students would have a huge gap in their knowledge content. Economics is responsible for providing a large amount of information to students. For third graders, the North Carolina Department of Public Instruction places economics under goal five. Goal five divides communities and the basic economic principles into seven objectives. The first objective for third grade economics asks for students to understand the definition of scarcity and be able to provide examples.... [tags: Economics]
1460 words (4.2 pages)
- Economics Research Paper It seems every day there is dire news about the economy. Particularly about issues that have been affecting our everyday lives. One specific issue is currency. Money has always been a serious problem for many Americans. Most Americans have a difficulty taking care of their wealth and are unable to use it for expensive items. Some have trouble saving up and using it for items they do not need. Although we question many other issues reported on the news that pertain to money, Americans are generally concerned about matters that America has decided to act upon, such as the state budget cuts.... [tags: Economics]
1324 words (3.8 pages)
- Introduction The year 1996 market a turnaround for the financial system in Australia. It is in this year that the Finance Treasurer announced the formation of the Financial System, Inquiry also known as the Wallis Inquiry, which was intended to check the financial system in the country. Specifically, the Inquiry was mandated to research and analyse the consequences of financial deregulation in the country since the 1980s and; analyse the driving forces affecting change in the Australian financial system, especially in view of technological development.... [tags: Economics]
2319 words (6.6 pages)
- “Teachers help students use assessment as a window into their own growth and identify as learners so, they develop the power and agency necessary to take charge of their learning (Tomlinson, 2010). Summative assessments are a mirror to student thinking. Summative assessments help teachers and students see a trajectory of their learning. Teachers can use them to identify which students are ready for other tasks; and which students need more time to develop specific concepts. The assessment that we administered asked students to answer a series of questions using information from a graph.... [tags: teachers, students, meaningful task]
990 words (2.8 pages)
- Definition of Topic: Economics is the study of supply and demand. It defines the ways that human beings allocate resources and how resources are distributed amongst a market. It allows you to see trends in current market places and predict what may happen in the future. Many different subjects were once regarded as a part of economics. Political science and even sociology were once considered part of the field. These subjects still play a major role in understanding economics but are also completely separate disciplines today.... [tags: Understanding Economics Essays]
1694 words (4.8 pages)