Many of us are either borrowing and or dipping into retirement savings and or selling assets, in order to get through the pandemic or, for the more fortunate, to buy and or swap assets. They're putting their futures on the never-never, and that can't end well.
But, of course, many more of us either can't borrow, or can't borrow any more, or don't have assets to sell. Many of us have no savings of any kind. It's a week to week existence either on welfare or in precarious employment.
Any federal government can spend to counter inadequate consumer spending and business investment. It doesn't need taxes, and it doesn't need to borrow (issue bonds), in order to spend whatever it likes. The money is created out of thin air. This is FACT.
Government spending can boost employment and welfare, assuming the money is spent wisely. It potentially risks inflation1 but, in current depressed circumstances, that potential is very low.
You don't have a government that will do that. You voted neoliberal. Remember.
SCOMO's given you the following options.
You can borrow more and or use up retirement monies in order to save your sinking ship.
If that fails, you can sell your house to one of them, if you're lucky enough to own one.
If that fails, you can lose your employment and go on the dole.
SCOMO spends to protect assets (defence, property, shares), not people (jobs, welfare, public heath, public education).
This is Professor Bill Mitchell's overall assessment of the labour market:
- "The on-going impacts of the pandemic are once again killing job prospects and the lack of employment opportunities is pushing people out of the official labour force in substantial numbers."
- "Without that participation response, unemployment would have been 1.1 points higher."
- "What is preventing a worse outcome is the fact that the lower population growth due to the external border closures, means that employers are now having to absorb the unemployed more quickly to maintain their operations."
- "There is now definite evidence that further fiscal support2 is required and the silence from the Federal government reveals their disdain for the plight of the workers."