Kevin Rudd, Australia’s recently elected Prime Minister has delt out a Christmas bonus for families with children and pensioners. Families will receive $1000 per dependent child and pensioner get $1400 if they are single and $2100 for a couple.
This sounds great, however now he is encouraging everyone to go out and spend it all on Xmas. Apparently this may keep our economy afloat if this money is injected back into the system, keeping jobs secure and businesses booming as usual at Christmas time. But is spending this bonus going to help the actual individual people in the long run. What happens when the money runs out and the bills start piling up.
It makes me wonder if this is good advice coming from Kevin Rudd, the supposed leader of this country. Isn’t it better to save the money for what could happen in the future?