How did Kevin Rudd prevent Australia from going into recession in 2009?.
Oct 24, 2016
Kevin Rudd helped to prevent Australia from going into recession during the Global Financial Crisis [GFC] in 2008/09 by increasing public spending, with the help of the surplus that the previous government had built up.
He gave the majority of the people in Australia money to spend, with many getting $900 each. Many working couples received $1,800 between them.
The recession was avoided because the massive surplus was available to be used to avoid it, whether it had been Rudd or any other leader, it made sense to do what he did with the safety net of funds built up by the previous Howard government.
If that financial crisis had come at any other time from about 2005, Australia may well have hit recession.
No matter who was in power at the time, they had the funds to keep Australia out of recession, thanks to Howards surplus, and Rudds choice of spending it. It was a combined effort.
The budget papers show:
1993: Mr Howard inherited a deficit of $14 billion and net debt of $83 billion, when he took office in March 1993. (any Financial Crisis then would have been bad)
2007: Mr Rudd inherited a surplus of $17 billion and net assets of $29 billion, when he took office in November 2007. (Enough funds available to save the day during the Global Financial Crisis of 2007–2009)
2013: Mr Abbott inherited a $19 billion deficit and net debt of $153 billion when he took office in September 2013. (any Financial Crisis then would have been bad)
The 2009 Stimulus Package.
The Federal Government made cash payments to more than 13 million Australians as part of its $52 billion stimulus package designed to stave off a recession and limit job losses.
Many Australians, who had paid tax in the 2007-08 year and had earned $100,000 or less, would have received a cheque during April 2009, to spend and stimulate the Australian economy.
$900 for anyone earning $80,000 or less
$600 for people earning between $80,000 and $90,000
$250 for those earning between $90,000 and $100,000.
$26 billion was being spent on road, home and school building projects.
Sources and updates:
theguardian.com/…/ten-years-on-voters-say-labors-52bn-stimulus-saved-australia-from-recession
smh.com.au/national/rudds-stimulus-package-what-will-you-get-20090204
finance.nine.com.au/…/900-cash-bonus-who-gets-it/facdc354-9a48-4e9e-850c-2bb8705dbe29