Staggering figures show Australia has spent twice as much per capita supporting citizens through the pandemic than Covid-stricken countries like the UK – despite having 46 times fewer cases
- Australian government stimulus 86 times larger than that of the United Kingdom
- The UK is experiencing 46 times more Covid-19 cases per capita than Australia
- Despite Aussie’s spending their way out of trouble, economists say it won’t last
- Withdrawal of government spending will cause inevitable economic downturn
Australia has spent twice as much money supporting its citizens through the coronavirus pandemic than countries like the UK.
The stimulus spent by the Morrison Government is 86 times larger than that of the British government, despite the UK experiencing around 46 times more coronavirus cases per capita, reported News.com.au.
Despite the UK experiencing multiple lockdowns, a mutated strain of the virus and a death toll of more than 100,000, fiscal stimulus is at a low nine per cent, compared to Australia’s 16.8 per cent.
Australia has spent twice as much money supporting its citizens through the coronavirus pandemic than countries like the UK
Canada, France, Italy and Brazil have all spent less on their stimulus packages than Australia.
Jacinda Ardern has also spent less on New Zealand’s fiscal support package, spending 35 per cent less than Australia.
Government stimulus has meant extra cash can be used to bolster the economy, with many saying Australians have spent their way out of an economic downturn.
When comparing the latest retail sales data with that of 12 months prior (November 2019), spending is up more than 13 per cent.
The used car market is also booming, with Aussie’s using their superannuation to purchase a vehicle as an alternative to public transport.
Australia’s preference to save rather than spend between March and October last year has resulted in a $109billion cash-pool in household savings, which provided some temporary relief to the economy.
The UK experiences 46 more times coronavirus cases per capita than Australia but has spent significantly less on stimulus packages
Economic managers predict the withdrawal of government stimulus, including the JobKeeper and JobSeeker payments will result in an inevitable economic downturn.
Prime Minister Scott Morrison told the National Press Club on Monday that Australia cannot be run on taxpayer money forever.
Mr Morrison said that emergency response measures are only temporary and will be accompanied by a clear fiscal exit strategy.
‘On the economy and jobs, the comeback in Australia’s economy is already underway and betters the experience of most advanced economy nations in the world today’, Mr Morrison said.
Mr Morrison said the government will achieve economic recovery by sticking to the Economic Recovery Plan, and exercising fiscal discipline to ensure future generations are not overburdened by taxpayer spending.
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