It's raining money in Oz

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Instead of going to work to earn our daily bread, the government suddenly opens up the treasury and distributes the cash across the country with reckless abandon, crying "Spend! Spend! Spend!"

The dream doesn't allow the money to go into new bridges or roads or town halls or even sporting stadiums.

It goes into our pockets -- cold, hard cash the lucky recipients can do with what they will.

The dream became a reality in Australia this week as the global financial crisis sparked perhaps the most extraordinarily generous economic stimulus package the nation has ever encountered.

Around six million Australians -- nearly 30 per cent of the population -- have qualified for a slice of an $8-billion Cdn cash splash.

An average family with three kids pockets around $2,400, or $800 for each kid. Couples on the old-age pension found more than $2,000 in their post box in the form of a government cheque.

Some families, especially those who qualify for a carer's pension (caring for the elderly or infirm), are believed to be receiving as much as $18,000 in one hit.

The money comes on top of a homebuyer's scheme, where mainly youthful first-home buyers are collecting an $18,000 government donation to help them on their way.

The federal government couldn't be clearer about what it wants Australians to do with the money.

"Go out and spend the money," Prime Minister Kevin Rudd urged on Sunday.

"These payments start arriving tomorrow, just 17 days before Christmas, and I urge families and pensioners who have been doing it tough to spend their payments in a responsible way to make their family Christmas all the more special."

To most of us it's almost counterintuitive to be profligate with a windfall. Since primary school, kids are told that along with godliness and cleanliness, miserliness is a virtue.

But, like the rest of the western world, Australia is in the grip of a panic about the growing impact of the global financial crisis, which every week appears to be bring more bad news.

Australians have effectively been told to indulge themselves with a big-screen television, a new washing machine, a new lawn mower, or even to take an (Australian) holiday and stimulate the ailing tourism industry.

The national broadsheet, The Australian, reported this week that electronics retailer Bing Lee has already recorded a lift in sales leading up to Christmas.

"In the past two weeks, we have actually recorded a spike in sales thanks to the interest rate cuts and the stimulus package," Bing Lee general manager Phil Moujaes was quoted as saying.

"We are hoping a good percentage of the stimulus package will now be spent with retailers to continue the rise in spending over Christmas."

Opposition Leader Malcolm Turnbull, a former millionaire stock broker who clearly understands the doctrine of the Paradox of Thrift, say the $8 billion is an economic equivalent of a one-off sugar hit.

As the full extent of the economic crisis kicks in, Turnbull is clearly concerned Australians will close up their wallets, refuse to spend and bank the windfall.

"In a climate like this, people are very much inclined to save the one-off payments like this and so we'll see," he said.

There are some worrying signs fearful Australians won't spend the cash.

A survey by the Australian National Retailers Association found around 45 per cent of the money will go into banks or be used to pay off debts.

Outspoken Queensland National Party Senator Barnaby Joyce has been more blunt, fearing the money will disappear in a few weeks, leaving the nation with half its previous $20-billion surplus, an economy still in serious trouble and a few Australians with a serious hangover.

"There are serious concerns about this," he said when the package was announced in October.

"We've noted that some families in some areas could get up to $18,000 -- one family."

Joyce, a rural-based senator who knows something of the darker side of the Australian character, believes booze and gambling will swallow a good portion of the stimulus package.

"This, in some areas, to be honest, will turn into a bender that goes over days," he told the national broadcaster, the ABC.

"We'll see an increase in alcohol... you know, the effects of alcohol that turns into assault, that can turn into rape, that can turn into the general wasting of money, that can turn in effect to the payment for drugs."

Federal Treasurer Wayne Swan has an optimistic view of the economic responsibility of the average Australian, predicting the cash could lift the nation's flagging GDP by as much as one per cent and create 75,000 jobs.

"Families will make their decisions in the interest of their households," he said.

"I've talked to a lot of families, pensioners and parents and many of them have been doing it tough in recent times. So this cash will come at a time when they can spend responsibly, support the economy and support Australian jobs."

Michael Madigan is the Winnipeg Free Press correspondent in Australia. He writes about politics for the Brisbane-based Courier Mail.

Republished from the Winnipeg Free Press print edition December 12, 2008 A15