WhatsNew2Day
Latest News And Breaking Headlines

Economists warn that Australia will face ANOTHER economic downturn in October

Economists warn economists in October of a new economic downturn in October, when the JobKeeper program and JobSeeker supplement will end.

Six million Australians are at risk of losing $ 1,500 a week when the JobKeeper scheme ends on September 27.

And 1.7 million people on unemployment benefits lose half of their income if the supplement runs out on October 27.

The government expects 1.7 million people to claim JobSeeker in September. Pictured: Centrelink queues in Sydney in March

The government expects 1.7 million people to claim JobSeeker in September. Pictured: Centrelink queues in Sydney in March

Six million Australians with the JobKeeper wages of $ 1,500 every two weeks are likely to lose their jobs. In the photo: South Melbourne Market

Six million Australians with the JobKeeper wages of $ 1,500 every two weeks are likely to lose their jobs. In the photo: South Melbourne Market

Six million Australians with the JobKeeper wages of $ 1,500 every two weeks are likely to lose their jobs. In the photo: South Melbourne Market

Such a widespread income cut could cause a ‘major crunch’, according to ANU professor Peter Whiteford.

“There is a chance of a second economic downturn if these schemes expire in October,” he told Daily Mail Australia.

“Many of the newcomers to JobSeeker have a mortgage or pay rent in a place they could afford when they were working.

“So there could be major consequences if half of their income is withdrawn,” he said.

Professor Whiteford suggests raising the JobSeeker base level by $ 120 from $ 275 to $ 395 per week after the supplement ends.

He calculated that this is the amount needed to keep the unemployed out of poverty, defined as earning less than half of the average family income.

Professor Whiteford said this would cost taxpayers about $ 14 billion a year if two million Australians were out of work, but it would be more economical than continuing the supplement.

Professor Whiteford suggests raising the JobSeeker base level by $ 120 from $ 275 to $ 395 per week after the supplement ends. Pictured: pedestrian traffic in the Sydney CBD as the lockdown restrictions are lifted

Professor Whiteford suggests raising the JobSeeker base level by $ 120 from $ 275 to $ 395 per week after the supplement ends. Pictured: pedestrian traffic in the Sydney CBD as the lockdown restrictions are lifted

Professor Whiteford suggests raising the JobSeeker base level by $ 120 from $ 275 to $ 395 per week after the supplement ends. Pictured: pedestrian traffic in the Sydney CBD as the lockdown restrictions are lifted

1.7 million people on unemployment benefits lose half of their income when the corona virus supplement ends on October 27. Pictured: cyclists in Surfers' Paradise in April

1.7 million people on unemployment benefits lose half of their income when the corona virus supplement ends on October 27. Pictured: cyclists in Surfers' Paradise in April

1.7 million people on unemployment benefits lose half of their income when the corona virus supplement ends on October 27. Pictured: cyclists in Surfers’ Paradise in April

He believes that the Green Party and the Labor Party will support his proposal following an April Senate investigation, dominated by Green and Labor senators, that “too many” people with income support were living in poverty.

However, Prime Minister Scott Morrison has insisted so far that changes to the JobSeeker benefit should not be permanent.

Meanwhile, ANU professor Bruce Chapman, who designed the Australian HECS scheme, is calling for a loan scheme to replace the JobKeeper payment.

He believes that thousands of Australians can lose their jobs without their jobs.

“For many organizations, JobKeeper’s withdrawal without such a buffer could be very harsh, which could lead to more job losses, further reduction in demand and more uncertainty at a time when uncertainty is already at a historic high,” he said.

The scheme would allow companies and individuals to get a government loan, but only repay it if they make enough money.

He said that for individuals, “this could be a $ 5,000 loan, enough to persuade people until their fraught work situation becomes clearer.

“Repayments would be based on personal income and are intended to minimize non-repayments of debt,” he said.

Professor Chapman said that income and income-based loans would also be the fairest and most sensible form of economic stimulus available to the government.

The government will review the JobKeeper scheme in June.

ANU professor Bruce Chapman, who designed the Australian HECS scheme, advocates in September for a loan scheme to replace the JobKeeper payment. Pictured: Melbourne residents walk in Albert Park

ANU professor Bruce Chapman, who designed the Australian HECS scheme, advocates in September for a loan scheme to replace the JobKeeper payment. Pictured: Melbourne residents walk in Albert Park

ANU professor Bruce Chapman, who designed the Australian HECS scheme, advocates in September for a loan scheme to replace the JobKeeper payment. Pictured: Melbourne residents walk in Albert Park

A woman wearing a handmade face mask enjoys the freedom to legally sit on a park bench to read a book at Melbourne Botanic Gardens

A woman wearing a handmade face mask enjoys the freedom to legally sit on a park bench to read a book at Melbourne Botanic Gardens

A woman wearing a handmade face mask enjoys the freedom to legally sit on a park bench to read a book at Melbourne Botanic Gardens

Last week treasurer Josh Frydenberg warned Australia of a bleak economic future with 10 percent unemployment in June.

In total, 1.4 million Australians will be out of work after coronavirus locks have forced entire industries to shut down.

The unemployment rate is not in the double digits since 26 years ago in April 1994.

Australia experienced only double unemployment during the Great Depression of the 1930s, early 1980s and early 1990s.

The Treasury estimates that gross domestic product will decline by more than 10 percent in the June quarter, the biggest drop ever in the country.

The loss of $ 50 billion is equal to the total quarterly production from South Australia, Tasmania, the Northern Territory and the ACT.

Treasurer Josh Frydenberg (pictured May 12) has warned that Australia is facing a bleak economic future with 10 percent unemployment in June

Treasurer Josh Frydenberg (pictured May 12) has warned that Australia is facing a bleak economic future with 10 percent unemployment in June

Treasurer Josh Frydenberg (pictured May 12) has warned that Australia is facing a bleak economic future with 10 percent unemployment in June

.

Comments
Loading...