$320 billion and counting

It’s been another extraordinary news day in Australia. Earlier today the Federal Government announced the nation’s largest-ever social security program. The program, worth $130 billion, will subsidise the wages of up to 6 million Australian for the next six months.

To put this figure in perspective, the Government will spend an amount equivalent to 20% of its annual budget between March and September on this one package. It’ll reach almost one in four Australians, and represents direct Government support for 50% of the nation’s labour force.

It’s the third stimulus package announced by the Government in as many weeks. To date, these announcements have totalled more than $320 billion in funding. During the Global Financial Crisis the Federal Government engaged in a rather “modest” $54 billion of stimulus spending.

Rumour has it the Government rushed to roll out wage subsidies after Australia’s unemployed ranks swelled by a million people last week. Anecdotal evidence suggests employers were encouraged to let staff go rapidly after generous unemployment benefits were announced ten days ago.

In more good news today, the increase in new Coronavirus cases appears to be slowing. Only 127 new cases have been confirmed in New South Wales since 8pm Sunday, taking the State’s total number to 1918.

This result comes after 174 new cases were announced on Sunday (from Saturday's numbers), and 212 the day before. NSW currently has the nation’s highest number of confirmed cases. This includes 26 patients in intensive care units, 13 of which are on ventilators. Mercifully, to date, only 18 deaths have been recorded nationwide.

With each passing day, the Coronavirus crisis is turning more and more of the world as we know it on its head.