An economic stimulus is an effort by the goverment to pump money into an ailing
economy, whether through spending, tax cuts or interest rate reductions. By replacing
money not being spent by businesses or consumers, a stimulus is meant to put a floor
under a recession and pave the way for a return to growth.
Government measures, normally involving increased public spending and lower taxation,
aimed at giving a positive jolt to economic activity.
In order to stem this fall, the government launches a spending program to boost the
aggregate demand and stimulate spending and economic activity. This is known as a
The world is now caught in the worst economic crisis since the Second World War, a
crisis that has delivered recessions in the United States, the United Kingdom, Japan and
Individuals earning less
the government has recognized the urgent need for the purchasing power of people to be
sustained. The further consumer demand falls, the larger the number of businesses that
reduce their workforce or fold altogether. Every sacking means fewer dollars to spend,
less demand for products and services, and so takes the economy deeper into crisis. The
one-off payments are aimed at arresting the decline in purchasing power and demand for
goods and services.
addressed the issues of stimulating demand and job creation on a more sustainable
footing and with better and more permanent social gains
served economic recovery and the needs of people in a far more effective manner and on
a fairer basis by such means as increasing age pensions, unemployment benefits, carers'
allowances and other benefits by an immediate $50 to $60 a week and by providing
welfare recipients with free pharmaceutical prescriptions. These are long-term measures
that also meet pressing social needs.
The government has guaranteed deposits of up to $100,000 in banks, building societies
and credit unions to ensure the stability of banks
meet pressing social needs, create thousands of jobs and provide income security for
All of its measures so far, such as the guaranteeing of bank deposits up to $100,000,
assistance to specific industries, and even the latest package have the primary aim of
stabilizing the financial system, stabilizing the economy and bailing out capitalism which