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Simon Benson

Stimulus: Scott Morrison’s sober package will ensure no fiscal hangover

Simon Benson
Scott Morrison and Josh Frydenberg unveil the stimulus package. Picture; AAP.
Scott Morrison and Josh Frydenberg unveil the stimulus package. Picture; AAP.

Scott Morrison has moved swiftly but sensibly to spare the country from economic recession.

It is a sober response to a crisis that has yet to reach its peak.

Whether he succeeds or not is now in the hands of business, pensioners and the unemployed.

The strategy is simple and coherent.

By shielding company cash flow, the prime minister is issuing a challenge to businesses to hold their nerve and hold on to their workers.

By rolling out cash through the transfer payments system, he has targeted those most likely to spend every cent of it.

The immediate effect of the stimulus package will be injecting billions of dollars into the economy to address the collapse in domestic demand and keep people in work.

The medium term objective is to supercharge investment and keep business humming.

The longer term aim is to establish a framework for a rapid economic recovery when the health crisis finally runs its course.

Critically, Morrison and his Treasurer have avoided the fantasy projects of the Rudd government’s second stimulus in response to the Global Financial Crisis.

Yes, the surplus is lost but there will be no “fiscal hangover”.

Morrison believes the community will understand the sacrifice.

Simon Benson
Simon BensonPolitical Editor

Simon Benson is the Political Editor at The Australian, an award winning journalist and a former President of the NSW Press Gallery. He has covered federal and state politics for more than 20 years, authoring two political bestselling books, Betrayal and Plagued. Prior to joining the Australian, Benson was the Political Editor at the Daily Telegraph and a former environment and science editor which earned him the Australian Museum Eureka Prize in 2001. His career in journalism began in the early 90s when he started out in London working on the foreign desk at BSkyB.

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Original URL: https://www.theaustralian.com.au/commentary/stimulus-scott-morrisons-sober-package-will-ensure-no-fiscal-hangover/news-story/749268ffff6c66d1ece2827725748f6d