TV Stores, Brothels Vie for Rudd’s Cash Handouts to Australians

[marmar]

I guess there's all kinds of stimulus in that package.:spank:



TV Stores, Brothels Vie for Rudd’s Cash Handouts to Australians
By Jacob Greber


April 3 (Bloomberg) -- Melbourne retailer Ruslan Kogan has billions of reasons to name a television sales deal after Australian Prime Minister Kevin Rudd.

Rudd is trying to boost economic growth with cash handouts totaling A$12.2 billion ($8.75 billion), or as much as A$950 to individuals. To attract some of that money, Kogan, 26, is advertising a 37-inch LCD TV he dubbed the Kevin37 for A$900.

“How people spend the bonus is up to them; I’d personally recommend paying off loans as a priority,” Kogan said. “But in these economic conditions, people are spending more time at home.”

The largest government handouts among developed economies this year have inspired similar pitches by travel agents, restaurants and even brothels following the weakest annual retail-sales growth in eight years during 2008. The risk for Rudd is that consumers -- whose spending accounts for more than half the economy and helps sustain 1.5 million retail employees -- won’t pay out enough to prevent Australia from slipping into its first recession in two decades.

“If a substantial proportion is spent, it will help retail sales hold the line, rather than decline as they have elsewhere in the world,” said David Rumbens, a director at Canberra-based research company Access Economics. “It will support jobs and businesses at a critical time.”

With companies such as BHP Billiton Ltd., the world’s biggest miner, firing workers at the fastest pace in two decades and the unemployment rate at a four-year high of 5.2 percent, some households will likely hold on to some of the money. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=afTLbCpxtMAk&refer=home