It is said that the Federal government may need to provide financial aid to sustain 2nd biggest economy to mitigate flow-on effects throughout Australia.
With the recent stage 4 lockdown newly enforced announced by the Victorian premier, Daniel Andrews, along with the shutdown of particular industries to be revealed on Monday, is said to have a hammer blow to the Australian economy.
With federal Treasury forecasts released less than a fortnight ago (to be invalidated) will require the prime minister, Scott Morrison, to inject substantial amounts of money into Victoria if Australia is to avoid prolonging what is already classified as an economic disaster.
Australia’s second-biggest state, by both population and economic output, has been in an increased state of reinforced lockdown conditions than the rest of the country. It has been almost a month and will now go into a state of near hibernation for at least another six weeks.
The down-turn in economic effects will be felt across Australia, exposing the thought that emergency jobkeeper and jobseeker support can be safely reduced at the end of September, only less than 60 days away – as a dangerous fantasy.
“That will mean there are less people working less shifts,” Andrews said.
“There is less contact. There is less seeding of this virus from workplaces back into families and from family to family and right throughout the Victorian community.”
A third group will have to temporarily, but entirely, shut down.
Andrews was not able to confirm which industries will fall into which category. However, COVID has spread through some industries such as meatworks. Industries that have a high count in casual employees where people work within close proximity.
Andrews has repeatedly said it is a huge cause for concern that casual workers keep turning up to work when they feel unwell because they fear they will never get another shift.
The Victorian government offers $300 for people to stay home between getting tested and getting their results. Which is enough to cover a few of their shifts. However, it raises the question for employees “if you’re thrown off the books what are you supposed to do after that”?
The government has also provided a $1,500 payment for people who test positive, but take-up has been poor.
Forcibly shutting high-risk industries should stem infections at work, but the cost to workers will be enormous.
The hit will also be felt through the rest of the economy across Australia, as spending vanishes and the goods and services they supply diminish.
People are losing jobs across Australia, and it’s older workers who are feeling the effects the most.
Workers in the already devastated Victorian hospitality sector, who might have been thinking they would be able to get back to work prior to the last month’s restrictions are enforced are now thought to have no chance at all.
Workers have been hit hard by this new wave of economic chaos will need money from the government in order to to be able to eat and pay their day-to-day bills.
The question is: which government? The Victorian government’s finances must be nearing their limits.
On the other hand, the commonwealth has oodles of spare capacity to borrow at the lowest interest rates in history.