Cashed-up spenders or savers

The Rudd government is hoping that the $10.4 billion consumer relief package will lure young families and first home buyers into spending the extra grants and in so doing, stimulate the economy. The interesting question is whether or not this will indeed unfold as the government plans. With growing job insecurity and unemployment, falling share prices and more restrictive bank lending there’s no telling if Australians will choose to hold onto the extra cash or hold off on buying a first home. There’s talk of this being the most dire financial crisis since the 1930s Depression. Changing attitudes and behaviours amongst 18-30 year olds will emerge and may begin to show similarities to that of their grandparents in the way they begin to view their financial security.

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