My original post wasn't really that serious. Its in response to the RBA saying the dollar is too high. This indicates they are planning action to reduce the value of the dollar, ie interest rates cuts or increasing the money supply.
If the Aussie dollar is too high then why not increase the money supply and at the same time give all Australians a bit of help? A lot of people don't benefit from interest rates falling. Perhaps phase the handouts over time so there isn't a sudden spike in consumption that creates distortions, ie beer suddenly costing $100 a carton. Inflation would rise as it always does when the money supply increases however everyone would be compensated through the cash.
It would do more to improve the economy that dishing out new money to banks. Many people think the economy is going great. However there are many people struggling, especially small businesses.
It wouldn't cost taxpayers anything because the money would be created, not transferred from taxpayer to beneficiary. It would be more equitable to give the money to ordinary citizens rather than giving money created by the RBA to big banks. Most people have a tax file number so that could be used to keep track of who gets what. Of course some people have more than one TFN so perhaps the ATO should start looking at that as an area of compliance.
It's as simplistic as Pauline Hansons suggestion that the reserve bank just print more money. Strangely there are other consequences than there just being more money for everyone.
