Former US Secretary of State and one of the founding father of the US Benjamin Franklin once said "A Penny save is a penny earned"
Australia is currently financially desperate and every penny count. More and more Australians are now living on the streets, due to social welfare not having enough money, to help people, who are financially in trouble, leading to an increase homeless rate in Australia.
Thus, a policy that could help to resolve the problem, is to replace unemployment benefit, with unemployment loan. So, the social welfare borrow the money, to those who are unemployed and after they get a job, they pay the government back, via taking a small percentage of their salary, while they are paying their taxes. The percentage of salary the government take, depend on their income. Somebody with low income salary the government only take (e.g. 1% of their salary), somebody with high salary the government take (e.g. 20% of their salary) Somebody with middle income salary the government take (10% of their salary).
Then, the money they return to the government, the government can again borrow those money to other people in need of social welfare support and if one day, things in Australia improve to the extend where the money returned to the government, is more then social welfare needed, the extra money can be used elsewhere.
It is likely, the government will not be able to get back all of the money it borrowed, but been able to get back only a percentage of the money, is still better then, nothing, especially considering the circumstances.
Australia is currently financially desperate and every penny count. More and more Australians are now living on the streets, due to social welfare not having enough money, to help people, who are financially in trouble, leading to an increase homeless rate in Australia.
Thus, a policy that could help to resolve the problem, is to replace unemployment benefit, with unemployment loan. So, the social welfare borrow the money, to those who are unemployed and after they get a job, they pay the government back, via taking a small percentage of their salary, while they are paying their taxes. The percentage of salary the government take, depend on their income. Somebody with low income salary the government only take (e.g. 1% of their salary), somebody with high salary the government take (e.g. 20% of their salary) Somebody with middle income salary the government take (10% of their salary).
Then, the money they return to the government, the government can again borrow those money to other people in need of social welfare support and if one day, things in Australia improve to the extend where the money returned to the government, is more then social welfare needed, the extra money can be used elsewhere.
It is likely, the government will not be able to get back all of the money it borrowed, but been able to get back only a percentage of the money, is still better then, nothing, especially considering the circumstances.
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