Economic boosts must target our neglected people

The $10.4 billion stimulus package marks a significant shift in Australia's approach to fiscal policy, but it also marks a significant shift in the way we see the role of government.

Of course, market activity has the capacity to create benefits in which we can all share, but it must always be remembered that the sharing of those benefits is an unintended consequence of economic growth, not an inevitable outcome.

Interestingly, it was not the equity arguments about the need to raise the aged pension that won the day, it was the economic arguments.

When increasing the pension was good for the pensioners it was not such a priority, but now that it is seen as a way to help the economy it is universally applauded.

The Rudd Government must explicitly accept responsibility for diverting more resources to those groups that remain in need. Trickle-down policies did not work. Our record period of prosperity did not close the gap in Indigenous life expectancy, and we should never believe that if we make some people rich enough, the benefits will trickle down to Indigenous communities.

Similarly, while the recipients of the recent package were more numerous than many were expecting, those on unemployment benefits missed out again.

With job losses looking more and more likely, it is essential that the next stimulus package is aimed at those groups who have missed out so far.

After all, now that everyone agrees that the best way to pump money into the economy is through the pockets of low-income earners, who could argue that the unemployed and some Indigenous communities don't provide a perfect opportunity to do so?