Sorry Kevin

In order to save the economy, we could be receiving a “gift” from the Government of anywhere from $950 to $3000 in the next few weeks, depending on your circumstances.

That’s a very nice gesture, and I’m all for not looking a gift horse in the mouth, but the problem is we’re all licking our lips with glutinous excitement while forgetting the obvious – reckless spending is what got us into this situation in the first place!

Just like the “stimulus” package given in December, this is a short term populist action that will improve the economy for a month – but after that we’ll be no better off than we are now.

On top of this do you know who apparently will be the “saviours” of the economy with their tendency to overspend? Gen-Y, that’s who.

The Government is encouraging the young to get the money and spend it as fast as they can. Doesn’t anyone see what a disaster this is?

So Gen-Y are expected to buy iPods, Wiis and plasma screen TVs and pump the money straight back into the system that has hammered us in the first place. “Oh, but at least it will create jobs” I hear you say? No it won’t. It might help keep your job for a month; after that, businesses are still going to realise consumers are out of money and will have to make job cuts.

We’ve spent the last 10 years building the bubble to end all bubbles by buying more “stuff” with borrowed money, and now that the bubble is burst we’re somehow going to inflate it again with continual gifts from the Government. What happens next month – another $1000?

Gen-Y, I may not be popular with the Government, retail industry or Nintendo, but don’t spend the money. Put it on your home loan, credit card or any other loan you may have – and if you don’t owe any money, SAVE IT!

Now is the time to be smart, learn the value of a dollar, and above all – stay calm. Who knows what is ahead, but the reality is the plasma or iPod will still be there in the future (maybe even cheaper), so there is no rush to buy anything.

The storm is well and truly upon us, so batten down the hatches and wait for better days. Save your money, be happy with life as it is (without material items) and set yourself up for the future.

While you are doing that, let’s hope the Government comes up with a better long term solution.

Michael Phillips is a 30-year old CPA managing a business full of Gen-Ys. He’s the commercial manager of Cremorne Group which wholesales and retail mens and womens apparel, including the Tommy Hilfiger, Blazer and Perri Cutten brands. He offers his experience as a pioneering Gen-Y managing Gen-Ys, covering issues such as how to recruit, retain and get the most out of Gen-Y – the notoriously difficult younger generation of employees aged 15 to 30.