Some more union back-scratching from the Rudd government masquerading as a measure to "help workers and their families who lose their jobs through no fault of their own" as Rudd announces $300m for (unionised) retrenched workers:

Retrenched workers will now be able to immediately access help to find a new job under a $298.5 million plan announced by Prime Minister Kevin Rudd today...

...Those seeking assistance will now have access to a $550 credit for computer courses, training for heavy vehicle licences and work boots and equipment.

They can also access help for career advice, job applications and skills training.

Last week the Government committed $155 million to encourage employers to keep apprentices on despite tougher economic times

Please. As I mentioned last week and as many people have shown before, this kind of spending does nothing to help our economy. All it does is divert resources away from the areas that need it (i.e. productive industries) and give it to the areas that don't. I'm going to avoid the "through no fault of their own" part of Rudd's explanation (people who were living above their means are guilty as well) and rather focus on why this won't work. For one, how could Rudd possibly know that the market is clamoring for computer skills, heavy vehicle drivers and construction workers? The short answer is he can't! No one can know that, only the market can determine where labour should be efficiently allocated (it's not perfect, but it's better than Rudd!).

The issue we have here, as usual, is Rudd using 'emotion economics' to satisfy his union buddies -- the ones who helped him get to where he is today. This is nothing more than union back-scratching at its best, propping up his mates at the expense of every other Australian. If you complain about this idiotic economics on a logical footing, you're "heartless" or you "don't care about jobs", as the Liberal party is finding out the hard way.

No matter how well an enterprise may be managed, it will fail if it does not know how to protect its interests in the drawing up of the customs rates, in the negotiations before the arbitration boards, and with the cartel authorities. To have 'connections' becomes more important than to produce well and cheaply. -- Ludwig von Mises, The Myth of the Failure of Capitalism (1932)

These handouts need to stop. They are only going to prolong this crisis, cost thousands more jobs and reduce the wealth of our nation.