Monday, March 04, 2024

Economic Confusion

Our leaders seem to be confused about the state of the New Zealand economy.

The Prime Minister says the economy is fragile, but he has the policies to turn the economy around. He says that too many people are unemployed and that he will get them working again. His Finance Minister wants to introduce tax cuts so that household can afford to increase their consumption.

The Governor of the Reserve Bank of NZ says that the economy is still over-heated, causing inflation, so interest rates will have to remain high for a longer to cool it down. He says that unemployment will have to increase. He says that household consumption will need to be reduced to remove inflationary pressure.

The only certainty is confusion.

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