Latest / The Kākā by Bernard Hickey
The only thing NZ has to fear is...fear of debt itself
The Government’s focus on deficit and public debt reduction isn’t working to grow the economy this time around because households are too indebted and businesses are too worried to step up and power that growth by investing and spending. The National-led coalition’s fear of public debt is misplaced and its strategy of repressing the size of Government and relying on the rest of the economy to grow can’t work without another housing boom, which no one is predicting or say they want.
Instead, New Zealand’s economy is stuck in a self-reinforcing stagnation, frozen in a fog of fear of job losses…
The skinny
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