Mike's Minute: Is Labour's cash bonanza economically smart? No. Is it Politically? Maybe
Quick question around the cash bonanza yesterday - is it so blatant that it might actually work?
An extra $300 million we don't have, just splashed all over the economy as part of a $2 billion package, made up of stuff that got cancelled.
They are doing it because we have a cost-of-living crisis and we have a cost-of-living crisis because they overreacted to Covid.
It's very likely that on Thursday when the official GDP number is published, that we are entering a recession. In fact, it is likely we are already in one.
As a result, everyone feels the pinch and wants more money and Santa…
The skinny
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