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Is The Economic Recovery Real?

“On Tuesday the country was invited in a speech by Finance Minister Grant Robertson to believe a ‘better than expected recovery’ had given the Government room to address longstanding challenges,” says ACT Leader David Seymour.

“Two days later he would seem to lack some faith in that recovery, spending $300 million expanding the flexi-wage scheme.

“Don’t get me wrong, the flexi-wage may be a useful insurance policy, especially in the event that there is further spread of Covid-19.

“But the fresh cash injection leads to speculation that last week’s better-than-expected jobs figures were being artificially propped up, and the Government suspects that’s the case.

“ACT’s view is it would be better and more sustainable for the economy if the Government stopped taking from business with one hand by imposing greater costs, such as huge increases in the minimum wage, while giving endless subsidies with the other, courtesy of the Reserve Bank’s money printing.

“To paraphrase Warren Buffett, at some point the debt tide will need to go out so we can find out who’s wearing swimming trunks.”

© Scoop Media

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