NZ Government could and should get us out of this recession.

NZ Herald article today highlighted that

Banks’ reluctance to pass official cash rate cuts on to borrowers is hitting businesses even harder than home buyers.

One key Reserve Bank measure of business borrowing costs has barely budged since the central bank began cutting less than a year ago.

The government commented

“Banks are crying they have to pay more for money they get overseas and that’s why rates have held up, but business rates have held up much higher than those for home owners and I don’t think that’s fair or right.”

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One advice on getting your country out of recession: Spend!

Why Spend? Why not save? Income is scarce, jobs are being cut, we need to batten down the hatch and survive the storm! Really?

Let us examine first why the economy is in doom and gloom…

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