Economy is not strong

OUR economy, we were told three months before the election was “solid“.

Now we know that is really not the case. Our economy is slowing and there are signs and indicators that a recession is coming our way. To be more precise the economy is on a slippery slope.

We all know that wages growth has been stagnant for years, add to that savings which are being eroded and household debt too high. In the meantime the RBA has had two rate cuts and more cuts are expected but that is only giving us a false hope and will have little effect on lifting the economy.

It is not a sign of a strong economy, it’s rather becoming a race to the bottom.

Alarm bells are ringing. Are we going towards zero interest rates or below zero?

What is needed now is clear to many economists (not so clear to the government) is running the deficit and increasing significantly government spending.

There is under current economic conditions, no need to have a surplus, there is no rampant inflation that requires brakes to be put on.

A good government (read: good economic managers) should know this. Josip Crljen, Parramatta Park PRIVACY POLICY: Our privacy policy www.apnarm.com.au/privacy includes important information about our collection, use and disclosure of your personal information (including to provide you with targeted advertising based on your online activities). It explains that if you do not provide us with information we have requested from you, we may not be able to provide you with the goods and services you require. It also explains how you can access or seek correction of your personal information, how you can complain about a breach of the Australian Privacy Principles and how we will deal with a complaint of that nature.