Monday, March 20, 2023

Mike Hosking: What a revelation that we could've been in even more trouble than we already are

So, once again, in a Matt Hancock-type revelation we learn that during the Covid years the Government considered handing us all $5,000.

$5,000 for everyone. It's like Oprah: "you get a car, you get a car, you get $5000".

They considered cutting GST for a couple of weeks, like a GST sale.

As we sit here in what almost certainly is a recession, given last week’s -0.6% number, what they were trying to do was stave off a recession.


They thought the way to stave off a recession was to close the borders, and in doing so, strangle the economy but flood it with cash. Cash they never had anyway.

Another part of the plan was to do it Prezzy card style. The only thing that stopped them was they couldn't get the plastic in from China quick enough. Think about that.

New Zealand, the eco-warriors in the middle of our nuclear moment, changing the world for the better through well thought-out climate policy, wanted to import tonnes of good old Chinese plastic to toss money we didn’t have at a country closed down.

Is that comedy or tragedy? Or maybe a bit of both.

The more we learn, the more Matt Hancock-ish it is.

All this came about because despite what the Reserve Bank was doing, printing money to the tune of $100 billion and handing it to banks to throw at us anyway they wanted, the fear was that wouldn’t be enough.

Once again, given the state of the economy we sit in this morning, can you imagine how much worse it would be today if these idiots had actually gone ahead with it?

What was needed, and this is perhaps the most important lesson out of Covid and general crisis management, was experience and expertise and, above all, great leadership. And they didn’t have it.

We have amateurs from unions and university and people who had barely any experience of Government.

Sure, Jacinda was good with hugs and stuffed animals, but that was window dressing - literally. The intellectual muscle was never there.

No, in the end it didn’t happen.

But it clearly was a live option. The danger of buffoons running the place cannot be overstated.

We were a bad idea away from catastrophe - and the other bad ideas landed us in the current mess.

I suppose the ironic good news is it could have been worse.

But what a gobsmackingly horrifying thought that is.

Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings.


Anonymous said...

The frightening thing is Countries do fail. Really dumb ideas get pushed ahead by halfwits in power and they never think through the outcomes.
NZ is not far off this, we like to think it’s first world and stable but from where I sit, it’s on very shaky ground.
The RBNZ is a classic example, it used to be good and well regarded globally. Now it’s a laughingstock with a governor hugging trees for Christ sake, meanwhile the Country is mired in debt and doesn’t have the experience to get us out of the mess.

Robert Arthur said...

The public should have been told at the outset that some natural setbacks have to be taken on the chin by all. Instead we concealed the pain and now selected business', unlucky employees, and savers carry the burden whilst the rest are fully compensated and/or rake it in.

K said...

@anon... Give that RBNZ man a new 10 year tenure. They gave the other perp a gong.

Caro said...

They, the Labour Govt. are incompetents , theorists with no practical knowledge and an ideology that belongs in fairyland. What's the bet that Mahuta sloughing off to scrape China's feet next week results in a huge cheque and a BRI document with China being signed 'under Labour's cover of darkness' modus operandi to 'solve' their dilemma of running out of money to achieve NZ failing infrastructure problems and overcome their throwaway monetary policies of the last 7 years and to get them re-elected come October. Never mind the enslavement of NZ being the outcome rather than any semblance of a democracy.
They make me cringe.

Anonymous said...

Possibly naive to think it a foolish blunder. To bankrupt a country to break it down is a communist tool.