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Home > The Mike Hosking Breakfast > Mike Hosking: Wider economic mood and performance will bite the Government


	Podcast:		The Mike Hosking Breakfast
	Episode:		Mike Hosking: Wider economic mood and performance will bite the Government
	Category:		News & Politics
	Duration:		00:01:52
	Publish Date:		2022-02-13 23:35:05
	Description:		So we got a big jump for the minimum wage - $21.20. The advantage for the Government is most of the people they pay, aren't on the minimum wage. The burden is carried by the small businesses of this country, the same small businesses that any number of polls tells us were already downbeat about the year ahead. And how can you not be? You can't get staff because the border is closed, the remaining unemployed you don’t want for obvious reasons. You can't get the stock you need and what stock you can get has gone through the roof, price-wise. And against that backdrop the Government, none of whom bar one, possibly two, have ever owned a business in their lives, goes and dumps another cost on top of the pile. There's politics involved as many of those getting the bump will be Labour voters. Labour is the party of the unions and the unions are all about getting more for less. But what will bite them, as its bites all Governments, is the wider economic mood and performance. Our economy is stuck. The debt printed spend up is over, fear pervades current activity, one of our biggest income earners in tourism is shot for another year, we are paying more in tax, on average another 2000 a year for each of us, and the inflation rate is at record levels. And despite what they will try and spin about it being international, the key is to look at the actual number. It's 5.9% and climbing. And when you compare it to the inflation of others you'll find ours is one of the highest going and the reason for that is the spend up using debt. You spend using debt when your borders are closed. For those who didn’t close, like Britain, their GDP was out over the weekend and it's 7.2% for the year. That's the highest since World War 2. Is ours 7.2%? Of course not. You don’t fix inflation by piling more costs, onto costs, that are already fuelling inflation. It is the most simple of economic principles and yet when you have unionists and library dwellers running the place there's no telling them. Well, actually there is - MBIE told them the wage bump would cost jobs. But when you're riding as the limousine left posse you have to remember you are far superior in every aspect to bumpkins you rule over. See omnystudio.com/listener for privacy information.
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