Monday, 19 July 2010

Doing my bit for the economy

With a bit of luck we are emerging from what is generally being described as the most severe downturn since the great depression of the 30's. Only time will tell whether the economy is slowly stirring into life or there is more pain to come.

Some indicators both here and abroad seem to indicate that that the worst is over. In the United States, still the engine of the world economy some indicators point to the greenshoots of some kind of recovery. Some pundits have been seeing these for a while now while others have been cheerfully being mowing them down.

There was a spike in activity earlier this year as businesses possibly restocked but activity has been flat over recent months. Plenty of businesses have managed to perform well in the face of adversity but if confidence doesn't improve soon and people don't start buying then they are going to have to start another round of cost cutting.

Many businesses will already have harvested the low hanging fruit or worse still are mortgaged to the hilt and no longer have any wriggle room.

The only way out of this is for us to start spending. Forget about saving or paying off the mortgage we need to spend and spend big if we are going to get out of this hole. If we spend with a bit of confidence then that confidence will spread despite what the experts say and in the words of that great Kiwi scholar Fred Dagg: 'she'll be right.'

I already know how I am going to help economic growth. I am going to buy one of these.

Buying a new bike will help the local economy and the local dealer and of course Husqvarna the manufacturer. I know this sounds a little self serving but it gives me a nice little warm fuzzy feeling that I am doing something for the greater good.

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