But the right was telling us Labour was ruining the economy. It's a cycle now?
This isn’t an attack on Labour more an explanation.
During the good part of the cycle, businesses have a resilience where you can load them up with with compliance and costs and they can on charge to the customers.
Ramp up minimum wage; extra weeks sick leave; extra stat holidays; extra compliance costs; reduce efficiencies, slow down traffic, increase taxes, etc.
Over the long term these can’t be increased more than natural increases in productivity. Or it’s artificially going up and must come down.
When the economy turns and customers cashflow becomes tight, all the costs and waste in the system is exposed.
We must correct back to meet the natural growth in wages; costs; etc.
The more inefficient the govt makes the economy, the longer and deeper the recession must be until fundamentals add up again and we return to aligning with our natural productivity.
It’s no coincidence we’ve had the longest, deepest recession in the world, going on 2 years as our wealth/ income has been reduced to where it should naturally be based on productivity. What artificially went up has come crashing down.
We can’t legislate ourselves rich, as Labour tried to do.
Economics 101 as Bruce would have said.