John MacDonald: Spend more money? Tell him he's dreaming

How do you feel about being told you need to spend more money? That’s what the Reserve Bank’s chief economist wants you to do. As expected, the bank’s governor announced yesterday that there would be no change in the official cash rate because the bank doesn’t want to do anything that could put the brakes on the economic recovery. Which some people are feeling the benefits of, while others aren’t. Which the Reserve Bank describes as an uneven recovery. Meaning we’re still in for a bit of a haul before we all feel some sort of benefit. Tell that, though, to the bank’s chief economist Paul Conway who is giving us all a bit of a hurry along, saying people need to stop being so cautious with their money and get out and spend  more. How realistic is that, do you think? If you’re not having a “tell him he’s dreaming moment”, then you must be one of the people who are already feeling the benefit of an economic recovery. But, generally, what planet is Paul Conway on, telling us to spend more? Because we’re doing that already. Not out of choice. Not because we’re feeling particularly flush. But we’re spending more just to get by. Two days ago, new numbers came out showing that grocery prices are still going up. White bread prices up 57.9 percent in the past year. Chocolate up 20 percent. Not to mention mince. That’s pink gold these days.  Which is why I think this statement by the Reserve Bank’s chief economist that we need to stop being so tight and start spending more is just ridiculous. LISTEN ABOVESee omnystudio.com/listener for privacy information.