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So, a recession it is then.\xa0

Another one.\xa0

We had one at the end of 2022, going into 2023. Remember those good times? It got revised initially and the Government of the day said "see, told you it wasn't a recession".\xa0

Then we got the final read and, yes, it was indeed a recession - two solid quarters where we went backwards.\xa0

That\u2019s bad enough. Recessions in modern economies are rare. Normally we argue about growth not being strong enough.\xa0

No such luck for us.\xa0

And now, to break the record, another recession. The third quarter of last year and the final quarter of last year were another two quarters of negative activity. Another recession.\xa0

The record? Well, there isn't a modern Western economy that has done what we have.\xa0

Britain fleetingly went into a single recession and Germany has had trouble. But Australia, the US, in fact, most countries have not only skirted a recession, they increasingly look like they are going to pull off this famed term we refer to - the soft landing.\xa0

Even those who have struggled and, let's be honest, everyone has and is having a hard time, but no one, not a single one, has managed to go backwards twice, except us.\xa0

We are the worst of the lot and that, despite Grant Robertson saying it's not a contest, it is unforgivable.\xa0

The ongoing issue is that, as well as going backwards, we are still stuck with inflation that is far too high. Now, the commentary will tell you inflation is coming down, which it is. But not enough and not fast enough.\xa0

This was the role of the Reserve Banks - get inflation down by applying a level of tightness to the economy without crashing it. Squeeze, but not so hard you choke people. Well, we are at less than zero, turning red in the face with the lack of oxygen.\xa0

But inflation is nowhere close to where it needs to be.\xa0

They say it'll be later this year before it reaches the target, the midpoint, and we can look at rate cuts.\xa0

Will it? I don't think they really know. But what we now know for a fact is we failed the experiment abysmally.\xa0

As history is starting to be painted all over the world with all the individual stories of the reaction to Covid, New Zealand now officially stands out as the example of what not to do.\xa0

What a legacy. What a reputation.\xa0

What a cluster.\xa0

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