So what is going to happen to the economy both here and the rest of the world is a question on everybody's lips.

And I was thinking about it yesterday because I was reading the thoughts of two economists, Nick Tuffley from the ASB and Tony Alexander from the BNZ.

Both agreed that the biggest threats come from overseas. The trade and tariff war between two giants, the US and China.

Then there's Brexit which will see the world's fifth biggest economy devolving from the world's biggest trade bloc. Only a fool would think this won't have an effect.

Tony Alexander pointed out that with slowing economies overseas the biggest effect for us will be in tourism which is already seeing a slowdown. Tourism is getting it from two sides.

Firstly, slowing overseas economies means less discretionary money and therefore less tourists. But there is also starting to be people who believe in the current climate change scenario then it's morally wrong to fly all the way to New Zealand.

Air New Zealand and Auckland International Airport, which both report their annual results on Thursday, will provide some insights into how the tourism industry is faring.

Nick Tuffley talked of a slowdown but not a recession. He talked of growth over the short term of between 2.5 to 2.8 per cent.

A recession is two periods of negative growth in a row. We're still well away from that. And that's important. Both economists stressed that the biggest negative domestic factor in the economy is confidence. And that's not based on what the politicians have done but a continuing fear of what they may do. Nick Tuffley described it as a funk.

Which is why I've decided to suggest to the politicians what they could do that might lift the funk.

Both economists and the Reserve Bank have been stressing lets get out and spend. Interest rates have never been lower, export prices for out primary products remain high. Property has slowed in sales but prices aren't falling and there's talk that LVRs will be loosened in November which will keep the market ticking along.

And then there was a thing in Nick Tuffley's piece for the ASB that I found interesting. He was urging an increasing in welfare and perhaps a taxcut. The logic here is obvious. Free up money for spending to keep the economy rolling. Give poorer people money and they spend it. Normally on more food

So welfare has already been increased. It's the first thing the government did when they got into power. They've also moved on minimum wages which puts more liquid capital into the financial system.

So why not have a taxcut?

I reckon it's time to prepare to change the tax brackets and one in particular. $70,000 is when the top rate kicks in and yet most of our households income is smack in that band and there's no way you can tell a family person that $75,000 makes them deserving of the top tax rate in this country.

Lets move that top tax bracket. We've talked about it enough. Everyone thinks it's a good idea. Rich people won't notice it. But the hard working, middle class who keep this country moving will welcome it and perhaps do what we need them to do. Be confident and keep your wallets open.