I think 'OK' is being used very loosely. And I believe a bad government will help lead to a bad economy (although some may debate that with a government closer to home)
Depends of what "bad" means. If it means bad AT controlling the Economy, that may be a good thing for the private sector. If it's bad as in, controlling the Economy in a way that is damaging to industries/entrepreneurs, that may indeed be a very bad thing.