As I’ve previously pointed out, John Key’s National government only serves the privileged elite.
But their policy of only favouring the favoured few is not only venal, it’s really stupid economics as well.
The reason why it’s stupid is simple Econ 101, supply and demand.
National is always quick to emphasise the supply side, the importance of looking after business. Because business is, in the eyes of National, the ‘engine of the growth’ in the economy.
You take care of the business (supply) side of the equation and everything else simply falls into place, right?
What National neglects is the demand side of the equation. Without economic demand, there is no economy.
If the people in an economy have no money to spend then there will be no economic demand which means the economy won’t grow. It’s as simple as that.
We are already the most business friendly nation in the entire world. I think it’s safe to say that’s the supply side taken care of.
But 30 years of Neoliberalism has left most New Zealanders (and the rest of the Western world) in a state of economic anaemia. Kiwis are mired in debt, they have no money to spend, and therefore cannot possibly generate significant economic demand.
So what does John Key and National prescribe?
National’s antidote for the poison is……. more poison.
National loves going on about ‘growing the pie’ but growing the pie, ie increasing the size of the economy, is just a bad joke inside John Key’s high cost/low wage New Zealand.
To actually grow an economy, people need to have money to spend and under this government who’s got any money left to spend?
After all we’ve had…
These are just some of the really stupid things that National has done (or failed to do) which have weakened the economy and further impoverishing already debt-laden kiwis.
Gee, it’s almost as if John Key’s National doesn’t give a toss if the average kiwi has no money to generate economic demand. As long as the privileged elite, like Amy Adams can flog her milk solids to overseas buyers, and run her farms with dirt cheap kiwi workers then all is well…
We’re out of the loop.