In May, they were promising growth would be 4.2% in 2012. By October, it was 3.3%. November, 2.5%. December, 1.5% …. with ‘downside risks’ aplenty. Looks like we’re going to be waiting on that brighter future a while longer. Vernon Small points out there’s no way National’s going to keep its promise to get back into surplus in 2014. When will they tell the truth?
And what are they going to do about it? When the Budget shows larger and longer deficits, what are they going to do?
Cut our public services, of course. They could unwind the billions in tax cuts to the rich, but that ain’t their way.
And what’ll they do about the fact that the economy isn’t growing? Nothing. They’ll keep on doing what they were going to do anyway – build highways to nowhere that just so happen to serve their constituencies (and their beach houses), subsidise their farmer mates, sell our stuff to their banker mates.
But it’ll be a good excuse to go a bit further: like more weakening of environmental and employment protections, and sell more of the assets.
In a world where the economy isn’t growing any more and shrinking, it comes down to who takes how much of what’s left. The question is whether we let the elite, the 1%, grab more and more or whether we say that it’s time that ordinary people has a fair crack.