Tax take is down due to reduced spending and the government’s response is to urge “restraint” and keep cutting.
These cuts will, of course, help fuel higher unemployment and further reduced spending, which will probably result in calls for further cuts.
We’ll also see asset sales if the Nats win a second term, which will be justified as necessary to pay down debt. These sales will mean reduced revenue to the government which will lead to, you guessed it, more cuts.
Finance Minister Bill English knows this full well because it is exactly what happened under the last National government in which he was a minister and it was precisely the kind of economic vicious cycle that made the 90’s a living hell for so many New Zealanders as unemployment hit record levels, social services were run down and out economic sovereignty was eroded.
I know Bill is not a stupid man which can only lead me to conclude that he is doing this deliberately.
My question is “why?”