Today, Bill English is outlining National’s plan to undo the work of the past fifteen years and take this country further into debt.
He will argue that National would not be borrowing for its programme of tax cuts for the wealthy, rather it would borrow for investment. That is a lie.
We already borrow for investment but only enough so that our debt stays at roughly the same level of GDP (18-20%). National will be looking at increasing those debt levels to 25% of GDP+. That will cost about a billion a year in interest payments.
English will say the borrowed money would go on health or education or roads, not tax cuts but think about it – they are planning tax cuts for the wealthy, because of these cuts, they won’t have enough money to fund the spending, so they would have to borrow. No big tax cuts, no need to borrow – the borrowing is to fund the tax cuts.
National won’t tell you that because, as John Armstong says: “Right now, getting back into power is all that matters to the party. To ensure victory it will do – to quote one of Key’s pet sayings – whatever it takes”