Who blew the Budget?

Written By: - Date published: 10:58 am, April 19th, 2012 - 14 comments
Categories: budget2012, spin - Tags:

As part of the Nats’ pre-Budget framing, English’s mate Farrar is running graphs meant to show a blow-out in spending under Labour. Problem is, he hasn’t adjusted for GDP growth, or even inflation. How dumb does he think we are?

(source: PREFU 2011)

It wasn’t Labour that crashed the budget. It was a National government that decided it would be a good idea to borrow a billion a year for tax cuts and another billion a year for highways to nowhere, while adding 80,000 people to the benefit queue at an annual cost of a billion more.

14 comments on “Who blew the Budget?”

  1. The Gormless Fool formerly known as Oleolebiscuitbarrell 1

    But I thought the Nats were “slashing and burning” with no regard for the children and society and shit. Your graph makes it look like they are spending more than Labour. That must be wrong.

    • Kotahi Tane Huna 1.1

      Depends what they’re spending it on – media reports suggest they are spending it on consultants and their (the National Party’s) overseas owners.

    • Deano 1.2

      Principally, the extra spending is on benefits and pointless highways. Important things are getting cut.

      You can see for yourself in the PREFU.

      Or, you can bother finishing reading the post.

  2. Craig Glen Eden 2

    How can anyone think these guys are good with economics the economy always turns to shit with National.

  3. aerobubble 3

    On backbenchers, an old guy made this quite reasonable claim (it was still bollocks), which showed up the problem with NZ political debate. After five years of downturn we still see people arguing from the wrong page. He basically said government was right to be fiscally responsible, we can all agree with that, hell its meaningless unless government isn’t being fiscally responsible. Well it isn’t, because he went on to claim government debt was the problem. No, its not! Private debt is.

    You see when you don’t tax the capitalist, and provide easy lines of credit, and claim oil will never run out, then your average dope capitalist borrows money. And they did in great numbers. They could borrow more because they did not pay capital gains. Unlike in Australia, or the UK, where they do have capital gains. This leaves the ‘private’ sector heavily in debt, not the government! Well not until the National party put the debt on the taxpayers by handing even more tax cuts to the debt ridden private sector, borrowed to do it, and scraped blood off the poorest to pay for them too.

    You see if you have a fair political debate in NZ you’d see facts cited and you’d have debaters pass atleast some rational thought about what they are talking about. If government lowers taxation it allows citizens to take on more debt thus exasperating the biggest threat to NZ! Out private debt problem.

    Raise taxes on the wealthiest, close the capital gain loop hole, and start talking sense, for if an old guy can declare the problem on TV7 is the government debt position as if it was common wisdom we are healthier screwed when the next round of crisis hit, driven by oil crunch, extreme weather, and political reaction to all of the above.

    • David C 3.1

      Amazing when the Clark govt allowed household debt to rise by 60% in 9 years happy to rake in the taxes that all that borrowing generated.

      • aerobubble 3.1.1

        Indeed, it would have required a financial modernism that even the fiscal party (the Nats) were, and still are, delusional about. That in order to profit, you not have to just make money, you also have to store up the wealth in the society. NZ saving vehicles are notoriously missing from the NZ economy, thanks to the laziness of the representatives of the fiscal sector, the National.

        You can hardly argue Clark should look after investors when National completely ignores their interests.

  4. Jim Nald 4

    Quite.

    Typo with “exasperating”?
    Exacerbating?

    (oops, this should be in response to 3)

  5. jack 5

    There was a gap, National kept Labour’s policies and added 8 billion to the running of the government in their first 3 years. Helen Clark would have been salvating to spend as much as National.

  6. McFlock 6

    The problem isn’t more money going out.
    The problem is much less money coming in. 

    • Colonial Viper 6.1

      The Righties help engineer much less money coming in.

      So then they can engineer much less money going out.

      • Liberal Realist 6.1.1

        “So then they can engineer much less money going out.”

        ^ Soon to be in the form of our energy infrastructure revenue stream.

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