Many Kiwis are sick of our new National Government. John Key continues to wilfully ignore the will of the 83% of New Zealanders who are opposed to the anti-family law, labelled by the Green Party as the "anti-smacking law". When asked if he will honour the result of the upcoming referendum on smacking, Key has evaded the question by stating that unless he hears of good parents being prosecuted for a light smack, he is happy with the law. Key is not a fool. He knows just as well as you or I that that is not the point. The fact is that it is illegal to correct your child with a smack - whether or not the police prosecute is utterly beside the point. - more at the Section 59 blog.Meanwhile, our Minister of Finance Bill English is failing to prepare New Zealand for the full onslaught of the recession. "Mr English said the budget would focus
on reprioritising government spending, particularly spending for public services. There would be no room for significant fiscal stimulus in the budget and the rate of increased spending would be lower than in the past." - TV3 23/04/09. Hard as it is to believe, those are English's words "the rate of increased spending will be lower than in the past", i.e. spending will continue to increase.National is setting our country up for a full-scale depression. What is desperately needed now is a strong dose of ACT policy - the same thing that pulled New Zealand out of the downward spiral set in motion by the 80's Muldoon Government. Below is an excerpt from ACT MP Hon. Sir Roger Douglas's latest press release with his recommendations for the National Government.
Mr English continues to either sit on his hands or move in the wrong direction. While the OECD tells us to sell poorly-managed State assets, National promised to retain State assets – and is now beginning to stack them with political appointments just as Labour did.
The OECD reports that health spending is out of control and can only be tamed by introducing greater public/private competition. National TALKS about allowing competition in health services – but we need action. We need to privatise ACC and utilise private health services before we will see any benefits.
Further, the burgeoning cost of superannuation caused by retiring baby boomers is unsustainable. If we act now, we can decrease the pain in the long term. In the short term, the age of entitlement will have to rise – as the OECD advises – or we will continue to slide behind other nations even faster. In the longer term, we must move away from the current superannuation system towards one that encourages people to save.
When you’re in a hole, you need to look at all possible ways to get out. We shouldn’t ignore advice simply because Mr English doesn’t want to hear it. In fact most of the advice, if followed, would create the kind of growth that occurred from 1984-96. While Mr English is not listening, Labour is moving in the opposite direction to that needed – continuing to have faith in politicians and bureaucrats to spend money more wisely than individuals.
Enough of National thinking they are New Zealand's saviour. They are arrogant and hypocritical just like their predecessors, Labour. We want a government which listens to the people, which refuses to endorse badly written law, and which will protect the country's economy by drastically cutting government spending.
Mate you do have to understand in a recession that if the Government stops spending money, then it drives the country deeper into recession.
ReplyDeleteAt the moment it is very important to maintain spending.
When the economy recovers then the Government will most likely let inflation deal with the governments high spending. By not increasing benefits and social spending the real value will drop.
What the government is doing is making sure that it can get best bang for its buck. A very good thing to do and the right time to do it.
No mate, Keynesian economics does not work.
ReplyDeleteSimeon, on reading that I'd say Andy has thought far more carefully about the issue than yourself.
ReplyDeleteGovernment has no money of their own, only the money of taxpayers. If it is to spend money, it must first take it off taxpayers. If the taxpayers have little money (in a recession for instance), the government should take less, to keep what money is left in the economy. As they are taking less, they must spend less too.
Government redistribution of money doesn't "stimulate" the economy with new money from thin air. It just takes money from the people who are working efficiently and could bring our economy out of recession, and gives it to less productive causes, driving the country deeper into recession.
Look at history. Who recovered fastest from the Great Depression? The countries whose governments cut back spending (e.g. New Zealand). Who recovered slowest? Those who increased spending (the USA for instance). Germany was even worse, so much money was spat out by the government that kids were making kites from worthless banknotes, yet it just became harder and harder for the common person to buy bread.