Monday, October 6, 2008
Dude, who stole my economy?
Cullen rains on Key's parade
National leader John Key expects to announce a programme of tax cuts tomorrow despite the Treasury's pre-election report that shows the economic forecasts to be worse than the most pessimistic predictions. Budget deficits of billions of dollars are predicted for the next 10 years - a far cry from the surpluses Finance Minister Michael Cullen has run for nine years. Public debt is tipped to spiral higher as the weak domestic economy gets further buffeted by a growing international financial crisis.
OUCH! How is unregulated global capitalism where the greedy who decry Government intervention any other day of the week get bailed out by taxpayer dollars going for ya? We all feeling snug are we? Look at the hit, Unemployment up over 5%, growth down to.1%, housing bubble helped created by no capital gains tax pops down 10-25% and a budget deficit of $6 Billion , hey we’re all having a grand ole time with unregulated global capitalism folks, so why stop the party? Why stop the party indeed, National release their much awaited tax policy tomorrow and if National Party Svengali Matthew Hooten has anything to do with it, the solution to our pain will be much larger borrowing, that’s right we have about 22% debt to GDP (it was 60% under Ruth Richardson), Mat was arguing in the Sunday Star5 Times that Key shouldn’t cut back but should indeed borrow a lot more to pay for his crony capitalism corporate welfare via Public Private Partnership ‘infrastructure’ policy and of course Tax cuts. What if John comes out with an even larger tax cut policy arguing ‘now is the time to give more back to NZers while the Government shoulders the extra debt while building you more ‘infrastructure’ contracts that we’ll give our mates in the corporate world”, with the concerns over the economy would anyone notice the possible downstream ramifications of this? Would National go there?