Saturday, August 30, 2008

So why are we in recession then?

UK blogger Guido Fawkes notes the contrasting economic fortunes of the US versus the UK.

UK Finance Minister Gordon Brown blames the 'credit crunch' for causing economic problems in the UK as well as globally.

Indeed, that seems to be the consensus here. The US is also to blame for our economic problems.

But hang on! The US has economic growth steaming along at a healthy 3.3%.

So how come it isn't suffering from low growth too?

Isn't a $150 billion taxcutting package from George Bush helping the economy, he asks?

Indeed, while the fiscal prudence of Dubya's government can be questioned, how much of our own slothful growth can also be put down to high Liarbour taxation?


emmess said...

Damn right
And don't forget the cunts are about to push through what could be possibly be the largest tax increase in New Zealands history (ETS), which will be twice as large as their s called tax cuts in October

Bryan Spondre said...

BNZ Senior Markets Economist Craig Ebert argues against the RBNZ cutting rates too aggressively.

"However, for the near term, the balance of risk would be for the Bank taking a mid-cycle pause rather than front-running with a 50 point cut over coming months."

Psycho Milt said...

So how come [the US] isn't suffering from low growth too?

Might have something to do with the administration's policy of just letting budget deficits balloon to potentially catastrophic levels. Is that an approach you're recommending to NZ's govt, FFM?