Wednesday, November 26, 2008

Bill's Big spend up

So Bill English has announced a $7billion 'economic stimulation package' as Treasury and others announce yet worsening economic figures and banks tighten their lending criteria.

Other governments also do their bit to 'help.'

I guess the devil will be in the detail and we won't know how helpful such spending sprees will help until we know exactly what the spending will go on.

However, I have some concerns about the effectiveness of spending your way out of recession.

We heard horror stories about Liarbour's 'Decade of deficits' but wouldn't it be hypocrical if National delivered an even longer spell of debt.

I also don't remember the Thatcher government of Britain in the 1980s also spending their way out of trouble. It saved Britian by tough budget restraints, free markets and 'monetarism.'

However, like some beast from beyond the grave, Keynes is back in vogue again!

Now, Britain has just announced its 'recession-busting' big spend up, with added old-style socialism of tax increases for the wealthy. Bloggers Iain Dale, Archbishop Cranmer, and Guido Fawkes look at the economics and politics of PM Brown's mini-budget, with a major focus on Britain's massive debts- debts New Zealand could be rushing towards.

Bill English had certainly better be careful not to send us down that same red-ink stained track.

Can Rodney and Roger stop him? Do we want them to?

In the meantime, enjoy Gordon Brown selling Britain's soul to the Devil.


Ackers said...

LOL. Tough budgets free markets and monetarism!!!

Go read your Keynes....there's a reason why every Government in the world is reacting this way and it's got nothing to do with socialism.

All I can say is thank god you elected Key. If Rodney was running the show you would indeed get free markets and monetarism.

A triumph of ideology over sense

Adolf Fiinkensein said...

Good God! Adolf agrees with Ackers.

What seems to have escaped the gaze of most is that Bill English has actually announced nothing 'new.' The majority of the $7 bil is actually Labour's programme announced in its last budget. The big difference will be the reigning in of non productive government operating expenditure which never would have happened under the previous regime.

Anonymous said...

So English following the same tax and spend mentality as the socialist governments before them (Clark and Muldoon) that drove us into recession (and penury in Muldoons case) is a good idea?


Pique Oil said...

The Thatcher government was also the beneficiary of the North Sea Oil and Gas boom. Millions of oil tax pounds that were unavailable previously flowed into the state coffers. While the hard decisions were made and were necessary the extra tax is never included in the reasons for the success.
The North Sea Oil boom is dying and the tax from it is drying up as well

mawm said...

Like any good houshold budget, careful management of available money will get us far. Stop the waste and spend on what will prepare the country for the next growth phase - and at a time when interest rates are plummeting, and world markets are in turmoil, there are a few good deals out there.

I do not think that we are going to see any of the wastrel spending of the last government.

Anonymous said...

Yes, these blue socialists are dreaming, Paranormal.

Stupid Keynesians.


Anonymous said...

Cut taxes Cut government waste Put money back into the pokets of those who earned

Forget about taxing and spending out of recession

It wont work