Thursday, January 27, 2011

Two choices

In a perfect world everyone would have manageable debt levels and spend every dollar of income wisely.

Sadly this has not been the case for NZ.
Our State has squandered, squandered and more squandered our income. Followed by borrowed, borrowed and more borrowed our debt.

We might like to pretend that State debt is not "our" debt but that isn't the case. It is. We all own it.

Realistically we have only two choices.

The first would be to put our faith in the two Ronnies of economics, Goff and Cunliffe.

Which isn't really a choice at all.

So what it actually means is that we will have to make the most of the second.
As I said - it's not a perfect world.

7 comments:

homepaddock said...

Welcome to the real world.

Sometimes we get to choose something we like, sometimes we have to opt for the one we dislike the least.

showmethetaxcut said...

So Lou, are you going to enlighten us?

And please don't say vote ACT in droves at the election to give the Nats some backbone.

Lou Taylor said...

SMTTC
There is no enlightenment.

The traditional boundaries between Left and Right are so blurred with debt and welfare that any real debate about our future gets lost in the confusion.
Most people would rather just ignore the unsustainability of it all, or maybe just hope it somehow carries on for ever.

Our politics has morphed to cater to this market.
People will never vote for ACT in droves just as they will never vote for the Greens in droves.
As for backbones?
People really don't want politicians with a backbone.

Lou Taylor said...

Politicians have historically only grown backbones in times of crisis.
That has always been mostly centred around large wars. But war is easy to rise to.

How they will eventually respond to the looming financial crisis remains to be seen.
They certainly did their best to ignore the last one.

Personally I can see no other way longterm but to reduce the size of government.
But I am in the minority.

James Stephenson said...

Sometimes I can't help feeling that our second choice is Laurel and Hardy...

mawm said...

I will not vote for a government hell bent on maintaining excessive welfarism, a bloated bureaucracy, and racist policies; promoting sexism, taxing us for the UN and its fraudulent climate policies (and supporting all other UN socialist policies), and likelyhood of creating further racial division, and potential violence, over the foreshore.

There are no acceptable choices!

Anonymous said...

'Our State' debt??? What was the government net debt when Key got his pays on power in 2008? About zero, right?

So whose debt are we talking about? Private spenders? That is, we are talking about an unsustainable balance of trade deficit, resulting in our currency eventually having all the appeal of a Zimbabwean trillion dollar IOU.

So you are advocating an end to trade liberalisation and free market capitalism, that brought about this 'import and be damned' spending spree? Because manufacturing sure can't compete with slave labour in China...or Bangladesh...or... And any of these smart growth industries Key and Goff and Hide promote can be done cheaper offshore in sweatshops.

Like our forestry - NZ log processing (into 'high value' goods) is collapsing at a time of massive global demand, because free trade makes it cheaper for the logs to be bought by Chinese firms, and processed there. We get to keep the limited number of land based jobs growing the trees, and they will probably bring their own workers in for that soon, like they do on Pacific projects.

As you were, smile and wave, and vote Labrat-Nact for more fiscal suicide.