Saturday, August 20, 2016

The Clark Cullen Playbook

Apparently Malcolm Turnbull and his hapless henchmen are relying on growth in the Australian economy to solve their deficit crisis, or so they say..  Of course that is the socialist's way of avoiding taking stern measures which actually will repair the economy but will upset some voters.

Trouble is, there's no growth.  Now comes the news saner people will dread.   

Employment surge comes at expense of taxpayers

Rampant growth in public-sector jobs and wages is exacerbating the nation’s debt and deficit woes and stoking concern among business leaders about continued government borrowing to pay wages bills.
An analysis of jobs data by The Weekend Australian shows that the rapid expansion in public-­sector employment and wages comes as workers in the private sector face increased job insecurity and record-low salary rises.

Most of Australia's current anaemic GDP growth has come from expansion of the public service.  Does that sound alarmingly familiar to New Zealanders?  Remember how Clark and Cullen fudged the figures?  They drove the productive sector into recession but hid that from the public by boosting GDP through expansion of the public service

Welcome to recession, Australia.


observer said...

Has there been any mention in the Media that Helen Clark is currently in NZ?

Redbaiter said...

Yes Adolf and this is why I say that in socialist countries where high spending govts are the norm, GDP is a meaningless measure.

Note how so many govt economic stats are related to GDP?

So that they seem better than what they really are. (Debt levels for example).

When you say NZ's debt is "only 30% of GDP" it sounds a lot better than the truth that its about $70000 for every productive individual.

Socialist govts always con the people. In NZ, the people love it.

Angry Tory said...

we all know what needs to be done - it is all quite simple:
- stop super
- stop welfare
- sell off / close down the government schools
- sell off / close down the government hospitals.

that's pretty much it - and a Brash-lead government would have got this sorted in the first six months, plus embedded a "fiscal council" so that no matter what the non-taxpayers wanted - that socialism could never ever be brought back.

Instead of which, thanks to Hellen, and frankly to Key - NZ has a higher proportion go government GDP, government budgets, more welfare spending, more "state owned enterprises" and all the rest than we did in '84! All the good work of the Roger Douglas and Ruth Richardson reforms have been undone. More than ever, NZ needs a government that will do what Ruth and Roger did, and more than that: finish the job by definitively ending super, welfare, government schools, and government hospitals.

When you say NZ's debt is "only 30% of GDP" it sounds a lot better if you forget that when Key took over, nett government debt was zero. That 30% --- all of it borrowed by Bill English.