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Poverty of delivery BC & vision AC

04/08/2020

Homepaddock

Before Covid-19 (BC) the government was much better at media releases about their policies than delivering them.

Labour’s flagship policy KiwiBuild was a flop, child poverty worsened and the country was facing rising numbers on jobseeker benefits and forecast deficits even before Covid-19 struck.

While we can debate the when and how of the government’s response to the pandemic, we can be very grateful that there is no evidence of community transmission and, in spite of early mismanagement, new cases are being contained at the border.

While everything possible must be done to ensure that continues, now is the time to be formulating a plan for after Covid (AC).

The Labour leader’s warning not to expect big policies from her party this election is a mistake.

We need big policies. That doesn’t mean big-spending policies, it means big visionary ones and among them must be a strategy to repay the…

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One Comment leave one →
  1. Roj Blake permalink
    04/08/2020 10:33

    The current government inherited forecasts of surpluses, burned through them before Covid struck and is now planning to borrow big with no ideas about how to repay the debt.

    Still clinging to horse and buggy economics.

    When the government has a surplus, that means the economy has a deficit. Less money for households to spend, less money for business to invest.

    When the government has a deficit, that means there is a surplus in the economy. More money for households to spend, more money for business to invest.

    The government’s role is to ensure that its deficit does not add to inflation, but right now, inflation isn’t the problem, most of the developed world is suffering from stagflation.

    The govenment can choose to borrow, but it is not compelled to borrow. As the monopoly issuer of $NZ it can create as much money (within inflationary bounds) as it needs to fund programmes.

    Like

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