Smoothing the pillow of a dying economy

The other day it was former Labour Prime Minister Mike Moore putting the slipper into labour and their policies, today it is another former labour minister, Michael Bassett.

[quote]The patient’s diagnosis is quite clear. Government spending is now $15 billion per annum above the baseline trajectory that had been operating prior to Labour taking office. In 1999 tax revenue was $32 billion. Only 8 years later it’s $52 billion, instead of $37 billion. Excessive spending has built a hot house environment with inflationary pressures that flow into every corner of the economy. Wages, prices, house costs, rents, mortgage rates and electricity all feel the relentless push from government overspending. Productivity has slowed to a crawl, while the rise in the standard of living, allowing for inflation, gradually subsides for most people, especially traditional Labour voters. It’s a replay of Robert Muldoon. Thanks to excessive state spending and overuse of credit cards we import more and more. The government’s spendthrift nature infects individual behaviour right across the country. High domestic interest rates are only one of the sideline results of excessive spending, like diabetes resulting from over-eating.[/quote]

You know the government is rooted when it gets compared to the last days of Muldoon.

 


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