While all our collective attention has been on the scandal after scandal erupting inside Politics, enormous changes in how National intend to run the economy have been missed.
Put aside the insane ghost road infrastructure budget that National didn’t bother to cost out, it is this news story by Thomas Coughlin at Stuff that is the most important political news story and will remain so for the next 2 months!
National’s draft debt target would require it to slash government borrowing by $80 billion leading to what could be some of the harshest public service cuts seen in New Zealand history.
National finance spokesman Paul Goldsmith last week told a gathering of financial sector professionals that his party wanted to get net core Crown debt, the main way of measuring public debt, to below 30 per cent of GDP within a decade.
Just how big would National’s slash and burn on public funding be?
With the economy expected to grow to $506b by that time, National would need to get net core Crown debt down to $151.8b to meet the target of 30 per cent.
That’s more than $80b lower than the current Government’s track. In an ordinary year, the entire government spends a little bit over $80b – trimming debt by this amount by over a decade would be the equivalent of cutting out an entire year’s spending on the entire government, or four years of superannuation spending, or just under half a decade of DHB spending.
Finance Minister Grant Robertson said the National plan would lead to some of the most severe public service cuts ever.
Hilariously Paul Goldsmith rushed forward trying to hide the enormity of the cuts while ACT doubled down and cheered Goldsmith on…
But National’s prospective coalition partner ACT doubled down on the cuts. Goldsmith’s loose goal, revealed to a meeting of financial professionals last week, is to set out a path to get net core Crown debt to 30 per cent within a decade “give or take a few years”.
But ACT said a decade is too long to wait, saying the country needs to start to pay back borrowing by the end of the next Parliamentary term in 2023.
…so Paul is trying to hide what National’s cuts would be while ACT are cheering them on!
Imagine billions taken out of education, health and public services each year under National so they can balance the books for their right wing economic Gods.
Judith is hoping and relying on the dirty politics to keep NZers distracted from National’s slash and burn policy. How on earth are we going to be able to move forward as a country if National are quite willing to jettison the poorest amongst us in their drive for economic purity?
Allowing National to win and implement the most severe public service cutbacks in NZs history right after a pandemic would be economic suicide for our poorest and the working classes, the only offer of help National are giving the middles classes is a re-introduction of the housing crisis to dive up property prices.
It’s like all the worst parts of National with their worst ideas combined led by their worst leader ever.
I don’t think NZ could survive terrorism, volcanism the pandemic AND National.
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