We are adrift without a vision except one of fiscal rectitude
The government spending debate in New Zealand has collapsed into a single idea — cut, cut, cut. But as unemployment rises and inequality deepens, the question isn’t whether we can afford to spend. It’s whether we can afford not to.
Today was one of the worst days. I awoke at 5am to do an interview on Ryan Bridges’ Newstalk ZB program about the latest statistics from the Ministry of Social Development on unemployment benefits. “Worrying”: Benefit numbers heading in the wrong direction
This was one of the worst interviews I’ve ever had, with such a big topic and so much to explore with respect to the nature of the Jobseeker Scheme and how sanctions operate, the partner problems that exclude so many and all the things that I had discussed the previous night with the person who asked me to do the interview.
When debate gets reduced to slogans
The interview — all of three minutes — descended into a one-liner from Bridges about how only the private sector can save the economy and that government spending causes inflation. It was a complete waste of my time and the time of the listeners if there were any at that hour.
Then I read Matthew Hooton’s view of the need for a drastic slash and burn of government spending in the NZ Herald, demonstrating as did Bridges, a deep unwillingness to countenance any other kind of view.
The danger of cutting during a downturn
Hooton seems to think that as we slide into an ever deeper hole the time is right to slash the structural deficit. I fear in coming times that the most vulnerable will suffer the most, but society will be poorer and more damaged. Surely there is a more enlightened way.
In this Substack I set out the fallacy and danger of aiming to reduce government spending as % of GDP in the current circumstances.
we should be taking a leaf out of the Capitalist book, like China, The USSA and the EU are, and racking up IOU’s to buy hard assets before it goes tits up – unfortunately they all have an arsenal to back it up when it does – we’re pretty much Gaza in the scheme of things that go bang.
Excellent substack post Susan!
This is Stone Age thinking by the usual suspects. It’s complete f’ing horseshit to say that government spending has anything to do with the current cost of living issues. All the Trevors etc think this government is doing a wonderful job so how on earth can it be government frivolity that’s driving inflation.
The problem with bridges hootone and the like is the have no problem with our government giving money and propping up private businesses and farmers when the trickle down is still trickling up.
Ryan Bridge has all the maturity of a petulant 5 year old….clueless and classless..a bad combination..
He, Hooton, Seymour, and Van Velden would have to be some of the most unworldly tunnel visioned people you are ever likely to meet…pay them no attention!