The Opposition's Coalition of Chaos hasn't come up with one sensible idea since losing power. Now the only brain in the Opposition, David Parker, can't bear his own colleagues anymore and is leaving Parliament. Having said so, David only uses the left side of his brain. Lets, however, be objective, stop the slanging match, and put numbers on it. I've not seen a more striking difference between left and right in terms of Real Government Consumption per Capita anywhere than the following graph, sourced from the NZ Treasury. We've highlighted the periods during which Labour versus National governed:
Click to view
This graph makes National look like one of the most fiscally responsible governments in the world.
Under PM Helen Clark's Labour, government consumption per capita rose by around 25%. Under PM John Key's National government it rose by 0%. Zero. It was held constant by Finance Minister English. Under Alice in Wonderland PM Ardern's Labour government it rose nearly 30%. Yes, Queen of Hearts Ardern stole the Tarts.
By comparison, under current PM Luxon's National Government it has fallen and is forecast to fall more. To those saying this Blog goes too hard on National, isn't this a good news story about the New Coalition?
Click to view
This graph makes National look like one of the most fiscally responsible governments in the world.
Under PM Helen Clark's Labour, government consumption per capita rose by around 25%. Under PM John Key's National government it rose by 0%. Zero. It was held constant by Finance Minister English. Under Alice in Wonderland PM Ardern's Labour government it rose nearly 30%. Yes, Queen of Hearts Ardern stole the Tarts.
By comparison, under current PM Luxon's National Government it has fallen and is forecast to fall more. To those saying this Blog goes too hard on National, isn't this a good news story about the New Coalition?
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
5 comments:
Hang on. Fiscal responsibility isn't a question of how much a government spends but how well they spend it. Left wing government's inevitably will spend more because they believe in more being done by central government, but you can have good left wing governments and bad ones. If the government cuts all education spending so kids get no education and if it stops all expenditure on infrastructure such as building roads and sources of energy, then it will spend less, but won't be more responsible.
Why didn't Key and friends lower the spending instead of just keeping it the same? Oh yeah, it means they might have upset someone. As for now, where is the downsizing of the public service that was promised, oh wait, that might upset someone.
National have become the party of mediocre managers, heads down, upset no one, respond to those who scream the most and pocket the salaries for as long as possible.
I am starting to think it's also lessons in diplomacy which our politicians need. National might have better economic skills, but the open, obvious disapproval of President Trump is ridiculous. Where on earth do they think that will get us? Why not be wise and not try to be virtue signallers to the woke? Past governments used to keep both the US and China onside. As if Trump will give a toss about Luxon. Who is advising him? At least NZF have a few brains.
TPM has been advised to improve its image ( and behaviour if possible). Should this happen , they might appeal to Luxon as a coalition partner. Nothing would surprise.
Robert, it's not about NZs finances - they can be repaired, restoring democracy will probably see some violence involved.
Luxon could easily avoid that, refuses to contemplate steering us back towards the centre, so HD must go.
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