Remember, the Government’s running a deficit. A structural one.
They spend more than they earn in taxes.
The up to $400 million in yesterday’s package comes from the operating allowance. New money.
The Government claims this is like a cheque account, but that’s disputed.
The Taxpayer’s Union says given the fact the books are in the red, new spending is basically funded by borrowing. Therefore, it’s more like a credit card than a cheque account.
We do have a Budget in May where cuts will come.
But remember the forecasts for their tax break are also dependent on forecasts for growth, and growth is being hit by oil, too. That means they won’t earn as much as they thought they would.
Add to that the fact borrowing costs are roughly 20% higher than they thought they would be back in December, and the spending starts to look a little shaky.
$50 per family is not the real number we should be taking about this morning, the number we should be talking about is $5,600 per household.
That’s roughly how much we are going to spend next year servicing our debt. That’s before all this extra cost.
Think about that.
Look around your household. Your family. That’s five and half grand a year, just in interest!
More than we spend on schooling our kids through primary and secondary.
Debt servicing is now the fourth-largest line item on the Government’s books, according to Treasury.
The more we spend, the longer it takes till we even start paying down that debt. That magical, mystical date has been pushed out till at least 2030.
It’s like waiting for Taylor Swift to announce a concert at Eden Park. Would be amazing. I’d be there. But will it ever actually happen?
I’m not saying people don’t need petrol money today, but is anyone asking at what cost tomorrow?
Ryan Bridge is a New Zealand broadcaster who has worked on many current affairs television and radio shows. He currently hosts Newstalk ZB's Early Edition - where this article was sourced.
3 comments:
Exactly...is anyone asking what's the actual cost.
Ryan, the answer is no....except for the few who can actually cognitively process to that level.
We are surrounded by socialist idiots, who only see 'free money'. These morons are the 'live for today' hands out, blame Trump and anyone else for their situation, type. The thing this govt has got right imo is that the bludgers are not getting the money, just those who actually contribute to this country. Thats the saving grace, if you can call this handout that, imo.
Robertson borrowed a $1Bn and then distributed it to every taxpayer to supposedly to stimulate the economy.
If we , the taxpayers are paying 8% on that, it's $80 M per year into the distant future.
Plus $15M went into the wrong accounts and Hipkins said it wasn't worth chasing.
That Government was dangerously inept.
At least Willis is genuinely trying to do her best with a bad situation.
Some articles in the media have touted a Covid style lockdown. Some left wing MPs are calling for significantly larger handouts. Imagine the last Labour Government in power now taking extreme measures.
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