We can borrow for tax cuts but not Kiwisaver?
KiwiSaver Budget changes won't stop saving, says Key
Prime Minister John Key says he does not think changes made to KiwiSaver in the government's upcoming budget will discourage New Zealanders from entering the scheme.
Right, so while we can't borrow to prop up the appalling savings record of NZers, we can borrow $120million per week for the tax cuts National has passed?
Incredible isn't it - can't borrow for public good, but can borrow for private benefit. Is this because the majority of Parliament is made up of rich people who all fall into the top tax bracket?
The problem IS NOT public debt! Key keeps saying we need to slash public services and privatize because our debt will destroy us, this is a lie! Cullen did what any Government needs to do during the boom times, he paid our Government debt down, the real question should be why the Government are borrowing more than they actually need, the answer to that is because they are fearing another global meltdown and are shoring up more than they actually require right now in case European debt, American debt or Chinese inflation triggers the next meltdown.
The total lack of scrutiny of Key's ridiculous excuses to privatize is inexcusable especially when those reasons are so easy to attack and dismantle, in fact the intellectual laziness he has used to justify flogging off our assets suggest Key was pushed into using his smile and wave political capital to calm the Auckland business mafia who bank rolled the 2008 election campaign rather than any genuine rational for a privatization agenda.
Obviously Key hasn't gone far enough as the Auckland Business Mafia ended up rolling Hider to replace him with Brash.
Key claims we need to privatize our assets to avoid a Standard and Poor's credit downgrade because our debt is so high, this is a lie. NZ only spent 1.22% of GDP on debt-servicing in 2010! Cullen did the right thing by paying down the Government debt during the good years, it's the private debt, the student loans, the credit card hyper consumer culture, the property speculation all fueled on cheap credit that is to blame - NOT Government investment into society!
Key claims to use the privatization of our assets to pay down our debt, but we are currently borrowing a Billion per month, he hopes to get $10 billion from these sales, that's 10 months worth of borrowing he will get, I've heard of short term solutions, but privatizing our assets for less than a years benefit is a smile and wave too far!
Key has said 'Mum and Dad' investors so often he sounds like a parrot with a cracker (or should that be a cracker with a parrot?). This is spin, once sold to 'mum and dad investors' they are free to sell to whom the like, and as the Treasury papers point out, they will end up in the hands of over seas investors. Bill English couldn't justify why he wouldn't sell the remaining 51% on Radio NZ on Friday, and if John Key says we need the money now, what will change in 10 months time when he needs more money? John Key lied to our faces about not raising GST, why believe him now?
Of the 300 million we are borrowing every week, $120 million is for the tax cuts. You want to lower our borrowing while generating more revenue, reverse the tax cuts for those on the top!
This Government's political mismanagement of the economy has been clouded by the second devastating earthquake in Christchurch, we should not allow that terrible event to smokescreen this Government's economic incompetence.