Treasury suggests eating young as way to move forward
Treasury cuts 2013 GDP forecast to 3 per cent
The Treasury has lowered its forecast for economic growth for 2013, citing volatile and more expensive global credit markets and the likely impact on commodity prices of a weaker global economy.
...Treasury are confronted by economic conditions created by the neoliberal deregulation they so slavishly worship, meaning Treasury doesn't have the intellectual capacity to look outside their free market paradigm. What we are getting from Treasury is a mish mash of austerity cut backs resting on future growth predictions that make Hoover's constant claim of 'prosperity just around the corner' in the wake of the 1929 stock market collapse, look pessimistic.
Best case scenario we are in for a grueling and grinding decade of low growth, worst case scenario another depression (check out Warren Buffet's apocalypse now scenario's and IMF's latest downgrades), when the founder of World Economic Forum admits that he and his greedy ilk 'have sinned' it sounds like all the chickens are coming home to roost in corporate jets.
We dumped the lessons of managed Keynesian capitalism for this neo-liberal monster. In the 70's the real economy and the financial economy were evenly valued, 40 years of neoliberal deregulation and the real economy is valued at $8 Trillion where as the Financial economy is valued at $300 Trillion - the utter imbalance built by ignoring development for Milton Friedman free market dogma has created not only an unjust system, it also has created acolytes within Government and the business media community whose blinkered attachment to failed free market theology makes them all part of the problem, not part of the solution.
Why we should listen to Treasury on increasing class sizes when they can't comprehend the economic future their free market fetish has unleashed should take a very short time to answer.
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posted by Bomber @ 8:51 am
2 comments
2 Comments:
So if Treasury reduces class size then where would be the incentive for foreign students to come here for education in our schools. They have large classes in their own countries. A billion dollar earner would be lost. Why would anyone trust economists to advise on education?
The fact is the Western Governments have been effectively running a Ponzi Scheme for the last 30 years (at least). We have attempted to "borrow" for prosperity. This has nothing to do with a failure of "free market capitalism" BTW. It has everything to do with a population and Government that refuses to spend within their means. Economies are supposed to grow using SURPLUS capital - that is what most would describe as profit that you recycle back into the economy. You cannot, sustainably, grow an economy with debt. This is a mathematical fact, and arguing with it is utterly pointless. Mathematics doesn't care what you want. It just is.
The best thing English can do at this point is simply balance the budget based on CURRENT TAX REVENUE (we have to do this, because we refused to SAVE surplus money during better times - their is no slush fund). Borrowing for prosperity is inherently inefficient due to interest payable on the loans, and is not a path forward. Greece has discovered this hard way. I think we can all agree we do not want to be Greece.
It boils down to that the deficits we are currently running by are entirely due to our UNWILLINGLESS to pay the taxes required to actually fund all the Government cheese these deficits are paying for. i.e. we vote for the Government to provide all sorts of services, but are remarkably not willing to actually pay for them - We all seem to think SOMEONE ELSE should pay for them. But who, exactly??? We NEED to STOP demanding services from the government that we are not willing to pay for with current tax revenues, instead of continually attempting to levy it on future generations, all the while fully knowing this is unsustainable. Voters seem to be advocating the use of the boot of the Government to press upon New Zealand's children's necks (because let's face it, the current voter's generation's future tax revenue certainly won't cover these deficits in our lifetimes) by demanding that the government take on more and more debt to provide services we refuse to pay for with our own acquired wealth and savings.
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