Dear John Key - stop using Greece as a justification for austerity
What Greece is certainly an example of is austerity induced depression. On top of the hundreds of jobs axed at MFAT and TPK, Key is to announce on Thursday 3000 more public service jobs are to be cut with department services to be merged and up to 3 prisons closed. When John Key said he was going to cap the public service, he meant knee-cap.
By following the same Greek austerity while using Greece as the justification is the utter definition of Machiavellian smoke screens. This Government have an ideological default setting of government with a microscopic g. After the free market dogma has proven it doesn't work outside a Keynesian managed capitalism model, this Government wants to implement more of it.
Selling our assets off to those wealthy enough to have been granted tax cuts by John Key is the insult on the injury.
Meanwhile, bennie bashing policy is passed that won't do a damned thing other than exacerbate poverty.
So, John Key starts austerity policies while using Greece as a justification even though their downfall is because they have implemented austerity policies?
Seeing as NZers think of themselves as consumers and not citizens, I wonder when they will start feeling buyers remorse for John Key's second term?
FACEBOOK TWITTER
posted by Bomber @ 6:50 am
3 comments
3 Comments:
So were Ireland, Spain, Portugal and Italy conned by Goldman Sachs too? Didn't think so. Greece is just the tip of the debt iceberg. The ENTIRE Western world has been living beyond their means for the last 30 fucking years. We have recklessly engaged in a debt fueled mega-binge, and we don't seem to like the hangover. So now we're trying the old hair of the dog trick. Sorry to break it to you, but it won't work. Austerity HAS to happen, one way or another - all we can argue about is what gets cut and by how much.
Keynesian managed capitalism says otherwise. Ireland was a neo-liberal experiment that banked on speculative finance, Spain and Portugal have always had super slow growth and Italy is as corrupt ad fuck.
Austerity DOESN'T work, as this link so clearly points out
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10694571
Endless budgets deficits are not a solution. Japan has proved this beyond any doubt whatsoever. They have a 200% of GDP Government debt, and are now locked into a zero interest rate policy FOREVER. Even a hike to 3% interest will instantly bankrupt the country. Keeping interest that low indefinitely completely destroys prudent investment of surplus capital (that leads to genuine economic growth) that is normally generated by SAVINGS.
Keynes clearly stated that during economic booms taxes should be INCREASED and Government spending CUT. We have repeatedly done EXACTLY the opposite. You can't have it both ways or you get caught in the debt trap we now find ourselves in.
The current neo-Keynes formula for economic prosperity (i.e. deficit spending ad-infinitum) is doomed to failure, because it destroys savers, gives rampant inflation, and can't generate genuine organic economic growth.
Post a Comment
<< Home