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Thursday, April 05, 2012

Crippling the state with tax cuts for the rich

$1.2b hike in Budget deficit
The Budget deficit is running $1.2 billion worse than forecast as tax revenue continues to lag.

From 2008 Treasury claimed we would get 1.5% growth, 2.3% growth and then 3.2% growth. We actually got -1.1% growth, -.4% growth and -.1% growth. Treasury have been out by as much as 3.1% of GDP as little as last year. The reason Treasury keep getting it wrong is because the free market meltdown is beyond their ideological paradigm.

Treasury and this Government are confronted by economic conditions created by the neoliberal deregulation they so slavishly worship, meaning neither have the intellectual capacity to look outside their free market paradigm. What we are getting from Government 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.

The tax cuts for the wealthy that this Government has borrowed for can't be afforded when we have to sell our assets off just to pay for education and health. We are amputating the ability to raise revenue so the wealthy can still afford their holidays in the South of France. John Key wants to defy economic gravity by wanting trickle up rather than trickle down.

How very magnanimous of us. That the sleepy hobbits have been so sucked in hook line and sinker into allowing the rich to profit from the rest of us while our public services are worn down should be a national disgrace.

It is not.

I find it an abomination that 150 of the richest families could gain $7 billion in a year while over 200 000 NZ children live in poverty, this Governments insistence at borrowing for tax cuts for the rich while forcing the rest of NZ into an austerity straightjacket is governance for the rich, by the rich, in the interests of the rich.



At 5/4/12 2:15 pm, Blogger Madeleine said...

I could not agree more. Corporate greed is crippling our future. As a university student my fees have increased every year since I began university. My course options have been significantly reduced because of the university's budget strains and yet our vc gets a massive pay rise? It makes me sick.

At 5/4/12 11:20 pm, Blogger Nitrium said...

I've said this numerous times already: sans Government spending we are, right now, in a DEPRESSION. The sad reality is that it isn't just us either. The entire West is running deficits up the wazoo on what will ultimately prove to be a fruitless endeavor to stave off the monumental debt deleveraging that mathematically must take place.
Government spending can only be paid for via SURPLUS generated from their country's economy. We will sooner or later be FORCED to live within our means, which is why we need to seriously start having an adult discussion on what can be funded by the Government either from CURRENT tax revenues or from increased taxes (both of which will instantly result in the depression being realised). Health care, as it is currently budgeted is unsustainable. Superannuation/pensions as it is currently budgeted is unsustainable. The "nice to haves" WILL be cut. Bank on it.

At 7/4/12 1:23 pm, Blogger Tim said...

Exactery Bomber! It's a N(ACT) phenomenon though and always has been. Nothing to do with any particular 'demographic' one might describe as Boomer, or GenX, or GenY, or Gen Z, or anything else.
Indeed the 'art' of demographics is only relevant thse days to people that want to SELL you something.
It's that frikken 'market' again rearing its ugly head. I concede its maybe the only language GenXers and GenYers might understand, but it's really a pointless way to look at the way things are going on. Joycian; Key-loik; Bennett-Leopard-skin-loik; Crusher-Collins-tanty-Oh-my-reputation-is-importint-to-me-loik...........nouveau-riche-loik.
Kcik em up the cnut - ALL of them (probably Shearer included the way he looks in recent times - he wants to move 'right' FFS - like he's been spending too much time with a Julia Gillard spin-doctor [ most of whome are GenX/GenY irrelevants anyway).

At 7/4/12 8:23 pm, Blogger Tim said...

How much of that debt has been privately generated, and how much of it has been generated by govt (social) spending...AND how much of it is private debt that has been converted to public debt (well we know about the bailouts - McGoo's, and others)
It IS all unsustainable. Which is why when the Hobbits awake, they're going to be very very very pissed off when they begin to understand corporate welfare at the expense of social welfare; social and public policy driven by the necessities of a neo-lib agenda; the sovereignty and cicil liberties they've already given up, and will be expected to give up in the future;.....
Look at that fuckn pathetic image under Bomber's "Does it sicken anyone else listening to out PM defendng gambling" post. Yea it does - especially when the guy on the left, and that silly bitch on the right both want to puke (I'm wondering whether she regrets her menopausal inspired bitch at Helen, and embracement of a Jenny).
Fuck we have an utter DOLT for a PM don't we?
But it says more about society that's prepared to elect same on the basis of "salesmanship"; "Krisma"; aspirations (more fucken fool those aspiring) - speshly when the prik is going to do a runner when the going really gets tuff.
Christ! the guy can't even speak the Queen's English, OR any accepted derivative of it.
So what of...."go'n' forwid" ?

Anyone want to predict? {oi]Predict if you want to.

Seems to me there are a few saviours in the wings - A Bernard Hickey...
A Gareth Morgan even
A Clare Curran or two
A Robertson even...if he gets his shit together

and amongst the Nats...
why that stuffy prick my rellies are about to "have dinner with" hasn't woken up to the realisation that the current band of NATs are a band of philistines not befitting their heritage (sKeith would be rolling inhis grave), killing democracy, demolishing any artistic endeavour, the trad role of gubbamint - including PUBLIC Service Broadcasting, the Arts (and the farts).....I'll probably never know. But then he'll go to his grave as a bitter old queen that cudd, shudda, wudda (if it were'nt for a Key philistine or a Brown Lee piece of concrete doing it's best to prop up a crumbling bank in earthquake territory)

Anyone want to venture an (oi)Predict? before most others see their "Vushun" across the ditch.

Message to NATS: Toim is runnin airt, oi-de-orlgee not werkn. (anyone got any oidees?)


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