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Wednesday, May 23, 2012

The zero budget is social vandalism rhapsody

It's not the Mother of all budgets, it's the abusive, alcoholic, gambling step-father of all budgets. Like 6.7% of the NZ labour market, Austerity doesn't work, yet here we are shelling out more failed free market dogma to counter a global recession caused by the same failed free market dogma.

John Key has said 'mum and dad' investors so much he sounds like a cracker with a parrot, for some reason the Optimist Prime has decided the only way forward is to amputate the States ability (and Local Councils ability) to raise revenue and spend it. The amputation is so severe, Key wants to sell assets, bash beneficiaries and crucify anything resembling public services to justify a zero budget. One gets the impression that Key would declare war on America in order to stimulate the economy before he'd ever consider raising NZ's pitifully low top tax rate.

In 1986 our top tax rate was 66%, in 2012 it's 33%, the top tax rate has dropped 50% in the last 25 years and they have the audacity to demand more? In Australia it's 45%, France it's 40%, Germany it's 45%, in Ireland it's 41%, in Japan it's 40%, in the Netherlands it's 52%, in the UK it's 50% and in that mighty bastion of free market excess, the USA, it's 35%.

And in NZ it's 33% with no inheritance duties to enable the redistribution of wealth even after these greedy vile rich volk have died and gone to trying to buy their way out of hell.

The over $2 billion handed back to the richest NZ's in tax cuts, subsidized by the rest of us by raising GST, has been an economic mismanagement that has become a social tragedy seeing our rise as one of the most unequal countries in the world.

267 000 unemployed and under employed NZers.

500 000 NZers earning less than $16 an hour

150 richest families gaining $7 billion in one year.

240 000 children living in poverty. Global Youth unemployment (15-24) rate is 12.7%, in NZ it is for 15-19 year olds it's 17.2% and for 20-24 year olds it's 8.4%

This budget isn't a zero budget for those not insulated by wealth, it's becoming a life sentence. This is social vandalism masqurading as economic management.



At 23/5/12 9:40 am, Blogger Frank said...


"Zero Budget", spin for Black Budget.

At 23/5/12 11:39 am, Blogger Alex said...

If the election were held tomorrow, what chance would National have if their manifesto was this budget?

At 23/5/12 8:15 pm, Blogger Nitrium said...

I'll take an actual BALANCED budget over this farcical zero budget any day. You seem to imply "austerity" is some sort of dirty word, when really all it means is to LIVE WITHIN ONE'S MEANS. How is that a dirty horrible thing? How is that not something we should ALL strive for at both personal and Government levels? Yes, there are currently horrible distortions in Government spending, but the facts remain that our economy doesn't have the capacity (i.e, surplus) that is required to fund all those wonderful things we currently desire from it - and taxing the rich isn't going to help one iota. We MUST have an adult discussion about what CURRENT tax revenues can and can't fund. We can of course raise taxes, but remember this will likely (Govt spending is for whatever reason (perhaps corruption/lack of competition?) always less efficient than private spending) be a net DRAG on GDP - it certainly won't BOOST the economy in any way whatsoever.
I firmly believe we are fucked, and one-sided posts that promulgate the proverbial free lunch by simply "taxing the rich" aren't helping to change my mind. Unfortunately the problems we face just aren't that simple.


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