The Premium Debate: Why Labour’s Budget might be the most radical in 30 years

Opinion

Liam Dann writes that last week’s Budget represents a significant departure from the economic orthodoxy of the past three decades.

In some ways, it might be the most radical Budget we’ve seen in 30 years.

What was radical was the choice to move in a distinctly different policy direction to the Reserve Bank of New Zealand (RBNZ).

That prescription is pretty clear. We need to beat inflation, get back to surplus and get Crown debt levels back down.

In other words, the Government and RBNZ work together to reduce the money supply so that inflation falls.

That broadly bipartisan view was forged in the aftermath of the big-spending Muldoon years and the financial trouble the country found itself in.

Read the full story: Liam Dann: Why Labour’s Budget might be the most radical in 30 years.

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Good comparison with Muldoon. I, too, am concerned we will go broke. The more scary aspect is Muldoon spent on infrastructure like the oil refinery, Clyde Dam etc, and these were delivered and benefited the economy for decades later. It was still very painful. What are we spending it on now? Reports, hand-outs, speed bumps, PR, centralisation… I guess it will be even more painful this next time.

Daniel S

Thanks for your honesty, Liam. In my view, Labour is gambling the future of NZ to try to win an election. It is prepared to go against the RBNZ, borrow and spend and increase inflation, mortgages, rents, food and transport. Just to bribe the electorate.

Walter H

Liam, we will need more than luck to get us out of the mess this Government has got us into. We will need many years of fiscal prudence. In my view, [Finance Minister] Grant Robertson has shown us he hasn’t got what it takes. I have lost all trust in this Government. And I would just like to add, I have never voted for National. I might this time though. Just to stop the degradation this Government is causing to the country.

Jill G

Liam, nothing radical about, in my view, election bribes. Wait until later in the year for tranche two of these, funded out of the huge “undefined spending” pool. The least trustworthy Government of my lifetime. Muldoon was an amateur by comparison.

Andrew R

It’s a deeply superficial Budget completely focused on winning the election.

A J

What is happening to New Zealand? Please, please vote for a change when we come to the election.

Colin W

Maybe National no longer wants to win this election, I wouldn’t. A large number of Kiwis need to realise life is not about hand-outs, and that won’t happen until we are broke. Three more years of Labour should just about do that.

Marg M

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