It’s called “Austerity” and it doesn’t work.
Austerity - difficult economic conditions created by government measures to reduce public expenditure.
I’m sorry to say, it’s economic ignorance dressed up as orthodoxy that dominates thinking and policy.
New Zealand doesn’t borrow from international lenders - not China, not the IMF.
The government doesn’t have to balance its books - the idea it’s like a household or company is a disastrous analogy.
If the government spends less than it taxes - a surplus - there is less money in the community. Think about what that means in terms of economic hardship!
And, hold on to your hats, it doesn’t need our tax to spend money on public services.
Austerity is a stupid, ignorant choice. We are doing this to ourselves!
NB - Common knowledge doesn’t need to be true - it used to be common knowledge that the sun revolved around the earth
Photo by Towfiqu barbhuiya on Unsplash
