Discussing :: Budget 2011 doesn't solve serious problems

Some have described the 2011 budget as cautious and safe.  Cautious, yes.  Safe – maybe politically, but not in terms of removing economic risks.  And no one to my knowledge described it as strategic – constituting a coherent, medium-term plan for restoring balanced growth. Arguably the two main economic problems facing the country are the structural imbalances and the slump in productivity growth, both of which the government inherited from its predecessor.  ... read full article

#1

Budget 2011 doesn't solve serious problems

I don't think it's fair to call it a politically safe budget, it's and austerity budget which makes it a gamble with political capital. Financially safe maybe, politically no. Also, I'm glad they've dropped the obsession with closing the income gap with Australia. Does this mean giving up on that goal? Absolutely. The only reason Australia incomes are so high is because they are selling off huge amounts of mineral resources, and the only way we could catch them would be to do the same. Wealth can be measured in terms other than financial, and I think the lower wages are the price we need to pay. It's a question of priorities. I agree that the changes to Kiwisaver are bad. While the old way does mean the government borrowing to pay for the publics saving, the government debt is a hell of a lot smaller than the household debt, so some balancing is acceptable. The increase in Government debt would be offset by the decrease in private debt?

#2

Look realistically how much could any government do given the CHCH earthquake and the economic cost of that, and we don't even know the FULL cost yet. Its a smart move to play it say by this government by not making promises they have no idea whether they can keep.

#3

I feel this budget is absolutely politically safe. The austerity ticket has been overblown - it's not as tough as it probably needed to be, and any cuts are more nicks rather than gouges. Phil Goff's dire performance as opposition leader, and the absence of any obvious successor, gave National a free hand to be a whole lot more 'austere' and still triumph at the ballot box in November.

#4

not much of a surprise come from national. to scared to make any ballsy moves, the say dont try cant fail comes 2 mind

#5

I agree, polically safe! Sadly, we are in unfortunate times, and the government has to have the balls to make widespread changes to get us out of the poo. National didn't want to do this pre-election as they'd lose a lot of supporters. It's up to Labour now to see if they can offer a better recovery package than National. Sadly, I don't feel that they'll go there either. Don't be surprised that after whatever government gets in in November, swift and radical changes will occur not long after. They have to.

#6

Unfortunatley the gov had to do what it has to to do to balance the books due to the cost of the CHCH earthquakes

#7

Election year means a whole can of wooping ass!!!!! We will be well over it come November!

#8

No surprise this budget does nothing real, the government does not want it to. All they want to do is sell off state assets so they have an increase in funds for this year, but next year there will be no income from the now sold assets and if Labour gets in then they will beback to the same situation as before the sale , heave debt and nothing they can do. National is not interested in the average person, only in lining the pockets of the sitting MPs. So these sales will benefit the friends of different sitting MPs so that they have jobs or income if they lose.

#9

Donkey + Dipton = Lies.

#10

gaw they need to buy heaps of toilet paper to start wiping their mouth.

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