Excuses, Excuses….Key is full of them!
John Key has finally admitted what the rest of us already suspected; National will not be returning to surplus in 2014-15.
The economy is simply not generating enough taxable activity; incomes are low; and not enough jobs are being created.
It’s as simple as that.
In part, this is due to ongoing overseas economic problems in Europe, and the USA’s mind-numbing US$14 trillion dollar debt.
But most of our poor performance can be sheeted home to National’s own policies; cutting expenditure; not implementing job creation programmes; and unaffordable tax cuts in 2009 and 2010. Taken together, these are a toxic mix of free market “medicine” that is making the “patient” very sick, before we see any signs of improvement.
Last night (18 June), with one simple statement, Key admitted the blindingly obvious,
“I’m now a little less confident of reaching a surplus.”
It’s not like National’s past performance has given us reason for confidence in their economic planning and predictions!
But perhaps the most derisable aspect of Key’s admission was when he added this comment,
“In terms of what that means for New Zealand it doesn’t really change anything. The European debt crisis remains the biggest threat to the New Zealand economy by some margin. I’m a little less confident because of Europe in general but let’s see how things play out over the next three to six months “
Is John Key claiming that the crisis in Europe and the collapse of the Greek economy wasn’t evident only three and a half weeks ago, when Bill English released the 2012 Budget? And when all manner of predictions were made?
The Greek melt-down has been happening since 2008, when the global financial crisis began the collapse of that house of cards. It did not start yesterday.
So why is Key only now referring to Greece? And why is he using Greece as an excuse for National’s 2014/15 objective, to return to surplus, falling apart?
Because that objective was never tenable in the first place.
Like John Key’s constant big job promises (170,000 new jobs; Sky City’s convention centre 1,800 new jobs, etc), Budget 2012 was predicated on high economic growth (3%) which simply was never credible. It was a propaganda exercise.
National is simply using the Greek Crisis as an excuse for National’s own poor fiscal management.
Just as National has used the global financial crisis to excuse New Zealand’s ongoing high unemployment; then welfare beneficiaries for their predicament; and before that, blamed the previous Labour government for our stagnant economy.
Now it’s the Greek’s turn to be National’s latest excuse for their economic mis-management.
Conservatives and right wingers made a big deal out of those at the bottom of the socio-economic ladder taking responsibility for their actions and choices.
Unfortunately, those same conservatives and right wingers rarely seem to take responsibility for their own actions and choices.
How many more years will need to pass before Key and National run out of excuses; others to blame; and begin to take responsibility?
This blogger doubts that voters will wait that long.
For National, the clock is ticking.
= fs =