Labour admits debt legacy

Here it is in black and red (or more accurately white and black on red) – Labour will leave more for future generations than just debt.

What is just debt?

I’d say any of the debt they’re planning to leave is unjust.

But just or unjust, they’re admitting they’ll leave a debt legacy and they’ll have to incur that for the more they’re promising.

And what else will they leave? More beneficiaries, more bureaucracy, less growth, poorer health care, lower education standards, more crime . . . .

7 Responses to Labour admits debt legacy

  1. jabba says:

    is the sign still there .. pure gold

    Like

  2. Richard says:

    Yes, :”Just debt” – but it is semantics. Labour left office in 2008 leaving the country crippled with debt. It is a real surprise that National have not exploited Labour’s foll

    Like

  3. Paul Walker says:

    Oh dear, that is not good! You know what they mean but they really should have been more careful in saying it.

    Like

  4. Ross says:

    Richard, as anyone reading this blog knows – I am not a fan of Labour at all. However, Labour left office in 2008 with the country having a net ‘crown debt’ of effectively zero.

    What they did leave was structural imbalances in the economy, an early recession compared with the rest of the OECD, and middle-class welfare bribes (think WFF and zero interest student loans) that projected a decade or more of deficits for the NZ economy.

    If NZ had been crippled with debt at that point we would be receiving the same IMF administered pain that Greece is at the moment.

    Michael Cullen GLOATED during the last election that the cupboard was bare, everything was spent, and National could do nothing without the electorally difficult task of rolling back welfare payments, the size of government of some other equally unpalatable act.

    This is the same Labour party that now wants us to trust it with the economy yet again. The same party that used 9 years of economic boom to spend like a drunken sailor at a beer-fest, and then had the gall to present that as enlightened economic management.

    About the only thing I consider they did right economically during there last period as the government was to continue paying down the crown debt – though I suspect that was a long established policy stayed in place desire them rather than because of them.

    So I will give them credit where it is due, as for the rest of it…….

    Like

  5. homepaddock says:

    Jabba – not sure about that one but I passed another in Oamaru this evening.

    Ross you are right – one of the few good things Labour did was reduce debt. But they also added the unsustainable costs you mention which is part of the reason debt has increased so much in the last three years.

    Like

  6. Guest says:

    Fact of the matter is that Labours’ policies directly caused the 150% nett debt NZ currently has, and once the NZ Dollar crashes that will all be far, far, worse. That’s what happens when you run an economy for the bludgers on borrowed money.

    Per capita NZ is already worse than Greece, Spain, Ireland, or Italy.

    If it was govt debt, the govt could easily deflate until it could pay it off and it would be denominated in NZDollars. But it’s private debt, basically paying for a decade of bludging, and much much harder to address. The only real solution is rapidly to build up liquid reserves that surpass that debt, in very solid overseas currencies and secretes.

    If Key was even slightly responsible, he’d be selling off everything salable for whatever he could get (yes schools, yes hospitals, yes prisons, yes police, yes the army, yes roads, yes rail, yes Te Papa, yes DOC, etc etc , yes the whole fucking lot!) cutting all benefits by at least 2/3rds (yes including super) and all state wages by at least 1/2, and trying like fuck to get NZ out of the economic shithole caused by Hellen and Cullen.

    Like

  7. Ross says:

    And I thought I didn’t like Labour – I have been informed….

    Like

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