Build vs borrow

Something to think about as Labour makes its tax announcement today:

What I think is really important to understand is that we cannot simply borrow our way out of a recession, what we need to do is build our way out of it.Judith Collins

There is a place for borrowing but the need to do that makes the need for policies that will build the economy even more important.

3 Responses to Build vs borrow

  1. Roj Blake says:

    Stuck in 19th century thinking.

    New Zealand does not need to borrow. As the monopoly issuer of money, the government can create as much money as needed. That money is injected into the economy. It does not need to be repaid, it carries no interest burden.

    The major objectors to MMT are the troglodytes of economics past and the rent seeking vultures who insist that borrowing from them is the only answer.

    A nation’s economy is not like a household budget.

    Like

  2. Heather Adam says:

    Hard to believe today’s news that a third of eligible voters don’t know which political parties are in power ? Maybe not. Call me harsh but I think that all voters should sit an awareness test before being allowed to vote. It’s not likely to happen of course, but I like the thought. Not everyone is a political tragic like some of us ! I am regularly surprised by the obvious lack of political knowledge in people I consider to be intelligent beings.

    Like

  3. adamsmith1922 says:

    Reblogged this on The Inquiring Mind.

    Like

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