Wednesday, November 4, 2015

The cost of Bill's surplus still hurting.


Bill English is a clever man, through an economic sleight of hand he produced the holy grail, a budget surplus. This was celebrated as a worthwhile achievement since the tax cuts for the wealthy had reduced the Government's income considerably (tax revenue plummeted from $44 billion in 2008 to $33 billion a few years later). It needed budget trimming and austerity measures in many areas and increasing revenue from other sources (like SOE dividends, more speeding tickets and borrowing $50 billion) to ensure the rich could continue enjoying their windfall.

The cost of the budget surplus is being paid for in other ways:

Health
But Bill got a surplus!

Education
But Bill got a surplus!

Housing
But Bill got a surplus on the backs of the poor, the sick, the struggling and the homeless... 
and the rich get to keep their tax cuts. 


2 comments:

D'argent said...

So he managed to balance the books for a day by shifting EQC and other money from one side of the ledger to another. Not much different from making a car repayment with money borrowed from instant finance. Govt still has $120 billion owed overseas.

bsprout said...

Quite right D'argent, it was a sleight of hand performance supported by cuts, underfunding etc. English excels in creative accounting but delivers little to those who deserve support ;-)