From Russel Norman’s twitter feed:
Does borrowing fifty billion dollars over the last six years mean the Nats are bad with money? I don’t think so. We had an external shock in 2008 (the GFC) and then a massive earthquake, both of which had a huge negative impact on our economy. Interest rates for the government to borrow on the international markets were super-low during this time, so borrowing money was actually a really smart thing to do. We probably should have borrowed more and invested it in infrastructure instead of selling our energy companies and frittering money away on National’s tax switch, which cost billions and totally failed to stimulate the economy.
And I suspect Russel Norman would agree with that. What Russel is responding to here is the massive gap between National’s economic rhetoric and the stuff it actually quietly does. Yes, John Key and his Finance Minister Bill English have borrowed $50 billion dollars from overseas investors over the last six years. But John Key and Finance Minister Bill English have also spent the last six years roaring with horror at the economic plans of Labour and the Greens who want to BORROW MONEY from OVERSEAS INVESTORS! That’s why asset sales are so important, according to English – it’s the prudent, sensible alternative to BORROWING MONEY from OVERSEAS INVESTORS which will wreck the economy, except for the $50 billion he borrowed which was FISCAL and PRUDENT.
Likewise government spending. Interest rates went up recently and the Governor of the RBNZ has forecast more rises over the next two years, so we’ve heard some very stern warnings from English and Key about how the policies of Labour and the Greens will CAUSE INTEREST RATES TO GO UP! We’ve also heard a lot of dire warnings from Bill English about GOVERNMENT SPENDING. So here, via Treasury, is English’s record of government spending over his tenure as Finance Minister:
Again, having the government spend money during an economic down-turn and period of national crisis is a good thing to do. You just don’t get to do it while simultaneously thundering about how the opposition parties want to spend money, which will destroy the economy. Or rather, National does for some reason.
The point I’m trying to make here is that almost every statement Key and the Finance Minister make about the economy is nonsense, pure disinformation dipped in hypocrisy, sprayed with drivel and then airbrushed dry with horrible fucking lies. That’s not part of the conventional wisdom though, especially among political commentators who all have Bill English as a straight-talking dour, fiscal, prudent conservative instead of a big-spending, big-borrowing outrageously dishonest hypocrite who vomits out floods of obvious lies every time he opens his mouth.
It’s a big problem for the opposition. In macro terms National has done pretty-much what Labour and the Greens would have done – with some obvious exceptions like the tax cuts – but pretended that they’ve done the opposite, and warned the country that Labour and the Greens are going to introduce fiscal policies which are basically identical to National’s but which National warns will destroy the economy. It’s all such a gigantic, egregious yet successful lie that countering it is all but impossible.