Tax cuts are inflationary

If ever you needed the proof that the lies of National going to hurt this country just look at the response of the markets to the more than modest tax cuts.

The bond and interest rates markets all rose suddenly, on what were really very modest tax cuts. These weren’t reactions to the increased govt spending in areas of health etc, as these have been relatively welcomed, the response was to the tax cuts.

Interest rates went up more or less immediately. This was a statement by the markets that they don’t like the inflationary pressures that tax cuts produce.

National have told us that they will not borrow to pay for tax cuts. The argument if you are from the right is “it’s my money don’t take so much of it”. Which is a valid position to hold if not a little greedy and arrogant. They have said they will not cut government spending, but cap it, while increasing spending on areas such as high speed broadband.

[Ideologically opposed to the government owning the rail network, they are happy the Crown owning the broadband network – the difference is what exactly?]

Now, somehow in the double talk, not borrowing to give money to you, but borrowing to by broadband upgrades – it’s the same money and they shouldn’t be borrowing to do either. It’s double speak and completely assuming the people are fools. If you are borrowing for one thing you can’t afford, why are you doing the other thing you can’t afford?

Stop being so bloody disingenuous you slimy buggers, and hey BTW you’re buddies the market has already told us that even very modest tax cuts are a no no – so watch out.


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