It’s called a growing economy

Grant Duncan writes:

In the wake of shock and horror over an IPSOS survey that suggested nearly two thirds of New Zealanders think the economy is “rigged to advantage the rich and powerful” and want “a strong leader to take the country back from the rich and powerful”, it was refreshing to see Prof Jack Vowles write: “A certain degree of dissatisfaction with politics is endemic in a democracy, and in moderation it is a good thing. We should value a critical public that is demanding more from those who govern it.” (My italics.)

Scepticism and distrust are healthy for democracies – although there’s no trustometer with a “moderate” setting. One person’s “moderate” dissent might look irresponsible to another – as we saw in debates about the schools climate strike. But if, like 65% in that survey, you agree that New Zealand’s economy is “rigged to advantage the rich and powerful”, then you’re definitely on to something.

As for demanding more from those who govern, do people demand too much? 

60% somewhat or strongly disagreed with the proposition that “the government should increase taxes to pay for any additional public spending”. Fair enough. Times are hard and we’ve been promised tax cuts.

And big majorities also said that the government should increase spending in healthcare (83%), public safety (74%), education (71%), and reducing poverty and inequality (65%). Fair enough. Police officers, nurses and teachers deserve better pay.

But can we have it both ways? To get more spent on public services, the money has to come from somewhere. It’s called tax.

You can have it both ways. It is called a growing economy. If you have strong economic growth then you can afford to increase spending in real terms in key areas, and give tax relief.

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