Labour’s legacy keeps repeating

Both of the last two Labour Governments have basically done the same thing to the economy.

Cullen left NZ in recession when he left office (and it started before the GFC) and Robertson did the same also.

Cullen and Robertson massively increased the tax take through six and nine years of fiscal drag, where cumulative inflation pushed average tax rates up, and never provided relief against the annual tax increase.

Cullen and Robertson both increased government spending as a share of the economy. From 30.4% to 33.6% for Cullen and from 27.3% to what will be around 34% for Robertson.

Cullen left a structural deficit with projections of a decade of deficits before one would get back into surplus, and stop increasing debt.

Robertson left a structural deficit with projections (2024 Budget) that under Labour’s settings the country would run deficits until 2031 (and they started in 2021) so again a decade of deficits before surplus and reducing debt.

History really does repeat itself.

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