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Ryan Bridge: Labour’s back to its old tricks · Early Edition with Ryan Bridge

• 0:00
  Speaker 1: Labour is back to its old tricks ahead of the budget.
• 0:03
  Speaker 1: We've got the same message basically we got from a
• 0:05
  Speaker 1: barefoot jandle wearing chippy on day one of his post
• 0:08
  Speaker 1: summer break. More debt, borrow more and spend more, name
• 0:12
  Speaker 1: and issue. Pick a portfolio, any portfolio where Labor has
• 0:15
  Speaker 1: not criticized the government for cuts and promise to restore
• 0:17
  Speaker 1: spending to pre willis levels. The latest example, of course
• 0:21
  Speaker 1: is pay parity. But that's the latest in the long list.
• 0:24
  Speaker 1: In case they didn't get the memo. Kiwi's voted for
• 0:27
  Speaker 1: cuts at the last election. If we're doing our bit,
• 0:30
  Speaker 1: the government ought to do it's But that is the
• 0:32
  Speaker 1: politics of it. The economics have been up for debate recently.
• 0:36
  Speaker 1: Net core crown debt and this is not debatable, has
• 0:39
  Speaker 1: more than doubled on pre COVID to one hundred and
• 0:41
  Speaker 1: eighty two billion dollars or forty two point six percent
• 0:45
  Speaker 1: of GDP. Some of this is inflation, but much of
• 0:49
  Speaker 1: it is not. Spending has been baked in. Couple of
• 0:51
  Speaker 1: things to note, Yes, government debt is low compared to
• 0:54
  Speaker 1: other OECD countries, and that's what you hear labours say.
• 0:57
  Speaker 1: But the credit rating agencies are telling us to get
• 0:59
  Speaker 1: it down back to surplus, or you risk a credit downgrade,
• 1:03
  Speaker 1: and then you're borrowing costs you more. We're already spending
• 1:07
  Speaker 1: more financing debt than we do on defense, police, corrections,
• 1:13
  Speaker 1: justice and customs combined. And remember where the shaky aisles.
• 1:17
  Speaker 1: We've got huge exposure to trade. We need headroom to
• 1:20
  Speaker 1: borrow big if shite hits the fan, Ask any economist
• 1:24
  Speaker 1: or the person who runs your household, and they'll tell
• 1:26
  Speaker 1: you that borrowing for everyday spending is a bad idea.
• 1:28
  Speaker 1: And we're doing that year after year after year after year.
• 1:31
  Speaker 1: And if that's not enough to convince you. On debt,
• 1:34
  Speaker 1: here's the kicker, the real doozy private debt. You know,
• 1:38
  Speaker 1: our student loans and our mortgages one hundred and twenty
• 1:41
  Speaker 1: percent of GDP, higher than America, Spain, Germany, Ireland and
• 1:46
  Speaker 1: a bunch of other countries. The worst part, we owe
• 1:49
  Speaker 1: most of it to foreign banks. We can't afford more debt.
• 1:54
  Speaker 1: And yes, Nichola Willis is still spending more, but it's
• 1:58
  Speaker 1: less than labor the lesser of two evils. For more
• 2:02
  Speaker 1: from early edition with Ryan Bridge, listen live to news
• 2:05
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• 2:08
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