Latest / The Kākā by Bernard Hickey
Willis' austerity strategy just isn't working
Long story short: the Government’s austerity policy has driven the economy into a deeper and longer recession that means it will have to borrow $20 billion more over the next four years than it expected just six months ago.
Treasury’s latest forecasts show the National-ACT-NZ First Government’s fiscal strategy of trying to reduce the size of Government to reduce public debt is clearly counter-productive, increasing public indebtedness and unemployment at the same time as crunching economic growth and public services spending lower.
(I spoke with CTU Chief Economist Craig Renney about the…
The skinny
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