Originally Posted by
elZorro
Cuzzie, I hope you're not trying to run a business, because maths/accounting is not your strong suit. Or, you are pretending it's not. Let's put it another way.
Labour came into office in 1999 and inherited a net core Crown debt of say $25bill. By the end of nine years in office, they had repaid $15billion of that debt, leaving National to pick up the tab for the last 2/5th of the net Crown debt from 1999 ($10bill). They had been net re-payers of that historic debt, and had not added anything to it. TRUE or FALSE Cuzzie? Let's get that one done, for once. A one word answer please, if you can.
National had a look at that record, spotted that with the GFC and later the ChCh earthquakes, they had the perfect excuse to rebuild the crown debt to about 35% of GDP, back where they had it when they left office in 1999. They knew this would give them a really easy ride, and they could reduce taxes for the higher income brackets. They did this, but it meant they had to borrow another $60 billion and rising, as Labour had in the meantime built up NZ's GDP figures. National's policy settings actually reduced GDP per person, which made it easier for them.
This one is a bit more of an argument, but you'll see they have brought both the unemployment levels and the crown debt levels back to the same proportions as they had in 1999. I think this is some sort of a secret coded level that the National Govt will never admit to, but it's part of the neoliberal plan for us all.
I met David Cunliffe tonight, listened to his speech and had a short chat with him afterwards. He is a great speaker, he speaks from the heart, he's really motivating some people around him. Another straight-up person I spoke to, who has a lot of kudos for community work, and has been in the Labour Party for many years, is very happy with him as leader.
I just found these graphs on WIKI, compiled by Treasury/Reserve Bank officials. That should make it clearer too. Note that here, the Crown Debt is not the same as net core Crown debt. It should trend in the same way.