Monday, October 13, 2008

Is that it?

So Labours response to an economy in possible meltdown?

"Guarantee" deposits.

It is voluntary for institutions and will cost banks. It is free in Australia.

And they announced it at their election kick off making it a political rather than an economic decision.

John key pleaded for a similar scheme last week, while Labour has dithered in the face of economic disaster.

The second arrow to their emergency response is to bring forward infrastructure spending. A good idea but something National will do as well. 

No mention from Michael Cullen about cutting back on wasteful Government spending, including the economy destroying global warming taxes that they have and will introduce.

Cullen is likely to step up such unproductive spending in the hope by him that it needs to go higher to "look after the vulnerable" but all that will do is put growth at risk.

Labours two moves have impact on the economy sometime in the future but there is nothing immediate from Labour to address current problems and there clearly needs to be.

It really is more of the same from the last nine years, an approach to the economy that managed New Zealand into its current recession.

It ain't enough.

c Political Animal 2008

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