Better Democracy NZ is a non-partisan, non-profit organisation.

Our mission is to foster the improvement of New Zealand's democratic system and encourage the use of direct democracy through the

Veto, Citizens' Initiated and Recall referendum.


Thursday, 5 February 2009

NZ Govt has economic delusions

Past and present governments seem to think they can spend their way out of economic problems. Unnecessary government spending just to

create employment or supposedly to promote economic growth is a delusion. We all know that as individuals when we spend more money than we have, we end up poor. It is no different for our governments who are slowly making us poor. All taxes do is discourage production. What politicians don't seem to grasp is that every dollar they spend comes from taxation and every dollar we lose to taxation is a dollar less we have in our pockets.

We all accept that taxation is needed to supply the services we expect but the real economic secret is to reduce government expenditure and taxation so we have more money to spend. This in turn promotes economic growth. However it is impossible for us to control our government apart from once every three years at an election. We do not have political democracy like the Swiss, for example. They have the mechanism through Binding Referendums to make politicians listen and have used it to make wise economic decisions for over 130 years.

1 comment:

Anonymous said...

Bill English our new Minister of Finance seems to think he ca also spend us out of the mess we are in saying there will be a significant amount of debt to be cleared when the economy picked up.

He forecasts predicted Government debt would increase from slightly over 20 percent of GDP to over 30 percent within the next four to five years which is upwards of $17 billion in extra debt.