The Herald reports that Bill English is signalling cuts to government expenditure might be necessary as the government’s income bases erodes and receipts decline. Cuts are necessary Bill. In fact Bill, you should have been making them straight after the election.

David Dumb Cunliffe is Labour’s Finance spokesman and as you would expect, he’s an economic illiterate. Says David- “Cuts to public spending risk setting off a self reinforcing cycle of stagnation by reducing demand in an economy that’s already struggling. Deep cuts at this time in the cycle would be a disaster, it would cause enormous social distress and they would not actually help the economic picture.”

Here’s the news Mr. Dumb Cunliffe. It already is a disaster. Its just that you and Bill English won’t admit it. Furthermore, the only thing that will turn things around is the very medicine you reject- in favour of sipping more of the poison that is killing us.

Our problem is the millstone of huge unnecessary government and a equally huge non productive sector of the population all trying to maintain an unrealistic standard of living at the expense of an ever shrinking productive sector. There’s too many people in the cart Cunliffe, and not enough pulling it. That someone who professes to be the country’s Finance Minister fails to grasp something so basic is another example of the gross economic illiteracy innate in left wing politicians and that causes them to destroy the economy of every country, state or city they ever control. The chart speaks for itself.