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Saturday, December 11, 2004

Cause and effect

I never studied economics at high school however I see it as simply cause and effect.
And so with Brash's tax cuts he has signaled, at the present time I see the effects simply as follows.
Cuts in current spending when we are just beginning to get to the levels of proper spending in health and education. Boo.
Higher inflation. More money in a hot economy means prices will go up offsetting any tax increases. Boo.
Then again he has said nothing new, and we have not idea what he is planning. So who knows.

7 Comments:

  • This comment has been removed by a blog administrator.

    By Blogger Brendon, at 3:28 pm  

  • I think you need to post more on About Town, young man...

    By Blogger Xavier, at 6:21 pm  

  • Economic theory is in reality highly pyschological and sociological as opposed to mathematical. There are lots of assumptions within the National's economic theory which aren't borne out by reality.

    Taxes are NOT money that dissapears down the drain or is stolen from hardworkers to pay for lazy louts.

    A balanced tax system is essential to maintaining a functioning economy.

    By Blogger Moneo, at 11:53 pm  

  • I "heard on the news" (read: I know almost nothing) that national is proposing somthing new in the form of rebates for parents who pay for their childrens health and education. Its a little vague (this IS national we are talking about here remember), but the section went somthing like...

    “It could also mean tax relief for those who reduce the burden on the state by meeting the costs of their own medical care, or the costs of their children’s education. That could be achieved through either tax deductions or rebates on such expenses."

    I wonder about this logic... middle income earners are supposed to pay more than they already do for their childrens health and education and this somehow magically decreases the burden on the state, even though it lowers revenue at the same time? This on top of proposed reductions in both corporate and personal taxes all seems rather extravagant.

    Clicking the trash post button = not good

    By Blogger Brendon, at 12:11 am  

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