Spend baby spend says CTU

The Government has just announced a $10 billion deficit, and the need to borrow $250 million a week. So what does the CTU recommend to make things better:

Council of Trade Unions economist Bill Rosenberg says rather than pull back spending, New Zealand needs to borrow more to keep the economy ticking over.

“Making sure that all of us have enough money to spend to keep the economy going, to keep jobs going and make sure the economy doesn’t go into a downward spiral.”

I think someone needs to explain to the CTU that when you borrow money, you have to pay interest on it, and have to pay it back one day. And the more interest you have to pay on debt, the less money there is for hospitals and schools etc.

I look forward to hearing whether Labour endorse the CTU’s call for bigger deficits and more borrowing. So far they have voted for or indicated support for an extra $6 billion a year of borrowing, so I guess they do.