Tuesday, December 11, 2007

"The natural order of things..."

It's no wonder that among the greatest rises in price inflation are those that come from government spending (see the graph at this post for example showing the similar US situation). Figures for the four months to the end of October show that total core crown spending in New Zealand grew 9.6 per cent in the first four months from the same period a year ago.  "The culprits," notes Bernard Hickey,

are the big ticket items of health, social security, education and the core bureaucracy itself. Health spending rose 11.1% to $3.7 billion. We’ve seen big pay increases to nurses this year, and the effects of an ageing population are inflating spending there.  Social Security spending rose 5.8% to $5.9 billion. That’s despite record low unemployment.

(Well, maybe it's not such a "record low," eh?)

But the most interesting one is core government services. That’s bureaucrats in the ministries in Wellington. That rose 7.7%.

Great.  No wonder red tape and compliance costs are expanding exponentially.  No wonder the always prescient Thomas Jefferson declared "The natural order of things is for liberty to yield and government to gain ground."  No wonder he recognised that "a little rebellion now and then...is a medicine necessary for the sound health of government" ...

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4 Comments:

Anonymous Sus said...

So simple: more govt spending requires more bureaucracy which in turn is used to validate more govt spending.

And so it continues - and all of it unproductive.

12/11/2007 04:52:00 pm  
Anonymous Anonymous said...

"The beuracracy is expanding to meet the needs of the expanding beuracracy"

Chinese Proverb

12/11/2007 06:30:00 pm  
Anonymous lgm said...

Sus

Exactly.

And now a question; can you afford to pay for it?

Regards

LGM

12/11/2007 06:53:00 pm  
Anonymous Sus said...

I'm not the best person to ask that question, LG ... in that I'm currently in discussion with the Ombudsman re disgraceful actions on the part of a govt dept.

Do I have an opinion on the detestable parasitical bastards? Oh, yes.

:)

12/11/2007 07:09:00 pm  

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