Pseudo-economics and earthquakes
Reading Dim Post this morning, I see that Danyl McLauchlan still believes that money can be plucked from the trees—that it would be “economic stupidity” to cut taxes and government spending to help New Zealanders faltering finances recover from the earthquake.
In other words, it’s not important where money comes from to “subsidise” recovery, just as long as a stream of purchasing power emerges from somewhere. Anywhere. Even if that purchasing power must first be taken out of taxpayers’ pockets.
As if having folk in their role as taxpayers subsidise themselves as consumers somehow provides some sort of stimulus.
What Danyl forgets is is that subsidies are paid for by someone, and that no method has yet been discovered by which the community gets something for nothing.
And if you think there has been, then I have a plastic waka to sell you.