This is a message to all political parties - this is not the time for irresponsible spending. Now is the time for local and central government as well as households to stop spending beyond their means. No Right Turn has pretty much said all I wanted to say, but I'll add a few points.
For years now National has attacked Labour for running surpluses during the good times. So their anger now that we have deficits is misplaced. Not only that, but if Don Brash had won in 2005 the deficit would be $4 billion per year larger (the size of National's tax cut promise).
National are going to soldier on with more irresponsible and reckless tax cuts as if the world financial crisis and our own deficits don't exist.
Now is the time for restraint. But we must not underfund the fundamentals (health, education, and incomes) - as National have done during previous downturns to fund their tax cut programmes. I hope Labour takes this environment on board and shows restraint with their election promises and also send a message to households that it is also time for them to stop spending beyond their means (a message they may not wish to hear). I'd also not be displeased with Labour identifying some spending to be cut in areas where we are not getting a social or economic return.
This must not be a lolly scramble election. If National want to turn the deficit into a monster deficit by promising the world, then Labour must let them and not follow suit.
UPDATE: Gordon Campbell has a very good piece on the economic situation and National's tax cuts.
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