As far as Budgets in economically precarious times go, I thought it was a pretty good one. 

And save yourself the 20 cents, anonymous texter. I can see you typing from here. "Well, you would say that, Tokyo Rose, wouldn't you?"  Well yes, come on, be fair though – what on Earth were they supposed to do? We were warned that there would be very little money to spend. The Government resisted throwing lollies, instant sugar hits to voters and did concentrate on spending what money there is where it will get the most returns. Not on policies like Fees Free third year of education for tertiary students, which was not delivering on the metrics, but on things like capital works that have been sorely, sorely needed for so many years and will provide pipelines of work for years to come. 

So there'll be jobs, there'll be increased spending and there'll be necessary upgrades that so many communities have been waiting for, like the new 158 bed tower block at Whangārei Hospital, plans for a new hospital in Drury for the South Auckland population, the Cambridge to Piarere expressway, redevelopment programs for Tauranga, Palmerston North and Hawke's Bay hospitals, the rail network investment program, building 232 new classrooms across the country, new police stations in Greymouth and Whanganui, 2,250 additional social houses, new courthouses in Rotorua. You cannot argue that this is a poor use of what money there is.  

It feeds into the Keynesian school of economic thought, which I've always thought was really sensible and I don't think any other better alternatives exist, that during tough economic times, consumers and businesses will typically hoard cash and spend less. So, the theory argues, Governments should then step in and break that cycle because once you close everything down, it just gets worse. You can't make consumers and businesses spend money, but governments can. So they fund public works and infrastructure, the sort of sensible kind of spending, the long-term spending, spending with a long-term outcome. It will create jobs by doing that, inject money directly into the economy and provide the sort of capital infrastructure that the country so desperately needs. And the workers who work on these projects spend their money on goods and services and that creates jobs and income for others. It’s called the multiplier effect – it brings an economy out of a slump. And I think that's what we've been asking for and arguing for a while, isn't it? The tax cuts, not so much, but that's okay, that was back then. So, you know, we'll draw a veil over that. But this kind of spending where you're spending on works that have to be done. There are no ifs or maybe one days or these are not nice to haves, these are essential works that need to be done. 

I thought it was, as far as Budgets in tough times go, I thought it was a pretty good Budget. I'd very much like to get your feedback on this. I thought the that old school style of reporting of “there was nothing in it for you, was there?”, to the beneficiaries and to the state housing tenants and the “what about me's”, is lazy. I think that's really lazy reporting. You have to look at the bigger picture and you have to have an expectation that when people are on benefits, it doesn't mean they might have lost their job or they might have lost their ability to work for a time, doesn't mean they've lost their minds or their brains. They can understand too that you've got to fix the economy, it's got to improve, it's got to get better before their chances of finding work improve. And if they're unable to work, you know, they're going to get improved services and improved benefits if we are financially prosperous, if we're in a position to spend extra money. We're not in that position right now and it's going to take a few more years yet.  

For the first time, I felt a little bit of hope. A little bit of hope that you could actually see the light at the end of the tunnel and it's not the train bearing down upon you. There is a way out. It was sensible spending for the most part. I'd give it an eight out of ten, but I'd love to hear from you. 

As far as Budgets in economically precarious times go, I thought it was a pretty good one.&nbsp;
And save yourself the 20 cents, anonymous texter. I can see you typing from here. "Well, you would say that, Tokyo Rose, wouldn't you?" &nbsp;Well yes, come on, be fair though – what on Earth were they supposed to do? We were warned that there would be very little money to spend. The Government resisted throwing lollies, instant sugar hits to voters and did concentrate on spending what money there is where it will get the most returns. Not on policies like Fees Free third year of education for tertiary students, which was not delivering on the metrics, but on things like capital works that have been sorely, sorely needed for so many years and will provide pipelines of work for years to come.&nbsp;
So there'll be jobs, there'll be increased spending and there'll be necessary upgrades that so many communities have been waiting for, like the new 158 bed tower block at Whangārei Hospital, plans for a new hospital in Drury for the South Auckland population, the Cambridge to Piarere expressway, redevelopment programs for Tauranga, Palmerston North and Hawke's Bay hospitals, the rail network investment program, building 232 new classrooms across the country, new police stations in Greymouth and Whanganui, 2,250 additional social houses, new courthouses in Rotorua. You cannot argue that this is a poor use of what money there is. &nbsp;
It feeds into the Keynesian school of economic thought, which I've always thought was really sensible and I don't think any other better alternatives exist, that during tough economic times, consumers and businesses will typically hoard cash and spend less. So, the theory argues, Governments should then step in and break that cycle because once you close everything down, it just gets worse. You can't make consumers and businesses spend money, but governments can. So they fund public works and infrastructure, the sort of sensible kind of spending, the long-term spending, spending with a long-term outcome. It will create jobs by doing that, inject money directly into the economy and provide the sort of capital infrastructure that the country so desperately needs. And the workers who work on these projects spend their money on goods and services and that creates jobs and income for others. It’s called the multiplier effect – it brings an economy out of a slump. And I think that's what we've been asking for and arguing for a while, isn't it? The tax cuts, not so much, but that's okay, that was back then. So, you know, we'll draw a veil over that. But this kind of spending where you're spending on works that have to be done. There are no ifs or maybe one days or these are not nice to haves, these are essential works that need to be done.&nbsp;
I thought it was, as far as Budgets in tough times go, I thought it was a pretty good Budget. I'd very much like to get your feedback on this. I thought the that old school style of reporting of “there was nothing in it for you, was there?”, to the beneficiaries and to the state housing tenants and the “what about me's”, is lazy. I think that's really lazy reporting. You have to look at the bigger picture and you have to have an expectation that when people are on benefits, it doesn't mean they might have lost their job or they might have lost their ability to work for a time, doesn't mean they've lost their minds or their brains. They can understand too that you've got to fix the economy, it's got to improve, it's got to get better before their chances of finding work improve. And if they're unable to work, you know, they're going to get improved services and improved benefits if we are financially prosperous, if we're in a position to spend extra money. We're not in that position right now and it's going to take a few more years yet. &nbsp;
For the first time, I felt a little bit of hope. A little bit of hope that you could actually see the light at the end of the tunnel and it's not the train bearing down upon you. There is a way out. It was sensible spending for the most part. I'd give it an eight out of ten, but I'd love to hear from you.&nbsp;

Join Kerre Woodham one of New Zealand’s best loved personalities as she dishes up a bold, sharp and energetic show Monday to Friday 9am-12md on Newstalk ZB. News, opinion, analysis, lifestyle and entertainment – we’ve got your morning listening covered.

Kerre Woodham Mornings Podcast

Kerre Woodham: As far as Budgets in tough times go, this was a pretty good one

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/7b9d36e7-d7e2-4d73-bbb7-b459001a7eba/transcript