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https://theconversation.com/despite-decades-of-cost-cutting-governments-spend-more-than-ever-how-can-we-make-sense-of-this-258902>
"Recent controversies over New Zealand’s Ka Ora, Ka Ako school lunch program
have revolved around the apparent shortcomings of the food and its delivery.
Stories of inedible meals, scalding packaging and general waste have dominated
headlines.
But the story is also a window into the wider debate about the politics of
“fiscal responsibility” and austerity politics.
As part of the mission to “cut waste” in government spending, ACT leader and
Associate Education Minister David Seymour replaced the school-based scheme
with a centralised program run by a catering corporation. The result was said
to have delivered “saving for taxpayers” of $130 million – in line with the
government’s overall drive for efficiency and cost cutting.
While Finance Minister Nicola Willis dislikes the term “austerity”, her May
budget cut the government’s operating allowance in half, to $1.3 billion. This
came on top of budget cuts last year of around $4 billion.
Similar policy doctrines have been subscribed to by governments of all
political persuasions for decades. As economic growth (and the tax revenue it
brings) has been harder for OECD countries to achieve over the past 50 years,
governments have looked to make savings.
What is strange, though, is that despite decades of austerity policies reducing
welfare and outsourcing public services to the most competitive corporate
bidder, state spending has kept increasing.
New Zealand’s public expense as a percentage of GDP increased from 25.9% in
1972 to 35.9% in 2022. And this wasn’t unusual. The OECD as a whole saw an
increase from 18.9% in 1972 to 29.9% in 2022.
How can we make sense of so-called austerity when, despite decades of cost
cutting, governments spend more than ever?"
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
