Why Budget 2013 Doesn’t Matter

In a short time, Bill English will stand up in Parliament and deliver his Budget Speech.

For the temporary government (that’s the guys some of us elect every 3 years), the Budget is the highlight of the year.

It is a chance for them to show that they’re doing something to fix all of the problems in the economy.

For the permanent government, the Budget is the lowlight of the year.

It is when elected officials get to upset the slow, glacial growth of the permanent government in Wellington.

The incentives faced by a bureaucrat are diammetrically opposed to those of a politician.

The goal is to increase your department’s funding, prestige, size or regulatory powers.

This is why Budget 2013 doesn’t matter – because it will not change a single thing in government.

It won’t fix our schools that turn out illiterate and innumerate dropouts year after year without consequence.

And it won’t deliver any substantive policy initiatives that will fix supply side problems in the economy.

The pipe dream of the retirement age increasing from 65 is just that – a pipe dream.

I’ll be watching, but skeptical that anything will change. The central planning fallacy lives on for the inhabitants of Gosplan-on-Bowen.

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