Why the Government has got it right (this time)
Budget 2012 has come and gone. Once again, we’ve got a zero budget. Once again, we’re on target to have a budget surplus by 2014/15. And I do believe that we’re headed in the right direction.
However, the thing I want to comment on mostly is the comment from the Green Party that the Budget is bad because it didn’t mention the environment once. My response to that is that if we are to have sustainable improvements in our environment, we need a sustainable economy first. Let me explain.
In economics, we have inferior goods, normal goods and luxury goods. Inferior goods are things that you buy because you cannot afford the alternatives (a store’s own brand, for example). Normal goods are what you will buy more of when you earn more money (for example, holidays, high-tech goods, etc). A definition for luxury goods is “In general, a good (or service) that is not essential but makes like more enjoyable. Luxury goods are often more expensive and primarily purchased by people with more wealth and income.”
The environment is a luxury good. Once you’ve bought your necessities and you’re enjoying life, you look around and realise that the environment you’re living in isn’t so great. You then start fixing that up. If you can’t afford to feed yourself, it’s not realistic for you to fix up the environment. The left continually go on about how terrible National is for allowing people to starve, but then they say the Government should be cleaning up the environment.
Can someone tell me where the left wants to plant the money tree? I might head there and grab a clipping.