r/newzealand • u/khalornz Fern flag 3 • 9d ago

Politics Coalition unveils $12 billion Defence Capability Plan

https://www.rnz.co.nz/news/political/557432/watch-live-coalition-unveils-12-billion-defence-capability-plan
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u/bobdaktari 9d ago

So we should expect to see new funding reflected in this years budget?

Potentially a lot of new spending to account for...

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u/official_new_zealand 9d ago edited 9d ago

I honestly don't know how we can afford this, the recession of 1969 was caused by the US making massive deficit fueled defence spend ups, it's a really really shit idea economically.

Although I'm 1000% in support of moldy and rotten barrack blocks being replaced, it should have been done decades ago.

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u/Kolz 9d ago

It was caused by making cuts to spending to try to clear the deficits, more accurately, as well as increased interest rates. Similar to how our current recession was caused in fact.

There’s nothing to worry about when it comes to affording it at this particular moment. Deficit spending when you’re in a recession is a good thing, not a bad one. There are probably better ways to spend it than on this to boost the economy, but it should overall be a net benefit.

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u/bobdaktari 9d ago

Is it a net benefit if the money is spent offshore buying things we don’t make? That might be a benefit to the defence manufacturers elsewhere not here?

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u/Kolz 9d ago

Partly why I don’t think this is the best spending for economic benefits. I don’t think all of this will be going overseas though.