Yesterday's PREFU bad news is causing people to ask the obvious question: how does National plan to pay for its tax cuts? But its also a question we should be asking in general. For example, yesterday National announced a knee-jerk move to abolish parole and imprison geriatrics - a move expected to cost $315 million (at least) for a new prison, plus $40 million a year in ongoing costs. So, how are they going to pay for that? What will they cut? we deserve an answer, but so far they haven't told us.
The Herald's John Armstrong gets it: the bad economic news means that the parties can no longer campaign on big promises or who has the biggest tax cut. Instead, its about who can better manage (and is possible, shorten) the recession. And by promising to give more money away regardless, National has shown it is not in that game.
