It's election year - and how the Budget affects the economy is a big deal for many Kiwi voters. So this is the lead story our government funded State Broadcaster, OneNews, ran when the Budget was announced:
"One of the big ticket items was the extension of the 20 hours free early childhood education to two year olds. For those with young families, it will make a big difference - $130 extra a week. That's a big deal. Crucially, however, as many New Zealanders already pay for their two-year-olds, it is not new spending so won't add to inflation".
This "analysis" of the Budget by Jessica Mutch McKay is incorrect. The government has borrowed the funds and, as such, the effects will add to demand & inflation. OneNews is wrong to say that since many people already pay for childhood education, it wont be inflationary. The reason is that since these folks no longer have to keep paying that bill themselves, the funds become freed up, available for spending on other items, and hence will boost demand.
Why was this OneNews story not presented as an "opinion"? Why was it presented as an objective, factual "analysis" when that analysis is false? Will OneNews be offering an apology for misleading a million or two Kiwis? You can bet not.
If OneNews wants to swing the election through incorrect analyses of the inflationary effects of the budget that favor the government, then that is a real big news story - a way bigger deal than the "road to nowhere" Budget.
Sources: