Expansionary austerity – fail

Written By: - Date published: 9:00 am, April 21st, 2011 - 32 comments
Categories: economy, Keynes, monetary policy, national - Tags: ,

Expansionary austerity is the idea that cutbacks in government spending can stimulate economic growth. Sounds weird doesn’t it, but here’s the theory as argued by Britain’s current Chancellor of the Exchequer:

Osborne insists that Britain will enjoy what he calls “expansionary austerity”, because the knowledge that the government is getting to grips with the public finances will engender confidence and encourage private spending to replace the cuts in public spending.

This theory relies on a tighter fiscal policy (tax increases and spending cuts) allowing monetary policy (interest rates and the exchange rate) to remain loose. Cheap borrowing costs lead to higher investment, while the low pound stimulates exports. This, in turn, leads to a rebalancing of the economy.

The trouble with this theory is that it’s bollocks. Paul Krugman sums up:

The Stubborn Myth of Expansionary Contraction

Mike Konczal, a fellow at the Roosevelt Institute, has been writing lately in his economics blog, Rortybomb, about American conservatives’ continuing insistence that slashing government spending is actually expansionary, as embodied in a recent report from Republicans on the Joint Economic Committee.

As he says, it’s a remarkable thing: the empirical case for expansionary austerity has collapsed on examination, but the doctrine lives on regardless.

One thing Mike fails to note is that another recent paper on deficit reduction from the American Enterprise Institute, which is cited by that J.E.C. study in a way that might make you think that it supports the case for expansionary austerity, actually never provides any evidence to that effect; … It’s notable that the J.E.C. report also blithely cites Canada and Sweden in the 1990s as demonstrations of its case, even though both have in fact been extensively debunked. …

I have to say, it’s remarkable how quickly expansionary austerity has gone from interesting speculation to zombie idea, repeatedly killed by evidence but still shambling toward us, trying to eat our brains.

So the empirical evidence (see Konczal’s work here) doesn’t support the theory. But in Britain the Tories charged ahead with it anyway, slashing spending left right and centre. How’s that working out for them?

Is Osborne fit to run the economy – or to ruin it?

George Osborne is expecting ‘expansionary austerity’ to save the UK economy – which means things are going to get a whole lot worse for ordinary households

… This government has now been in power for almost a year and here’s a check list of their achievements so far. Unemployment, going down a year ago, is now going up. Real incomes fell last year for the first time since 1981 and are on course to fall again this year. Consumer confidence has slumped to levels seen in the depths of the recession. High street retailers are sending out profit warnings. And, to cap it all, the government has been forced to revise up its forecasts for the budget deficit.

… The empirical case against expansionary austerity is that it doesn’t seem to be working in Britain (or in any of the struggling eurozone countries), whereas good old fashioned fiscal expansion does seem to be doing the trick in the US.

Despite two years when bank rate has been pegged at 0.5%, there is a marked reluctance to borrow. Mortgage demand is running at half the levels seen in the 10 years leading up to the financial crisis, and lending to businesses is not picking up.

… Where is the evidence of expansionary austerity? Not in the balance of payments figures, which are getting worse not better. Not in the high street, where consumers would need to see their incomes rise by 6% to compensate for the price increases and tax rises of the past year. And not in the business community, where investment fell in the final three months of last year.

Not so good in practice then. Keynes gets the last laugh.

Right, pop quiz time. Can anyone think of another government, not a million miles from here, that is pinning its hopes on expansionary austerity? Another government that is ignoring the theoretical counter arguments and all the empirical evidence? Another government that is run by Tory fools and getting the same results as the same policies in England? Another government that is seeing its economy flatline, growth stalled, unemployment rising, costs spiralling out of control? Anyone? Anyone?

Makes you wonder doesn’t it. Just how stupid would we be to give these failed policies another term…

32 comments on “Expansionary austerity – fail ”

  • Comments are now closed

  1. mikesh 1
    21 April 2011 at 9:17 am

    “Expansionary austerity” sounds like Orwellian newspeak.

  2. Peter 2
    21 April 2011 at 9:34 am

    Key is on record of justifying his policies in terms of the so called “crowding out” effect which implies less Government  making room for more Private Sector growth. This, I would suggest, is his economic plan despite the critics saying he has not got one. This appears to be his version of “expansionary austerity”.
    So it’s simple really, cut Government spending and such issues as employment will eventually address themselves as the Private sector takes up the slack. Don’t expect the ship to turn around quickly but it will happen, trust me!
    This is what wikipedia has to say about crowding out;
    “However, this crowding-out effect might be moderated by the fact that government spending sometimes expands the market for private-sector products through the multiplier and thus stimulates – or “crowds in” – fixed investment (via the “accelerator effect“). This accelerator effect is most important when business suffers from unused industrial capacity, i.e., during a serious recession or a depression.”
     
    I’m a layman so it would be interesting to read other perspectives from the wise.

    • Rex Widerstrom 2.1
      21 April 2011 at 1:07 pm

      Key is on record of justifying his policies in terms of the so called “crowding out” effect which implies less Government making room for more Private Sector growth.

      Good grief. Has some finance “journalist” asked him what is the specific sectors in which he believes government is supposedly “crowding out” the private sector, and what is his evidence for this?!

      In theory this can happen, but given the reforms since the 1980s I would think NZ is the last country in the entire world where this could be said to be occurring.

      • Colonial Viper 2.1.1
        21 April 2011 at 1:11 pm

        However, it may be too much to ask that our financial and economics “journalists” ask good questions of our leaders and demand real answers.
         
        The simple point is that the Government provides a lot of demand and a lot of sales orders for private business, and when Government stops spending, private businesses hurt and fail.

      • Peter 2.1.2
        21 April 2011 at 3:29 pm

        He said it, almost as a slip of the tongue, on Q&A a few weeks back. As far as I am aware it is his only reference to the philosophy behind cuts.

      • KJT 2.1.3
        21 April 2011 at 8:12 pm

        Yeah right.
        Doctors. Teachers, building regulators, power suppliers, state infrastructure, Police crowd out the private sector.

        No State has ever had an efficient and prosperous private sector without a fully functional State.

        The private sector alone results in Anarchy and poverty. Somalia.

        The highly regulated, and taxed, mixed economies of Western Europe have been the most successful States in History.

        The USA, Ireland, UK, NZ and other states that have followed the “free market’ Neo-Liberal Freidmanite dogma of meanness, globalisation of capital and theft from citizenry are fast heading for failure.

  3. Carol 3
    21 April 2011 at 9:41 am

    I’m not sure my point is relevant to this issue, but it seems so to me.  These right wing, neoliberal policies seem to me to be a justification for cutting back on the public sector, privatising all activities, whether useful to society or not, and delivering them to the international corporate elite and thereby expanding their profits.
     
    I don’t know a lot about economics, but ever since I first read some introduction to economic theory, I’ve never understood the logic of differentiating between “tradeable’ and non-tradeable” enterprises.  I hear the same arguments being repeated by politicicans like Bill English today.  So tradeable refers to anything that can be traded internationally, and non-tradeable to economic/financial actitivites that can’t be traded internationally.  But this just seems to me to be a cover for cutting back on the public sector.
     
    And I’ve never understood how having all countries trading stuff with each other, including stuff countries can produce for themselves, somehow magically makes us all more wealthy.  eg, why are we buying oranges from California, when we produce them ourselves & vice versa?

    • Draco T Bastard 3.1
      21 April 2011 at 12:16 pm

      And I’ve never understood how having all countries trading stuff with each other, including stuff countries can produce for themselves, somehow magically makes us all more wealthy.

      That load of bollocks comes from the idea of specialisation. A single person can’t learn everything and so it’s better if individuals specialise. Unfortunately, the stupid idiots (otherwise known as economists) have expanded the idea to include entire societies.

      • Carol 3.1.1
        21 April 2011 at 5:21 pm

        Thanks.  So I was correct to be suspicious.  This information was presented in a very introductory textbook, as though it was gospel. You’d think more economists would also have seen the problems with the concept.

        • Colonial Viper 3.1.1.1
          21 April 2011 at 5:32 pm

          Young economists got granted their PhDs extending worthless economic theory by impressing those established older PhD economists who had come up with the original worthless economic theory in the first place.
           
          It became an entire circular game. Not corrupt, but clearly pandering.

        • Draco T Bastard 3.1.1.2
          21 April 2011 at 5:32 pm

          This information was presented in a very introductory textbook, as though it was gospel.

          That’s because it’s treated as gospel by nearly every economist in the world. I’ve got university level textbooks, written by Ben Bernanke in fact, that treats it the exact same way.

          You’d think more economists would also have seen the problems with the concept.

          You’d think so but, then, we’re dealing with a field that started with a few assumptions a couple of centuries ago and those assumptions haven’t been changed in all that time despite the fact that documented reality has proven those assumptions wrong.

  4. Colonial Viper 4
    21 April 2011 at 9:45 am

    Well its time for the Left to reframe this as “Same old shit, different spin”
     
    People know this is a bunk, they have lived through cycles and cycles of this before.
     
    Tell them that China and Singapore are laughing at the west bleeding itself out economically (while they themselves invest billions back into their people and infrastructure), as if we are still in the 18th century of medicine with leeches and blood letting.
     
    Cameron/Osbourne, Key/English are the economic quack doctors of the western world.

  5. ASA 5
    21 April 2011 at 9:46 am

    Going by the repeated opinion poll results, it appears that NZers may indeed be that collectively stupid, unless something significant changes in the next 7 months. The bigger question would be to enquire why the NZ media isn’t producing economic analyses similar to the Guardian article. Wouldn’t be hard – just some some substitutions needed e.g. English for Osborne, New Zealand for Britain, National for Conservatives and so on. This would mean the article could just about be used as is, for the situation here is frighteningly similar. Then again, who do our media owe their loyalties to?

    • Bored 5.1
      21 April 2011 at 10:05 am

      ASA. I am not sure that NZers may indeed be that collectively stupid, it is more likely the old mushroom syndrome i.e kept in the dark and fed bullshit. By the very same media and corporate smokescreen you question the ownership of.

      My hope is that we as a society have a Damascene moment of clarity, the events that are likely to bring this on are “peak bloody everything”. This will be the moment when we realise that what we have aspired to, what we have believed to be true has been an edifice of contrived bullshit. In between times we will aspire, and as a consequence be robbed blind by those who have.

    • Peter 5.2
      21 April 2011 at 10:09 am

      True,  there is plenty of stuff out there (http://www.bryangould.net/id150.html) but the more I get into this the more I realise that our main newspaper is by and large running agendas ( a bit like FOX News). Far easier to divert attention with Polls, Stop Signs and helicopter discussions …… maybe SST will do something.
      As always the vast majority of voters are not interested, so it gets back to packaging alternatives that they will act upon. Winston, as we know, is good at it. National as always effectively justify the status quo with Fear Uncertainty and Doubt. Labour? Greens?
       

  6. JJ 6
    21 April 2011 at 10:00 am

    Yeah man, that trickle down effect, just flies in the face of human nature. But then again so does the idea of socialist utopia, we all know what a hell on earth those ideas created.
    What to do though? Seems to me the country (the whole world) is freaking broke. I guess somebody has all the money though!

    • Colonial Viper 6.1
      21 April 2011 at 10:50 am

      A socialist utopia is exactly what we should aim for JJ.
       
      And we know how to do it.
       
      Take a share of the money and assets from those who are most wealthy and use it to provide common services, support and facilities that everyone in the society can use.
       
      Then empower ordinary people to become decision makers and participants in the every day running of their workplaces, their communities, their cities.
       
      Pretty fraking easy really.

      But then again so does the idea of socialist utopia, we all know what a hell on earth those ideas created.

      What, as opposed to the tens of thousands of people dying in the richest country in the world every year because they can’t access healthcare? And the hundreds of thousands more who go broke and suffer family breakups because they can’t afford medical bills?

      What do you call that?

  7. Ben Clark 7
    21 April 2011 at 10:46 am

    Another great post r0b.
     
    Nail on head? Hit perfectly.

  8. Afewknowthetruth 8
    21 April 2011 at 11:00 am

    It’s all very simple. So simple most people refuse to see it and prefer to tie themselves up in knots of economic theory completely detached from reality. Economics, as practised in the modern world, has no validity whatsoever. It’s all bunk. Economics assumes cheap and readily available resources will appear as if by magic whenever needed. Economics never mentions the huge costs of global pollution. The real world is not like that. Sure, in the past there were cheap resources that could be readily obtained and the Earth did manage to recover from most of the crap we threw at it. But that game is now over, especially the cheap energy game.   

    One year ago Brent oil was around $80. Today it’s over $120.

    That 50% increase in the cost of the prime driver of the economy has led to a global economic squeeze. No amount of jigging with interest rates, tax rates or anything else will alter the fact that the global system is slowly imploding due to competition for declining resources.  

    By the way, just to get the big picture, a decade ago oil was around $20 a barrel. It’s now  6 times that.

    As global oil extraction falls further down Hubbert’s curve we will see ever faster contraction of most sectors of the economies of most nations. The price of oil will continue to rise and money will continue to devalue. At some stage in the fairly near future the entire system will go kaput……probably around 2015 the way things are panning out at the moment.

    The success of China is merely a facade. It is pulling in international dollars simply because the Yuan is so grossly undevalued and workers get such low wages by international standards.  China is dependent on ever increasing imports of energy and resources to maintian its bubble economy, and will fall just like the rest eventually.

    We should also note that most of the money in the system doesn’t exist and has been conjured out of thin air via loans. It’s all a Ponzi scheme. The value of money continues to fall. Gold has gone from below $750 five years ago to over $1500 now. China has been buying up gold of course, whereas the saboteurs who operate western governments have been selling it.

    The ultimate aim of the secretive elites who really running the show seems to be to create a feudal society in the west, a society in which proles are reduced to existence at the peasant level while a gang of elites lords it over them. John Key is just practising at the moment.

    What I find fascinating is tenacity with which people hang on to redundant paradigms and just keep churning out garbage analysis based on fantasies. There seems to be some kind of consensus amongst mainstream commentators that if we ignore the elephants in the room they won’t damage the furniture or knock the walls down.  

    • uke 8.1
      21 April 2011 at 2:01 pm

      What I find fascinating is tenacity with which people hang on to redundant paradigms and just keep churning out garbage analysis based on fantasies. There seems to be some kind of consensus amongst mainstream commentators that if we ignore the elephants in the room they won’t damage the furniture or knock the walls down.

      Possibly it’s because the idea of Growth and Progress are in effect reality principles wired into the Western mindset. They have an unshakeable existential and spiritual solidity. People cannot conceive of an economy without the goal of Growth, any more than they can conceive of Time running backwards.

  9. Uroskin 9
    21 April 2011 at 11:00 am

    “Trickle down economics” is PC speak for the rich pissing on the poor.

  10. PeteG 10
    21 April 2011 at 11:04 am

    This post takes a narrow view.
    Is there no such thing as wasteful or too much government spending? Why shouldn’t the major expansion of the public sevice and public spending under the last Labour government be scutinised for value for money?
     
    It’s just possible that the aim is to cut unecessary costs when there isn’t much money available.
     
    The “expand when the economy is good, expand when the economy is bad” approach is flawed. When should government spending increase – good times or bad?

    • Draco T Bastard 10.1
      21 April 2011 at 3:33 pm

      The economy cannot expand beyond the limits of the environment and government spending is, in a democracy such as ours, the spending of the people. Government is not divorced from its society – no matter how much you RWNJs want to portray it as such.

  11. Afewknowthetruth 11
    21 April 2011 at 11:43 am

    ‘Makes you wonder doesn’t it. Just how stupid would we be to give these failed policies another term…’

    Very true. The problem is, Labour is locked into the same kind of dysfucntional economic garbage as National, all of it predicated on economic growth that cannot occur and predicated on ignoring the environmental catastrophe that is gathering pace.   

    And Ben, when are you going to recognise that we are at ‘peak everything’ (as Bored has again pointed out) and start formulating policies that are appropriate to the times we live in? At the moment you seem to be avoiding reality like the plague! Or is your ‘plan’ to quietly drive NZ off the cliff slightly more slowly than National is currently doing?

    We are still waiting for answers.

    We’ve been wating for answers for many weeks.

    You can only keep hiding for so long.

    The truth is going to get you in the end.

    • Draco T Bastard 11.1
      21 April 2011 at 3:37 pm

      The problem is, Labour is locked into the same kind of dysfucntional economic garbage as National, all of it predicated on economic growth that cannot occur and predicated on ignoring the environmental catastrophe that is gathering pace.

      Exactly. A rational economy would look to minimising use of natural resources. The capitalist free-market economy works by using those resources up as fast as possible so as to maximise profits which results in everybody having nothing at all.
       
      The capitalist free-market is completely irrational but that shouldn’t be a surprise – it was, after all, designed by psychopaths (the capitalists).

  12. Peter 12
    21 April 2011 at 12:17 pm

    I don’t believe this post is a discussion about value for money, it’s actually about the best way forward, and the potential pitfalls of Key’s economic assumptions. Playing the private and public sectors off against each other does not do it for me, although it is clearly a vote catcher.
    The real question is how should both sectors work together because neither is going away? After all right now the Government is spending an awful lot of money on RWC. You could be cynical enough to believe they are using civil servants to help their election prospects, or more positively to boost the prospects of private sector exporters. Why is it that we don’t hear gratitude from the private sector for the support and business opportunities offered by the public sector?
    If you take Natonal’s narrative to the extreme you would easily believe that we would all be far better-off if the balance was something like Public (bad) 10% and Private (good) 90% of GDP. I’m sure there are people reading this who could provide you with international evidence that more Government would be an improvement. Besides if that’s where we are heading why haven’t the private sector provided the extra jobs required, plenty of people are waiting.
    But ,if you want to turn the discussion to so called efficiency! Why shouldn’t the private sector also be scrutinised for value for money? For example AMI insurance policies, shonky property development, collapsing finance companies, the  social cost of alcohol abuse unpaid for by “big beer”, the economic and social cost of high unemployment, the overseas sell-off of badly run NZ owned companies, virtual monopolies such as SKY, media company bailouts, the South Canterbury bailout, and if you like using airforce helicopters to dash-off to PR photo-opportunities.
    Without Nationals  convenient use of the public sector where would they and the private sector be right now?

    • Colonial Viper 12.1
      21 April 2011 at 1:13 pm

      Well let’s remember first principles here: the structure and running of the economy should primarily be for the good of the society.
       
      Not the other way around.

    • Draco T Bastard 12.2
      21 April 2011 at 3:45 pm

      Why shouldn’t the private sector also be scrutinised for value for money?

      Because then the delusion that the private sector is inherently more efficient than government would be shown for what it is – a delusion.

      Without Nationals  convenient use of the public sector where would they and the private sector be right now?

      Collapsing. That has always been true of conservative government though. As much as they rail against Big Government they’re usually the ones that use the government most. Usually in subsidies, bailouts and pork barrel politics.

      • KJT 12.2.1
        21 April 2011 at 8:27 pm

        An occasional left wing Government is a necessity, for Neo-Liberal types, to build things up so they can rob us again. As they are too incompetent to make their own businesses work they have to steal the public’s.
        Round one 1984 to 1990,s started it. The first ACT Government, then National. Now they are back for another go.
        I wonder which failed private businesses, which buy into necessary infrastructure, we will have to bail out or buy back this time.

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    Life throws curveballs, and sometimes, those curveballs necessitate wiping your iPhone clean and starting anew. Whether you’re facing persistent software glitches, preparing to sell your device, or simply wanting a fresh start, knowing how to factory reset iPhone without a computer is a valuable skill. While using a computer with ...
    Gareth’s WorldBy admin
    1 day ago

  • How to Call Someone on a Computer: A Guide to Voice and Video Communication in the Digital Age
    Gone are the days when communication was limited to landline phones and physical proximity. Today, computers have become powerful tools for connecting with people across the globe through voice and video calls. But with a plethora of applications and methods available, how to call someone on a computer might seem ...
    Gareth’s WorldBy admin
    1 day ago

  • Skeptical Science New Research for Week #16 2024
    Open access notables Glacial isostatic adjustment reduces past and future Arctic subsea permafrost, Creel et al., Nature Communications: Sea-level rise submerges terrestrial permafrost in the Arctic, turning it into subsea permafrost. Subsea permafrost underlies ~ 1.8 million km2 of Arctic continental shelf, with thicknesses in places exceeding 700 m. Sea-level variations over glacial-interglacial cycles control ...
    Skeptical Science
    1 day ago

  • Where on a Computer is the Operating System Generally Stored? Delving into the Digital Home of your ...
    The operating system (OS) is the heart and soul of a computer, orchestrating every action and interaction between hardware and software. But have you ever wondered where on a computer is the operating system generally stored? The answer lies in the intricate dance between hardware and software components, particularly within ...
    Gareth’s WorldBy admin
    1 day ago

  • How Many Watts Does a Laptop Use? Understanding Power Consumption and Efficiency
    Laptops have become essential tools for work, entertainment, and communication, offering portability and functionality. However, with rising energy costs and growing environmental concerns, understanding a laptop’s power consumption is more important than ever. So, how many watts does a laptop use? The answer, unfortunately, isn’t straightforward. It depends on several ...
    Gareth’s WorldBy admin
    1 day ago

  • How to Screen Record on a Dell Laptop A Guide to Capturing Your Screen with Ease
    Screen recording has become an essential tool for various purposes, such as creating tutorials, capturing gameplay footage, recording online meetings, or sharing information with others. Fortunately, Dell laptops offer several built-in and external options for screen recording, catering to different needs and preferences. This guide will explore various methods on ...
    Gareth’s WorldBy admin
    1 day ago

  • How Much Does it Cost to Fix a Laptop Screen? Navigating Repair Options and Costs
    A cracked or damaged laptop screen can be a frustrating experience, impacting productivity and enjoyment. Fortunately, laptop screen repair is a common service offered by various repair shops and technicians. However, the cost of fixing a laptop screen can vary significantly depending on several factors. This article delves into the ...
    Gareth’s WorldBy admin
    1 day ago

  • How Long Do Gaming Laptops Last? Demystifying Lifespan and Maximizing Longevity
    Gaming laptops represent a significant investment for passionate gamers, offering portability and powerful performance for immersive gaming experiences. However, a common concern among potential buyers is their lifespan. Unlike desktop PCs, which allow for easier component upgrades, gaming laptops have inherent limitations due to their compact and integrated design. This ...
    Gareth’s WorldBy admin
    1 day ago

  • Climate Change: Turning the tide
    The annual inventory report of New Zealand's greenhouse gas emissions has been released, showing that gross emissions have dropped for the third year in a row, to 78.4 million tons: All-told gross emissions have decreased by over 6 million tons since the Zero Carbon Act was passed in 2019. ...
    No Right TurnBy Idiot/Savant
    1 day ago

  • How to Unlock Your Computer A Comprehensive Guide to Regaining Access
    Experiencing a locked computer can be frustrating, especially when you need access to your files and applications urgently. The methods to unlock your computer will vary depending on the specific situation and the type of lock you encounter. This guide will explore various scenarios and provide step-by-step instructions on how ...
    Gareth’s WorldBy admin
    1 day ago

  • Faxing from Your Computer A Modern Guide to Sending Documents Digitally
    While the world has largely transitioned to digital communication, faxing still holds relevance in certain industries and situations. Fortunately, gone are the days of bulky fax machines and dedicated phone lines. Today, you can easily send and receive faxes directly from your computer, offering a convenient and efficient way to ...
    Gareth’s WorldBy admin
    1 day ago

  • Protecting Your Home Computer A Guide to Cyber Awareness
    In our increasingly digital world, home computers have become essential tools for work, communication, entertainment, and more. However, this increased reliance on technology also exposes us to various cyber threats. Understanding these threats and taking proactive steps to protect your home computer is crucial for safeguarding your personal information, finances, ...
    Gareth’s WorldBy admin
    1 day ago

  • Server-Based Computing Powering the Modern Digital Landscape
    In the ever-evolving world of technology, server-based computing has emerged as a cornerstone of modern digital infrastructure. This article delves into the concept of server-based computing, exploring its various forms, benefits, challenges, and its impact on the way we work and interact with technology. Understanding Server-Based Computing: At its core, ...
    Gareth’s WorldBy admin
    1 day ago

  • Vroom vroom go the big red trucks
    The absolute brass neck of this guy.We want more medical doctors, not more spin doctors, Luxon was saying a couple of weeks ago, and now we’re told the guy has seven salaried adults on TikTok duty. Sorry, doing social media. The absolute brass neck of it. The irony that the ...
    More Than A FeildingBy David Slack
    1 day ago

  • Jones finds $410,000 to help the government muscle in on a spat project
    Buzz from the Beehive Oceans and Fisheries Minister Shane Jones relishes spatting and eagerly takes issue with environmentalists who criticise his enthusiasm for resource development. He relishes helping the fishing industry too. And so today, while the media are making much of the latest culling in the public service to ...
    Point of OrderBy Bob Edlin
    1 day ago

  • Again, hate crimes are not necessarily terrorism.
    Having written, taught and worked for the US government on issues involving unconventional warfare and terrorism for 30-odd years, two things irritate me the most when the subject is discussed in public. The first is the Johnny-come-lately academics-turned-media commentators who … Continue reading → ...
    KiwipoliticoBy Pablo
    1 day ago

  • Despair – construction consenting edition
    Eric Crampton writes – Kainga Ora is the government’s house building agency. It’s been building a lot of social housing. Kainga Ora has its own (but independent) consenting authority, Consentium. It’s a neat idea. Rather than have to deal with building consents across each different territorial authority, Kainga Ora ...
    Point of OrderBy poonzteam5443
    2 days ago

  • Coalition promises – will the Govt keep the commitment to keep Kiwis equal before the law?
    Muriel Newman writes – The Coalition Government says it is moving with speed to deliver campaign promises and reverse the damage done by Labour. One of their key commitments is to “defend the principle that New Zealanders are equal before the law.” To achieve this, they have pledged they “will not advance ...
    Point of OrderBy poonzteam5443
    2 days ago

  • An impermanent public service is a guarantee of very little else but failure
    Chris Trotter writes –  The absence of anything resembling a fightback from the public servants currently losing their jobs is interesting. State-sector workers’ collective fatalism in the face of Coalition cutbacks indicates a surprisingly broad acceptance of impermanence in the workplace. Fifty years ago, lay-offs in the thousands ...
    Point of OrderBy poonzteam5443
    2 days ago

  • What happens after the war – Mariupol
    Mariupol, on the Azov Sea coast, was one of the first cities to suffer almost complete destruction after the start of the Ukraine War started in late February 2022. We remember the scenes of absolute destruction of the houses and city structures. The deaths of innocent civilians – many of ...
    Open ParachuteBy Ken
    2 days ago

  • Babies and benefits – no good news
    Lindsay Mitchell writes – Ten years ago, I wrote the following in a Listener column: Every year around one in five new-born babies will be reliant on their caregivers benefit by Christmas. This pattern has persisted from at least 1993. For Maori the number jumps to over one in three.  ...
    Point of OrderBy poonzteam5443
    2 days ago

  • Should the RBNZ be looking through climate inflation?
    Climate change is expected to generate more and more extreme events, delivering a sort of structural shock to inflation that central banks will have to react to as if they were short-term cyclical issues. Photo: Lynn Grieveson / The KākāMy pick of the six newsey things to know from Aotearoa’s ...
    The KakaBy Bernard Hickey
    2 days ago

  • Bernard's pick 'n' mix of the news links
    The top six news links I’ve seen elsewhere in the last 24 hours, as of 9:16 am on Thursday, April 18 are:Housing: Tauranga residents living in boats, vans RNZ Checkpoint Louise TernouthHousing: Waikato councillor says wastewater plant issues could hold up Sleepyhead building a massive company town Waikato Times Stephen ...
    The KakaBy Bernard Hickey
    2 days ago

  • Gordon Campbell on the public sector carnage, and misogyny as terrorism
    It’s a simple deal. We pay taxes in order to finance the social services we want and need. The carnage now occurring across the public sector though, is breaking that contract. Over 3,000 jobs have been lost so far. Many are in crucial areas like Education where the impact of ...
    Gordon CampbellBy lyndon
    2 days ago

  • Meeting the Master Baiters
    Hi,A friend had their 40th over the weekend and decided to theme it after Curb Your Enthusiasm fashion icon Susie Greene. Captured in my tiny kitchen before I left the house, I ending up evoking a mix of old lesbian and Hillary Clinton — both unintentional.Me vs Hillary ClintonIf you’re ...
    David FarrierBy David Farrier
    2 days ago

  • How extreme was the Earth's temperature in 2023
    This is a re-post from Andrew Dessler at the Climate Brink blog In 2023, the Earth reached temperature levels unprecedented in modern times. Given that, it’s reasonable to ask: What’s going on? There’s been lots of discussions by scientists about whether this is just the normal progression of global warming or if something ...
    Skeptical Science
    2 days ago

  • Backbone, revisited
    The schools are on holiday and the sun is shining in the seaside village and all day long I have been seeing bunches of bikes; Mums, Dads, teens and toddlers chattering, laughing, happy, having a bloody great time together. Cheers, AT, for the bits of lane you’ve added lately around the ...
    More Than A FeildingBy David Slack
    2 days ago

  • Ministers are not above the law
    Today in our National-led authoritarian nightmare: Shane Jones thinks Ministers should be above the law: New Zealand First MP Shane Jones is accusing the Waitangi Tribunal of over-stepping its mandate by subpoenaing a minister for its urgent hearing on the Oranga Tamariki claim. The tribunal is looking into the ...
    No Right TurnBy Idiot/Savant
    2 days ago

  • What’s the outfit you can hear going down the gurgler? Probably it’s David Parker’s Oceans Sec...
    Buzz from the Beehive Point  of Order first heard of the Oceans Secretariat in June 2021, when David Parker (remember him?) announced a multi-agency approach to protecting New Zealand’s marine ecosystems and fisheries. Parker (holding the Environment, and Oceans and Fisheries portfolios) broke the news at the annual Forest & ...
    Point of OrderBy Bob Edlin
    2 days ago

  • Will politicians let democracy die in the darkness?
    Bryce Edwards writes  – Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. ...
    Point of OrderBy poonzteam5443
    2 days ago

  • Matt Doocey doubles down on trans “healthcare”
    Citizen Science writes –  Last week saw two significant developments in the debate over the treatment of trans-identifying children and young people – the release in Britain of the final report of Dr Hilary Cass’s review into gender healthcare, and here in New Zealand, the news that the ...
    Point of OrderBy poonzteam5443
    3 days ago

  • A TikTok Prime Minister.
    One night while sleeping in my bed I had a beautiful dreamThat all the people of the world got together on the same wavelengthAnd began helping one anotherNow in this dream, universal love was the theme of the dayPeace and understanding and it happened this wayAfter such an eventful day ...
    Nick’s KōreroBy Nick Rockel
    3 days ago

  • Texas Lessons
    This is a guest post by Oscar Simms who is a housing activist, volunteer for the Coalition for More Homes, and was the Labour Party candidate for Auckland Central at the last election. ...
    Greater AucklandBy Guest Post
    3 days ago

  • Bernard's pick 'n' mix of the news links at 6:06 am
    The top six news links I’ve seen elsewhere in the last 24 hours as of 6:06 am on Wednesday, April 17 are:Must read: Secrecy shrouds which projects might be fast-tracked RNZ Farah HancockScoop: Revealed: Luxon has seven staffers working on social media content - partly paid for by taxpayer Newshub ...
    The KakaBy Bernard Hickey
    3 days ago

  • Fighting poverty on the holiday highway
    Turning what Labour called the “holiday highway” into a four-lane expressway from Auckland to Whangarei could bring at least an economic benefit of nearly two billion a year for Northland each year. And it could help bring an end to poverty in one of New Zealand’s most deprived regions. The ...
    PolitikBy Richard Harman
    3 days ago

  • Bernard's six-stack of substacks at 6:26 pm
    Tonight’s six-stack includes: launching his substack with a bunch of his previous documentaries, including this 1992 interview with Dame Whina Cooper. and here crew give climate activists plenty to do, including this call to submit against the Fast Track Approvals bill. writes brilliantly here on his substack ...
    The KakaBy Bernard Hickey
    3 days ago

  • At a glance – Is the science settled?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    Skeptical Science
    3 days ago

  • Apposite Quotations.
    How Long Is Long Enough? Gaza under Israeli bombardment, July 2014. This posting is exclusive to Bowalley Road. ...
    Bowalley Road
    3 days ago

  • What’s a life worth now?
    You're in the mall when you hear it: some kind of popping sound in the distance, kids with fireworks, maybe. But then a moment of eerie stillness is followed by more of the fireworks sound and there’s also screaming and shrieking and now here come people running for their lives.Does ...
    More Than A FeildingBy David Slack
    3 days ago

  • Howling at the Moon
    Karl du Fresne writes –  There’s a crisis in the news media and the media are blaming it on everyone except themselves. Culpability is being deflected elsewhere – mainly to the hapless Minister of Communications, Melissa Lee, and the big social media platforms that are accused of hoovering ...
    Point of OrderBy poonzteam5443
    3 days ago

  • Newshub is Dead.
    I don’t normally send out two newsletters in a day but I figured I’d say something about… the news. If two newsletters is a bit much then maybe just skip one, I don’t want to overload people. Alternatively if you’d be interested in sometimes receiving multiple, smaller updates from me, ...
    Nick’s KōreroBy Nick Rockel
    3 days ago

  • Seymour is chuffed about cutting early-learning red tape – but we hear, too, that Jones has loose...
    Buzz from the Beehive David Seymour and Winston Peters today signalled that at least two ministers of the Crown might be in Wellington today. Seymour (as Associate Minister of Education) announced the removal of more red tape, this time to make it easier for new early learning services to be ...
    Point of OrderBy Bob Edlin
    3 days ago

  • Bryce Edwards: Will politicians let democracy die in the darkness?
    Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. Our political system is suffering from the ...
    Democracy ProjectBy bryce.edwards
    3 days ago

  • Was Hawkesby entirely wrong?
    David Farrar  writes –  The Broadcasting Standards Authority ruled: Comments by radio host Kate Hawkesby suggesting Māori and Pacific patients were being prioritised for surgery due to their ethnicity were misleading and discriminatory, the Broadcasting Standards Authority has found. It is a fact such patients are prioritised. ...
    Point of OrderBy poonzteam5443
    4 days ago

  • PRC shadow looms as the Solomons head for election
    PRC and its proxies in Solomons have been preparing for these elections for a long time. A lot of money, effort and intelligence have gone into ensuring an outcome that won’t compromise Beijing’s plans. Cleo Paskall writes – On April 17th the Solomon Islands, a country of ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Climate Change: Criminal ecocide
    We are in the middle of a climate crisis. Last year was (again) the hottest year on record. NOAA has just announced another global coral bleaching event. Floods are threatening UK food security. So naturally, Shane Jones wants to make it easier to mine coal: Resources Minister Shane Jones ...
    No Right TurnBy Idiot/Savant
    4 days ago

  • Is saving one minute of a politician's time worth nearly $1 billion?
    Is speeding up the trip to and from Wellington airport by 12 minutes worth spending up more than $10 billion? Photo: Lynn Grieveson / The KākāTL;DR: The six news items that stood out to me in the last day to 8:26 am today are:The Lead: Transport Minister Simeon Brown announced ...
    The KakaBy Bernard Hickey
    4 days ago

  • Long Tunnel or Long Con?
    Yesterday it was revealed that Transport Minister had asked Waka Kotahi to look at the options for a long tunnel through Wellington. State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the ...
    Greater AucklandBy Matt L
    4 days ago

  • Smoke And Mirrors.
    You're a fraud, and you know itBut it's too good to throw it all awayAnyone would do the sameYou've got 'em goingAnd you're careful not to show itSometimes you even fool yourself a bitIt's like magicBut it's always been a smoke and mirrors gameAnyone would do the sameForty six billion ...
    Nick’s KōreroBy Nick Rockel
    4 days ago

  • What is Mexico doing about climate change?
    This is a re-post from Yale Climate Connections The June general election in Mexico could mark a turning point in ensuring that the country’s climate policies better reflect the desire of its citizens to address the climate crisis, with both leading presidential candidates expressing support for renewable energy. Mexico is the ...
    Skeptical Science
    4 days ago

  • State of humanity, 2024
    2024, it feels, keeps presenting us with ever more challenges, ever more dismay.Do you give up yet? It seems to ask.No? How about this? Or this?How about this?When I say 2024 I really mean the state of humanity in 2024.Saturday night, we watched Civil War because that is one terrifying cliff we've ...
    More Than A FeildingBy David Slack
    4 days ago

  • Govt’s Wellington tunnel vision aims to ease the way to the airport (but zealous promoters of cycl...
    Buzz from the Beehive A pet project and governmental tunnel vision jump out from the latest batch of ministerial announcements. The government is keen to assure us of its concern for the wellbeing of our pets. It will be introducing pet bonds in a change to the Residential Tenancies Act ...
    Point of OrderBy Bob Edlin
    4 days ago

  • The case for cultural connectedness
    A recent report generated from a Growing Up in New Zealand (GUiNZ) survey of 1,224 rangatahi Māori aged 11-12 found: Cultural connectedness was associated with fewer depression symptoms, anxiety symptoms and better quality of life. That sounds cut and dry. But further into the report the following appears: Cultural connectedness is ...
    Point of OrderBy poonzteam5443
    5 days ago

  • Useful context on public sector job cuts
    David Farrar writes –    The Herald reports: From the gory details of job-cuts news, you’d think the public service was being eviscerated.   While the media’s view of the cuts is incomplete, it’s also true that departments have been leaking the particulars faster than a Wellington ...
    Point of OrderBy poonzteam5443
    5 days ago

  • Gordon Campbell On When Racism Comes Disguised As Anti-racism
    Remember the good old days, back when New Zealand had a PM who could think and speak calmly and intelligently in whole sentences without blustering? Even while Iran’s drones and missiles were still being launched, Helen Clark was live on TVNZ expertly summing up the latest crisis in the Middle ...
    Gordon CampbellBy lyndon
    5 days ago

  • Govt ignored economic analysis of smokefree reversal
    Costello did not pass on analysis of the benefits of the smokefree reforms to Cabinet, emphasising instead the extra tax revenues of repealing them. Photo: Hagen Hopkins, Getty Images TL;DR: The six news items that stood out to me at 7:26 am today are:The Lead: Casey Costello never passed on ...
    The KakaBy Bernard Hickey
    5 days ago

  • True Blue.
    True loveYou're the one I'm dreaming ofYour heart fits me like a gloveAnd I'm gonna be true blueBaby, I love youI’ve written about the job cuts in our news media last week. The impact on individuals, and the loss to Aotearoa of voices covering our news from different angles.That by ...
    Nick’s KōreroBy Nick Rockel
    5 days ago

  • Who is running New Zealand’s foreign policy?
    While commentators, including former Prime Minister Helen Clark, are noting a subtle shift in New Zealand’s foreign policy, which now places more emphasis on the United States, many have missed a key element of the shift. What National said before the election is not what the government is doing now. ...
    PolitikBy Richard Harman
    5 days ago

  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    8 hours ago

  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    10 hours ago

  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    11 hours ago

  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    12 hours ago

  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    12 hours ago

  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    12 hours ago

  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    15 hours ago

  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • McClay reaffirms strong NZ-China trade relationship
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