Comments on: How to stimulate the economy http://thestandard.org.nz/how-to-stimulate-the-economy/ The New Zealand labour movement used to have its own newspaper. A group of us thought that now might be a good time for it to be digitally reborn: The Standard v2.0 - now in a new format The Standard v3.0 Tue, 14 Feb 2012 10:06:05 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Pascal's bookie http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103926 Pascal's bookie Tue, 11 Nov 2008 08:29:14 +0000 http://www.thestandard.org.nz/?p=5085#comment-103926 Labour had a few political problems during it's time in power due to the fact that Cullen was paying down debt and setting up the Cullen fund while other countries engaged in a taxcutspolloozza. This government is going to be competing with other nation's stimulus packages while trying to cap government spending and running a razor gang. Good luck with that. Labour had a few political problems during it’s time in power due to the fact that Cullen was paying down debt and setting up the Cullen fund while other countries engaged in a taxcutspolloozza.

This government is going to be competing with other nation’s stimulus packages while trying to cap government spending and running a razor gang. Good luck with that.

]]> By: gomango http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103818 gomango Tue, 11 Nov 2008 02:17:58 +0000 http://www.thestandard.org.nz/?p=5085#comment-103818 randal: "ther is only so much pie and only ever will be so much pie " What? You've never opened an economics book (or an english grammar book) have you? And don't be so negative, the public tit under National won't be dramatically different to the public tit under Labour for the vast bulk of the population. insider: I didn't make any claims as to the quality of govt spending...... just the intent. Your argument (quite sensible btw) leads to the conclusion that private investment is generally more effective than public. I think we can all agree that to be generally though not exclusively true. randal:

“ther is only so much pie and only ever will be so much pie ”

What? You’ve never opened an economics book (or an english grammar book) have you? And don’t be so negative, the public tit under National won’t be dramatically different to the public tit under Labour for the vast bulk of the population.

insider:

I didn’t make any claims as to the quality of govt spending…… just the intent. Your argument (quite sensible btw) leads to the conclusion that private investment is generally more effective than public. I think we can all agree that to be generally though not exclusively true.

]]> By: randal http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103805 randal Tue, 11 Nov 2008 01:52:18 +0000 http://www.thestandard.org.nz/?p=5085#comment-103805 the best way to spend money in the localities is provide people with jobs so that at the end there is something to show for it Johnny Keys is not going to seel Kiwibank or ACC as soon as he realises that they are HIS funds so to speak then he will clutch them tighter than MIchael Cullen did. hehehehehe the thing is what is going to do ? I can think of investment projects that will beign to pay off within the first year but I am justa n idiot from the boondocks what could I possibly know? you can guarantee the lampreys will get hold of him and start sucking before anything I have to say will ever be considered ther is only so much pie and only ever will be so much pie so its first in and first served and I'm guessing we will get the same old crap the best way to spend money in the localities is provide people with jobs so that at the end there is something to show for it
Johnny Keys is not going to seel Kiwibank or ACC
as soon as he realises that they are HIS funds so to speak then he will clutch them tighter than MIchael Cullen did. hehehehehe
the thing is what is going to do ?
I can think of investment projects that will beign to pay off within the first year but I am justa n idiot from the boondocks
what could I possibly know?
you can guarantee the lampreys will get hold of him and start sucking before
anything I have to say will ever be considered
ther is only so much pie and only ever will be so much pie so its first in and first served and I’m guessing we will get the same old crap

]]> By: djp http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103803 djp Tue, 11 Nov 2008 01:48:21 +0000 http://www.thestandard.org.nz/?p=5085#comment-103803 I agree with that insider, bureaucrats get way too exited about spending public money on things they <strong> "think"</strong> are a good idea. Kiwirail being an obvious example I agree with that insider, bureaucrats get way too exited about spending public money on things they “think” are a good idea.

Kiwirail being an obvious example

]]> By: insider http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103783 insider Tue, 11 Nov 2008 01:26:56 +0000 http://www.thestandard.org.nz/?p=5085#comment-103783 "You can call investment in infrasturcuture an investment in business productivity if you like." Way too simplistic. NZ has some very salient examples of infrastructure investment that were far from productive. We have many examples of overinvestment in capacity which have taken decades to get close to that capacity. There are plenty of examples going on still - fibre to the home, Waikato expressway, rail investment, grid investment. “You can call investment in infrasturcuture an investment in business productivity if you like.”

Way too simplistic. NZ has some very salient examples of infrastructure investment that were far from productive. We have many examples of overinvestment in capacity which have taken decades to get close to that capacity. There are plenty of examples going on still – fibre to the home, Waikato expressway, rail investment, grid investment.

]]> By: djp http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103738 djp Tue, 11 Nov 2008 00:26:14 +0000 http://www.thestandard.org.nz/?p=5085#comment-103738 <q cite="Economics in One Lesson - HENRY HAZLITT"> the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups. </q> - Economics in One Lesson by HENRY HAZLITT Sure spending money in the short term will create an increase in GDP (short term). But that sounds like the wrong thing to do in a financial crisis. "I am about to go bankrupt but if I spend my last few dollars at the supermarket my cuboard will be fill for the next week, whoopie!"
the art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

– Economics in One Lesson by HENRY HAZLITT

Sure spending money in the short term will create an increase in GDP (short term). But that sounds like the wrong thing to do in a financial crisis.

“I am about to go bankrupt but if I spend my last few dollars at the supermarket my cuboard will be fill for the next week, whoopie!”

]]> By: gomango http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103712 gomango Mon, 10 Nov 2008 23:41:22 +0000 http://www.thestandard.org.nz/?p=5085#comment-103712 and, don't trust moodys........ they used to give sub-prime rmbs backed cdo's investment grade ratings and invented the concept of a super senior rating......... Thats a weak joke. They are actually very good on things they know how to do - economics, corporate ratings. and, don’t trust moodys……..

they used to give sub-prime rmbs backed cdo’s investment grade ratings and invented the concept of a super senior rating………

Thats a weak joke. They are actually very good on things they know how to do – economics, corporate ratings.

]]> By: Phil http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103701 Phil Mon, 10 Nov 2008 23:22:48 +0000 http://www.thestandard.org.nz/?p=5085#comment-103701 The initial fiscal stimulus of the Bush Tax-Cut is not included in the table you've posted - this analysis is only for the impact of making the cut permanent, after the fact. The initial fiscal stimulus of the Bush Tax-Cut is not included in the table you’ve posted – this analysis is only for the impact of making the cut permanent, after the fact.

]]> By: gomango http://thestandard.org.nz/how-to-stimulate-the-economy/comment-page-1/#comment-103699 gomango Mon, 10 Nov 2008 23:17:19 +0000 http://www.thestandard.org.nz/?p=5085#comment-103699 A couple of major points: You make no allowance for the many structural differences between the US and NZ economies. Particularly relevant for the boost unemployment insurance argument Draw up a table of the Bush tax cuts compared to NZ. Not remotely similar in effect. No argument on the infrastructure view. You can call investment in infrasturcuture an investment in business productivity if you like. A couple of major points:

You make no allowance for the many structural differences between the US and NZ economies. Particularly relevant for the boost unemployment insurance argument

Draw up a table of the Bush tax cuts compared to NZ. Not remotely similar in effect.

No argument on the infrastructure view. You can call investment in infrasturcuture an investment in business productivity if you like.

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