web analytics

A real economic plan

Written By: - Date published: 8:21 pm, October 12th, 2008 - 16 comments
Categories: economy - Tags:

One of the things that has pissed me off about MSM political analysis lately is the constant repetition of the idea that cutting taxes in a recession is all you need to do to be considered Keynesian. This is generally remarked upon in the context of National shifting their economic policy left (that “Keynesianism” and “left” are considered synonymous by the MSM is another bugbear of mine but I’ll address that at another time).

Today we got a real taste of proper Keynesianism. Clark has announced a far-reaching training policy which would ensure workers who lose their jobs in the upcoming economic downturn will get funded to increase their skills. She also talked about bringing infrastructure projects forward.

Labour’s economic plan is becoming obvious: use unemployment as an opportunity to upskill the country’s workforce and build infrastructure while the demand for the resources to do it is low in the private sector (and thus it’s cheap to do). The end result is twofold in that you moderate the impact of the recession by putting public money into long-term spending projects and into the pockets of people who are increasing their skills but you also create a more skilled and productive workforce and provide the infrastructure to support productive capital.

That means when the next boom comes the country is in a position to take full advantage of it through workers who are skilled and productive and infrastructure that has the capacity to facilitate increased growth.

The contrast of this approach is the way National dealt with the recession of the 1990’s. During that downturn they cut government spending, abolished the apprenticeship system and introduced the EFTs system and student loans. They also cut tax for the wealthiest New Zealanders.

By doing so they expected the market to provide and business to sustain itself through consumer spending (a similar view to G.W. Bush’s when, in the wake of 911, he claimed true patriots should get out and shop).

What the market provided was another story altogether. Workers didn’t have access to training. Tertiary education ended up heading down the path of twilight golf and the rich didn’t manage to shop us out of recession no matter how much they tried (in fact we grew a huge low-wage low-skill service sector, massive income disparity and whopping levels of private debt instead).

That meant that when the good times swung back around we didn’t have the skills to take advantage of them or the transport system to shift labour and goods efficently or the telecommunications system to engage in full e-commerce or even a reliable electrical network.

Looking at National this time around I don’t have much trust in them to do anything differently. On agenda this morning Bill English was espousing the same failed trickle-down theories they were so fond of last time and they have shown they are willing to cut investment in R&D and the capital fund that is Kiwisaver just to cut taxes for the rich. They’ve also banged the drum about reducing government spending so much that it would be extremely surprising if they didn’t use a deepened recession as an excuse to cut as deep as they could.

I don’t give Labour praise lightly but I think today Clark showed that they have the best answer for the hard times to come. National has only the failed policies of the past.

16 comments on “A real economic plan ”

  1. randal 1

    Irishbill you must know by now that the meedia in new zealand are the worst educated meedia in the world and the laziest. they are handpicked for their hair and teeth at j school and need no other qualification that to be a right wing boilsucker. anywhere esle in the world they would be laughed out of the room. after the election I would think it is time for some of these hothouse flowers to get a real job. they have been hanging around for far too long without ever having done anything excpet shill for some foreign owner.

  2. milo 2

    So you’re saying that Labour wants to build more roads than National does?

    Have you told the Watermelons?

  3. my understanding is its mostly rail infrastructure, public transport, not just more roads – but they will also be speeding up existing road projects – transmission gully, the western ring route. Oh, they say they will speed up sewerage work, school building, announce some housing initiatives and give more to tackling erosion.

  4. randal 4

    milo, the most obvious thing about tory trolls is their unswerving ability to put words into other peoples mouths without ever saying anything themselves. do you have self adjusting tight underpants milo. have you told the beetroots?

  5. DSC 08 5

    Won’t work.
    Top down Keynesian job creation at this point will not get past the wealth consolidation that has built up in New Zealand society not eventaking into account the futileness of trying shape an economy with free-trade deals to China and America just landed.
    Even the benefit of being in a favoured position of a major war outcome wouldn’t give much buffer this time before the inevitable inflating your way out of debt and sell-off of New Zealand’s remaining assets with the resulting privitisation by large global/faceless corporations occurs.

    The only solution out of the current predicament is the Social Credit dividend based economy directly to all citizens. It is the only way to stop inflation while enabling us to utilise and reclaim New Zealand resources.

    Labour has destroyed New Zealand society, just a tad slower than National would prefer.

  6. lprent 6

    Ah DSC – that psuedonym is a cutting it a bit close to being an election advertisement. Which I don’t care about too much as this is a blog. However I tend to get a bit unhappy about commentators advertising here – it tends to escalate. You notice that this site doesn’t have any adverts.. However you didn’t give a web address and the party is a bit obscure these days so I’m not going to jump up and down as hard as I do when there is clear link-whoring.

    I’d prefer it if you picked another psuedonym though. Let your thoughts do the advertising.

  7. maxq 7

    Yawn – you still havent explained what you consider Keynesian economic policy to be irishbill but no matter, helen has made a non comment about worker training schemes.

    It worked well at the Wananga in Hamilton eh!

    Let it rest, labours time is over, the country are sick of their lies.

  8. T-rex 8

    “Let it rest, labours time is over, the country are sick of their lies.”

    Actually max, it appears to be Nationals lies that the country is sick of… which makes sense, given that they tell vastly more of them. But don’t let me stop you playing that tiny violin.

  9. r0b 9

    For those Gnats who have been claiming that “Labour has no policy”, welcome back to the real world. For those who are looking for leadership in these difficult times, the choice is now clear.

    John Armstrong gets it (excerpts):

    If actions speak louder than words, Labour was the winner on Day One of the official election campaign – game, set and match.

    Key’s earlier speech at National’s campaign opening in Auckland’s SkyCity Convention Centre said nothing new on economic policy. In fact, it said nothing new about anything.

    If that was not bad enough, Labour was getting ready to lay out something really meaty just a few blocks away in the Auckland Town Hall.

    There, Helen Clark trumped Key by delivering the recovery package he had been demanding, including contingency plans to save jobs and the promise of a mini-budget in December.

    The upshot was that Labour looked like it was governing; National looked complacent and flat-footed.

  10. T-rex 10

    “the choice is now clear.”

    As opposed to yesterday, when…

    It reminds me of this cartoon: Overcompensating

    which I may have already linked to on account of it being awesome.

    .

    I think what you point out above rOb highlights what has been said from the start, which is that National (particularly Key) were NEVER going to be any damn good at governing because they don’t actually have any vision, values, or plan of their own – they were just giving people what focus groups told them they wanted (and ignoring the cost).

    Did you see McCain the other night? “I know how to fix the economy. I know how. I do. And I’ll do it. And Osama Bin Laden? I know how to catch him too. I’ll get it done”. Then Bush comes on to reassure all by “Vowing” to stabilise the economy. As you’ll recall from previous exploits, George Bushes vows are money in the bank.

    A turn of phrase that, curiously, is actually accurate in the present financial market 😉

    I’m going to go and buy some shares on Clark as PM.

  11. lprent 12

    😉 too late

  12. T-rex 13

    Yeah… the only time I really considered it was back in late June. I mean people selling at 30% were just dumb, I think there may have been some confusion over the difference between “likely share of the vote” and “likelyhood of forming the government”. Couldn’t be bothered getting involved for the sums in play (especially since I’ve got much better things to do with my time than get involved in zero-sum games, especially fantasy ones where the liquidity added serves no useful purpose), but still interesting to look at.

    I just went to look at kiwiblog to see if there was anything on the rightydoompolls, couldn’t see anything. Stunner. Has anyone told Farrar that his logo looks almost EXACTLY like a steaming pile of sh*t when it’s shrunk to taskbar size? I mean he MUST know, right? It’s not like the resemblance is subtle. I, of course, think it’s highly appropriate, but… weird.

  13. bill brown 14

    T-rex,

    Sorry mate, I sucked up all those cheap shares months ago.

Links to post

Recent Comments

Recent Posts

  • New Zealand provides support to Timor-Leste for flooding and COVID-19 surge
    New Zealand is providing further support to Timor-Leste following severe flooding and the recent surge in COVID-19 cases, Foreign Affairs Minister Nanaia Mahuta announced today. “Our thoughts are with the people of Timor-Leste who have been impacted by the severe flooding and landslides at a time when the country is ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • WHANAU OF MĀORI BATTALION SOLDIERS REUNITED WITH MEDALS
    A ceremony has been held today in Gisborne where the unclaimed medals of 28 (Māori) Battalion C Company soldiers were presented to their families.   After the Second World War, returning service personnel needed to apply for their medals and then they would be posted out to them.  While most medals ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • SolarWinds compromise attributed to Russian state actor
    New Zealand has today added its voice to the international condemnation of the malicious compromise and exploitation of the SolarWinds Orion platform. The Minister Responsible for the Government Communications Security Bureau, Andrew Little, says that New Zealand's international partners have analysed the compromise of the SolarWinds Orion platform and attributed ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Queenstown roading project given fast track approval
    An expert consenting panel has approved the Queenstown Arterials Project, which will significantly improve transport links and reduce congestion for locals and visitors in the tourism hotspot.   Environment Minister David Parker welcomed the approval for the project that will construct, operate and maintain a new urban road around Queenstown’s town ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Screen industry secures landmark project
    Economic and Regional Development Minister Stuart Nash says a landmark deal has been agreed with Amazon for The Lord of the Rings TV series, currently being filmed in New Zealand. Mr Nash says the Memorandum of Understanding (MoU) secures multi-year economic and tourism benefits to New Zealand, outside the screen ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Report into review of health response to lead contamination released
    The Government welcomes the findings from a rapid review into the health system response to lead contamination in Waikouaiti’s drinking water supply. Sample results from the town’s drinking-water supply showed intermittent spikes in lead levels above the maximum acceptable value. The source of the contamination is still under investigation by ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ Upgrade Programme revs up economic recovery
    Transport Minister Michael Wood today marked the start of construction on the New Zealand Upgrade Programme’s Papakura to Drury South project on Auckland’s Southern Motorway, which will create hundreds of jobs and support Auckland’s economic recovery. The SH1 Papakura to Drury South project will give more transport choices by providing ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech releasing the Digital Council's report 'Towards Trustworthy and Trusted Automated D...
    CHECK AGAINST DELIVERY  E ngā mana, e ngā reo, e ngā karanga maha o te wa, tēnā koutou, tēna koutou, tēna tātou katoa. Ki ngā mana whenua, ko Ngāi Tahu, ko Waitaha, ko Kāti Māmoe  anō nei aku mihi ki a koutou. Nōku te hōnore kia haere mai ki te ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Green light for 10 minute e-bus to Auckland Airport
    Transport Minister Michael Wood today marked the completion of upgrades to State Highway 20B which will give Aucklanders quick electric bus trips to and from the airport. The State Highway 20B Early Improvements project has added new lanes in each direction between Pukaki Creek Bridge and SH20 for buses and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Review into greyhound racing announced
    The Government is putting in place a review of the work being done on animal welfare and safety in the greyhound racing industry, Grant Robertson announced today. “While Greyhound Racing NZ has reported some progress in implementing the recommendations of the Hansen Report, recent incidents show the industry still has ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Road safety boosted by increased penalty for mobile use while driving
    The infringement fee for using a mobile phone while driving will increase from $80 to $150 from 30 April 2021 to encourage safer driving, Transport Minister Michael Wood announced today. Michael Wood said too many people are still picking up the phone while driving. “Police issued over 40,000 infringement notices ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Pacific mental wellbeing supported across Auckland and Wellington
    Pacific people in New Zealand will be better supported with new mental health and addiction services rolling out across the Auckland and Wellington regions, says Aupito William Sio.  “One size does not fit all when it comes to supporting the mental wellbeing of our Pacific peoples. We need a by ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Fresh approach proposed to Smokefree 2025
    New measures are being proposed to accelerate progress towards becoming a smokefree nation by 2025, Associate Minister of Health Dr Ayesha Verrall announced. “Smoking or exposure to second-hand smoke kills around 12 people a day in New Zealand. Recent data tells us New Zealand’s smoking rates continue to decrease, but ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt expands Mana Ake to provide more school-based mental wellbeing support
    More children will be able to access mental wellbeing support with the Government expansion of Mana Ake services to five new District Health Board areas, Health Minister Andrew Little says. The Health Minister made the announcement while visiting Homai School in Counties Manukau alongside Prime Minister Jacinda Ardern and Associate ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Record Number of People Move Into Work
    The Government’s COVID-19 response has meant a record number of people moved off a Benefit and into employment in the March Quarter, with 32,880 moving into work in the first three months of 2021. “More people moved into work last quarter than any time since the Ministry of Social Development ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Significant global progress made under Christchurch Call
    A stocktake undertaken by France and New Zealand shows significant global progress under the Christchurch Call towards its goal to eliminate terrorist and violent extremist content online.  The findings of the report released today reinforce the importance of a multi-stakeholder approach, with countries, companies and civil society working together to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New chair of interim TAB NZ Board appointed
    Racing Minister Grant Robertson has announced he is appointing Elizabeth Dawson (Liz) as the Chair of the interim TAB NZ Board. Liz Dawson is an existing Board Director of the interim TAB NZ Board and Chair of the TAB NZ Board Selection Panel and will continue in her role as ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government to phase out live exports by sea
    The Government has announced that the export of livestock by sea will cease following a transition period of up to two years, said Agriculture Minister Damien O’Connor. “At the heart of our decision is upholding New Zealand’s reputation for high standards of animal welfare. We must stay ahead of the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Workshop on Lethal Autonomous Weapons Systems – opening remarks
    WORKSHOP ON LETHAL AUTONOMOUS WEAPONS SYSTEMS Wednesday 14 April 2021 MINISTER FOR DISARMAMENT AND ARMS CONTROL OPENING REMARKS Good morning, I am so pleased to be able to join you for part of this workshop, which I’m confident will help us along the path to developing New Zealand’s national policy on ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Inter-prison kapa haka competition launched
    For the first time, all 18 prisons in New Zealand will be invited to participate in an inter-prison kapa haka competition, Corrections Minister Kelvin Davis announced today. The 2021 Hōkai Rangi Whakataetae Kapa Haka will see groups prepare and perform kapa haka for experienced judges who visit each prison and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government takes step forward on counter terrorism laws
    The Government has introduced the Counter-Terrorism Legislation Bill, designed to boost New Zealand's ability to respond to a wider range of terrorist activities. The Bill strengthens New Zealand’s counter-terrorism legislation and ensures that the right legislative tools are available to intervene early and prevent harm. “This is the Government’s first ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Carbon neutral government a step closer
    Coal boiler replacements at a further ten schools, saving an estimated 7,000 tonnes of carbon dioxide over the next ten years Fossil fuel boiler replacements at Southern Institute of Technology and Taranaki DHB, saving nearly 14,000 tonnes of carbon dioxide over the next ten years Projects to achieve a total ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Appointment of Chief Parliamentary Counsel
    Attorney-General David Parker today announced the appointment of Cassie Nicholson as Chief Parliamentary Counsel for a term of five years. The Chief Parliamentary Counsel is the principal advisor and Chief Executive of the Parliamentary Counsel Office (PCO).  She is responsible for ensuring PCO, which drafts most of New Zealand’s legislation, provides ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Emissions report shows urgent action needed
    Every part of Government will need to take urgent action to bring down emissions, the Minister for Climate Change, James Shaw said today in response to the recent rise in New Zealand’s greenhouse emissions. The latest annual inventory of New Zealand’s greenhouse gas emissions shows that both gross and net ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NZ becomes first in world for climate reporting
    Commerce and Consumer Affairs Minister David Clark says Aotearoa New Zealand has become the first country in the world to introduce a law that requires the financial sector to disclose the impacts of climate change on their business and explain how they will manage climate-related risks and opportunities. The Financial ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Awards celebrate the food and fibre sector employer excellence
    Exceptional employment practices in the primary industries have been celebrated at the Good Employer Awards, held this evening at Parliament. “Tonight’s awards provided the opportunity to celebrate and thank those employers in the food and fibres sector who have gone beyond business-as-usual in creating productive, safe, supportive, and healthy work ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Tourism Infrastructure Fund now open
    Applications are now invited from all councils for a slice of government funding aimed at improving tourism infrastructure, especially in areas under pressure given the size of their rating bases. Tourism Minister Stuart Nash has already signalled that five South Island regions will be given priority to reflect that jobs ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Electricity Networks Association (ENA) Annual Cocktail Speech 2021
    Tēnā koutou e ngā maata waka Tenā koutou te hau kāinga ngā iwi o Te Whanganui ā TaraTēnā koutou i runga i te kaupapa o te Rā. No reira, tēnā koutou, tēnā koutou, tēnā tatou katoa.  It is a pleasure to be here tonight.  Thank you Graeme (Peters, ENA Chief ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Construction Skills Action Plan delivering early on targets
    The Construction Skills Action Plan has delivered early on its overall target of supporting an additional 4,000 people into construction-related education and employment, says Minister for Building and Construction Poto Williams. Since the Plan was launched in 2018, more than 9,300 people have taken up education or employment opportunities in ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Youth Justice residence offers new pathway
    An innovative new Youth Justice residence designed in partnership with Māori will provide prevention, healing, and rehabilitation services for both young people and their whānau, Children’s Minister Kelvin Davis announced today.  Whakatakapokai is located in South Auckland and will provide care and support for up to 15 rangatahi remanded or ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • The Duke of Edinburgh
    Prime Minister Jacinda Ardern today expressed New Zealand’s sorrow at the death of His Royal Highness The Prince Philip, Duke of Edinburgh. “Our thoughts are with Her Majesty The Queen at this profoundly sad time.  On behalf of the New Zealand people and the Government, I would like to express ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Five Country Ministerial Communiqué
    We, the Home Affairs, Interior, Security and Immigration Ministers of Australia, Canada, New Zealand, the United Kingdom and the United States of America (the ‘Five Countries’) met via video conference on 7/8 April 2021, just over a year after the outbreak of the COVID-19 global pandemic. Guided by our shared ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Inspiring creativity through cultural installations and events
    Arts, Culture and Heritage Minister Carmel Sepuloni has today announced the opening of the first round of Ngā Puninga Toi ā-Ahurea me ngā Kaupapa Cultural Installations and Events. “Creating jobs and helping the arts sector rebuild and recover continues to be a key part of the Government’s COVID-19 response,” Carmel ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Drug-testing law to be made permanent
    Interim legislation that is already proving to keep people safer from drugs will be made permanent, Health Minister Andrew Little says. Research by Victoria University, on behalf of the Ministry of Health, shows that the Government’s decision in December to make it legal for drug-checking services to operate at festivals ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Better rules proposed for freedom camping
    Public consultation launched on ways to improve behaviour and reduce damage Tighter rules proposed for either camping vehicles or camping locations Increased penalties proposed, such as $1,000 fines or vehicle confiscation Rental companies may be required to collect fines from campers who hire vehicles Public feedback is sought on proposals ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government backs Air New Zealand as Trans-Tasman bubble opens
    The Government is continuing to support Air New Zealand while aviation markets stabilise and the world moves towards more normal border operations. The Crown loan facility made available to Air New Zealand in March 2020 has been extended to a debt facility of up to $1.5 billion (an additional $600 ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Building gifted for new community hub in Richmond red zone
    Christchurch’s Richmond suburb will soon have a new community hub, following the gifting of a red-zoned property by Land Information New Zealand (LINZ) to the Richmond Community Gardens Trust. The Minister for Land Information, Damien O’Connor said that LINZ, on behalf of the Crown, will gift a Vogel Street house ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Pacific languages funding reopens
      Minister for Pacific Peoples Aupito William Sio says the reopening of the Ministry for Pacific Peoples’ (MPP) Languages Funding in 2021 will make sure there is a future for Pacific languages. “Language is the key to the wellbeing for Pacific people. It affirms our identity as Pasifika and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • ERANZ speech April 2021
    It is a pleasure to be here tonight.  Thank you Cameron for the introduction and thank you for ERANZ for also hosting this event. Last week in fact, we had one of the largest gatherings in our sector, Downstream 2021. I have heard from my officials that the discussion on ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Strengthening Māori knowledge in science and innovation
    Research, Science and Innovation Minister Megan Woods has today announced the 16 projects that will together get $3.9 million through the 2021 round of Te Pūnaha Hihiko: Vision Mātauranga Capability Fund, further strengthening the Government’s commitment to Māori knowledge in science and innovation.  “We received 78 proposals - the highest ...
    BeehiveBy beehive.govt.nz
    2 weeks ago