Admitting that austerity has failed

Written By: - Date published: 8:10 am, June 16th, 2012 - 56 comments
Categories: economy, john key, national, uk politics - Tags: , ,

We’ve written before about how misguided a program of economic austerity is, and in particular how the fantasy of expansionary austerity doesn’t work in the real world. In both the UK and NZ recently elected tory governments have doomed their countries to years of austerity and cuts, and in both cases the results have been dismal. Now it looks like the Cameron’s government has woken up:

£140bn kiss of life for Britain

Chancellor and Bank of England in ‘panic’ bid to hand small firms and house-buyers cheap loans – but will this gamble kick-start the economy?

  • Banks will be loaned money on condition they pass it on in the form of cheaper loans and mortgages
  • Huge sum represents 1/5 of all Government spending
  • Scheme aimed at limiting impact of ‘Eurozone debt storm’ which is blamed for raising the cost of lending
  • Government will soon announce another initiative to underwrite tens of billions of pounds on spending on housing and infrastructure

So much for austerity. I’m no economist, but the package looks panicky and poorly designed to me.  Housing and infrastructure is good – where is the education (reverse the cuts!), where is the research and development? Where is the green, sustainable investment?  The main moves seem destined to just feed another housing bubble, surely we know by now where that ends.  The UK Labour Party weighs in:

Throwing money at banks won’t solve economic crisis, Ed Balls says

Shadow chancellor says banking stimulus package announced by Osborne and King fails to address lack of confidence

Ed Balls has warned that an emergency multibillion-pound package to inject lending into the British economy still fails to address the lack of economic confidence and demand. … He said the measures announced on Thursday night at the Mansion House in London by the chancellor, George Osborne, and the bank’s governor, Mervyn King, should have been implemented two years ago and would not work if businesses were not investing.

So is it too little too late? Probably. But credit to Cameron’s government, they recognised (eventually) that austerity wasn’t working, they’ve ditched it, and they haven’t dithered with half measures. The impact of this package will be watched by the world.

Compare and contrast with our local Nats. They’ve given up on their economic programme too. You can see it in Bill English’s admission that (summarised) “The desired rebalancing of New Zealand’s economy has not been as sufficient as the government would like” and “the government expected its 2010 tax switch to be beneficial following a 5-7 year period” (yeah right). You can see it in John Key’s reaction to the Reserve Bank’s assessment, based on better data, that the economy will not grow as predicted in the budget, and we won’t achieve surplus by 2014/15. Key said “There is nothing different we would want to do at this time”. A total failure of leadership.

Austerity has failed in both the UK and NZ. But at least Cameron’s Conservatives have the wit to realise it, and the courage to act. Key and the Nats are capable of nothing but looking on as the economy spirals slowly down the gurgler…

56 comments on “Admitting that austerity has failed ”

  1. ghostwhowalksnz 1

    The clever Conservatives at least dont have to put the extra borrowing ‘on the books’ as its not borrowing in the usual sense, they are merely printing the money.

  2. tsmithfield 2

    Irresponsible spending eventually leads to austerity because people will stop lending the money to fund the irresponsible spending. In Europe it is not so much that austerity has failed, but rather that people aren’t lending the money to fund it. Look at the trends in yields on sovereign debt in many of those countries and you will see what I mean.

    • RedLogix 2.1

      Irresponsible spending eventually leads to austerity because people will stop lending the money to fund the irresponsible spending.

      Absolute arse about face. The goods and services people purchased with that money were all produced. The materials, the machinery, the labour and organisation that produced all these goods and services existed. The houses, the cars, the household goods and so on were all produced with means that existed.. That’s a really important point.

      The idea that as an economy we were ‘living beyond our means’ is an utter nonsense. Because demonstrably the means were all there. There were two main drivers for why people tended to borrow money.

      1. Workers pay as a portion of GDP is too low. In a stable economy it should be close to 70%, but in many Western countries it has fallen below that… in this country to a miserable 45%. This prompts a rise in household credit to buy the goods and services that the economy is producing.

      2. The bankers and financiers make money by lending money. By deregulation they succeeded in expanding their fraction of GDP activity from under 5% to much higher levels. At one point some 50% of the entire GDP of the UK was in the City of London. This parasitic function squeezes out legitimate productive activity; everyone starts speculating on the rising price of second-hand goods and assets like houses and land… with money that the bankers are lending them.

      There is no need for an economy to ‘borrow money’. Like most right-wingers you keep making the mistake of confusing a household with an economy. While households may have short-term needs to save and borrow… an economy does not.

      If you doubt this proposition consider this. For all practical purposes the whole world is one single economy. From whom do you think the planetary economy needs to ‘borrow money’ to fund itself? Martians?

    • Olwyn 2.2

      Money is not sacred; in the history of the world whole currencies have been dropped and debts cancelled. Apart from rapidly dwindling fossil fuels, (which certainly makes a difference to modern ways of getting out of economic holes), the same land, people and things are there, whatever else money is doing. Bankers can be brought to heel, debts cancelled, and new ways of going about things considered. Rome had to cancel debt at one stage, following on a revolt. According to Simone Weil, “…even if there had been no revolt, a partial cancellation of debt had become imperative, because with every plebian reduced to a slave, Rome lost a soldier.” In modern terms, for every person that falls into the recently minted “underclass” society loses a contributor.

      • Foreign Waka 2.2.1

        You have to ask the question whether the upper class really cares. Look at India or China where you have a vast amount of very poor people and life is cheap. Literally, in the mind of the named societies dead is not such a big affair. Neither is life.
        It seems to me that the push is to create a lot of fear and with that the willingness to accept anything that looks better than the painted picture. Only very few overcome this fear as we see on TV i.e. the man that stood in front of the panzer.
        Many things that are being presented are done via the media which heeds to its master, the one who pays the bills (who might that be?) I personally don’t belief that all this is about money as money is just a means to get what a small group want: power. Power over land, commodities, and people.

        • RedLogix 2.2.1.1

          Literally, in the mind of the named societies dead is not such a big affair. Neither is life.

          Exactly. Which is why politics is essentially a morality business. What we believe in is really, really important.

          • Olwyn 2.2.1.1.1

            Foreign Waka: It is true that I may have been a bit over-optimistic in assuming that people may care whether other people are members of an underclass or social contributors. However, on purely instrumental grounds, the well being of those who have it relies upon a modicum of order. The more abandoned people within its ranks, the more that order is liable to break down. And taking on board what RedLogix says, which I think is true, where morality is overridden, it has a habit of biting people later. Zygmunt Bauman has said, of those who later felt ashamed of not helping others during the terrible events of World War II, “I am sure…that had I refused shelter, I would be fully able to justify to others and to myself that…turning the stranger away was an entirely rational decision. And yet I am sure as well, that were it not for this feeling of shame, my decision to turn away the stranger would go on corrupting me for the rest of my days.” Instrumental rationality has its limits, and they are in many cases moral limits.

          • ianmac 2.2.1.1.2

            Redlogix: I read of life and death in the slums of India. A community was close knit, cooperative and sympathetic but with nothing except a few fancy clothes for special occasions. When one died there was grief and sadness, but such was the pressure to survive that the day after the funeral life carried on. It seems that the effect of death in a Western society lingers on and on on and on. Do some here indulge in grief as a badge and because in an affluent society you can afford the “luxury”?

        • fatty 2.2.1.2

          “Look at India or China where you have a vast amount of very poor people and life is cheap. Literally, in the mind of the named societies dead is not such a big affair. Neither is life.”

          they do have about 40% of the world’s population and India has religious influences their perspective on life/death…its wrong to say ‘life is cheap’ in those countries

          • Olwyn 2.2.1.2.1

            I agree Fatty. I think it is easy to mistakenly conclude that the acceptance of death in poor, crowded places shows that life there is cheap. Affluent Western countries have more defences against death, so it comes as more of a shock to the people who live in them. But this does not mean that life is less valued in the former and more valued in the latter.

            • Foreign Waka 2.2.1.2.1.2

              fatty and Olwyn – Did I say that I find it acceptable that in poor countries life is cheap (?????).
              It is great that you try to take the high moral ground – good on you – because I hope you can hold it when poverty surround you and all the fine qualities go out the window. As they do in any society I may add. It is human nature to protect one self and kin before the country or god forbid its ruler.
              As for my comment, it is in India the belief that a person is on a life/death journey but also the atheistic aproach in China that leads to the notion that life is either a/ a repeat experience or b/ replaceable by the next person. And by the way, both of these answers did come from individuals of these cultures. Just saying……

              • Olwyn

                Sorry Foreign Waka, my answer was to Fatty & ianmac, not you in that instance. I accepted your point that the upper class might not care if other people are deprived, and your use of those countries as examples. And I took ianmac’s point about life and death in India & Fatty’s response as a sub-topic, rather than a denial of what you were saying. I agree that life can seem cheap to the upper classes looking on, but not necessarily to the people who are living it.

              • fatty

                “Did I say that I find it acceptable that in poor countries life is cheap (?????).”

                No you didn’t, and neither did I.
                I am saying that assuming ‘life is cheap’ in China and India is wrong.
                They value life no more or less than Kiwi’s do, I don’t know where you get that idea from?
                …in fact I would argue that that global North cheapens the lives of those in the global South.
                We buy the i-phones – Chinese workers kill themselves…they lose their quality of life to pay for our greed.
                If their lives are ‘cheapened’…it is us that is driving the price down. We make sure their life is cheap.

    • mike e 2.3

      THe Stupid Monetarist irresponsible lending by big banks with Goldman Sachs corrupting practises .
      Loan sharks knowing full and well those countries and their banks weren’t able to pay them back.
      Now Goldman Sachs has ex Conmen[Goldman Sachs employees] in every major country as their finance ministers the gouging of Europe continues..
      Fact.
      Austerity for the peasants
      Massive bonuses for the robber barons.
      Lets hope Hollande has some balls to do the same to the bankers as they’ve done to overpaid public servants.

      • Colonial Viper 2.3.1

        THe Stupid Monetarist irresponsible lending by big banks with Goldman Sachs corrupting practises .

        Worthwhile remembering that this has all been empowered by the Federal Reserve printing money at massive quantities, and then lending it out to major institutions like Goldman Sachs at record low (essentially zero i.e. ZIRP) interest rates.

        Oh yah, the Federal Reserve is staffed from top to bottom with alumni from Goldman Sachs and JP Morgan. As is the White House economic council. What a co-incidence.

        NZ does almost as well with an alumni of Merill Lynch as PM.

  3. ianmac 3

    “In modern terms, for every person that falls into the recently minted “underclass” society loses a contributor.”
    In a nutshell. Yes Olwyn. This Government seems to pride itself on creating more “underclass.”

  4. DS 4

    This isn’t an end to austerity in the UK: Cameron and Osborne (and Clegg) are wedded to the idea that slashing government spending in a depressed economy somehow stimulates growth. This is just a significant easing of monetary policy to prevent a credit crunch is (or when) Greece (or Spain) leaves the Euro. Mervyn King and the Bank of England have been the only thing preventing Britain from economic catastrophe since the austerity madness started.

    • RedLogix 4.1

      This is just a significant easing of monetary policy to prevent a credit crunch

      Which will of course not work. Giving banks the credit to create more lending cannot achieve anything when everyone is debt saturated. The are literally injecting the money to exactly the wrong point in the economy.

      Everyone makes the valid point that the solution to too much debt is not more debt. We get that. The only valid answer is to get rid of the debt… especially debt that was created dishonourably in the first place.

      There are only two ways to get rid of it. One is to spend the next few decades in austerity mode painfully paying it all back. Many nations have Debt to GDP ratios over 200%; if we divert say 5% of GDP ( a huge de-leveraging hit) to paying this down to a more sustainable 30% then logically it could take something in the order of 30-40 years to unwind. That is an insanely unstable and risky proposition… societies everywhere, especially in the face of peaking resources, will simply collapse.

      Alternately you could just treat this dishonourable debt with the contempt it deserves. Cancel it and get on with life.

      • Colonial Viper 4.1.1

        Alternately you could just treat this dishonourable debt with the contempt it deserves. Cancel it and get on with life.

        While placing future lending under very strict central controls.

      • Draco T Bastard 4.1.2

        Doesn’t even matter if it was “dishonourable debt” or not either – just cancel it and, as CV points out, put in place some very strict lending rules.

  5. Foreign Waka 5

    The problem is a created one. Once the gold value was disestablished as a benchmark, money became a commodity in itself. Look at all the currency traders and the hedging of money value as well. When they loose, every one of us does too, with a stroke of a pen. When they win, dividends galore. In that way money is being sucked out of any economy with the more unstable ones suffering most. Inflation rides up no matter what and there are only one group of winners, and they are the same all the time.
    Instinctively people realise that savings can be lost in that way but housing and land, once paid off, is logistically and politically a heck of a lot more difficult to grab.
    No matter how much the tell us to invest and save I am suspicious that we are being told to prop up the very ones that devalue our lives. How many times have the oldies paid the price for the politicians short sightedness and the banks greed by saving for old age. In my lifetime I heard stories of already 2 generations experiencing the same debacle.

    • Draco T Bastard 5.1

      Once the gold value was disestablished as a benchmark, money became a commodity in itself.

      This is what happened but you’re looking at the wrong cause. In fact, I think you’ll find that money was a commodity before and partially led to the dropping of the Gold Standard. What makes money a commodity rather than the tool that it should be is interest. Get rid of that and money will no longer be a commodity.

      • Foreign Waka 5.1.1

        just some history of money:
        Many cultures around the world eventually developed the use of commodity money. The shekel was originally a unit of weight, and referred to a specific weight of barley, which was used as currency. The first usage of the term came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, the shells of the money cowry (Cypraea moneta L. or C. annulus L.). According to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins.[14] It is thought by modern scholars that these first stamped coins were minted around 650–600 BC.[15]
        Song Dynasty Jiaozi, the world’s earliest paper money
        The system of commodity money eventually evolved into a system of representative money.This occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these receipts became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty. These banknotes, known as “jiaozi”, evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins. Banknotes were first issued in Europe by Stockholms Banco in 1661, and were again also used alongside coins. The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th-19th centuries in Europe. These gold standard notes were made legal tender, and redemption into gold coins was discouraged. By the beginning of the 20th century almost all countries had adopted the gold standard, backing their legal tender notes with fixed amounts of gold.
        After World War II, at the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the US dollar. The US dollar was in turn fixed to gold. In 1971 the US government suspended the convertibility of the US dollar to gold. After this many countries de-pegged their currencies from the US dollar, and most of the world’s currencies became unbacked by anything except the governments’ fiat of legal tender and the ability to convert the money into goods via payment.

        • Draco T Bastard 5.1.1.1

          Yes, I’m quite aware of the history. Now what was your point in quoting it? What, specifically, were you addressing in my comment?

          The first usage of the term came from Mesopotamia circa 3000 BC.

          And that’s about the first record of debt, interest and financial collapse due to over accumulation by a few as well and probably the main reason why nearly every religion (including Christianity) bans interest as it always results in that over accumulation.

          The gold standard, a monetary system where the medium of exchange are paper notes that are convertible into pre-set, fixed quantities of gold, replaced the use of gold coins as currency in the 17th-19th centuries in Europe.

          Yeah, it took 2 centuries to implement because it kept failing. In fact, after full implementation in ~1891 it was then dropped, again, ~1911 so that the build up for WW1 could be paid for.

          After World War II, at the Bretton Woods Conference, most countries adopted fiat currencies that were fixed to the US dollar. The US dollar was in turn fixed to gold.

          Which was why the US$ became the reserve currency and why it should no longer be considered that. The reasons why it still is seems to be a) habit and b) the US managed to persuade OPEC (Specifically, Saudi Arabia) to price oil in US$.

  6. captain hook 6

    gosh they will all be able to buy hardly davisons and leaf blowers and chainsaws now.

  7. NattyM 7

    I’d really appreciate it if someone could explain if there is any benefit to countries or their ordinary people in currency trading or is it just another way of greedy people and greedy companies making money out of actually producing nothing of any tangible worth or benefit?

    • RedLogix 7.1

      It is vital to understand that virtually all money is nothing more than ‘credit’. Credit is simply a ‘promise to pay’.

      Let’s put it this way. You go to Mitre 10 and grab a leaf-blower off the shelf, stroll up to the check-out and whip out your EFTPOS card. No actual money changes hands. What happens is a bit of double entry bookkeeping. Credit is swapped from your bank account to Mitre 10’s. An equal and opposite debt travels back the other way. Essentially the bank has acted as a trusted bookkeeper tracking a credit transaction. That is their legitimate role and they are entitled to charge a modest fee for doing so.

      We stopped using gold or silver coins ages ago. Even paper notes are clumsy compared to this remarkably elegant system of pure credit transactions.

      At the same time however it places the bankers in a position of privilege, or Seigniorage as the technical term goes. The core problem is that when bankers are allowed to exploit seigniorage and make too much money as a result. They use that wealth and power to capture the political system in order to give themselves more privilege, and thus more wealth. And as the above article states, one of the most lucrative forms of illegitimate seigniorage is the trading in currencies. Money changing is one of the oldest evils.

      In a just economy people are paid enough to buy the goods and services they produce. If you cannot do this then by definition you are a slave. Being forced to borrow money in order to buy goods and services is simply a form of debt-servitude. In effect we have not really moved all that far from the Company Town model.

      This again is an ancient evil but rife in the modern world.

      Money is a necessary tool. But like all tools it must be used with discipline and restraint.

      • Olwyn 7.1.1

        Beautifully said, RedLogix!

      • Colonial Viper 7.1.2

        The nature and role of money (Steve Keen)

        http://www.debtdeflation.com/blogs/2012/06/01/guest-post-nature-and-roles-of-money-and-banks/

        Thus, suppose Tom would like a pig from Jane but Tom’s wheat crop is not yet ready to harvest. If Jane trusts Tom she might be willing to give him the pig now and have Tom give her the wheat when it’s ready. But suppose Tom is a stickler, and he writes a formal little note that says “Tom owes Jane one pig’s worth of wheat” and gives it to Jane in exchange for the pig. Later, at harvest time, Tom delivers the wheat to Jane and she gives him the note in exchange, since she doesn’t want to claim any more wheat from Tom. Tom can throw the note in the fire, because he has fulfilled his promise and the note has no more purpose. Figure 10.1 is a little diagram of the two-part exchange. Tom’s note is depicted as IOU (I owe you: Tom’s promise to Jane).

      • True Freedom is Self-Governance 7.1.3

        “In a just economy people are paid enough to buy the goods and services they produce. If you cannot do this then by definition you are a slave. Being forced to borrow money in order to buy goods and services is simply a form of debt-servitude.”

        Nicely put, now if only more people would accept that people in debt aren’t neccessarily blowing it all on excessive luxury items, that many of them simply had no choice but to borrow to live.

      • ianmac 7.1.4

        +1

    • Foreign Waka 7.2

      http://www.investorwords.com/6780/currency_trading.html

      Essentially traders take advantage of fluctuations in the value of currencies. The better the prediction (political and economical) the more money one makes from – money. So in that sense Money is a commodity.

  8. Colonial Viper 8

    OMG what a screw up.

    Loading households down with more debt is absolutely the wrong way to go. Trying to get “growth” with debt. It’s just more of the same: pretend and extend.

    Steve Keen has the right idea. Issue every household with a $10,000 credit. If the household has debt, that credit must be used first and foremost to pay that debt down. If that household does not have debt, it can use that bonus as a cash injection.

    And make it much harder for ponzi loans to be made ever again.

  9. DH 9

    The pommy initiative does sound pretty stupid and ill-advised. Banks have caused the economic problems, you don’t give them more money to make things even worse. The Govt will carry the cost of the low interest and the banks will still whack on their usual high margins & lend into the property market.

    The problem is fairly straightforward IMO. NZ banks don’t do venture capital, they haven’t since they were privatised. They only lend against secured assets which with a business is usually shareholder capital or the private assets of the owner(s). When you get a recession the asset base of a business tends to shrink and banks won’t lend against depreciating assets so businesses get hit with a shortage of capital and higher interest rates. At a time when businesses need to cut costs they’re instead faced with higher interest rates on borrowing or no access to funding at all.

    IMO the best way to kickstart the economy is to bypass the private banks and start lending more to small & medium business direct at low interest rates. Go back to the old ways when banks lent on the back of a good business plan and responsible risk evaluation. Forget the tax breaks, Govt subsidies & handouts, make businesses earn their keep just give them access to reasonably priced capital and the good ones will start thriving.

    It would be costly to do that, we don’t have the BNZ infrastructure any more, to begin with the Govt would end up writing off a good percentage of the lending due to incompetence but it would still more than pay for itself IMO.

  10. Money lend to banks under the condition they would lend it to main street and you believe that?
    Here is what Mervyn King said about the banks unwillingness to loan money to small businesses in February of this year. The unregulated wilderness that is the UK banking system is collapsing under a ridiculous mountain of debt created with the Derivative scams and this is just a banking bailout UK style. 
    Austerity is fine for the plebs in the street just so long as it isn’t for the perpetrators of the banking Short Change con artists!

    • joe90 10.1

      In this interview Paul Buchanan notes how the lenders refuse to take a haircut by conveniently ignoring the inherent risks of capitalism.

      http://36th-parallel.com/2012/05/interview-glenn-williams-ivs-paul-buchanan-on-france-greece-elections/

    • DH 10.2

      Yeah King has it right and it’s even worse in NZ. NZ banks are risk averse, I can’t even get a simple business overdraft without putting up 150% security to cover it. And if I did get an overdraft the interest rates are usurious. The banks have strangled our economy with their refusal to take any risks with business lending.

    • Johnm 10.3

      HI TRAVELLEREF

      You’re 100% right! This is Bankster Insurance as the Euro zone heads deeper and deeper into crisis. Pete Pom won’t see a bean of it!

      Want to get the economy moving? Then start transferring the 1%’s illgotten gains down to the ordinary people reduce inequality big time. Getting the rich to part with their huge surplus wealth to help Pete Pom would cause the most almighty howling uproar! But it’s the way to go.

  11. Draco T Bastard 11

    We’ve written before about how misguided a program of economic austerity is,

    Get it right, it’s not economic austerity but financial austerity and the poor are having it imposed upon them by the rich.

    Key and the Nats are capable of nothing but looking on as the economy spirals slowly down the gurgler…

    Which is, apparently, what they want as it would allow them to sell even more of NZ off in a firesale to their rich mates.

  12. captain hook 12

    money is quite simply a lien on future production but unfortunately is absolutely vital to the maintenance of life in industrial countries.
    It also keeps the score for psychopaths who use it to keep the populace cowed, obedient and in awe of expensive gew gaws that they will never be able to afford.
    we right up the old wittgensteinian ladder now kiddies.

  13. OneTrack 13

    Just keep borrowing and spending. What could go wrong?

    • RedLogix 13.1

      Not read the thread much?

      I’ll give you a clue. I agree that the answer to too much debt is not more debt.

      So what are our choices do you imagine?

      • OneTrack 13.1.1

        Cut wasteful government spending ( useless quangos such as the Race Relations Conciliator), enable more revenue generation (hydrocarbon exploration, coal and other mining), reduce government barriers to development (excessive RMA restrictions, etc).

        How about them for starters?

        • BernyD 13.1.1.1

          We’d be better declaring ourselves part of Australia go over there if you want to work in a mine.
          It’d be a hard sell , but if we tell them our government is crap they might take pitty on us.

        • RedLogix 13.1.1.2

          A government exists to serve all the people, not just you. Everyone has particular interests and needs, so what is useless to you is certain to be vital to someone else. The National party made great noise about ‘cutting wasteful’ spending before it came to power, but despite every opportunity and motivation to do so in the last four years it has found relatively few genuinely ‘wasteful’ areas to cut.

          You’re welcome to the warm fuzzies you get from ranting about it… but in reality the big four government expenditures are super, education, welfare and health which alone account for around 80% of all expenditure. Fritzing about with tiny quangos on the margins is pointless and insignificant.

          New Zealand is one of the easiest places in the developed world to do business; if you can’t do business here you shouldn’t be in the game.

        • Draco T Bastard 13.1.1.3

          Ah, typical RWNJ answer – it’s all the guvumints fault, WAAAAAH.

          Hey, did you know that private surplus more or less equals the government deficit? See, contrary to the neo-liberal BS that you’ve swallowed the government is actually the source of wealth and not the rich or private enterprise.

          • RedLogix 13.1.1.3.1

            That is one hell of an interesting link DtB. Keith Rankin was my first economic lodestar. In particular Keith has done a lot of interesting work around Universal Income over the years….and it’s great to see him out there with this.

    • Draco T Bastard 13.2

      Well, that does seem to be this governments reaction to the GFC. Cut taxes, borrow heaps and hope like hell that things come right through the magic of the market.

  14. Huginn 14

    Here is a similar conclusion from the IMF

    ‘. . . the evidence from the past is clear: fiscal consolidations typically have the short-run effect of reducing incomes and raising unemployment. A fiscal consolidation of 1 percent of GDP reduces inflation-adjusted incomes by about 0.6 percent and raises the unemployment rate by almost 0.5 percentage point (see Chart 2) within two years, with some recovery thereafter. Spending by households and firms also declines, with little evidence of a hand­over from public to private sector demand.

    In economists’ jargon, fiscal consolidations are contractionary, not expansionary. This conclusion reverses earlier suggestions in the literature that cutting the budget deficit can spur growth in the short term.’

    http://www.imf.org/external/pubs/ft/fandd/2011/09/ball.htm

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    Earlier in the month, Cancer Minister Casey Costello was caught lying to the media about whether or not she had requested advice on cutting tobacco excise tax to benefit the cancer industry. She repeated her lies in Parliament. But today, she stood up and pretended to apologise for "causing confusion" ...
    No Right TurnBy Idiot/Savant
    15 hours ago
  • Is Applying “Tough Love” To A “Fragile” Nation The Right Answer?
    The Question Christopher Luxon Needs To Ask –  And Answer: How was it possible for a nation of barely three million citizens to create and maintain an infrastructure that functioned, schools and universities that turned out well-educated and enterprising citizens, a health system that kept its people healthy, and a workforce ...
    15 hours ago
  • The limits to realism.
    Realism is a school of thought in the field of international relations (IR). It provides a theoretical framework for analysing the behaviour of States in the world political system. Like other theories (which in the IR literature include idealism, liberalism, … Continue reading ...
    KiwipoliticoBy Pablo
    16 hours ago
  • UNSOCIAL MEDIA – Following the Trolls
    From TODAY FM archives — Wilhelmina Shrimpton and Simon Morrow take a deep dive into trolling and cyberbullying. From the high profile to the general public, Kiwis across all walks of life are being targeted, and some are paying the ultimate price. So what drives us to troll, who is ...
    The PaepaeBy Peter Aranyi
    16 hours ago
  • Govt prescribes stiff medicine for some beneficiaries while easing access to drugs containing pseudo...
    Buzz from the Beehive One of two new announcements on the government’s official website  – given plenty of publicity by the mainstream media over the past 24 hours – has been pitched as the first steps in a “reset” of the welfare system.  Stiff medicine for beneficiaries, in effect. The ...
    Point of OrderBy Bob Edlin
    18 hours ago
  • We’re not as fragile or as lazy as Luxon says
    Luxon says his government is one that is “prepared to make those hard decisions”. File Photo: Lynn Grieveson / The KākāTL;DR: Prime Minister Christopher Luxon has adopted the language of Ruth Richardson before her 1991 ‘Mother of All Budgets’ in arguing for benefit sanctions to bolster the Government finances, which ...
    The KakaBy Bernard Hickey
    19 hours ago
  • Talking over the Silence.
    Please open the doorNothing is different, we've been here beforePacing these hallsTrying to talk over the silenceIf I was to describe what I do, or at least the way it sometimes feels, then talking over the silence wouldn’t be a bad way to do so.Not that there aren’t other voices ...
    Nick’s KōreroBy Nick Rockel
    20 hours ago
  • LINDSAY MITCHELL: National needs to go further
    Lindsay Mitchell writes – In today’s State of the Nation speech Christopher Luxon talked repeatedly about getting young people off welfare. It seems that National has devised a traffic light system which will use increasing levels of sanctions – welfare deductions – when beneficiaries fail to meet their ...
    Point of OrderBy poonzteam5443
    21 hours ago
  • Gordon Campbell on National spreading panic about the economy
    It is a political strategy as old as time. Scare the public with tales of disaster and stampede them into supporting your ideological agenda because they believe There Is No Alternative. Yet, if the NZ economy truly is as “fragile” as PM Christopher Luxon says it is… Then how come ...
    23 hours ago
  • The promise of passive house design
    This is a re-post from Yale Climate Connections by Sarah Wesseler Imagine a home so efficient that it could be heated with a hair dryer. That’s the promise of a passive house, a design standard that’s becoming increasingly popular in the architecture community for its benefits to occupants and the climate. ...
    23 hours ago
  • Deep in the Uncanny Valley of AI
    Hi,Before we get started, some very big fun Webworm news. I am launching a new journalism fund called Big Worm Farm!A really great thing that’s happened with Webworm over the last four years is that it’s grown. That’s great for a few reasons.Firstly — it means the work here gets ...
    David FarrierBy David Farrier
    24 hours ago
  • Introducing: Big Worm Farm
    Hi,I’m excited to tell you about Big Worm Farm.Put simply, the main aim of Big Worm Farm is to support investigative journalists from around the world to be able to devote dedicated time to research and report on a specific story, to be published on Webworm.The stories will capture the ...
    David FarrierBy David Farrier
    1 day ago
  • Why Massey is broke
    The Tertiary Education Commission has named the two universities it says are at high risk financially. They are Massey and Victoria. The Commission appeared before Parliament’s Education Select Committee yesterday and offered a revealing and rare insight into the complex world of university economics. Its Briefing to the Incoming Minister ...
    PolitikBy Richard Harman
    1 day ago
  • You keep Luxin' when you oughta be thruthin'
    Christopher Luxon’s campaign to win last year's election continued yesterday with a speech.Channelling possibly Bruce Willis in Die Hard, he was all, I'm not going to dress it up, I'm going to level with you guys: the state of the nation is fragile.The thing he’s maybe missing is that it ...
    More Than A FeildingBy David Slack
    2 days ago
  • The PM spoke of the need for tough choices – and then opted to beat a retreat when gays and Gaza a...
    Buzz from the Beehive The PM’s State of the Nation speech – according to a Newshub headline – was a ‘buffet of buzzwords’ and full of ‘nonsense’. Fair to say, the quoted words were attributed to Opposition politicians, who were unlikely to say the speech was visionary and inspiring: PM ...
    Point of OrderBy Bob Edlin
    2 days ago
  • Keynesian Wisdom.
    When the facts change, I change my mind - what do you do, sir?John Maynard Keynes (1883-1946)This posting is exclusive to Bowalley Road. ...
    2 days ago
  • BRIAN EASTON: Puffing policy
    Public policy towards tobacco consumption remains politically sensitive. Brian Easton writes – In 1983, a young researcher was told by a medium-level Treasury official that Treasury policy was to abandon excise duties on tobacco. The senior Treasury economist that I consulted, famed for his commonsense, snorted ‘we ...
    Point of OrderBy poonzteam5443
    2 days ago
  • Is 2.8% per year population growth too much?
    TL;DR: The Government is reviewing migration settings that produced 2.8% population growth last year and is looking at a longer-term strategy of matching population growth to the ‘absorbtive capacity’ of Aotearoa-NZ’s infrastructure.Our population grew last year at its fastest rate since 1947, when large numbers of troops returning from World ...
    The KakaBy Bernard Hickey
    2 days ago
  • Tough Choices & Tough Love.
    I've been trying to hurt youI've been holding you tightI've been learning to love youAm I doing it right?How are you still breathingWith my hands all over your heart?How do we start healingIf we can't keep out the dark?Yesterday the Prime Minister delivered his State of the Nation, for no ...
    Nick’s KōreroBy Nick Rockel
    2 days ago
  • Will the 2024 RLTP be yet another debacle?
    A couple of years ago, Auckland Council and Auckland Transport found themselves in court over the 2021 Regional Land Transport Plan (RLTP). A non-profit alliance for transport decarbonisation, All Aboard Aotearoa, argued that among other factors, the RLTP was unlawful because it failed to give effect to the 2021 Government ...
    2 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #07
    A listing of 31 news and opinion articles we found interesting and shared on social media during the past week: Sun, Feb 11, 2024 thru Sat, Feb 17, 2024. Story of the week Based on mission alignment, our Story of the Week is certainly Can we be inoculated against climate ...
    2 days ago
  • Immigration Issues.
    Help is comingI heard a whisperWhite caps turningThe breath of summerA distant drummingAnd liar birds callingEscape the anguish of our pastAnd prayOne of the major challenges of the the 21st century will be the mass migration of human beings around our globe.Some seeking economic opportunities, others fleeing repressive regimes, war ...
    Nick’s KōreroBy Nick Rockel
    3 days ago
  • Trust us, we know what we’re doing
    The best trick the National Party ever pulled was to fabricate their reputation as the responsible ones.This would be the National Party that denied us the New Zealand Superannuation Scheme that—Brian Gaynor wrote back in 2007would be worth more than $240 billion today and would have transformed the New Zealand ...
    More Than A FeildingBy David Slack
    3 days ago
  • The Left’s Timidity
    It is not just Karl Marx – even the most enthusiastic supporters of the market economy (not least Adam Smith) will concede that its normal operation inevitably leads to a concentration of wealth in relatively few hands. Some, at least, of these enthusiasts will accept that such a concentration is ...
    Bryan GouldBy Bryan Gould
    4 days ago
  • OLIVER HARTWICH: Absurd – NZ courts can now decide on climate change
    Oliver Hartwich writes – The World Justice Project ranks New Zealand 7th out of 142 countries on its ‘Rule of Law Index’, narrowly ahead of Australia’s 13th place. However, Australia still has hope – if only because of a recent decision by the Supreme Court of New Zealand. The ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Still waiting on that turnaround
    Hello! Here comes the Saturday edition of More Than A Feilding, catching you up on the past week’s editions.Friday: Week in review, quiz style2. Shane Jones’ demeanour in mocking and deriding climate activists can be observed in what other realm of human behaviour?a. Gleeful little boys pulling wings off fliesb. ...
    More Than A FeildingBy David Slack
    4 days ago
  • Mihi Forbes and the great Atlas conspiracy
    Graham Adams writes — Last week, Mihingarangi Forbes made an extraordinary claim while interviewing David Seymour on Mata Reports, a taxpayer-funded current affairs programme which, she says, looks at events through an “indigenous lens”. She asked him about Act’s links to the Atlas Network, which fosters connections between centre-right ...
    Point of OrderBy gadams1000
    4 days ago
  • Puffing Policy
    Public policy towards tobacco consumption remains politically sensitive. In 1983, a young researcher was told by a medium-level Treasury official that Treasury policy was to abandon excise duties on tobacco. The senior Treasury economist that I consulted, famed for his commonsense, snorted ‘we need the money’. He explained that no-excise-duty ...
    PunditBy Brian Easton
    5 days ago
  • Luxon is one of three prime ministers pressing for a ceasefire in Gaza – but the two-state solutio...
    Buzz from the Beehive Two days after hundreds of people rallied outside the New Zealand parliament and the US embassy in Wellington to protest against what they maintain is genocide in Gaza,  Prime Minister Chris Luxon joined with the Prime Ministers of Australia and Canada to express their  concerns that ...
    Point of OrderBy Bob Edlin
    5 days ago
  • All jellied up with possum grease
    1. Shane Jones, addressing the energy industry, called climate concern what?a. The only sane responseb. Undeniably valid c. Our last best hope d. A "religion" 2. Shane Jones’ demeanour in mocking and deriding climate activists can be observed in what other realm of human behaviour?a. Gleeful little boys pulling wings off fliesb. Gleeful ...
    More Than A FeildingBy David Slack
    5 days ago
  • Equality comes to Greece
    The Greek Parliament has voted for marriage equality: Greece has become the first Christian Orthodox-majority country to legalise same-sex marriage. Same-sex couples will now also be legally allowed to adopt children after Thursday's 176-76 vote in parliament. Prime Minister Kyriakos Mitsotakis said the new law would "boldly abolish a ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • CHRIS TROTTER:  Iron in her soul.
      “Battle not with monsters, lest ye become a monster, and if you gaze into the abyss, the abyss gazes also into you.” – Friedrich Nietzsche   Chris Trotter writes – TELEVISION NEW ZEALAND is to be congratulated for inviting Chloe Swarbrick onto its Q+A current affairs show. The Green MP ...
    Point of OrderBy poonzteam5443
    5 days ago
  • The Hoon around the week to Feb 16
    Net emigration of New Zealanders overseas hit a record-high 47,000 in the 2023 year, which only partly offset net immigration of 173,000, which was dominated by arrivals from India, the Philippines and China with temporary work visas. Photo: Lynn Grieveson / The KākāTL;DR: The five things that mattered in Aotearoa’s ...
    The KakaBy Bernard Hickey
    5 days ago
  • Stop Whispering.
    There's nothing to sayAnd there's nothing to doStop whispering, start shoutingStop whispering, start shoutingYesterday our government surprised a few of us by standing up for something. It wasn’t for the benefit of people who own holiday homes and multiple investment properties. Neither were there any tobacco companies or fishing cartels ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • “I'm Not Keen on Whataboutism, But What About…”
    Hi,Not sure how your week is going, but I’ve had a pretty frustrating one. I’ve been trying to put my finger on it, and I think it’s perhaps distilled in this message I got on Twitter:What got me a bit riled up is that it was a response to the ...
    David FarrierBy David Farrier
    5 days ago
  • Gordon Campbell on National passing bad policies under urgency
    If National really had faith in its welfare policies, it wouldn’t be ramming them through Parliament under urgency – a step that means the policies can’t be exposed to select committee debate, public submissions, expert commentary, media scrutiny and all the normal democratic processes that this coalition appears to hold ...
    5 days ago
  • Weekly Roundup 16-February-2024
    It’s Friday so once again here”s our roundup of some of the articles that caught our attention this week. This Week in Greater Auckland On Monday Matt looked at the Government’s war on Auckland. On Tuesday Matt covered the ongoing issues with the rail network. On Thursday Matt ...
    Greater AucklandBy Greater Auckland
    5 days ago
  • The Dawn Chorus for Friday, February 16
    The six things to note in my view at 6.30 am on Friday, February 16 in Aotearoa-NZ’s political economy are: Read more ...
    The KakaBy Bernard Hickey
    5 days ago
  • Iron In Her Soul.
    “Battle not with monsters, lest ye become a monster, and if you gaze into the abyss, the abyss gazes also into you.” – Friedrich NietzscheTELEVISION NEW ZEALAND is to be congratulated for inviting Chloe Swarbrick onto its Q+A current affairs show. The Green MP for Auckland Central is the odds-on ...
    5 days ago
  • Dig this
    Resources Minister Shane Jones yesterday told a breakfast hosted by Energy Resources Aotearoa precisely what they wanted to hear. “We campaigned to rehabilitate relegitimise and stand up for working families who derive their income,  derive their hope and derive purpose in regional New Zealand through a flourishing, growing, forward-leaning energy ...
    PolitikBy Richard Harman
    5 days ago
  • Skeptical Science New Research for Week #7 2024
    Open access notables Physics-based early warning signal shows that AMOC is on tipping course, van Westen et al., Science Advances: Here, we show results of the first tipping event in the Community Earth System Model, including the large climate impacts of the collapse. Using these results, we develop a physics-based and ...
    5 days ago
  • A rejection of the rule of law
    No Right TurnBy Idiot/Savant
    6 days ago
  • Shrugging-Off The Atlas Network.
    Upholding The Status-Quo: The Left’s election defeat is not the work of the Atlas Network. It is not even the work of David Seymour and Act. It is the work of ordinary citizens who liked the Right’s stories better than they liked the Left’s. If the Right’s stories were made ...
    6 days ago
  • BARRIE SAUNDERS: Treaty Principles – all rather problematic
    Barrie Saunders writes – When ACT’s leader said they wanted legislation to state what the Treaty principles mean, my first thought was this will be controversial and divisive.  Clearly it is. The first reference to the principles of the Treaty were contained in the 1975 Act establishing the Treaty of ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Luxon Rejects The “Rejection Election” At His Peril.
    Fitting Right In: National retailed a reactionary manifesto of right-wing, racially-charged policies to the electorate throughout 2023. No talk back then of ignoring the overwhelming political preferences of the voting public and making a strong stand on principle. If Luxon’s pollsters and focus-groups were telling him that the public was ...
    6 days ago
  • Valentine’s Day went unnoticed on the Beehive website – but it is not “baa, humbug” to celeb...
    Buzz from the Beehive None of our ministers – a quick check with the Beehive website suggests – found cause to mention, let along celebrate, Valentine’s Day. But two ministers – Agriculture Minister Todd McClay and Rural Communities Minister Mark Patterson – ensured that National Lamb Day did not pass ...
    Point of OrderBy Bob Edlin
    6 days ago
  • Are You A Leftist?
    Nothing To Lose But Our Chains: The emancipatory movement which the Left, understood correctly, has always been, cannot accommodate those who are only able to celebrate one group’s freedom by taking it from another. The expectation, always, among leftists, is that liberty enlarges us. That striking-off a person’s shackles not ...
    6 days ago
  • An unlawful directive
    An interesting question in the Parliamentary written questions feed today, from Jan Tinetti to the Minister of Education: Has she or her Office directed the Ministry of Education to not release Official Information Act material prior to the full twenty working days, if so, why? Given that ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • I’ve been doing this all wrong
    Here are six words that are not easy to say but god it can feel good when you finally say them:I’ve been doing this all wrongFive years ago today I said to myself:What if I'm doing this all wrong?Five years ago today I said to Karren: I think I’m going to ...
    More Than A FeildingBy David Slack
    6 days ago
  • New study suggests the Atlantic overturning circulation AMOC “is on tipping course”
    This is a re-post from RealClimate by Stefan Rahmstorf A new paper was published in Science Advances today. Its title says what it is about: “Physics-based early warning signal shows that AMOC is on tipping course.” The study follows one by Danish colleagues which made headlines last July, likewise looking for early warning signals ...
    6 days ago
  • Valentines from ACT.
    Some of us make a big deal out of Valentine’s Day. We’ll buy the flowers, eye watering though the price spike might be. Say the things we should be saying anyway, although diminished by being scheduled for delivery. Some of us will even write long free-form newsletters with declarations of ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • Tax cuts paid for by 13k more kids in poverty
    MSD advised the government that the indexation change it passed under urgency last night is likely to put around 7,000 extra children (and potentially up to 13,000) into poverty. Photo: Lynn Grieveson / The KākāTL;DR: The Government has reverted indexation for main beneficiaries to price inflation from wage inflation under ...
    The KakaBy Bernard Hickey
    6 days ago
  • Fuel Tax Fight and Rail Fail update
    The two stories we covered at the start of the week continue to be in the headlines so it’s worth looking at the latest for each of them. Regional Fuel Tax Mayor Wayne Brown promised some ‘argy-bargy’ over the government’s decision to cancel the Regional Fuel Tax and he’s ...
    6 days ago
  • Climate Change: Arsonists
    Today, a major fire broke out on the Port Hills in Ōtutahi. Like its 2017 predecessors, it is almost certainly exacerbated by climate change. And it is still burning. The present government did not start the fire. But they piled the tinder high last time they were in power, gutting ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • I don’t know!
    http://en.kremlin.ru/events/president/news/73411 7 examples And who actually makes the decisions? Vladimir Putin: I don’t know. America is a complex country, conservative on the one hand, rapidly changing on the other. It’s not easy for us to sort it all out.   Tucker Carlson: Do you think Zelensky has the freedom to negotiate the settlement to this conflict? Vladimir Putin: I don’t know the details, of course it’s difficult for me to judge, but ...
    7 days ago
  • Fresh thinkers
    Fresh thinking will always give you hope.It might be the kind that makes you smite your brow, exclaiming: Why didn't we think of that! It's obvious!It might be the kind that makes you go: Dude you’re a genius.Sometimes it will simply be Wayne Brown handing Simeon Brown his weasel ass ...
    More than a fieldingBy David Slack
    7 days ago
  • It is not about age, it is about team.
    Much attention has been directed at Joe Biden’s mental lapses and physical frailty. Less attention has been spent on Donald Trump’s cognitive difficulties and physical limitations, with most focus being devoted to his insults and exaggerated claims (as if they … Continue reading ...
    KiwipoliticoBy Pablo
    7 days ago
  • ROBERT MacCULLOCH: Fletcher Building – it is time to break up NZ’s most useless company.
    Robert MacCulloch writes –  Gosh, the CEO of Fletcher Building, Ross Taylor, says today’s announcement of a half-year loss of $120 million for the company is “disappointing” and was “heavily impacted” by the Convention Centre losses. He must be crying all the way to the bank (to quote Las ...
    Point of OrderBy poonzteam5443
    7 days ago
  • Mortgage rates seen high for even longer
    Government and borrower hopes for early mortgage cost relief look likely to be thwarted. Photo: Lynn Grieveson / The KākāTL;DR: Stronger-than-expected US inflation data out overnight is expected to delay the first US Federal Reserve rate cut into the second half of 2024, which in turn would hold mortgage rates ...
    The KakaBy Bernard Hickey
    7 days ago
  • Member’s Day
    Today is a Member's Day, the first of the new Parliament. And to start the Parliament off, there's a bunch of first readings. A bunch of other bills have been postponed, so first up is Duncan Webb's District Court (Protecting Judgment Debtors on Main Benefit) Amendment Bill, followed by Katie ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • Three Waters go down the legislative gurgler – but what should we make of Local Water Done Well?
    Buzz from the Beehive Local Government Minister Simeon Brown – it seems fair to suppose – was flushed with success after the repeal of Labour’s divisive and unpopular Three Waters legislation. As he explained, repealing this legislation is a necessary first step in implementing his government’s Local Water Done Well ...
    Point of OrderBy Bob Edlin
    7 days ago
  • Gordon Campbell on five of Luxon’s Gaza absurdities
    Earlier this week, PM Christopher Luxon met with 48 public service CEOs to make sure they were on board with his plans to cut spending on public services so that National can proceed to give the revenue away to those New Zealanders least in need. This wasn’t the only absurdity ...
    7 days ago
  • Love and the Fairer Sex.
    This morning I woke early with many thoughts in my head of things said, events of the week, things that matter. I’m afraid none of them involved Seymour, Willis, or Luxon so if you’re looking for something political maybe take the day off and come back tomorrow. You won’t find ...
    Nick’s KōreroBy Nick Rockel
    7 days ago
  • He stood up to Muldoon and Lange and the Fji army
    Gerald Hensley, who died aged 88 on Saturday, was the key official who presided over the tumultuous events that followed the election of the Lange Labour Government in 1984. He was also instrumental in helping a key Fijian official escape the country during one of the 1987 coups. A diplomat ...
    PolitikBy Richard Harman
    1 week ago
  • At a glance – Has Arctic sea ice returned to normal?
    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 ...
    1 week ago
  • Halo dunia!
    Selamt datang di WordPress. Ini adalah pos pertama Anda. Sunting atau hapus, kemudian mulai menulis! ...
    1 week ago
  • The PM wants a turnaround
    As a treat today I have lined up a favourite in the music slot. I love Turnaround, I cannot hear it too often, and I feel in need of a treat when I make myself listen to the Prime Minister the way I did this morning.He too, has favourites that ...
    More Than A FeildingBy David Slack
    1 week ago
  • The PM wants a turnaround
    As a treat today I have lined up a favourite in the music slot. I love Turnaround, I cannot hear it too often, and I feel in need of a treat when I make myself listen to the Prime Minister the way I did this morning.He too, has favourites that ...
    More than a fieldingBy David Slack
    1 week ago
  • ELE LUDEMANN: Trusting locals
    Ele Ludemann writes- A government-knows-best and predilection for central control was another unfortunate feature of the 2017-2023 Labour governments. One of the worst polices as a result of that was what started as Three Waters and became several more. The National-led government is much more trusting of locals ...
    Point of OrderBy poonzteam5443
    1 week ago
  • Legislation to flush away Three Waters has become a certainty – but we must wait for details on th...
    Buzz from the Beehive A  three-day information drought was broken, just after Point of Order published yesterday’s Buzz from the Beehive, and two significant ministerial announcements were made. First, the Budget will be delivered on 30 May, telling us which genuine savings have been made by eliminating waste and which ...
    Point of OrderBy Bob Edlin
    1 week ago
  • Rise of the Lobbyists.
    An unpopular opinion, I love Auckland.Not so much the transport or the house prices - those are pretty dire. But there’s a lot to like. We’ve a vibrant, multicultural city in a beautiful location with, mostly, friendly locals. From the native bush of the Waitakeres to the Gulf islands, it’s ...
    Nick’s KōreroBy Nick Rockel
    1 week ago

  • Greater support for social workers
    The Coalition Government is enhancing the professionalism of the social work sector and supporting the vulnerable people who rely on them, Social Development and Employment Minister Louise Upston says.  The Social Workers Registration Legislation Amendment Bill passed its third reading in Parliament today. It amends the Social Workers Registration Legislation ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Government delivers greater freedom and choice for sick New Zealanders
    The coalition government is delivering on its commitment to making principled decisions by getting rid of red tape that doesn’t make sense and allowing sick New Zealanders greater freedom and choice to purchase effective cold and flu medicines. A bill amending the Misuse of Drugs Act 1975 is being introduced, and changes to the Medicines ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Government begins reset of welfare system
    The Coalition Government is taking early action to curb the surge in welfare dependency that occurred under the previous government by setting out its expectations around employment and the use of benefit sanctions, Social Development and Employment Minister Louise Upston says. In 2017, 60,588 sanctions were applied to beneficiaries who ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • State of the Nation
    Ka nui te mihi kia koutou. Kia ora, good morning, talofa, malo e lelei, bula vinaka, da jia hao, namaste, sat sri akal, assalamu alaikum. Thank you for coming to my first State of the Nation as Prime Minister. Thank you for coming to a speech where I don’t just ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • West Coast tourism attractions officially open
    Regional Development Minister Shane Jones will attend the official opening of two highly anticipated tourism projects on the West Coast today – Pike29 Memorial Track, dedicated to the memory of the Pike River miners, and Pounamu Pathway. “The Pike29 Memorial Track is a way to remember and honour the men ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Independent ferry service advisory group in place
    Appointments to the Ministerial Advisory Group tasked with providing independent advice and assurance on the future of KiwiRail’s inter-island ferry service have been made, State Owned Enterprises Minister Paul Goldsmith says. “It’s important for New Zealand that KiwiRail is focused on ensuring safe, resilient, and reliable ferry services over the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Joint statement from the Prime Ministers of Australia, Canada, and New Zealand
    The Prime Ministers of Australia, Canada and New Zealand today issued the following statement on reports of Israel’s planned military operation in Rafah. We are gravely concerned by indications that Israel is planning a ground offensive into Rafah.   A military operation into Rafah would be catastrophic. About 1.5 million Palestinians ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt will deliver on expanded breast screening
    The coalition Government has made the first steps in delivering on its promise to  extend free breast screening to women aged 70-74, Health Minister Shane Reti says. “As part of the 100 day plan, the Government has now met with officials and discussed what is needed in order for the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government announces woolshed roadshows in support of sheep farmers
    The Government celebrates National Lamb Day (15 February 24) and congratulates sheep farmers on the high-quality products they continue to produce. Agriculture Minister McClay hosted bipartisan celebrations of National Lamb Day with industry representatives at Parliament this week to mark the anniversary of the first frozen lamb exports that left ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech: Address to the NZ Economics Forum
    It’s great to be back at the New Zealand Economics Forum. I would like to acknowledge everyone here today for your expertise and contribution, especially the Pro Vice-Chancellor, Head of the Waikato Management School, economists, students and experts alike. A year has passed since I was last before you, and ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government tackling high construction costs
    The Government is focused on reducing sky-high construction costs to make it more affordable to build a home, Building and Construction Minister Chris Penk says.  Stats NZ data shows the cost of building a house has increased by 41 per cent since 2019, making housing even more unaffordable for Kiwi ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Labour’s Three Waters legislation repealed
    The Coalition Government’s legislative plan to address longstanding issues with local water infrastructure and service delivery took an important step today, with the repeal of Labour’s divisive and unpopular Three Waters legislation, Local Government Minister Simeon Brown says. “Repealing this legislation is a necessary first step in implementing our Local ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Cost of living support for beneficiary households
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    1 week ago
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  • Speech – Lunar New Year 2024
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  • New diplomatic appointments
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  • Speech to the Committee for Auckland
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    2 weeks ago
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  • Rt Hon Christopher Luxon – Waitangi speech
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    3 weeks ago
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    3 weeks ago
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