web analytics

Counterpoint

Written By: - Date published: 6:05 pm, September 10th, 2011 - 12 comments
Categories: debt / deficit, economy, Media - Tags:

I’ve just read Vernon Small’s piece today and I actually learned things from it, other than opinions plucked out of thin air by the author. Small explains the fiscal and economic challenges now existing that the next government will have to cope with and, with a nod and wink, tells us National is going to push out its date for getting back to surplus.

12 comments on “Counterpoint ”

  1. And if you look at the latest commentaries from Greece, Italy and Spain, his predictions take on added pungency.

  2. Lanthanide 2

    This should be something that Phil Goff hammers before the election. That National will be pushing out their date to surplus if they’re elected.

    Sing it loud and high from the ramparts.

    Then if Labour lose, when National do it, they can clearly say “I told you so” to the electorate.

    • The Baron 2.1

      … But they can’t do that, Lanth, because Labour plans to push it out even further themselves. What, with all the billions in extra spending/borrowing team Goff has already promised, and frankly mythical ideas on the revenue side to plug the gap, we would never be in surplus again under the labs.
      Doesn’t strike me as a particularly credible line to run at all.

        • The Baron 2.1.1.1

          What has your vainglorious comment got to do with Labour’s massively irresponsible spend up, Draco? How will Labour’s massively irresponsible spending and borrowing increase address the current deficit timetable problem?
          I note that they, along with oh every other economy in the world, haven’t signed up to your idea of printing money without consequences – so I am at a loss as to how your egotistical comment linking is relevant at all?
          Laughing at you some more right now.

          • Afewknowthetruth 2.1.1.1.1

            The Baron.

            Presumably your online name is indicative of your attitude, and that you believe in a feudal society in which the fruits of the labourung of peasants are transeferred to a tiny minority of ruthless thugs who maintain their privileged positions through manipulation and violence.

            You may be lughing now but you won’t be laughing much when unemployment reaches 30%. fiat currencies are worthless, the markest ahve collapsed and there is little to eat (except other people), as will certainly be the case if the present system of rape and pillage by a tiny gang of ‘elites’ continues for much longer.

      • deservingpoor 2.1.2

        “Labour’s massively irresponsible spending and borrowing”
        1) You seem to be keen to label Labour as the borrow and spend party when in actual fact Labour left office having implemented their “wild tax and spend policies” with a 2 billion dollar surplus. The fiscally responsible Nact government with their good old fashioned 19th century presbyterian austerity rhetoric (which kiwis fall for far too easily) have left us with a massive deficit.

        2) Here’s how an economy works. I go to work, I get paid, I pay taxes and I buy stuff which means other people get paid and pay taxes and buy stuff and so on. Now If I lose my job in say the public service, I don’t pay tax and I don’t buy stuff, which means that the people I used to buy it from don’t get paid that money and so on. If that happens to enough people, you end up with a depression, regardless of how many right wing dickheads go on blog sites with their chests puffed out going on about how those weren’t real jobs anyway.

        Labour (for all their faults)at least understand that to run society costs X number of beans. If you give away X number of beans to your rich mates, you won’t have enough beans to run society. If you drop the 19th century Presbyterian austerity bullshit and stimulate your economy when you need to, you get more people giving you more beans and you are able to spend more beans. They applied this principle when they were in government until they got voted out for bringing in almost full employment and running a surplus, which the right wing somehow managed to spin as collapsing the economy.
        For all their failings (and they have many) Labour at least have some plan to increase revenue, National have no plan at all.

    • mik e 2.2

      Labour could use financial transaction tax to pay our debt down earlier !

  3. Jum 3

    I’m sure Red Alert won’t mind sharing this comment.

    ‘John W says:
    September 10, 2011 at 10:48 am

    Monty
    Such a short memory and selective at that.

    Who warned National about the folly of tax cuts – Cullen

    Who set up Kiwisaver – Cullen

    Who finally had to give into the greed of rightwing clamour for tax relief – Cullen with a fresh round of warnings about the folly of any further tax relieve.

    Who ignored that sound advise and gave billions away to their rich mates – Key.

    Who told lies about the money for rich mates tax cut being fiscally neutral – Key

    Who follows the Neo Con path of destruction for the sole benefit of a select tiny rich group, mainly transnationals, who control the press and minds of the less nimble – Key

    Who plays good cop to the public with a Brash, various puppet advisory groups puppeting adversity extreme – Key

    Roger Douglas must be a Hero for some who never carry responsibility for the nation but are willing to actively support job cuts. Pathetic class discrimination also proven to construct longer term harm to the economy.

    The myth that there is ” a limited pool of money ” is typical of limited thinking.

    The nature of money allows banks and “investors” to proliferate unearned profits causing inflation to devalue all our work and accumulated life support systems.

    The fiat system is the greatest parasite in our midst and money is not limited at all.

    Constriction of supply is controlled largely by design often not for public good but for wide scale plundering of community resource.

    Cutting jobs is a crazy short term recipe for long term shift of wealth to the top small group. No shortage of money there but an excess is disgusting proportion with no responsibility to those who have provided that wealth – the largest part of the community with little benefit or justice.

    If real productivity is sought then the Co-operative model has a strong record with a side benefit of community development and local control. The human condition is vastly improved.

    http://www.radionz.co.nz/national/programmes/ideas/audio/2358378/ideas-the-cooperative-economy

    Transnational corporation facilitate the opposite with bleeding of local resources and migration of community wealth to offshore conglomerates.
    An increasing proportion money feed offshore profit.
    The social fabric and community infrastructure suffer and losses there compound.’

  4. RedLogix 4

    At Steven Keen’s blogsite there is an an excellent item on Harry Dent. If you watch the video it would appear although the two men appear to have never met nor conversed, there’s a bit of a mutual admiration society thing going on… and given the astounding track record both men have in predicting economic trends that cannot be too bad a thing. The video is quite long but worth a watch because it factors in something we rarely talk much about:

    There is a handful of people around the world whose work I respect because it intelligently addresses facets of our current predicament that I don’t.

    The economic and demographic analyst Harry Dent is one of those people.

    Harry uses empirical data about consumption levels and population growth to accurately predict economic trends. A person’s consumption patterns change as they age, so information on the rate of growth of population and its age characteristics can be used to predict what consumption will probably be of a given commodity some years in the future.

    Of course this has to be combined with other data—about national income levels, etc.—but it is a reliable guide that Harry has used over the years to anticipate such things as the Japanese slowdown when other people were predicting a continuing boom there.

    Harry explains some application of his approach in this YouTube video—one example I like is why the age 42 is the peak age for buying potato chips. It’s because the median 42 year old male has a 14 year old child…

  5. Afewknowthetruth 5

    Continued discussion of mainstream economics has become utterly tedious because it is completely irrelevant.

    All current economic arrangemnts will have fallen over before 2015. Indeed, the collapse could occur later this year, depending on how quickly the eurozone disintegrates and how quickly America’s envrionmental disasters impact on the US economy.

    I liken mainstream economics to a sand castle on a beach: it doesn’t get demolished insantly when the first wave hits it but gradually crumbles as successive waves progressively reach further up the beach as the tide comes in.

    Peak Oil was over 2005-2006 and extraction is rapidly falling throughout most of the world.

    Sovereign debts have ‘gone exponential’ and most nations cannot even meet the interest payments, even though interest rates are at unprecedentedly low levels (the Bank of England just confirmed the 0.5% rate will not be changed).

    We are witnessing the end of the industrial age and a symultaneous collapse of the global environment. Every day that passes the ‘waves reach further up the beach’ and demolish a bit more.

    Unfortunately we have clowns and criminals in charge who still haven’t noticed (or know perfectly well but are lying every time they open their mouths).

    And a large portion of the dumbed-down masses are more interested in watching a ball travel up and down a rugby pitch/ tennis court/ golf course/ soccer field / basketball court etc. than their own futures.

    • Lanthanide 5.1

      “Continued discussion of mainstream economics has become utterly tedious because it is completely irrelevant.”

      I note that you currently make a living by writing books and selling them in the mainstream economy.

      So evidently you think the economy is relevant, or you wouldn’t involve yourself in it at all.

Recent Comments

Recent Posts

  • Report shows progress on Homelessness Action Plan
    The Government has welcomed the release of the second progress report on the Homelessness Action Plan, showing that good progress is being made on every one of the immediate actions in the Plan. “Homelessness will not be solved overnight, but I am pleased to see that this plan is continuing ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Arts and cultural festivals get funding boost
    One of New Zealand’s oldest cultural festivals and a brand new youth festival are amongst four events to win grants to help them grow, attract new audiences, and boost local economies.  Economic and Regional Development Minister Stuart Nash has announced new support from an incubator fund launched last year to ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Govt to rev up reductions in transport emissions
    The Government is calling for feedback on a range of potential policies to eliminate emissions in the transport sector. Transport Minister Michael Wood today released Hīkina te Kohupara – Kia mauri ora ai te iwi - Transport Emissions: Pathways to Net Zero by 2050, a Ministry of Transport report outlining ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government recognises David McPhail’s contribution to New Zealand comedy and television
    Minister for Arts, Culture and Heritage Carmel Sepuloni today pays tribute to David Alexander McPhail (11 April 1945 – 14 May 2021) – New Zealand comedian, actor, producer and writer. David McPhail ONZM QSM had a comedy career that spanned four decades, across both television and theatre.  “David’s contribution to ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Support for drought-stressed regions fills a need
    An innovative iwi-led plan to help maintain water supply to a far North community battered by drought is set to get underway with support from the Government, Acting Minister for Emergency Management Kris Faafoi says.  “The impacts of climate change are not something that just our grandchildren will have to ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • KiwiSaver default provider scheme improvements slash fees, boosts savings
    Hundreds of thousands of New Zealanders will be significantly better off in retirement following changes to the default KiwiSaver scheme, Finance Minister Grant Robertson and Commerce and Consumer Affairs Minister David Clark said today. The new default provider arrangements, which will take effect once the terms of the current providers ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Industry leadership for our training system becomes reality
    Six new Workforce Development Councils formally established today will ensure people graduate with the right skills at the right time to address skill shortages, Education Minister Chris Hipkins said. Every industry in New Zealand will be covered by one of the following Workforce Development Councils: •           Hanga-Aro-Rau – Manufacturing, Engineering ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Rotorua Emergency Housing update
    The Government has announced a suite of changes to emergency housing provision in Rotorua:  Government to directly contract motels for emergency accommodation Wrap around social support services for those in emergency accommodation to be provided Grouping of cohorts like families and tamariki in particular motels separate from other groups One-stop ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Further COVID-19 vaccine and economic support for the Pacific
    New Zealand will be providing protection against COVID-19 to at least 1.2 million people in the Pacific over the coming year $120 million in Official Development Assistance has been reprioritised to support Pacific economies in 2021 Foreign Affairs Minister Hon Nanaia Mahuta and Associate Health and Foreign Affairs Minister Aupito William ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Statement on the escalation of violence in Israel, the Occupied Palestinian Territories and Gaza
    Foreign Affairs Minister Nanaia Mahuta today expressed Aotearoa New Zealand’s grave concern at the escalation of violence in Israel, the Occupied Palestinian Territories, and Gaza. “The growing death toll and the large numbers of casualties, including children, from Israeli airstrikes and Gazan rockets is unacceptable,” Nanaia Mahuta said “Senior officials met ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Trade Minister to travel to UK and EU to progress free trade agreements
    Trade and Export Growth Minister Damien O’Connor announced today he will travel to the United Kingdom and European Union next month to progress New Zealand’s respective free trade agreement negotiations. The decision to travel to Europe follows the agreement reached last week between Minister O’Connor and UK Secretary of State for ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Pre-Budget speech to Business New Zealand
    Kia ora koutou katoa It’s great to be here today, at our now-regular event in anything-but-regular times. I last spoke to some of you in mid-March. That was an opportunity to reflect on an extraordinary 12 months, but also to reflect on how the future was shaping up. In what ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Te Hurihanganui growing with Nelson community celebration
    Nelson is the latest community to join the Te Hurihanganui kaupapa to drive change and address racism and bias in education, Associate Education Minister Kelvin Davis announced today. Speaking at today’s community celebration, Kelvin Davis acknowledged the eight iwi in Te Tau Ihu for supporting and leading Te Hurihanganui in ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Te Hurihanganui Nelson Community Celebration 
    Te Hurihanganui Nelson Community Celebration  Victory Community Centre, Nelson   “Racism exists – we feel little and bad”. Those were the unprompted words of one student during an interview for a report produced by the Children’s Commissioner in 2018. They were also the words I used when I announced the ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Child wellbeing reports highlight need for ongoing action
    The Government has released the first Annual Report for the Child and Youth Wellbeing Strategy and the second Child Poverty Related Indicators (CPRI) Report, both of which highlight improvements in the lives of children as a result of actions of the Government, while setting out the need for ongoing action.  ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Formal consultation starts on proposals for Hawera schools
    Education Minister Chris Hipkins today announced a formal consultation for the future of schooling in Hawera. "Recent engagement shows there is a lot of support for change. The preferred options are for primary schools to be extended to year 7 and 8, or for a year 7-13 high school to ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • He Whenua Taurikura: New Zealand’s Hui on Countering Terrorism and Violent Extremism
    The Government is progressing another recommendation of the Royal Commission of Inquiry report into the terrorist attack on Christchurch masjidain by convening New Zealand’s first national hui on countering terrorism and violent extremism. He Whenua Taurikura, meaning ‘a land or country at peace’, will meet in Christchurch on 15 and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Hundreds of new electric cars for state sector
    Total of 422 new electric vehicles and charging infrastructure across the state sector $5.1 million for the Department of Conservation to buy 148 electric vehicles and install charging infrastructure $1.1 million to help Kāinga Ora buy 40 electric vehicles and install charging infrastructure 11,600 tonnes of carbon emissions saved over ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Apartments give new life to former Trade Training hostel
    A building that once shaped the Māori trade training industry will now revitalise the local community of Ōtautahi and provide much needed housing for whānau Minister for Māori Development Willie Jackson announced today. The old Māori Trade Training hostel, Te Koti Te Rato, at Rehua Marae in Christchurch has been ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Opening of Te Kōti o Te Rato at Rehua Marae, Ōtautahi
    *Check with delivery* It is a great pleasure to be here with you all today. I acknowledge Ngāi Tūāhuriri and the trustees of Te Whatu Manawa Māoritanga o Rehua Trust Board. The opening of six new apartments on these grounds signifies more than an increase in much-needed housing for Ōtautahi. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Major step to pay parity for early learning teachers
    Certificated teachers on the lowest pay in early education and care services will take another leap towards pay parity with their equivalents in kindergartens, Education Minister Chris Hipkins said in a pre-Budget announcement today. “Pay parity for education and care teachers is a manifesto commitment for Labour and is reflected ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand Wind Energy Conference
    Tēnā koutou katoa Tēnā koutou i runga i te kaupapa o te Rā No reira, tēnā koutou, tēnā koutou, tēnā tatou katoa  Thank you Grenville for the introduction and thanks to the organisers, the New Zealand Wind Energy Association, for inviting me to speak this morning. I’m delighted that you ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to New Zealand Drug Foundation 2021 Parliamentary Drug Policy Symposium
    Speech to Through the Maze: On the road to health New Zealand Drug Foundation 2021 Parliamentary Drug Policy Symposium Mōrena koutou katoa, Tēnei te mihi ki a koutou, Kua tae mai nei me ngā kete matauranga hauora, E whai hononga ai tatau katoa, Ka nui te mihi! Thank you for the opportunity ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt to deliver lower card fees to business
    Commerce and Consumer Affairs Minister David Clark has today announced the Government’s next steps to reduce merchant service fees, that banks charge businesses when customers use a credit or debit card to pay, which is estimated to save New Zealand businesses approximately $74 million each year. “Pre COVID, EFTPOS has ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government support boosts Arts and Culture sector
    Government support for the cultural sector to help it recover from the impact of COVID-19 has resulted in more cultural sector jobs predicted through to 2026, and the sector performing better than forecast. The latest forecast by economic consultancy ‘Infometrics’ reflects the impact of Government investment in keeping people in ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt takes further action against gang crime
    The Government will make it illegal for high risk people to own firearms by introducing Firearms Prohibition Orders (FPOs) that will strengthen action already taken to combat the influence of gangs and organised crime to help keep New Zealanders and their families safe, Police Minister Poto Williams and Justice Minister ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Thousands of MIQ spaces allocated to secure economic recovery
    Five hundred spaces per fortnight will be allocated in managed isolation facilities over the next 10 months, many for skilled and critical workers to support our economic recovery, COVID-19 Response Minister Chris Hipkins and Agriculture Minister Damien O’Connor say. “The Trans-Tasman bubble has freed up more rooms, allowing us to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand Sign Language Week a chance to recognise national taonga
    This week (10 – 16 May 2021) is New Zealand Sign Language Week (NZSL), a nationwide celebration of NZSL as an official language of New Zealand. “We’re recognised as a world leader for our commitment to maintaining and furthering the use of our sign language,” says Minister for Disability Issues ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Economic resilience provides more options in Budget 2021
    Securing the recovery and investing in the wellbeing of New Zealanders is the focus of Budget 2021, Grant Robertson told his audience at a pre-budget speech in Auckland this morning. "The economy has proven resilient in response to COVID-19, due to people having confidence in the Government’s health response to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pre-Budget speech to BNZ-Deloitte Auckland Breakfast Event
    Thank you for the invitation to speak to you today, and to share with you some of the Government’s thinking leading into this year’s budget. This will be my fourth time delivering the annual Budget for the Government, though the events of the past year have thrown out that calculation. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Rotuman Language week affirms language as the key to Pacific wellbeing
    The first Pacific Language Week this year  makes it clear that  language is the key to the wellbeing for all Pacific people said Minister for Pacific Peoples, Aupito William Sio. “This round of language  weeks begin with Rotuman. As I have always  said language is one of the pillars of ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Budget delivers improved cervical and breast cancer screening
    Budget 2021 funds a more effective cervical screening test to help reduce cervical cancer rates A new breast screening system that can proactively identify and enrol eligible women to reach 271,000 more people who aren’t currently in the programme. Budget 2021 delivers a better cervical screening test and a major ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • NZ-France to co-chair Christchurch Call Leaders’ Summit
    New Zealand and France will jointly convene the Christchurch Call Community for a leaders’ summit, to take stock of progress and develop a new shared priority work plan. Prime Minister Jacinda Ardern and President Emmanuel Macron will co-chair the leaders’ meeting on the 2nd anniversary of the Call, on 14 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New South Wales travel pause to be lifted tomorrow
    COVID-19 Response Minister Chris Hipkins says the current travel pause with New South Wales will lift tomorrow – subject to no further significant developments in NSW. “New Zealand health officials met today to conduct a further assessment of the public health risk from the recently identified COVID-19 community cases in Sydney. It has been determined that the risk to public ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • March 15 Collective Impact Board appointed
    The voices of those affected by the March 15 mosque attacks will be heard more effectively with the establishment of a new collective impact board, Associate Minister for Social Development and Employment Priyanca Radhakrishnan announced today. Seven members of the Christchurch Muslim community have been appointed to the newly established Board, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More young Kiwis supported with mental health and addiction services
    Nearly quarter of a million more young New Zealanders will have access to mental health and addiction support in their communities as the Government’s youth mental health programme gathers pace. New contracts to expand youth-specific services across the Northland, Waitematā and Auckland District Health Board areas have been confirmed, providing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New hospital facilities mean fewer trips to Auckland for Northlanders
    Northlanders will no longer automatically have to go to Auckland for lifesaving heart procedures like angiograms, angioplasty and the insertion of pacemakers, thanks to new operating theatres and a cardiac catheter laboratory opened at Whangārei Hospital by Health Minister Andrew Little today. The two projects – along with a new ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Fair Pay Agreements to improve pay and conditions for essential workers
    The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today. Fair Pay Agreements will set minimum standards for all employees and employers in an ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Establishment of the new Māori Health Authority takes first big step
    Sir Mason Durie will lead a Steering Group to provide advice to the Transition Unit on governance arrangements and initial appointments to an interim board to oversee the establishment of the Māori Health Authority. This Group will ensure that Māori shape a vital element of our future health system, Minister ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cycle trails move up a gear in Central
    Work on new and upgraded cycle trails in Queenstown, Arrowtown and Central Otago is moving up a gear as two significant projects pass further milestones today. Tourism Minister Stuart Nash has announced new funding for the Queenstown Trails Project, and will also formally open the Lake Dunstan Trail at Bannockburn ...
    BeehiveBy beehive.govt.nz
    1 week ago