Business expansion results in higher profit and thus more money being taken out of the economy. The other problem is that the profit may not actually be used for expansion at all but just to increase ownership of existing assets (share buybacks come to mind) resulting in more profit going to less people with a corresponding increase in money taken out of the economy.
Of course, the business expansion may fail in which case there would be less profit for a time and thus less money taken out of the economy.
That's overly simplex of course but is accurate enough to give a general feel for how profit maximising brings about the collapse of an economy.
Perhaps I should have said out of circulation rather than out of the economy because money sitting in a bank account is not in circulation even if it is, technically, still in the economy.
What you mean, I think, is that money is removed from the business sector and handed over to consumers. But even wages do that.
I don't think profits sit in the bank. Rather they are either paid as dividends to shareholders or invested in further production. And, yes, companies sometimes buy back there own shares, but then money is paid to the original owners of those shares. This not to say of course that share buybacks are a good thing.
What you mean, I think, is that money is removed from the business sector and handed over to consumers.
No, that's not what I mean. If that money was handed over to consumers the economy would be better off as the money would keep circulating.
I don't think profits sit in the bank. Rather they are either paid as dividends to shareholders or invested in further production.
Dividends paid to shareholders are still profits. What happens after is the issue. Sitting in the bank doing nothing, spent to increase productive capacity (this here can also be a misallocation) or spent consumptively.
The first is the problem and the second can add to the second.
And, yes, companies sometimes buy back there own shares, but then money is paid to the original owners of those shares.
Which is most likely to be used either to buy shares or sit in the bank. It's unlikely to be used to increase productive capacity or consumption.
This not to say of course that share buybacks are a good thing.
If that money was handed over to consumers the economy would be better off as the money would keep circulating.
Shareholders are consumers. But you seem to be suggesting that dividends not needed for consumption should be kept under a mattress for safekeeping.
Dividends paid to shareholders are still profits. What happens after is the issue. Sitting in the bank doing nothing, spent to increase productive capacity (this here can also be a misallocation) or spent consumption.
What happens afterwards is of course the point. Dividends can be spent on consumption or saved. But there are limits to what one can consume.
Which is most likely to be used either to buy shares or sit in the bank. It's unlikely to be used to increase productive capacity or consumption.
This of course is true of any type of remuneration, including wages and salaries.
Letting someone else use one's savings or capital isn't a functionless activity.
Yes it is as it provides nothing
You don't actually let anyone else use your savings. Instead the bank creates new money for the 'loan' and doesn't actually loan out the money in savings accounts and thus we get back to 1.
But there are limits to what one can consume.
Yes and so any remuneration above that is, effectively, a dead-weight loss as the money will no longer circulate in the economy.
Lending someone else your capital is not directly productive, but it enables productive investment. What is the difference, where the economy is concerned, between using your savings for productive purposes and letting someone else use them for the same purpose.
I agree that banks should not create money from nothing. But we were not discussing what banks do, but what people do with their savings. If savings are invested productively (and if people cannot do this themselves, in our economy they usually hand their savings over to an institution for investment) then they are not a dead weight on the economy.
Lending someone else your capital is not directly productive, but it enables productive investment.
That's the theory. The question is if that theory holds true in light of the fact that it is spending that drives the economy and not savings.
Part of the answer lies in the fact that the Gold Standard (or similar commodity currency) was in effect at the time that the above was postulated and there was a finite amount of money available and thus there actually was a need for savings to be loaned out for productive purposes. But even under the Gold Standard it is still spending that drives the economy. Without spending there is no income.
That's one problem but the other is that, because the gold accumulated in fewer and fewer hands through savings and then returns on investment of those savings, the amount of money in circulation decreases over time until there isn't enough to maintain sales resulting in a recession and then a depression. Its well known that under the Gold Standard recessions happened more often and lasted longer.
Now we have a full Fiat Currency where money can be made, as needed, at the press of a button. This removes the need for savings and even shares.
A business needs money to expand? Then all they really should be doing is going down to the State Bank and applying. If their business plan meets the criteria then the money is created and handed over for the business to spend. Technically, this is what happens but the private banks are used as an intermediary between the State Bank and the people taking out the loan (banks creating money out of nothing) and under the wrong assumptions (that they need savings first and that they need to pay interest).
So, now we're back to the Paradox of Thrift but there's not even the aspect of savings being used for productive purposes that would bring those savings back into circulation. In other words, savings are simply removed from circulation and are thus a decrease in spending/income.
A large part of the problem is that economics is still thought of as if we're still using the Gold Standard which hasn't been true since the last Gold Standard currency became a fiat currency in 1971 and it did that so that it could spend as needed without crashing the economy.
Today, the only purpose of having an income is to spend it but that only applies to people and businesses. Governments which maintain a sovereign currency don't need an income to be able to spend.
Don't even need to save for retirement as the government pension should be enough to live comfortably on and even have an overseas holiday every year.
But we were not discussing what banks do, but what people do with their savings.
Actually, we are as we're talking about the movement of currency through the system and how money removed from circulation (savings) crashes the economy but can be balanced through the creation of more money to maintain spending.
A fiat currency, done well, can remove the so called Business Cycle as spending will be maintained even if businesses collapse and do it without excessive inflation. But to be done well it needs to be recognised that we no longer need savings to fund productive investment.
It is spending that drives the economy and not savings.
I can’t disagree with that, but spending can be on either consumption goods or investment goods . Savings are normally spent on the latter, usually with various institutions acting as go-betweens.
The problem with the gold standard was that if a country ran into balance of payments difficulties it would lose gold, which would necessitate shrinking its money supply, and bring about a depression. This would not necessarily be a bad thing were it not for the fact that those difficulties are often not due to the monetary system so much as the often preditory trade policies of other countries. Much the same applies to floating currencies except that they run up debt instead of losing gold.
Now we have a full Fiat Currency where money can be made, as needed, at the press of a button. This removes the need for savings and even shares.
Most businesses try to maintain a balance between equity capital and borrowed capital. Running a business entirely on borrowed money is considered dangerous since loans have to be repaid, with interest, even when times are tough and revenues down. Of course a state bank, in the interests of stability, doesn’t need to foreclose on business loans, but I don’t think a state can afford too much forbearance: it is better to have shareholders to shoulder some of any losses.
It has been suggested that productivity increases, with the money supply remaining static, should lead to a lowering of prices with incomes remaining the same. That would be nice, but deflation tends to lead to depression. Or does it?
The problem with the gold standard was that if a country ran into balance of payments difficulties it would lose gold, which would necessitate shrinking its money supply, and bring about a depression.
Well, that's another problem with the Gold Standard. But even without international trade and predatory trade practices of foreign nations the accumulation of gold into fewer and fewer hands would curtail the spending needed to maintain the economy. Its a problem inherent to having a finite amount of money.
Of course a state bank, in the interests of stability, doesn’t need to foreclose on business loans, but I don’t think a state can afford too much forbearance: it is better to have shareholders to shoulder some of any losses.
A state bank, with access to the ability to create money on demand, doesn't need to charge interest either. If you were a business would you pay interest when you can get a loan without?
Fiat currency eliminates the need for savings, shares and interest charges. Any savings will go down in value at the rate of inflation.
And no business should have an unlimited credit flow from government but we still don't need shareholders. If a business, after a reasonable time, can't support itself from sales then it should get closed down.
And even if a business collapses their are still gains made. Experience for the people directly involved, learning from what went wrong and what went right that can be spread throughout society and even new plant that could be utilised. There's no real loss.
The government maintains stability not through supporting business but through maintaining people's ability to spend. Unemployment benefits, UBI, guaranteed jobs or a combination of them. The ability of the people to spend is what maintains business.
That would be nice, but deflation tends to lead to depression.
Deflation leads to business income being less than outgoings especially if the deflation is very steep. The business buys/produces something to sell with costs of $100 but can only sell for $90 we have a paper loss of $10.
But if that $90 can cover the costs of the next item sold then its still a viable business.
I don't really believe that government, for reasons more to do with logistics than principle, can shoulder the burden of financing the entire economy. Some of the financing has to come from the private sector, either in the form of equity financing or borrowing.
I don't really believe that government, for reasons more to do with logistics than principle, can shoulder the burden of financing the entire economy.
Considering that the private surplus is provided by the government deficit then the only possible conclusion is that the government is already financing the entire economy.
The logistics are presently provided by private intermediariessuch as banks. This could be achieved just as well through other means such as direct democracy. After all, why shouldn't the people have a say in how their resources are used?
Some of the financing has to come from the private sector, either in the form of equity financing or borrowing.
No, it actually doesn't and I believe that it would be better for society if it didn't.
I think "every cent" of profit should be paid to shareholders as dividends. If a company wishes to retain earnings then all or part of its dividends should consist of new shares.
One of the problems with the way companies are structured at present is that companies retain earnings. This means that the (book) values of companies increase without a corresponding increase in the number of shares on issue. This means that share values must increase. This may well be why we have stock market bubbles.
mikesh Your reckons might be good but DTB has been putting in the hard yards looking at the economy and politics for decades. How long have you been looking hard at it?
New ideas let’s have them but refer to something will you.Economic textbook?
I hope that is sarcasm, because Mikesh is clearly correct. Company profits are not a drain on income. They do tend to go to people who save more of their income (and saving is a drain), but saving can also occur from salary payments.
They do tend to go to people who save more of their income (and saving is a drain), but saving can also occur from salary payments.
Yeah, and I've also said that we're paid too much although, at the time, that was more to do with how much waste well off countries tend to generate through simply throwing good stuff away. Excessive income results in people having less respect for the resources used. Individually, overpaid people can afford the waste but the country can't hence why we needed shower-head and light bulb regulation.
Back to profits and the same thing applies to high wages/salary with excess going into savings that results in less money in circulation and thus a slowing down of the economy. Throw in interest on those savings and the slow down is exponential.
Continuing reading the book and she gives this example:
Profits, themselves, are a fiscal surplus which can only be negated if those profits are fully spent.
There's a graph around (that I linked to years ago) showing government deficits mirroring private surpluses. In other words, to have a private profit requires that there be a government deficit.
There's a graph around (that I linked to years ago) showing government deficits mirroring private surpluses. In other words, to have a private profit requires that there be a government deficit.
Private savings require a government deficit. Any income may be saved, not just profits.
Company profits are not a drain on income. They can be. I don't know if your statement is an economic rule, but it isn't verity. If a company is a monopoly or part of a cartel it can manipulate the market, and make a 'killing' from consumers having to pay excessive prices beyond the actual cost of production etc.
Housing at present is dominated by a cartel isn't it?
According to research carried out by Steve Keen monopolies work the same as competitive companies. Other research shows that competitive companies manipulate the market using tools such as advertising.
And, of course, the whole point of having competitive companies is to decrease profit.
There is a different approach which comes from the felt affects on particular financial classes of whatever economic precepts you are quoting. And that is what matters in the final analysis.
Making her way down the affluent suburb’s main stretch from the Seed Heritage store toward the Ponsonby Central eatery, Collins was greeted by smiling people speaking praise for Collins and National and congratulating her on last night’s debate.
It later transpired many of them had been installed there for the cameras. National’s Auckland Central candidate Emma Mellow admitted as much when asked by media. “I’ve got a lot of supporters here in Auckland Central and they wanted the opportunity to meet Judith so I invited them along”, she said.
Collins brushed away questions about why the party had invited so-called “locals” down to meet her, saying the lack of real people was evidence of a lack of foot traffic in Ponsonby, caused by economic downturn.
Come on, Ponsonby road is always full of pedestrians. Anyone noticed it being deserted due to recession?
The New Zealand Initiative is a pro-free-market public-policy think tank and business membership organisation in New Zealand. It was formed in 2012 by merger of the New Zealand Business Roundtable and the New Zealand Institute.
So with that in mind this clever unbiased group are attacking child centred learning. And then get a secondary Principal to comment. Idiots. Children who are involved in setting parameters of study learn all those self control, goal setting, credibility judgements, and self evaluative skills that are transferable across life. and the depth in that learning can be outstanding.
The interference from this lot is the sort of thing that lead to National Standards!
So, given that child-centred learning is far better for both the children and society in general than the old rote learning we have to ask what they actually want to achieve.
To be perfectly honest, only a total prude would support the current situation.
It's all about drug use being a 'sin' and in the traditional Calvinist spirit, 'sinners' need to be punished with the full force of the law, and made to pay penance.
Bennett, Garner, Collins and all the rest are nothing more than prudes, which want to use the law to impose their puritan agenda, and turn us all into pure modest church goers.
Next along the line it will be who you can and can't date/sleep with, and what you can and cannot wear.
They should have learnt back years ago when they were defeated on prohibition.
Disclaimer: I have never used pot, and dont intend of using it in the future, legal or not. I just dont think anyone has a moral right to stop others from (responsibly) using pot.
I'm not a prude nor feel I need a recreational toke. On one hand I want weed decriminalised on the other hand I am bloody sick of living with a dope smoker.
Interesting that the police position seems to be that everything should be black or white, rule defined, and avoid anything that may be grey. Funny how the Noes are ignoring the wild west running now. (And I never have smoked it nor intend to. But the National and ACT who are freedom of choice and the rights of the individual ,surely they would vote YES?)
I've never used the stuff either. Can't see it as stuff to take a moral stand over either.
I do know that we have spent lots of dollars over the years on the negative outcomes of police, corrections etc. etc and with no other result. If it's seriously bad for us I'm sure the Health department will nag us into submission pronto.
When you work frequently with different individuals who are not just "a few times a week mellowing out" and who in the main are living in relationships or in family circumstances, there are impacts on a significant number of others. The affects of habitual use like any addictions causes harm in varying ways and to different degrees in families.
There are not simple answers for these families like kick them out, potty training or go to the garage. Nor is age and stating a potency max as words in law particularly harm reducing or laws that are going to be abided by let alone enforced.
What has not been addressed in law changing is the leading factors that may underpin use and dependency other than medicinal for health or making an illicit buck. Or simplifying that it's better than something else as a sufficient reason to mitigate harm.
At the other end, are there adequate social harm resources as responses, mental health workers for one as support for users who have greater propensity for depression and or ideation of suicide, or adequate resources addressing the suffering of trauma underlying use. Literature also points to more $$ resourcing iyoung person's health education regardless of legislating.
Unanswered responses in new law- With adults free choice, is it okay for an unborn child to have cannabis when pregnant? What's the long term consequence for cognitive ability as one perspective? How is parental responsible use guaranteed with children not being momentarily safeguarded while mellowed out? For one child just a few months back they hung to death in their cot after a horrible struggle went unheard while parent was zoned out. Right now, another 12 year old needing a new home because grandparent can't be fucked. As soon as the child was in a relative's home for the holidays, the grandparent declared 'don't want them back' , on going to the home to collect child's gear, well fuck me, the kid's sunny bedroom was already filled with pot plants !!!
Put at least as many agencies for picking up pieces for kids or places for rehab as there will be number of shops to buy weed ? It's the same product legal or not.
Legalising yes, as stated have a law. But address what already exists instead of pretending a law change makes all things well in the world. Put more bucks on the table and resources in place for the already undesirable consequences in communities. Yes there is evidence that legislation does not increase uptake of number of individuals. However, it's ludicrous to believe that we are all just responsible, careful, a few times a week users and weed is just a benign harmless, recreational substance.
Doco on Netflix, Murder Mountain, regarding a whole bunch of illegal growers going legit … & wishing it was illegal again, coz they just can't make any money!
The way I see it, people are going to take weed regardless. I'd rather there be measures in place than a blind eye being turned.
Also by voting yes, which I will, WE get the opportunity to create the law surrounding it, via committee's etc etc. I think that is really important. You will be able to have your say on your concerns and ideas ie putting money into resources etc. By voting no, nothing will change and ignorance will remain.
I'm sorry to hear you are living with an addict, that's hard work, I've lived with alcoholics, junkies and stoners before, in my experience the stoners were the easiest of the lot. At least they don't beat you up or steal everything like a junkie or an alcoholic does.
If the person you live with is a dab hand at gardening, a horticulture course could be the answer, they would probably get top marks. Just try to look for the positive.
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Ringing A Clear Historical Bell: The extraordinary images captured in and around the US Capitol Building on 6 January 2021 mirror some of the worst images of America's past.THERE IS A SCENE in the 1982 movie Missing which has remained with me for nearly 40 years. Directed by the Greek-French ...
To impact or not to impeach? I understand why some of those who are justifiably aghast at Trump’s behaviour over recent days might still counsel against impeaching him for a second time. To impeach him, they argue, would run the risk of making him a martyr in the eyes of ...
The Capitol Building, Washington DC, Wednesday, 6 January 2021. Oh come, my little one, come.The day is almost done.Be at my side, behold the sightOf evening on the land.The life, my love, is hardAnd heavy is my heart.How should I live if you should leaveAnd we should be apart?Come, let me ...
A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week: Sun, Jan 3, 2021 through Sat, Jan 9, 2021Editor's ChoiceAfter the Insurrection: Accountability, Reform, and the Science of Democracy The poisonous lies and enablers of sedition--including Senator Hawley, pictured ...
This article, guest authored by Prof. Angela Gallego-Sala & Dr. Julie Loisel, was originally published on the Carbon Brief website on Dec 21, 2020. It is reposted below in its entirety. Click here to access the original article and comments. Peatlands Peatlands are ecosystems unlike any other. Perpetually saturated, their ...
The assault on the US Capitol and constitutional crisis that it has caused was telegraphed, predictable and yet unexpected and confusing. There are several subplots involved: whether the occupation of the Michigan State House in May was a trial run for the attacks on Congress; whether people involved in the ...
On Christmas Eve, child number 1 spotted a crack in a window. It’s a double-glazed window, and inspection showed that the small, horizontal crack was in the outermost pane. It was perpendicular to the frame, about three-quarters of the way up one side. The origins are a mystery. It MIGHT ...
Anne-Marie Broudehoux, Université du Québec à Montréal (UQAM)Will the COVID-19 pandemic prompt a shift to healthier cities that focus on wellness rather than functional and economic concerns? This is a hypothesis that seems to be supported by several researchers around the world. In many ways, containment and physical distancing ...
Does the US need to strike a grand bargain with like-minded countries to pool their efforts? What does this tell us about today’s global politics? Perhaps the most remarkable editorial of last year was the cover leader of the London Economist on 19 November 2020. Shortly after Joe Biden was ...
Alexander Gillespie, University of Waikato and Valmaine Toki, University of WaikatoAotearoa New Zealand likes to think it punches above its weight internationally, but there is one area where we are conspicuously falling behind — the number of sites recognised by the UNESCO World Heritage Convention. Globally, there are 1,121 ...
A growing public housing waiting list and continued increase of house prices must be urgently addressed by Government, Green Party Co-leader Marama Davidson said today. ...
[Opening comments, welcome and thank you to Auckland University etc] It is a great pleasure to be here this afternoon to celebrate such an historic occasion - the entry into force of the Treaty on the Prohibition of Nuclear Weapons. This is a moment many feared would never come, but ...
The Government is providing $3 million in one-off seed funding to help disabled people around New Zealand stay connected and access support in their communities, Minister for Disability Issues, Carmel Sepuloni announced today. The funding will allow disability service providers to develop digital and community-based solutions over the next two ...
Border workers in quarantine facilities will be offered voluntary daily COVID-19 saliva tests in addition to their regular weekly testing, COVID-19 Response Minister Chris Hipkins said today. This additional option will be rolled out at the Jet Park Quarantine facility in Auckland starting on Monday 25 January, and then to ...
The next steps in the Government’s ambitious firearms reform programme to include a three-month buy-back have been announced by Police Minister Poto Williams today. “The last buy-back and amnesty was unprecedented for New Zealand and was successful in collecting 60,297 firearms, modifying a further 5,630 firearms, and collecting 299,837 prohibited ...
The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government is committed to continuing its public house build programme at pace and scale. The extra 8,000 homes – 6000 public ...
Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter to both our countries,” Jacinda Ardern said. “New Zealand ...
A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
$36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
Babies born with tongue-tie will be assessed and treated consistently under new guidelines released by the Ministry of Health, Associate Minister of Health Dr Ayesha Verrall announced today. Around 5% to 10% of babies are born with a tongue-tie, or ankyloglossia, in New Zealand each year. At least half can ...
The prisoner disorder event at Waikeria Prison is over, with all remaining prisoners now safely and securely detained, Corrections Minister Kelvin Davis says. The majority of those involved in the event are members of the Mongols and Comancheros. Five of the men are deportees from Australia, with three subject to ...
Travellers from the United Kingdom or the United States bound for New Zealand will be required to get a negative test result for COVID-19 before departing, and work is underway to extend the requirement to other long haul flights to New Zealand, COVID-19 Response Minister Chris Hipkins confirmed today. “The new PCR test requirement, foreshadowed last ...
Seventy-five years after the US detonated the first nuclear tests in the Pacific, New Zealand pledges its support to Joe Biden's first tentative step towards disarmament. Today, the United Nations Treaty on the Prohibition of Nuclear Weapons comes into effect, making it illegal for New Zealand and the 50 other ...
Source: The Conversation (Au and NZ) – By Peter Terry, Professor of Psychology, University of Southern Queensland The challenge of bringing the world’s best tennis players and support staff, about 1,200 people in all, from COVID-ravaged parts of the world to our almost pandemic-free shores was always going to be ...
Source: The Conversation (Au and NZ) – By Geoffrey Browne, Research Fellow in International Urban Development, University of Melbourne The Victorian government has committed to removing 75 road/rail level crossings across Melbourne by 2025. That’s the fastest rate of removal in the city’s history. The scale of the investment — ...
Source: The Conversation (Au and NZ) – By Richard Holden, Professor of Economics, UNSW In an age of hyperpartisan politics, the Biden presidency offers a welcome centrism that might help bridge the divides. But it is also Biden’s economic centrism that offers a chance to cut through what has become ...
Source: The Conversation (Au and NZ) – By Kate Stevens, Lecturer in History, University of Waikato In a year of surprises, one of the more pleasant was the recent runaway viral popularity of 19th century sea shanties on TikTok. A collaborative global response to pandemic isolation, it saw singers and ...
The sudden departure of Graine Moss from her Chief Executive role at Oranga Tamariki is a vital first step in a sequence of changes that must take place at the Ministry according to a group of wahine Māori leaders. Dame Naida Glavish, Dame Tariana Turia, ...
A new poem from Dunedin poet Jenny Powell.Her uncle’s eyeShe introduced us to her uncle’s eye floating in a jar.Lost in an accident, he hadn’t wanted to lose it again. He left it to her in his will.We must have looked shocked. ‘Don’t worry,’ she said. ‘I turn him to ...
The chief executive of Oranga Tamariki is quitting, leaving behind an agency she’s admitted suffers from structural racism. Justin Giovannetti looks at the future of Oranga Tamariki.Grainne Moss’s tenure as head of Oranga Tamariki has been untenable since November when the government’s senior Māori minister wouldn’t express any confidence in ...
Source: The Conversation (Au and NZ) – By Christopher Sainsbury, Senior Lecturer Composition, Australian National University Despite having different cultural backgrounds and experiences — Indigenous composers with an Indigenous mentor, and a pianist descended from Anglo-colonial history — it is nevertheless possible to create a project that can serve as ...
Source: The Conversation (Au and NZ) – By Michael Plank, Professor in Applied Mathematics, University of Canterbury With new, more infectious variants of COVID-19 detected around the world, and at New Zealand’s border, the risk of further level 3 or 4 lockdowns is increased if those viruses get into the ...
Source: The Conversation (Au and NZ) – By Rachel Hogg, Lecturer in Psychology, Charles Sturt University Horse racing is an ethical hotbed in Australia. The Melbourne Cup alone has seen seven horses die after racing since 2013, and animal cruelty protesters have become a common feature at carnivals. The latest ...
Right now, our most fiery national debate is over whether New Zealanders were nice to the singer Amanda Palmer in a café. Desperate to restore peace in our nation, Hayden Donnell went in search of the truth.Joe Biden had barely finished calling for unity when Amanda Palmer posted a tweet ...
The only published and available best-selling indie book chart in New Zealand is the top 10 sales list recorded every week at Unity Books’ stores in High St, Auckland, and Willis St, Wellington.AUCKLAND1 When We Cease to Understand the World by Benjamin Labatut (Pushkin Press, $37)Maths, cyanide, suicide, gardening; ye ...
Wellington artist Estère isn’t just breaking boundaries, she’s dissecting them. Maddi Rowe spoke to her about her new album, Archetypes.“That’s the story of pelicans, they’ll stab themselves in the heart to feed their young.”Despite the somewhat dark subject matter, Estère Dalton’s eyes sparkle with fascination. We’ve met to discuss Archetypes, ...
Cycling advocates are welcoming new advice from the Transport Agency on safe cycling. "Cyclists hate it when drivers pass too close. That's scary and dangerous," said Patrick Morgan from Cycling Action Network. "So it's encouraging to see ...
Source: The Conversation (Au and NZ) – By Tilman Ruff, Honorary Principal Fellow, School of Population and Global Health, University of Melbourne Today, many around the world will celebrate the first multilateral nuclear disarmament treaty to enter into force in 50 years. The UN Treaty on the Prohibition of Nuclear ...
The Public Service Association welcomes the creation of a Chief Executive role to lead the public service’s pay equity work, and the appointment of Grainne Moss to this position. "Unions and public service employers are currently working ...
The Council of Trade Unions is warning that the Consumer Price Index (CPI) figures out today illustrate that the cost of living is increasing disproportionately for those on lower incomes; resulting in the poor getting poorer. CTU Economist Craig ...
Why are there so many offensive comments on the New Zealand Police Facebook page and are they breaking the law? Janaye Henry investigates. New Zealand Police Facebook pages – there are a number of them, for different regional police districts around the country – are an interesting place to spend ...
Our guide to stopping procrastinating and actually (finally) getting on top of investing. Because there’s a good chance that if you’re reading this, you don’t know a single thing about it.In part one, we covered some of the basic things you need to know about investing – why do it? ...
Children’s Commissioner Andrew Becroft acknowledges the huge effort and commitment of departing Oranga Tamariki Chief Executive Grainne Moss and says her decision to resign today was principled. “The issues facing Oranga Tamariki are beyond individual ...
Analysis by Keith Rankin. Two Large Waves versus One Tsunami. Chart by Keith Rankin. Two Large Waves versus One Tsunami. Chart by Keith Rankin. With Covid19, Italy shows the classic European pattern, with its early outbreak, substantial recovery thanks to lockdowns and other public health measures, and resurgence thanks to complacency ...
Source: The Conversation (Au and NZ) – By Gabrielle Appleby, Professor, UNSW Law School, UNSW This year has already seen significant progress in the government’s commitment to establish a body – a “Voice” – that would allow Aboriginal and Torres Strait Islander people to have a say when the government ...
Northland farmer Derek Robinson was sentenced earlier today by the District Court in Whangarei for two offences of ill-treating animals at rodeo events. Mr Robinson was found guilty in November last year, following a defended hearing. The charges ...
Under fire Oranga Tamariki chief executive Grainne Moss has announced she will resign, effective February 28, Marc Daalder reports After four and a half years at the helm of child protection agency Oranga Tamariki, chief executive Grainne Moss has announced she will be leaving the position at the end of ...
The Department of Internal Affairs and New Zealand Police acknowledge the sentencing of 36-year-old Aaron Joseph Hutton on charges relating to the possession of child sexual exploitation material, and entering into a dealing involving the sexual exploitation ...
Ngā Tāngata Microfinance (NTM) is calling for tougher penalties for those caught promoting pyramid schemes. Such business models are illegal under the Fair Trading Act 1986. This call comes after the Commerce Commission issued a ‘stop now’ notice ...
British High Commissioner to New Zealand Laura Clarke is calling on young women aged 17 to 25 to apply for the annual ‘Be British High Commissioner for the Day’ competition. The winner will have the opportunity to become an ‘honorary High Commissioner’, ...
The Māori Party is welcoming the resignation of Oranga Tamariki chief executive Grainne Moss after sustained pressure from leading figures within the Māori Party. This resignation is the result of the continued strong pressure of the Māori Party ...
In a historic corner of Dunedin, startup culture is thriving. Catherine McGregor visited the city’s Warehouse Precinct to meet the people driving the movement. When Jason and Kate Lindsey bought the four storey building now known as Petridish, it was an absolute wreck. Once home to a thriving hat and textiles ...
Summer reissue: The Fold’s very first guest is back to tell Duncan Greive how she pulled off the media deal of the year.The chaotic couple of weeks which finally saw the end of the Stuff-NZME saga were riveting and strange, replete with stock exchange announcements, legal challenges and finally the ...
Chris Liddell has dropped his candidacy to become director-general of the Paris-based OECD. Without support from the Ardern government and vilified in the media as somehow being involved in the encouragement by Donald Trump of the Washington riots, he plainly saw he had little chance of crowning his stellar career ...
Tara Ward hands out her first impression roses as she dives deep into the sea of single men vying to win The Bachelorette NZ’s heart. While the world burns in a searing fireball of unpredictability, we can take comfort in the fact that some things never change. The heart still yearns, ...
People from all around New Zealand will be converging on the super-secret Waihopai satellite interception spybase, in Marlborough, on Saturday January 30th. ...
In its Thursday editorial the NZ Herald speaks an important truth: “Investment important to stay on track”. This won’t have startled its more literate readers but in its text it notes the strong result in the latest Global Dairy Trade auction, which prompted Westpac to raise its forecast for dairy ...
Source: The Conversation (Au and NZ) – By Craig Mark, Professor, Faculty of International Studies, Kyoritsu Women’s University With the spread of COVID-19 steadily worsening in Japan since the onset of winter — daily records for infections and deaths continue to be broken — the fate of the Tokyo Summer ...
Source: The Conversation (Au and NZ) – By Adam Taylor, Early Career Research Leader, Emerging Viruses, Inflammation and Therapeutics Group, Menzies Health Institute Queensland, Griffith University All eyes are on COVID-19 vaccines, with Australia’s first expected to be approved for use shortly. But their development in record time, without compromising ...
Yesterday’s government announcement on new state housing is a pathetic response to the biggest housing crisis in New Zealand since the 1940s. At a time when the country needs an industrial-scale state house building programme, the government ...
Source: The Conversation (Au and NZ) – By Obadiah Mulder, PhD Candidate in Computational Biology, University of Southern California Australia is in the midst of tropical cyclone season. As we write, a cyclone is forming off Western Australia’s Pilbara coast, and earlier in the week Queenslanders were bracing for a ...
Source: The Conversation (Au and NZ) – By Lynette Vernon, School of Education – VC Research Fellow, Edith Cowan University When the holidays end, barring a fresh outbreak of COVID-19, teenagers across Australia will head back to school. Some will bounce out of bed well before the alarm goes off, ...
Source: The Conversation (Au and NZ) – By Richard Holden, Professor of Economics, UNSW In an age of hyperpartisan politics, the Biden presidency offers a welcome centrism that might help bridge the divides. But it is also Biden’s economic centrism that offers a chance to cut through what has become ...
Source: The Conversation (Au and NZ) – By Gary Mortimer, Professor of Marketing and Consumer Behaviour, Queensland University of Technology Twenty years ago, on January 25 2001, a virtually unknown German supermarket chain quietly opened its first stores in Australia. The two stores – one in Sydney’s inner-west suburb of ...
Source: The Conversation (Au and NZ) – By Liz Giuffre, Senior Lecturer in Communication, University of Technology Sydney Bluey is easily the most successful Australian television show of the last decade. A record-breaking success for its local broadcaster the ABC, as well as production partners BBC Studios and Screen Australia, ...
*This article first appeared on RNZ and is republished with permissionIt will take $3 million to clean up 1 million litres of abandoned toxic waste from a property in Ruakaka - three times more than the last big chemical clean-up undertaken by government agencies A two-year mission to clean up 1 million ...
*This article first appeared on RNZ and is republished with permission. The action Biden took on just his first afternoon in office demonstrates a radical shift in priority for the US when it comes to its efforts to combat the climate crisis. It could put more pressure on New Zealand to step up. ...
Ban Bomb Day event at the New Brighton Pier, 9am, on January 22nd, 2021 January 22nd, 2021, marks the first day the Treaty on the Prohibition of Nuclear Weapons (TPNW) Enters into Force and becomes international law. Aotearoa NZ is one of the ...
This week's biggest-selling New Zealand books, as recorded by the Nielsen BookScan New Zealand bestseller list and described by Steve BrauniasFICTION 1 Tell Me Lies by J.P. Pomare (Hachette, $29.99) Every January, there's a new best-selling crime thriller by the New Zealand-born author who lives in Melbourne. Pomare is ...
Our approach so far in trying to end what Dr Collin Tukuitonga describes as a 'racist' disease - rheumatic fever - has not worked. It's time we try something new, he writes. Acute rheumatic fever and the rheumatic heart disease it causes, long-known as a disease of poverty, is a blight on ...
New Zealand triple-code star, Anna Harrison, can't stop returning to the courts - whether it's netball or beach volleyball. She tells Ashley Stanley what keeps drawing her back. The day before Anna Harrison leaps back into netball, she will have one more hit-out at another of her favourite old sports ...
The lights are burning into the night at the New York Yacht Club's America's Cup base as they race to fix their damaged boat. And Suzanne McFadden discovers something surprising may emerge. Out of American Magic’s calamity may come opportunity - for even more speed. While the lights burn bright ...
New to sailing? With the Prada Cup resuming this weekend, here’s how to bluff your way into sounding like a pro. When I was 10, my mum made my brother and I join the local sailing club. It was a favourite pastime of families in Kerikeri, and my brother was actually ...
A formal complaint to the UN, signed by a NZ Muslim group, says France’s Islamophobic laws and policies are entrenching discrimination and breaching human rights laws. The Khadija Leadership Network has joined a global coalition of Muslim organisations to formally complain about the French government’s systemic entrenchment of Islamophobia and discrimination against ...
Summer reissue: Join Michèle A’Court, Alex Casey, Leonie Hayden and a lineup of incredibly successful New Zealand women as they confront their imposter syndrome once and for all. First published 20 October, 2020. Independent journalism depends on you. Help us stay curious in 2021. The Spinoff’s journalism is funded by its members ...
With criticism from National piling on over the property market, the prime minister has detailed when the government will make housing announcements. ...
Source: The Conversation (Au and NZ) – By Marco Rizzi, Senior Lecturer in Law, University of Western Australia Some Australians could be receiving a COVID-19 vaccine within weeks. Amid the continued spread of the virus and emergence of highly contagious variants, the federal government has accelerated the start of the ...
Source: The Conversation (Au and NZ) – By Euan Ritchie, Professor in Wildlife Ecology and Conservation, Centre for Integrative Ecology, School of Life & Environmental Sciences, Deakin University Australia’s Threatened Species Strategy — a five-year plan for protecting our imperilled species and ecosystems — fizzled to an end last year. ...
Source: The Conversation (Au and NZ) – By Arosha Weerakoon, Lecturer, General Dentist & PhD Candidate, The University of Queensland Baby teeth, or milk teeth, act like lighthouses to guide the adult ones to their correct destination. A baby tooth will become wobbly and fall out because the adult tooth ...
Business is Boring is a weekly podcast series presented by The Spinoff in association with Callaghan Innovation. Host Simon Pound speaks with innovators and commentators focused on the future of New Zealand. This week he’s joined by Simon Coley, co-founder of All Good and Karma Drinks.Bananas are one of the ...
Tackling topics such as rugby and body image, Stuff’s latest podcast shines a much-needed light on Aotearoa’s complex relationship with masculinity, writes Trevor McKewen, author of the book Real Men Wear Black.I wasn’t sure what to think when two episodes of the new local podcast He’ll Be Right landed in ...
The Rainforest Alliance reveals that 68%* of Kiwis say the COVID-19 pandemic has made them more conscious about environmental and social sustainability issues. Seventy two percent* state that they have been trying to make more sustainable purchasing ...
Source: The Conversation (Au and NZ) – By Tama Leaver, Professor of Internet Studies, Curtin University The inventor of the World Wide Web, Tim Berners-Lee, has raised concerns that Australia’s proposed News Media and Digital Platforms Mandatory Bargaining Code could fundamentally break the internet as we know it. His concerns ...
ANALYSIS:By Scott Lucas, University of Birmingham Politics doesn’t have to be a raging fire destroying everything in its path Two weeks after the storming of the US Capitol by the followers of his predecessor, in the middle of an out-of-control pandemic that has killed more than 400,000 ...
Source: The Conversation (Au and NZ) – By Kate Cantrell, Lecturer, Creative Writing & English Literature, University of Southern Queensland Described as “the world’s greatest storyteller”, Roald Dahl is frequently ranked as the best children’s author of all time by teachers, authors and librarians. However, the new film adaptation of ...
Peak housing body, Community Housing Aotearoa (CHA) welcomes the updated Public Housing Plan announced today by Minister Woods, and the commitment by this Government to fix New Zealand’s housing crisis. The 8,000 additional homes are a significant ...
Having recently walked much of the South Island stretch of Te Araroa, Kirsten O’Regan reflects on the magnificent landscapes and interesting characters she encountered along the way.On our 36th day of walking, we climb through the fire-blackened hills above Ohau, stopping to examine heat-disfigured trail markers. Fresh green shoots have ...
Miss Torta in central Auckland is putting the spotlight on a snack that’s commonplace in Mexico, but until now relatively unknown in New Zealand.You’ve heard of a torta, but what is it, exactly? Well, depending on the cuisine it can mean a flatbread, cake, tart, sweet pie, savoury pie or ...
Unemployment is proof that the economy is not balanced and thus not working as it should. From The Deficit Myth by Kelton:
Profit is also a system that removes money from the economy.
Or profit is used for future business expansion and investment…but agree not every cent of profit would be used for this.
Business expansion results in higher profit and thus more money being taken out of the economy. The other problem is that the profit may not actually be used for expansion at all but just to increase ownership of existing assets (share buybacks come to mind) resulting in more profit going to less people with a corresponding increase in money taken out of the economy.
Of course, the business expansion may fail in which case there would be less profit for a time and thus less money taken out of the economy.
That's overly simplex of course but is accurate enough to give a general feel for how profit maximising brings about the collapse of an economy.
Profit is not taken out of the economy unless companies are owned overseas.
Perhaps I should have said out of circulation rather than out of the economy because money sitting in a bank account is not in circulation even if it is, technically, still in the economy.
This is the true message of the Paradox of Thrift.
What you mean, I think, is that money is removed from the business sector and handed over to consumers. But even wages do that.
I don't think profits sit in the bank. Rather they are either paid as dividends to shareholders or invested in further production. And, yes, companies sometimes buy back there own shares, but then money is paid to the original owners of those shares. This not to say of course that share buybacks are a good thing.
No, that's not what I mean. If that money was handed over to consumers the economy would be better off as the money would keep circulating.
Dividends paid to shareholders are still profits. What happens after is the issue. Sitting in the bank doing nothing, spent to increase productive capacity (this here can also be a misallocation) or spent consumptively.
The first is the problem and the second can add to the second.
Which is most likely to be used either to buy shares or sit in the bank. It's unlikely to be used to increase productive capacity or consumption.
Shares aren't a Good Thing as they induce bludging through the functionless investor.
If that money was handed over to consumers the economy would be better off as the money would keep circulating.
Shareholders are consumers. But you seem to be suggesting that dividends not needed for consumption should be kept under a mattress for safekeeping.
Dividends paid to shareholders are still profits. What happens after is the issue. Sitting in the bank doing nothing, spent to increase productive capacity (this here can also be a misallocation) or spent consumption.
What happens afterwards is of course the point. Dividends can be spent on consumption or saved. But there are limits to what one can consume.
Which is most likely to be used either to buy shares or sit in the bank. It's unlikely to be used to increase productive capacity or consumption.
This of course is true of any type of remuneration, including wages and salaries.
Shares aren't a Good Thing as they induce bludging through the functionless investor.
Letting someone else use one's savings or capital isn't a functionless activity.
Yes and so any remuneration above that is, effectively, a dead-weight loss as the money will no longer circulate in the economy.
Lending someone else your capital is not directly productive, but it enables productive investment. What is the difference, where the economy is concerned, between using your savings for productive purposes and letting someone else use them for the same purpose.
I agree that banks should not create money from nothing. But we were not discussing what banks do, but what people do with their savings. If savings are invested productively (and if people cannot do this themselves, in our economy they usually hand their savings over to an institution for investment) then they are not a dead weight on the economy.
That's the theory. The question is if that theory holds true in light of the fact that it is spending that drives the economy and not savings.
Part of the answer lies in the fact that the Gold Standard (or similar commodity currency) was in effect at the time that the above was postulated and there was a finite amount of money available and thus there actually was a need for savings to be loaned out for productive purposes. But even under the Gold Standard it is still spending that drives the economy. Without spending there is no income.
That's one problem but the other is that, because the gold accumulated in fewer and fewer hands through savings and then returns on investment of those savings, the amount of money in circulation decreases over time until there isn't enough to maintain sales resulting in a recession and then a depression. Its well known that under the Gold Standard recessions happened more often and lasted longer.
Now we have a full Fiat Currency where money can be made, as needed, at the press of a button. This removes the need for savings and even shares.
A business needs money to expand? Then all they really should be doing is going down to the State Bank and applying. If their business plan meets the criteria then the money is created and handed over for the business to spend. Technically, this is what happens but the private banks are used as an intermediary between the State Bank and the people taking out the loan (banks creating money out of nothing) and under the wrong assumptions (that they need savings first and that they need to pay interest).
So, now we're back to the Paradox of Thrift but there's not even the aspect of savings being used for productive purposes that would bring those savings back into circulation. In other words, savings are simply removed from circulation and are thus a decrease in spending/income.
A large part of the problem is that economics is still thought of as if we're still using the Gold Standard which hasn't been true since the last Gold Standard currency became a fiat currency in 1971 and it did that so that it could spend as needed without crashing the economy.
Today, the only purpose of having an income is to spend it but that only applies to people and businesses. Governments which maintain a sovereign currency don't need an income to be able to spend.
Don't even need to save for retirement as the government pension should be enough to live comfortably on and even have an overseas holiday every year.
Actually, we are as we're talking about the movement of currency through the system and how money removed from circulation (savings) crashes the economy but can be balanced through the creation of more money to maintain spending.
A fiat currency, done well, can remove the so called Business Cycle as spending will be maintained even if businesses collapse and do it without excessive inflation. But to be done well it needs to be recognised that we no longer need savings to fund productive investment.
It is spending that drives the economy and not savings.
I can’t disagree with that, but spending can be on either consumption goods or investment goods . Savings are normally spent on the latter, usually with various institutions acting as go-betweens.
The problem with the gold standard was that if a country ran into balance of payments difficulties it would lose gold, which would necessitate shrinking its money supply, and bring about a depression. This would not necessarily be a bad thing were it not for the fact that those difficulties are often not due to the monetary system so much as the often preditory trade policies of other countries. Much the same applies to floating currencies except that they run up debt instead of losing gold.
Now we have a full Fiat Currency where money can be made, as needed, at the press of a button. This removes the need for savings and even shares.
Most businesses try to maintain a balance between equity capital and borrowed capital. Running a business entirely on borrowed money is considered dangerous since loans have to be repaid, with interest, even when times are tough and revenues down. Of course a state bank, in the interests of stability, doesn’t need to foreclose on business loans, but I don’t think a state can afford too much forbearance: it is better to have shareholders to shoulder some of any losses.
It has been suggested that productivity increases, with the money supply remaining static, should lead to a lowering of prices with incomes remaining the same. That would be nice, but deflation tends to lead to depression. Or does it?
Well, that's another problem with the Gold Standard. But even without international trade and predatory trade practices of foreign nations the accumulation of gold into fewer and fewer hands would curtail the spending needed to maintain the economy. Its a problem inherent to having a finite amount of money.
A state bank, with access to the ability to create money on demand, doesn't need to charge interest either. If you were a business would you pay interest when you can get a loan without?
Fiat currency eliminates the need for savings, shares and interest charges. Any savings will go down in value at the rate of inflation.
And no business should have an unlimited credit flow from government but we still don't need shareholders. If a business, after a reasonable time, can't support itself from sales then it should get closed down.
And even if a business collapses their are still gains made. Experience for the people directly involved, learning from what went wrong and what went right that can be spread throughout society and even new plant that could be utilised. There's no real loss.
The government maintains stability not through supporting business but through maintaining people's ability to spend. Unemployment benefits, UBI, guaranteed jobs or a combination of them. The ability of the people to spend is what maintains business.
Deflation leads to business income being less than outgoings especially if the deflation is very steep. The business buys/produces something to sell with costs of $100 but can only sell for $90 we have a paper loss of $10.
But if that $90 can cover the costs of the next item sold then its still a viable business.
I don't really believe that government, for reasons more to do with logistics than principle, can shoulder the burden of financing the entire economy. Some of the financing has to come from the private sector, either in the form of equity financing or borrowing.
Considering that the private surplus is provided by the government deficit then the only possible conclusion is that the government is already financing the entire economy.
The logistics are presently provided by private intermediaries such as banks. This could be achieved just as well through other means such as direct democracy. After all, why shouldn't the people have a say in how their resources are used?
No, it actually doesn't and I believe that it would be better for society if it didn't.
I think "every cent" of profit should be paid to shareholders as dividends. If a company wishes to retain earnings then all or part of its dividends should consist of new shares.
One of the problems with the way companies are structured at present is that companies retain earnings. This means that the (book) values of companies increase without a corresponding increase in the number of shares on issue. This means that share values must increase. This may well be why we have stock market bubbles.
mikesh Your reckons might be good but DTB has been putting in the hard yards looking at the economy and politics for decades. How long have you been looking hard at it?
New ideas let’s have them but refer to something will you.Economic textbook?
I hope that is sarcasm, because Mikesh is clearly correct. Company profits are not a drain on income. They do tend to go to people who save more of their income (and saving is a drain), but saving can also occur from salary payments.
Yeah, and I've also said that we're paid too much although, at the time, that was more to do with how much waste well off countries tend to generate through simply throwing good stuff away. Excessive income results in people having less respect for the resources used. Individually, overpaid people can afford the waste but the country can't hence why we needed shower-head and light bulb regulation.
Back to profits and the same thing applies to high wages/salary with excess going into savings that results in less money in circulation and thus a slowing down of the economy. Throw in interest on those savings and the slow down is exponential.
Continuing reading the book and she gives this example:
Profits, themselves, are a fiscal surplus which can only be negated if those profits are fully spent.
There's a graph around (that I linked to years ago) showing government deficits mirroring private surpluses. In other words, to have a private profit requires that there be a government deficit.
There's a graph around (that I linked to years ago) showing government deficits mirroring private surpluses. In other words, to have a private profit requires that there be a government deficit.
Private savings require a government deficit. Any income may be saved, not just profits.
Company profits are not a drain on income. They can be. I don't know if your statement is an economic rule, but it isn't verity. If a company is a monopoly or part of a cartel it can manipulate the market, and make a 'killing' from consumers having to pay excessive prices beyond the actual cost of production etc.
Housing at present is dominated by a cartel isn't it?
According to research carried out by Steve Keen monopolies work the same as competitive companies. Other research shows that competitive companies manipulate the market using tools such as advertising.
And, of course, the whole point of having competitive companies is to decrease profit.
Or to promote the production of quality products.
Profits are a form of income, so how can they be a drain on income.
Lovely points looking at textbook explanations.
There is a different approach which comes from the felt affects on particular financial classes of whatever economic precepts you are quoting. And that is what matters in the final analysis.
Nothing to do with textbooks. Just logical thinking.
Decades.
Election 2020: Should have gone to Specsavers – Judith Collins turned away from Auckland optometrist [HT to Observer]
35%!
The Leader made another leader call on the hoof and forgot to ‘consult’ the Party Caucus.
Benedict Collins, political reporter on 1News, called the National Party fake walkabout in Ponsonby "dumb, dumb, dumb".
Come on, Ponsonby road is always full of pedestrians. Anyone noticed it being deserted due to recession?
Surely it wasn't a "clever plan" set up by Brownlee? He is so clever at fixing things.
This is not satire, or sarcasm. It's a genuine tweet from National's candidate.
Emma Mellow thinks she had a good day in Ponsonby … until she reads the replies.
https://twitter.com/emmamellow/status/1313689426636095494
So with that in mind this clever unbiased group are attacking child centred learning. And then get a secondary Principal to comment. Idiots. Children who are involved in setting parameters of study learn all those self control, goal setting, credibility judgements, and self evaluative skills that are transferable across life. and the depth in that learning can be outstanding.
The interference from this lot is the sort of thing that lead to National Standards!
Yip, my daughter absolutely thrived with child-centred learning. Secondary school is just an obstacle for her to navigate before university.
So, given that child-centred learning is far better for both the children and society in general than the old rote learning we have to ask what they actually want to achieve.
Well that's not going to larn em to do as they're bloody well told and be grateful they're not charged a fee to work now is it.
Here we go…. the great cannabis question.. link for live stream below
https://www.threenow.co.nz/live-tv-guide/three
Edit.. fascinating line up, Aunty H Affirmative v’s paula b negative
Edit… I LOVE YOU AUNTY H 🥰
To be perfectly honest, only a total prude would support the current situation.
It's all about drug use being a 'sin' and in the traditional Calvinist spirit, 'sinners' need to be punished with the full force of the law, and made to pay penance.
Bennett, Garner, Collins and all the rest are nothing more than prudes, which want to use the law to impose their puritan agenda, and turn us all into pure modest church goers.
Next along the line it will be who you can and can't date/sleep with, and what you can and cannot wear.
They should have learnt back years ago when they were defeated on prohibition.
Disclaimer: I have never used pot, and dont intend of using it in the future, legal or not. I just dont think anyone has a moral right to stop others from (responsibly) using pot.
I'm not a prude nor feel I need a recreational toke. On one hand I want weed decriminalised on the other hand I am bloody sick of living with a dope smoker.
If you don't want to live with a pot smoker then don't. Can't see what that has to do with the law.
I’ll make him homeless tomorrow. Well that solved that then.
That’s what potty-training is for.
Send him to the garage?
Agreed Millsy.
Interesting that the police position seems to be that everything should be black or white, rule defined, and avoid anything that may be grey. Funny how the Noes are ignoring the wild west running now. (And I never have smoked it nor intend to. But the National and ACT who are freedom of choice and the rights of the individual ,surely they would vote YES?)
I've never used the stuff either. Can't see it as stuff to take a moral stand over either.
I do know that we have spent lots of dollars over the years on the negative outcomes of police, corrections etc. etc and with no other result. If it's seriously bad for us I'm sure the Health department will nag us into submission pronto.
So I voted to legalise.
When you work frequently with different individuals who are not just "a few times a week mellowing out" and who in the main are living in relationships or in family circumstances, there are impacts on a significant number of others. The affects of habitual use like any addictions causes harm in varying ways and to different degrees in families.
There are not simple answers for these families like kick them out, potty training or go to the garage. Nor is age and stating a potency max as words in law particularly harm reducing or laws that are going to be abided by let alone enforced.
What has not been addressed in law changing is the leading factors that may underpin use and dependency other than medicinal for health or making an illicit buck. Or simplifying that it's better than something else as a sufficient reason to mitigate harm.
At the other end, are there adequate social harm resources as responses, mental health workers for one as support for users who have greater propensity for depression and or ideation of suicide, or adequate resources addressing the suffering of trauma underlying use. Literature also points to more $$ resourcing iyoung person's health education regardless of legislating.
Unanswered responses in new law- With adults free choice, is it okay for an unborn child to have cannabis when pregnant? What's the long term consequence for cognitive ability as one perspective? How is parental responsible use guaranteed with children not being momentarily safeguarded while mellowed out? For one child just a few months back they hung to death in their cot after a horrible struggle went unheard while parent was zoned out. Right now, another 12 year old needing a new home because grandparent can't be fucked. As soon as the child was in a relative's home for the holidays, the grandparent declared 'don't want them back' , on going to the home to collect child's gear, well fuck me, the kid's sunny bedroom was already filled with pot plants !!!
Put at least as many agencies for picking up pieces for kids or places for rehab as there will be number of shops to buy weed ? It's the same product legal or not.
Legalising yes, as stated have a law. But address what already exists instead of pretending a law change makes all things well in the world. Put more bucks on the table and resources in place for the already undesirable consequences in communities. Yes there is evidence that legislation does not increase uptake of number of individuals. However, it's ludicrous to believe that we are all just responsible, careful, a few times a week users and weed is just a benign harmless, recreational substance.
Doco on Netflix, Murder Mountain, regarding a whole bunch of illegal growers going legit … & wishing it was illegal again, coz they just can't make any money!
The way I see it, people are going to take weed regardless. I'd rather there be measures in place than a blind eye being turned.
Also by voting yes, which I will, WE get the opportunity to create the law surrounding it, via committee's etc etc. I think that is really important. You will be able to have your say on your concerns and ideas ie putting money into resources etc. By voting no, nothing will change and ignorance will remain.
I'm sorry to hear you are living with an addict, that's hard work, I've lived with alcoholics, junkies and stoners before, in my experience the stoners were the easiest of the lot. At least they don't beat you up or steal everything like a junkie or an alcoholic does.
If the person you live with is a dab hand at gardening, a horticulture course could be the answer, they would probably get top marks. Just try to look for the positive.