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Expansionary austerity – fail

Written By: - Date published: 9:00 am, April 21st, 2011 - 32 comments
Categories: economy, Keynes, monetary policy, national - Tags: ,

Expansionary austerity is the idea that cutbacks in government spending can stimulate economic growth. Sounds weird doesn’t it, but here’s the theory as argued by Britain’s current Chancellor of the Exchequer:

Osborne insists that Britain will enjoy what he calls “expansionary austerity”, because the knowledge that the government is getting to grips with the public finances will engender confidence and encourage private spending to replace the cuts in public spending.

This theory relies on a tighter fiscal policy (tax increases and spending cuts) allowing monetary policy (interest rates and the exchange rate) to remain loose. Cheap borrowing costs lead to higher investment, while the low pound stimulates exports. This, in turn, leads to a rebalancing of the economy.

The trouble with this theory is that it’s bollocks. Paul Krugman sums up:

The Stubborn Myth of Expansionary Contraction

Mike Konczal, a fellow at the Roosevelt Institute, has been writing lately in his economics blog, Rortybomb, about American conservatives’ continuing insistence that slashing government spending is actually expansionary, as embodied in a recent report from Republicans on the Joint Economic Committee.

As he says, it’s a remarkable thing: the empirical case for expansionary austerity has collapsed on examination, but the doctrine lives on regardless.

One thing Mike fails to note is that another recent paper on deficit reduction from the American Enterprise Institute, which is cited by that J.E.C. study in a way that might make you think that it supports the case for expansionary austerity, actually never provides any evidence to that effect; … It’s notable that the J.E.C. report also blithely cites Canada and Sweden in the 1990s as demonstrations of its case, even though both have in fact been extensively debunked. …

I have to say, it’s remarkable how quickly expansionary austerity has gone from interesting speculation to zombie idea, repeatedly killed by evidence but still shambling toward us, trying to eat our brains.

So the empirical evidence (see Konczal’s work here) doesn’t support the theory. But in Britain the Tories charged ahead with it anyway, slashing spending left right and centre. How’s that working out for them?

Is Osborne fit to run the economy – or to ruin it?

George Osborne is expecting ‘expansionary austerity’ to save the UK economy – which means things are going to get a whole lot worse for ordinary households

… This government has now been in power for almost a year and here’s a check list of their achievements so far. Unemployment, going down a year ago, is now going up. Real incomes fell last year for the first time since 1981 and are on course to fall again this year. Consumer confidence has slumped to levels seen in the depths of the recession. High street retailers are sending out profit warnings. And, to cap it all, the government has been forced to revise up its forecasts for the budget deficit.

… The empirical case against expansionary austerity is that it doesn’t seem to be working in Britain (or in any of the struggling eurozone countries), whereas good old fashioned fiscal expansion does seem to be doing the trick in the US.

Despite two years when bank rate has been pegged at 0.5%, there is a marked reluctance to borrow. Mortgage demand is running at half the levels seen in the 10 years leading up to the financial crisis, and lending to businesses is not picking up.

… Where is the evidence of expansionary austerity? Not in the balance of payments figures, which are getting worse not better. Not in the high street, where consumers would need to see their incomes rise by 6% to compensate for the price increases and tax rises of the past year. And not in the business community, where investment fell in the final three months of last year.

Not so good in practice then. Keynes gets the last laugh.

Right, pop quiz time. Can anyone think of another government, not a million miles from here, that is pinning its hopes on expansionary austerity? Another government that is ignoring the theoretical counter arguments and all the empirical evidence? Another government that is run by Tory fools and getting the same results as the same policies in England? Another government that is seeing its economy flatline, growth stalled, unemployment rising, costs spiralling out of control? Anyone? Anyone?

Makes you wonder doesn’t it. Just how stupid would we be to give these failed policies another term…

32 comments on “Expansionary austerity – fail ”

  1. mikesh 1

    “Expansionary austerity” sounds like Orwellian newspeak.

  2. Peter 2

    Key is on record of justifying his policies in terms of the so called “crowding out” effect which implies less Government  making room for more Private Sector growth. This, I would suggest, is his economic plan despite the critics saying he has not got one. This appears to be his version of “expansionary austerity”.
    So it’s simple really, cut Government spending and such issues as employment will eventually address themselves as the Private sector takes up the slack. Don’t expect the ship to turn around quickly but it will happen, trust me!
    This is what wikipedia has to say about crowding out;
    “However, this crowding-out effect might be moderated by the fact that government spending sometimes expands the market for private-sector products through the multiplier and thus stimulates – or “crowds in” – fixed investment (via the “accelerator effect“). This accelerator effect is most important when business suffers from unused industrial capacity, i.e., during a serious recession or a depression.”
     
    I’m a layman so it would be interesting to read other perspectives from the wise.

    • Key is on record of justifying his policies in terms of the so called “crowding out” effect which implies less Government making room for more Private Sector growth.

      Good grief. Has some finance “journalist” asked him what is the specific sectors in which he believes government is supposedly “crowding out” the private sector, and what is his evidence for this?!

      In theory this can happen, but given the reforms since the 1980s I would think NZ is the last country in the entire world where this could be said to be occurring.

      • Colonial Viper 2.1.1

        However, it may be too much to ask that our financial and economics “journalists” ask good questions of our leaders and demand real answers.
         
        The simple point is that the Government provides a lot of demand and a lot of sales orders for private business, and when Government stops spending, private businesses hurt and fail.

      • Peter 2.1.2

        He said it, almost as a slip of the tongue, on Q&A a few weeks back. As far as I am aware it is his only reference to the philosophy behind cuts.

      • KJT 2.1.3

        Yeah right.
        Doctors. Teachers, building regulators, power suppliers, state infrastructure, Police crowd out the private sector.

        No State has ever had an efficient and prosperous private sector without a fully functional State.

        The private sector alone results in Anarchy and poverty. Somalia.

        The highly regulated, and taxed, mixed economies of Western Europe have been the most successful States in History.

        The USA, Ireland, UK, NZ and other states that have followed the “free market’ Neo-Liberal Freidmanite dogma of meanness, globalisation of capital and theft from citizenry are fast heading for failure.

  3. Carol 3

    I’m not sure my point is relevant to this issue, but it seems so to me.  These right wing, neoliberal policies seem to me to be a justification for cutting back on the public sector, privatising all activities, whether useful to society or not, and delivering them to the international corporate elite and thereby expanding their profits.
     
    I don’t know a lot about economics, but ever since I first read some introduction to economic theory, I’ve never understood the logic of differentiating between “tradeable’ and non-tradeable” enterprises.  I hear the same arguments being repeated by politicicans like Bill English today.  So tradeable refers to anything that can be traded internationally, and non-tradeable to economic/financial actitivites that can’t be traded internationally.  But this just seems to me to be a cover for cutting back on the public sector.
     
    And I’ve never understood how having all countries trading stuff with each other, including stuff countries can produce for themselves, somehow magically makes us all more wealthy.  eg, why are we buying oranges from California, when we produce them ourselves & vice versa?

    • Draco T Bastard 3.1

      And I’ve never understood how having all countries trading stuff with each other, including stuff countries can produce for themselves, somehow magically makes us all more wealthy.

      That load of bollocks comes from the idea of specialisation. A single person can’t learn everything and so it’s better if individuals specialise. Unfortunately, the stupid idiots (otherwise known as economists) have expanded the idea to include entire societies.

      • Carol 3.1.1

        Thanks.  So I was correct to be suspicious.  This information was presented in a very introductory textbook, as though it was gospel. You’d think more economists would also have seen the problems with the concept.

        • Colonial Viper 3.1.1.1

          Young economists got granted their PhDs extending worthless economic theory by impressing those established older PhD economists who had come up with the original worthless economic theory in the first place.
           
          It became an entire circular game. Not corrupt, but clearly pandering.

        • Draco T Bastard 3.1.1.2

          This information was presented in a very introductory textbook, as though it was gospel.

          That’s because it’s treated as gospel by nearly every economist in the world. I’ve got university level textbooks, written by Ben Bernanke in fact, that treats it the exact same way.

          You’d think more economists would also have seen the problems with the concept.

          You’d think so but, then, we’re dealing with a field that started with a few assumptions a couple of centuries ago and those assumptions haven’t been changed in all that time despite the fact that documented reality has proven those assumptions wrong.

  4. Colonial Viper 4

    Well its time for the Left to reframe this as “Same old shit, different spin”
     
    People know this is a bunk, they have lived through cycles and cycles of this before.
     
    Tell them that China and Singapore are laughing at the west bleeding itself out economically (while they themselves invest billions back into their people and infrastructure), as if we are still in the 18th century of medicine with leeches and blood letting.
     
    Cameron/Osbourne, Key/English are the economic quack doctors of the western world.

  5. ASA 5

    Going by the repeated opinion poll results, it appears that NZers may indeed be that collectively stupid, unless something significant changes in the next 7 months. The bigger question would be to enquire why the NZ media isn’t producing economic analyses similar to the Guardian article. Wouldn’t be hard – just some some substitutions needed e.g. English for Osborne, New Zealand for Britain, National for Conservatives and so on. This would mean the article could just about be used as is, for the situation here is frighteningly similar. Then again, who do our media owe their loyalties to?

    • Bored 5.1

      ASA. I am not sure that NZers may indeed be that collectively stupid, it is more likely the old mushroom syndrome i.e kept in the dark and fed bullshit. By the very same media and corporate smokescreen you question the ownership of.

      My hope is that we as a society have a Damascene moment of clarity, the events that are likely to bring this on are “peak bloody everything”. This will be the moment when we realise that what we have aspired to, what we have believed to be true has been an edifice of contrived bullshit. In between times we will aspire, and as a consequence be robbed blind by those who have.

    • Peter 5.2

      True,  there is plenty of stuff out there (http://www.bryangould.net/id150.html) but the more I get into this the more I realise that our main newspaper is by and large running agendas ( a bit like FOX News). Far easier to divert attention with Polls, Stop Signs and helicopter discussions …… maybe SST will do something.
      As always the vast majority of voters are not interested, so it gets back to packaging alternatives that they will act upon. Winston, as we know, is good at it. National as always effectively justify the status quo with Fear Uncertainty and Doubt. Labour? Greens?
       

  6. JJ 6

    Yeah man, that trickle down effect, just flies in the face of human nature. But then again so does the idea of socialist utopia, we all know what a hell on earth those ideas created.
    What to do though? Seems to me the country (the whole world) is freaking broke. I guess somebody has all the money though!

    • Colonial Viper 6.1

      A socialist utopia is exactly what we should aim for JJ.
       
      And we know how to do it.
       
      Take a share of the money and assets from those who are most wealthy and use it to provide common services, support and facilities that everyone in the society can use.
       
      Then empower ordinary people to become decision makers and participants in the every day running of their workplaces, their communities, their cities.
       
      Pretty fraking easy really.

      But then again so does the idea of socialist utopia, we all know what a hell on earth those ideas created.

      What, as opposed to the tens of thousands of people dying in the richest country in the world every year because they can’t access healthcare? And the hundreds of thousands more who go broke and suffer family breakups because they can’t afford medical bills?

      What do you call that?

  7. Another great post r0b.
     
    Nail on head? Hit perfectly.

  8. Afewknowthetruth 8

    It’s all very simple. So simple most people refuse to see it and prefer to tie themselves up in knots of economic theory completely detached from reality. Economics, as practised in the modern world, has no validity whatsoever. It’s all bunk. Economics assumes cheap and readily available resources will appear as if by magic whenever needed. Economics never mentions the huge costs of global pollution. The real world is not like that. Sure, in the past there were cheap resources that could be readily obtained and the Earth did manage to recover from most of the crap we threw at it. But that game is now over, especially the cheap energy game.   

    One year ago Brent oil was around $80. Today it’s over $120.

    That 50% increase in the cost of the prime driver of the economy has led to a global economic squeeze. No amount of jigging with interest rates, tax rates or anything else will alter the fact that the global system is slowly imploding due to competition for declining resources.  

    By the way, just to get the big picture, a decade ago oil was around $20 a barrel. It’s now  6 times that.

    As global oil extraction falls further down Hubbert’s curve we will see ever faster contraction of most sectors of the economies of most nations. The price of oil will continue to rise and money will continue to devalue. At some stage in the fairly near future the entire system will go kaput……probably around 2015 the way things are panning out at the moment.

    The success of China is merely a facade. It is pulling in international dollars simply because the Yuan is so grossly undevalued and workers get such low wages by international standards.  China is dependent on ever increasing imports of energy and resources to maintian its bubble economy, and will fall just like the rest eventually.

    We should also note that most of the money in the system doesn’t exist and has been conjured out of thin air via loans. It’s all a Ponzi scheme. The value of money continues to fall. Gold has gone from below $750 five years ago to over $1500 now. China has been buying up gold of course, whereas the saboteurs who operate western governments have been selling it.

    The ultimate aim of the secretive elites who really running the show seems to be to create a feudal society in the west, a society in which proles are reduced to existence at the peasant level while a gang of elites lords it over them. John Key is just practising at the moment.

    What I find fascinating is tenacity with which people hang on to redundant paradigms and just keep churning out garbage analysis based on fantasies. There seems to be some kind of consensus amongst mainstream commentators that if we ignore the elephants in the room they won’t damage the furniture or knock the walls down.  

    • uke 8.1

      What I find fascinating is tenacity with which people hang on to redundant paradigms and just keep churning out garbage analysis based on fantasies. There seems to be some kind of consensus amongst mainstream commentators that if we ignore the elephants in the room they won’t damage the furniture or knock the walls down.

      Possibly it’s because the idea of Growth and Progress are in effect reality principles wired into the Western mindset. They have an unshakeable existential and spiritual solidity. People cannot conceive of an economy without the goal of Growth, any more than they can conceive of Time running backwards.

  9. “Trickle down economics” is PC speak for the rich pissing on the poor.

  10. PeteG 10

    This post takes a narrow view.
    Is there no such thing as wasteful or too much government spending? Why shouldn’t the major expansion of the public sevice and public spending under the last Labour government be scutinised for value for money?
     
    It’s just possible that the aim is to cut unecessary costs when there isn’t much money available.
     
    The “expand when the economy is good, expand when the economy is bad” approach is flawed. When should government spending increase – good times or bad?

    • Draco T Bastard 10.1

      The economy cannot expand beyond the limits of the environment and government spending is, in a democracy such as ours, the spending of the people. Government is not divorced from its society – no matter how much you RWNJs want to portray it as such.

  11. Afewknowthetruth 11

    ‘Makes you wonder doesn’t it. Just how stupid would we be to give these failed policies another term…’

    Very true. The problem is, Labour is locked into the same kind of dysfucntional economic garbage as National, all of it predicated on economic growth that cannot occur and predicated on ignoring the environmental catastrophe that is gathering pace.   

    And Ben, when are you going to recognise that we are at ‘peak everything’ (as Bored has again pointed out) and start formulating policies that are appropriate to the times we live in? At the moment you seem to be avoiding reality like the plague! Or is your ‘plan’ to quietly drive NZ off the cliff slightly more slowly than National is currently doing?

    We are still waiting for answers.

    We’ve been wating for answers for many weeks.

    You can only keep hiding for so long.

    The truth is going to get you in the end.

    • Draco T Bastard 11.1

      The problem is, Labour is locked into the same kind of dysfucntional economic garbage as National, all of it predicated on economic growth that cannot occur and predicated on ignoring the environmental catastrophe that is gathering pace.

      Exactly. A rational economy would look to minimising use of natural resources. The capitalist free-market economy works by using those resources up as fast as possible so as to maximise profits which results in everybody having nothing at all.
       
      The capitalist free-market is completely irrational but that shouldn’t be a surprise – it was, after all, designed by psychopaths (the capitalists).

  12. Peter 12

    I don’t believe this post is a discussion about value for money, it’s actually about the best way forward, and the potential pitfalls of Key’s economic assumptions. Playing the private and public sectors off against each other does not do it for me, although it is clearly a vote catcher.
    The real question is how should both sectors work together because neither is going away? After all right now the Government is spending an awful lot of money on RWC. You could be cynical enough to believe they are using civil servants to help their election prospects, or more positively to boost the prospects of private sector exporters. Why is it that we don’t hear gratitude from the private sector for the support and business opportunities offered by the public sector?
    If you take Natonal’s narrative to the extreme you would easily believe that we would all be far better-off if the balance was something like Public (bad) 10% and Private (good) 90% of GDP. I’m sure there are people reading this who could provide you with international evidence that more Government would be an improvement. Besides if that’s where we are heading why haven’t the private sector provided the extra jobs required, plenty of people are waiting.
    But ,if you want to turn the discussion to so called efficiency! Why shouldn’t the private sector also be scrutinised for value for money? For example AMI insurance policies, shonky property development, collapsing finance companies, the  social cost of alcohol abuse unpaid for by “big beer”, the economic and social cost of high unemployment, the overseas sell-off of badly run NZ owned companies, virtual monopolies such as SKY, media company bailouts, the South Canterbury bailout, and if you like using airforce helicopters to dash-off to PR photo-opportunities.
    Without Nationals  convenient use of the public sector where would they and the private sector be right now?

    • Colonial Viper 12.1

      Well let’s remember first principles here: the structure and running of the economy should primarily be for the good of the society.
       
      Not the other way around.

    • Draco T Bastard 12.2

      Why shouldn’t the private sector also be scrutinised for value for money?

      Because then the delusion that the private sector is inherently more efficient than government would be shown for what it is – a delusion.

      Without Nationals  convenient use of the public sector where would they and the private sector be right now?

      Collapsing. That has always been true of conservative government though. As much as they rail against Big Government they’re usually the ones that use the government most. Usually in subsidies, bailouts and pork barrel politics.

      • KJT 12.2.1

        An occasional left wing Government is a necessity, for Neo-Liberal types, to build things up so they can rob us again. As they are too incompetent to make their own businesses work they have to steal the public’s.
        Round one 1984 to 1990,s started it. The first ACT Government, then National. Now they are back for another go.
        I wonder which failed private businesses, which buy into necessary infrastructure, we will have to bail out or buy back this time.

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    5 days ago
  • The smokefree policies of political parties: Do they care about people who smoke?
    George Thomson*, Nick Wilson, Janet Hoek, Andrew Waa, Richard Edwards In this time of Covid-19, helping people who smoke to quit their addiction has an even greater importance. Smokers are more vulnerable to many harmful health effects, including severe effects from the virus. Policies that support people who smoke to ...
    SciBlogsBy Public Health Expert
    5 days ago
  • The Fog Of Economic Policy Is Starting To Clear…
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    Closing the GapBy Tracey Sharp
    5 days ago
  • Skeptical Science New Research for Week #38, 2020
    Highlighted article: Carbon pricing and planetary boundaries  Engström et al take what might be called a systems approach to evaluating carbon pricing, taking into a account various economic sectors affected by and affecting paying for emissions. The conclusions are overall a rare pleasant surprise— a feature predicated on cooperation.  Abstract: ...
    5 days ago
  • Humans ignite almost every wildfire that threatens homes
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    SciBlogsBy Guest Author
    6 days ago
  • Climate Change: China steps up
    China has increased its climate change ambition, and set a target to be carbon-neutral by 2060: China will reach carbon neutrality before 2060 and ensure its greenhouse gas emissions peak in the next decade, Xi Jinping has told the UN general assembly. “China will scale up its intended nationally ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Humans have dealt with plenty of climate variability
    Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. If you have a question you’d like an expert to answer, please send it to climate.change@stuff.co.nz How much climate variability have humans dealt with since we ...
    SciBlogsBy Guest Author
    6 days ago
  • Indigenous perspectives on unrestricted access to genomic data
    By Genomics Aotearoa researcher Maui Hudson, University of Waikato It is vital that genomics research respects genomic data and genetic heritage from indigenous communities. Genomics research is a rapidly growing field of study, and there is a strong push to make the huge amount of data being produced open ...
    SciBlogsBy Genomics Aotearoa
    6 days ago
  • Terrible luck: lockdowns on learning and youth job prospects
    What is bad luck? Bad luck is spilling spaghetti sauce down your shirt right before an important meeting. When the person in front of you gets the last seat on the bus, that’s bad luck. Bad luck is when it’s sunny outside, so you leave the house without a coat, ...
    SciBlogsBy Guest Author
    6 days ago
  • Ian Powell: Does private healthcare threaten public healthcare in New Zealand?
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    Democracy ProjectBy bryce.edwards
    6 days ago
  • A rabbit-hole election debate: So do you want more avocado orchards?
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    PunditBy Tim Watkin
    6 days ago
  • LIVE: Jacinda Ardern vs. Judith Collins, First Debate
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    The CivilianBy admin
    6 days ago
  • Hundreds of Aucklanders arrested after illegal mass gathering on Harbour Bridge
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    The CivilianBy admin
    6 days ago
  • The Looming Fight.
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    7 days ago
  • Climate Change: Moving faster
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    No Right TurnBy Idiot/Savant
    7 days ago
  • The Australian courts have had enough of refugee detention
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    No Right TurnBy Idiot/Savant
    7 days ago
  • Friction and the Anti-lock Braking System
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    SciBlogsBy Marcus Wilson
    7 days ago
  • The Inside Word: New Zealand Quarantine
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    7 days ago
  • Hard News: ASA: Let’s not talk about this
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    7 days ago
  • This is not kind
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    No Right TurnBy Idiot/Savant
    7 days ago
  • Wokies are the establishment
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    RedlineBy Daphna
    1 week ago
  • How to strengthen the post-isolation Covid rules
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    SciBlogsBy Siouxsie Wiles
    1 week ago
  • Neuralink and You: A Human-AI Symbiosis
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    SciBlogsBy Guest Author
    1 week ago
  • Liam Hehir: Our obsession with American politics
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    Democracy ProjectBy bryce.edwards
    1 week ago
  • COVID: Back to Level 1
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    1 week ago
  • Climate Change: Climate injustice
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    No Right TurnBy Idiot/Savant
    1 week ago
  • Good riddance
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    No Right TurnBy Idiot/Savant
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming Digest #38
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    1 week ago
  • Anyone for Collins?
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    Bryan GouldBy Bryan Gould
    1 week ago
  • Crusher’s fiscal malfunction
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    1 week ago
  • Much of the commentariat’s reporting of the most recent GDP figure was misleading and unhelpful. The prize for the stupidest remark about the GDP figure for second quarter 2020 (2020Q2) released on Thursday (17 Sept) goes to Judith Collins, whose response to Grant Robertson’s comments indicated she did not ...
    PunditBy Brian Easton
    1 week ago
  • Love and Hate as Complementary Revolutionary Acts
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    RedlineBy Admin
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #38
    A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week: Sun, Sep 13, 2020 through Sat, Sep 19, 2020 Editor's Choice Get to Net-Zero by Mid-Century? Even Some Global Oil and Gas Giants Think it Can Be Done A report by a ...
    1 week ago
  • Tax cuts for all!!! (except you, you, and you)
    With the National Party this week announcing a new policy of tax cuts to spice up the election campagin. MyThinks went along to the launch and afterwards we spoke to the party’s finance spokesperson Paul “Golden Touch” Goldsmith. MT: Thanks for speaking to us Mr Goldsmith. PG: No. Thank you. ...
    My ThinksBy boonman
    1 week ago
  • Great Waves Washing Over New Zealand
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    PunditBy Brian Easton
    1 week ago
  • New Zealand has role to play in resolving crisis on ‘geopolitical fault line’, Helen Clark says
    By Geoffrey Miller New Zealand should continue to champion human rights in Belarus amidst an ongoing crackdown on protests by the country’s regime, former Prime Minister Helen Clark says. Protests in the country often referred to as ‘Europe’s last dictatorship’ erupted after the country’s disputed presidential elections on August 9 ...
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    1 week ago
  • Euthanasia referendum: How to cut through the emotions
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    SciBlogsBy Guest Author
    2 weeks ago
  • Why we need cameras on boats
    In case anyone needed further convincing, there's another example today of why we need cameras on fishing boats: reported seabird bycatch doubled during a camera trial: Commercial fishers operating off Auckland's coast around vulnerable seabirds are twice as likely to report accidentally capturing them when cameras are on ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Graham Adams: The religious right’s campaign to spike the euthanasia referendum
    In the leadup to the euthanasia referendum, an array of conservative Christian political organisations is running an expensive campaign to sow doubt about the safety of assisted dying. Graham Adams argues that these religious forces know that Christian arguments aren’t convincing the public, but that it is in the public ...
    Democracy ProjectBy bryce.edwards
    2 weeks ago
  • Opportunistic looting
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Uncomfortable Choices.
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    2 weeks ago
  • Tony Burton: Covid and benefit payments
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    Democracy ProjectBy bryce.edwards
    2 weeks ago
  • Talking tax: How to win support for taxing wealth
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    Closing the GapBy Tracey Sharp
    2 weeks ago
  • Getting Tough.
    Not Mucking Around: With upwards of 800 dead from the virus’s resurgence in the Australian state of Victoria, leniency is not on Premier Daniel Andrews’ agenda. The Victorian Police are cracking down hard on the protesters the Australian press has labelled "Covidiots".IMAGES OF POLICE, some in riot gear, others on ...
    2 weeks ago
  • Media Link: Nuclear strategy, then and now.
    Although I had the fortune of being a graduate student of some of the foremost US nuclear strategists of the day (1970s) and later rubbed shoulders with Air Force and Naval officers who were entrusted with parts of the US nuclear arsenal, I seldom get to write or speak about ...
    KiwipoliticoBy Pablo
    2 weeks ago

  • Job numbers up in August
    New data from Stats NZ today shows a rise of more than 9,000 filled jobs from July – driven mostly by the education and training sector, Grant Robertson says. Filled jobs were up 9,147 to 2.2 million in August 2020 compared with July – with 7,409 of those in education ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Māori development receives funding
    Māori development projects across the country will receive a total of $18.8 million from the Provincial Growth Fund that will create infrastructure and permanent jobs, Regional Economic Development Minister Shane Jones announced today. “These projects will support economic development in Northland, Bay of Plenty, Tairawhiti, Manawatū-Whanganui, Waikato and Southland to ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Hand-up for owners of earthquake-prone units
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    BeehiveBy beehive.govt.nz
    21 hours ago
  • PGF backing successful Māori enterprise
    Whanganui will benefit from a Provincial Growth Fund investment in a local food-processing company which will help the company increase production and create jobs, Regional Economic Development Minister Shane Jones says. Kii Tahi Ltd, which is owned by South Taranaki iwi Ngaa Rauru Kiitahi, will receive a Provincial Growth Fund ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Hokitika Landmark earmarked for $22m restoration
    Seddon House in Hokitika, once a hub for government on the West Coast, has been earmarked for government use once again. “Today we’re announcing a $22 million investment from the Government’s $3 billion infrastructure fund for shovel ready projects for the purchase and restoration of Seddon House in the heart of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Town halls and war memorials in PGF renovation programme
    Town halls, war memorials and other community landmarks across the country will be renovated thanks to grants totalling just under $12.4 million from the Provincial Growth Fund. Regional Economic Development Minister Shane Jones says more than 1000 jobs are expected to be created during the renovation programme. “Town halls, other ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Minister of Foreign Affairs makes two diplomatic appointments
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    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ’s most prestigious conservation award – Loder Cup presented to Graeme Atkins
    The Minister of Conservation Minister, Eugenie Sage, today presented Aotearoa New Zealand’s most prestigious conservation award, the Loder Cup, to the 2020 winner Graeme Atkins while in Gisborne/Tūranga-nui-a-Kiwa. “Graeme Atkins of Ngāti Porou is a Department of Conservation ranger whose contribution to conservation goes well above and beyond his employment,” ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Early help for whānau who need extra support
    The Government is investing in a new, whānau-centred early intervention prototype designed to strengthen families and improve the safety and wellbeing of children. The new programme, Ngā Tini Whetū, is a collaboration between Oranga Tamariki, Te Puni Kōkiri, ACC and the Whānau Ora Commissioning Agency (WOCA) and was announced today ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Parliament to install solar and cut carbon
    Parliament is leading by example by taking action to cut its carbon footprint by installing solar and improving energy efficiency, the Minister for Climate Change, James Shaw said today. The Minister confirmed that Parliamentary Services will receive support through the Clean-Powered Public Service Fund to install solar PV and LED ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Tuvalu Language Week theme promotes community resilience in the face of COVID-19
    The Minister for Pacific Peoples, Aupito William Sio says the 2020 Tuvalu Language Week theme of “Fakatili Te Kiloga Fou” which means “Navigating the changing environment” is a call on all Pacific peoples to be strong and resilient in the face of COVID-19. “This theme is a reminder to us ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • International sport back up and running in New Zealand
    The Government is welcoming today’s announcement that the West Indies and Pakistan cricket teams will tour New Zealand this summer.  “A lot of hard work has been undertaken by sports officials including New Zealand Cricket, Netball New Zealand and government officials to ensure that international sport can return safely to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • 1BT funds for Northland forest taonga
    Northland’s indigenous tree canopy is set to grow for the benefit of mana whenua and the wider community thanks to nearly $2 million in One Billion Trees funding, Forestry Minister Shane Jones announced today. Te Komanga Marae Trust has received more than $1.54 million to restore and enhance the native ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Better health care for West Coasters as Te Nikau Hospital officially opened
    The Government has delivered a new hospital for Greymouth and is starting work on a much needed new health centre in Westport, ensuring local communities will benefit from better access to high quality integrated health services. Today, Prime Minister Jacinda Ardern and Associate Health Minister Peeni Henare officially open Te ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government backing local with PGF loan
    A West Coast distillery will benefit from a Provincial Growth Fund investment that will enable it to expand its operations and create jobs in the town of Reefton, Rural Communities Minister Damien O’Connor and Regional Economic Development Minister Shane Jones have announced. The Reefton Distilling Co will receive a $928,000 ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Primary sector exports and jobs up again
    Primary sector exports and jobs are up again, demonstrating the sector’s underlying strength amid the COVID-19 global pandemic and US-China trade war, and supporting New Zealand’s economic recovery. Stats NZ today reported New Zealand’s merchandise exports in August were up 8.6% on a year ago, driven by an increase in ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Clean energy future for more schools
    Schools across Aotearoa New Zealand will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. The Minister has allocated $50 million from the Clean Powered Public Service Fund to replace, or convert, coal boilers in schools with clean ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Building business strength with digital tools
    New training and tools for digital commerce will give small businesses, especially in the tourism sector, the support they need to adapt and innovate in a COVID world. Tourism Minister Kelvin Davis and Small Business Minister Stuart Nash have announced details of how $20 million digital capability funding set aside ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New pest lures to protect nature
    The Department of Conservation (DOC) is investing $1.4 million to develop new predator lures that would be game-changers for trapping and surveillance towards a predator-free Aotearoa, the Minister of Conservation Eugenie Sage, announced in Christchurch today. The proposal is to develop long-life lures attractive to a range of predators—rats, mustelids ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Support for innovative Pacific education responses to COVID-19 needs
    Supporting new and creative Pacific education practices as part of our COVID-19 response and recovery is the focus of a new $28.5 million Pacific Education Innovation Fund announced today by Associate Minister of Education Jenny Salesa.  “There is already an incredible amount of innovative and creative work going on in ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Eligibility expanded for COVID-19 leave support
    The expanded scheme will cover: People who have COVID-19 like symptoms and meet the Ministry of Health’s criteria, and need to self-isolate while awaiting the results of a COVID-19 test. People who are directed to self-isolate by a Medical Officer of Health or their delegate or on advice of their ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Seasonal work visa available to more people
    The Government is putting in place a range of immigration policy changes to help fill labour shortages in key industries while ensuring New Zealanders, who have lost jobs due to COVID-19, have the chance to find new employment. “Two key sectors we are moving to help are horticulture and wine ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • More border exceptions for critical roles
    The Government has established class exceptions for border entry for a limited number of veterinarians, deep sea fishing crew, as well as agricultural and horticultural machinery operators. “Tight border restrictions remain the backbone of the Government’s border strategy to protect New Zealand against COVID-19 and ensure New Zealand citizens and ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Crown will not appeal Dodds v Southern Response decision
    The Crown will not appeal the Court of Appeal decision in the Dodds v Southern Response case, Grant Robertson announced today. “Southern Response will be paying the damages awarded by the Court to Mr and Mrs Dodds shortly. The Crown was already meeting their legal costs for this appeal. “The ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Crucial PGF investments for Northland
    The Provincial Growth Fund is investing nearly $30 million in a diverse range of projects that will create immediate and long-term jobs and lift economic and social outcomes for Northland and its people. Deputy Prime Minister Winston Peters and Regional Economic Development Minister Shane Jones made the announcement today in ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • $27million investment in global vaccine facility
    The Coalition Government has committed to invest $27 million in COVID-19 vaccine development through the global COVAX Facility, Foreign Minister Winston Peters announced today. “The COVAX Facility is a key part of our COVID-19 Vaccine Strategy to obtain safe and effective vaccines. It allows us to invest in a high-quality, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government backing Māori landowners
    The Government will provide up to $1.69 million through the One Billion Trees programme to Māori landowners to make their whenua more productive through the planting of forests, both native and exotic, and improve economic and environmental outcomes, Forestry Minister Shane Jones has announced. “Around 1.5 million ha of land ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New tools to make nature more accessible
    People planning to head outdoors now have a resource that lets them know how accessible an area is for people with varying levels of mobility, Minister of Conservation Eugenie Sage announced today. The Halberg Foundation, Sensibel, and the Department of Conservation (DOC) have launched Accessibel, a new tool which helps ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PGF makes Māori history more accessible
    One of the most significant battle sites of the 1860s Land Wars will receive $2.96 million from the Provincial Growth Fund to improve the site and help tell the New Zealand story to visitors, Māori Development Minister Nanaia Mahuta and Regional Economic Development Minister Shane Jones have announced. Nanaia Mahuta ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Making it official: The journey of te reo Māori | Kia whakapūmautia: Ngā piki me ngā heke o te r...
    The journey towards recognising Māori as an official language and taonga has been captured as a web series and launched today during Te Wiki o te Reo Māori, announced Associate Arts, Culture and Heritage Minister Carmel Sepuloni. “Te reo Māori is a living language, and understanding its significance, and pathways to ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Better-than-forecast GDP reflects decision to protect New Zealand
    Today’s better-than-forecast GDP figures show the expected impact of the decision to act quickly to protect New Zealanders from the global COVID-19 pandemic. GDP fell 12.2% in the June quarter from March, reflecting decisions to close New Zealand’s borders and enter Alert Level 4. “This result was better than the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Boost for COVID-19 related Pacific education needs
    The Government is investing $39.7 Million over four years to support the educational needs of Pacific learners and families in the regions hardest hit by COVID-19, with Auckland getting an immediate boost, Associate Minister of Education Jenny Salesa says.   “Like all New Zealanders Pacific families want learners to do well ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • More resources for kiwi conservation
    New Zealand’s goal of 100,000 kiwi by 2030 is being helped by an extra $19.7 million in funding to accelerate iwi and community efforts to protect kiwi, Minister of Conservation Eugenie Sage announced. “$19.7 million of Jobs for Nature funding is being invested in kiwi conservation activities including increased predator ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Improving access to affordable electricity
    Ensuring New Zealanders can get the best deal on their electricity takes a step in the right direction today with the South Island launch of the EnergyMate pilot run by the Electricity Retailers’ Association, says Minister of Energy and Resources, Dr Megan Woods. EnergyMate is an industry-led programme providing coaching ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government achieves 50 percent women on state boards
    Minister for Women Julie Anne Genter announced today that the Government has reached its target of 50 percent on women on state sector board and committees – setting a new record level of women on state sector boards. “This Government is committed to having more women in leadership roles - ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Record transport investment to help economic recovery and save lives
    Transport Minister Phil Twyford released today the final Government Policy Statement on land transport (GPS) 2021 which outlines the planned $48 billion investment in services and infrastructure over the next decade. “The final GPS supports our Government’s five-point plan for economic recovery by confirming our record investments in transport infrastructure ...
    BeehiveBy beehive.govt.nz
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