web analytics

Exporting Dunedin

Written By: - Date published: 9:45 am, October 11th, 2010 - 48 comments
Categories: business - Tags: , ,

Eddie: David Clark is the Labour Party’s new candidate for Dunedin North. With any luck he’ll be sending us the odd guest post — until he moves in due course to Red Alert! Welcome David.

It’s all right here! About 100 metres from where I live in fact.

I recently had the opportunity to speak with a group at Otago University’s Centre for Innovation, including The Distiller, and Pocketsmith co-founder Jason Leung. The Distiller is a group of technology entrepreneurs working collaboratively. Pocketsmith is a web-based calendar that forecasts your personal future cash position.

As a business, Pocketsmith has been set up on a shoe-string and is competing with much bigger overseas products for a fraction of the cost.

With support here and there, ICT start-ups can become big earners for New Zealand. At the moment, however, there are some frustrating barriers to success. Here are a few:

  • Not enough IT graduates coming from secondary schools. I understand steps are being taken to introduce a better curriculum in the final years of secondary school, but not enough is being done. Without proper professional development for teaching staff, the new curriculum will be a failure. The Government needs to invest more to ensure New Zealand kids develop these skills – vital to our country’s future.
  • High-speed Broadband for teaching. Videoconferencing is becoming an increasingly important teaching tool for the University of Otago with its distance students. The Key Government has shied away from real investment in getting decent internet access for people everywhere.
  • Lack of funding for testing. One of the frustrations for local entrepreneurs is the lack of funding support available for testing whether markets actually exist. Money to develop products (whether they’re needed or not) is relatively speaking – easier to come by. It seems important that once a product has been proven in its basic form, that the market be tested quickly. When our best minds could be better used elsewhere, it makes no sense to have them refining a product no-one’s going to use.

The National Government has wasted time promoting mining of National Parks, and seems to have missed the opportunity to strengthen and develop real opportunities for economic growth in New Zealand. This Government must stop exploring dead-end paths and put real effort into creating the environment for our future success. The internet can overcome our challenging distance from export markets. And New Zealand has strong potential for weight-less exports as a consequence.

On the upside, many companies are succeeding despite the National Government. But it makes you wonder how much better the local economy would be doing under Labour.

David Clark

48 comments on “Exporting Dunedin”

  1. Scarfie 1

    The ODT had a feature on Distiller here:

    http://www.odt.co.nz/news/business/130699/minding-others-business

    Good luck to them.

  2. The Baron 2

    Agree with everything, apart from this:

    “The Key Government has shied away from real investment in getting decent internet access for people everywhere”

    Pardon? Have you heard of the UFB/RBI?

    • r0b 2.1

      I’ve heard about them. I’ve heard lots of promises about broadband since, after tax cuts, it was more or less the Nats only significant pre election promise. I’ve heard about it and heard about it and heard about it – so much so that I’ve stopped paying attention. So I might have missed it, but where is the government, as compared to Telecom or others, investing?

      In other news – the speed of my broadband hasn’t changed, and nor is it likely to in the foreseeable future.

    • felix 2.2

      I’ve also heard of EBTTH but I haven’t seen any evidence of its existence yet.

  3. Carol 3

    I’m for supporting improved broadband, and creative NZ enterprises that produce neccessary goods and services. But to me David’s focus on economic growth, exports etc, sounds a lot like the old neoliberal approach, which is increasingly being shown to be totally dysfunctional. How does much does David’s approach contribute to a new direction for the left?

    • Bill 3.1

      “…to me David’s focus on economic growth, exports etc, sounds a lot like the old neoliberal approach, which is increasingly being shown to be totally dysfunctional”

      Sounds that way to me too. Thing is, Labour will never be a part of any new direction for the left. They are very much a part and parcel of capitalism’s managerial culture, ie they are in the business of keeping capitalism functioning after some fashion or other. (Last managerial fashion was neo-liberalism. Next one will be whatever it is that a culture of crisis management decides might work for or prolong capitalism.)

      Should the left strike out in a new direction, I think it is fair to assume that the Labour Party will be part of any reactionary impediment. Sadly.

    • Hi Carol,

      Agree that trad neoliberal agenda has plenty of shortcomings and won’t bother rehearsing the arguments here. I think if you have a look at some of my other posts, you’ll find my view hard to conflate with trad neoliberalism, e.g. http://www.davidclark.org.nz/2010/08/killing-the-new-zealand-dream/

      That said, I am not going to apologise for a focus on exports and the economy. Trading is in good part responsible for the way Western countries have made the money that buys public services like decent hospitals and schools. It is how cancer medications and computers are afforded. I don’t think for one second that it would be good to stop trading. We need an emphasis on fair trade. Condemning most of the world to ongoing poverty through cessation of trade is not on my agenda.

      Good ideas should be shared, and currently trade is the best available mechanism to encourage both development and propagation of good ideas. Weightless exports have the additional advantage of being friendly on the environment.

      • Draco T Bastard 3.2.1

        We have the resources to produce everything we need here. International trading is only needed to procure something that we don’t presently produce. The corollary is that we then need to develop a local source of those items.

        Trading is in good part responsible for the way Western countries have made the money…

        Here your making the usual mistake of confusing money for a resource. What actually makes hospitals and schools is people. Amazingly enough, people already living here from resources that are also already here (this is why foreign investment is a load of bollocks).

        I don’t think for one second that it would be good to stop trading.

        Probably not and probably impossible anyway but minimising it is certainly doable and better for us as a society.

        Condemning most of the world to ongoing poverty through cessation of trade is not on my agenda.

        We’ve already done that. There isn’t enough resources in the world for everyone to have the same level of living standards that we have. You’ll note, though, that the poor countries are the ones that exported all their raw resources rather than developing local education and industry.

        Trade doesn’t produce any more wealth – what it does is transfers it from place to another. Due to the deadweight loss of profit someone, usually the poorer, is always worse off after the trade.

        Good ideas should be shared, and currently trade is the best available mechanism to encourage both development and propagation of good ideas.

        Yes, good ideas should be shared but trade isn’t a good way to do it. Open and free discussion is with the removal of patents so that people who hear the idea can develop it locally.

        • comedy 3.2.1.1

          “What actually makes hospitals and schools is people”

          Yes without people there would be no need for either but we also need buildings, computers, capital equipment, drugs, surgical equipment etc etc etc. We cannot produce all of these ourselves the best way to get those things we need but cannot produce ourselves is via trade.

          • Draco T Bastard 3.2.1.1.1

            We’ve had this conversation. The answer “Yes, we can” as I proved to you before and if we did so it would actually bring about a better society rather than the race to the bottom that we presently engage in with every other nation.

            • comedy 3.2.1.1.1.1

              Really, we can manufacture CT scanners, MRIs and Linear accelerators in NZ can we ?

              And all the joints and intraoclar lenses for our elderly ?

              And all the beta blockers, ACE inhibitors Calcium antagonists for those with high blood pressure ?

              SUs, biguanides and insulins for diabetics can we make those as well ?

              • nzfp

                Sounds like a great opportunity for technology incubation comedy!

                If I was Finance Minister I would create 10 Billion dollars to develop FREE clean de-centralised renewable energy alternatives to oil!

                I would give 5 million to each University and Polytech to come up with a plan for research and development – and then fund them another 5 million each to execute the research.

                I would then spend 1 Billion per university to implement the research in production.

                The result of research and development as well as the creation of FREE clean de-centralised renewable energy would be:

                1. Technology incubation as new materials science and engineering would be required to create FREE de-centralised energy alternatives to oil. This was the result the US experienced during the Apollo moon program.
                2. A reduction in manufacturing costs for anything produced in New Zealand
                3. A reduction in transport costs for anything or anyone – free electricity based public transport anyone?
                4. The implementation of each Universities findings would create employment for New Zealanders.
                5. The new technologies developed could be licensed or sold or outright given to other countries. If we gave FREE de-centralised renewable clean energy systems to China we would end the central Asian resource wars currently plaguing Iraq, Iran, The Central Asian -Stans as well as Afghanistan and Pakistan.

                The resulting influx of revenue to pay for the new products produced in New Zealand as a result of the technology incubation would on its own outweigh the initial 10 Billion in capital.

                The initial 10 Billion in capital would cost us nothing at all – because the Government would print the damn money from nothing at zero interest instead of borrowing it at interest payable in a foreign currency from a foreign private bank that prints the money from nothing at all!

                So yeah comedy – Draco’s right!

              • Colonial Viper

                Insulin is no problem if you have pigs. And there will be less need for high BP meds if we decide as a society that the 24/7 grind is stupid and generally fruitless.

                But yeah, some of the other stuff is not going to be able to be put together in the shed.

                • comedy

                  I don’t think the diabetics of NZ or the animal rights movement will be particularly impressed if we had to return to porcine insulin, agreed there are non pharmaceutical interventions that can help with high BP however there will always be a significant need for these type of meds.

                  NZFP sorry haven’t got the time to deconstruct your argument at present I might fisk it tonight if that’s OK.

                  • nzfp

                    Don’t worry about it comedy,
                    I covered a lot that you may find issue with. Bear in mind that my comment is meant in a light hearted manner.

                    The only thing that you should have any real issue with is the means to fund any project of this type.

                    If you can find an issue with that – raise what the issue is specifically and I’ll do my best to address it for you.

              • Draco T Bastard

                Really, we can manufacture CT scanners, MRIs and Linear accelerators in NZ can we ?

                /facepalm

                Yes, actually, we can. After all, we already do the research and development. Just a question of getting the manufacturing to go with it.

                If anything can be done we can do it here just as well. Throw in some decent R&D and we could even do it better.

                • Chris

                  sorry, but Draco, you’re crazy

                  • Draco T Bastard

                    There are two types of blind people, those who cannot see and those who will not see.

                    • The Baron

                      Draco, what are your thoughts on comparative advantage as a contrary argument?

                    • Draco T Bastard

                      There’s no such thing as a factory in NZ is just as efficient as a factory in China (or anywhere else for that matter). The inputs are the same and the required skills are the same. The only difference is the cost of transport. The only reason why Chinese made goods are cheaper than NZ made ones are because the of the exchange rate which is artificially kept low through the Chinese keeping their currency low, ours through the high interest rates keeping it artificially high and the US trying to inflate it’s way out of debt.

                      Ricardo may have been right at the time (not that I think he was) but things have changed. It’s no longer more efficient to have a large factory exporting to the world than a small factory(ies) supplying only the local community. Socially, it’s always better to have the country to be self-sufficient. Trade then becomes an option rather than a necessity and the societies culture etc will develop rather than staying stuck in the same old mould (which, in NZ, seems to be farm, farm, farm).

                    • The Baron

                      Hmm, I’ll need to think about that… but it doesn’t sound entirely nuts. Pleasant surprise.

                      What about economies of scale though? Our local, domestic version of a widget factory is built for serving a market of 4.X million. The chinese one is built for a factor of 1000 greater. There will be some circumstances whereby even once transport is included, we would be net worse off from doing it ourselves – even if wages and all other factors were equal?

                    • lprent []

                      At various times I write code for widgets (like right now). Sometimes the widgets are made here. Sometimes they’re made offshore. The decision is a complex one based on a lot of factors. But in the worldwide vertical markets we’re looking at (it has been decades since I worked in company that was planning on doing more than 10% of their sales in NZ), we’re typically only selling thousands or tens of thousands of product. The production cost per unit is far far less than the development costs.

                      Both the hardware design and software design are done here. The question of economies of scale scarcely come into the type of brain powered tech that we sell.

                    • The Baron

                      Absolutely right, Lynn – it is meaningless when you are talking about “weightless” digital economy products, which is why ideas like David’s are so attractive.

                      But I get the distinct impression that Draco is also considering traditional, physical goods too – where plants, factories, manufacturing etc etc is absolutely reliant on economies of scale, and access to raw materials – both of which could render this idea pretty moot…

                    • nzfp

                      Hey Baron,
                      Consider this. German economist and environmentalist Margrit Kennedy , who’s work on ecological architecture in 1982 led her to the discovery, that it is “virtually impossible to carry out sound ecological concepts on the scale required today, without fundamentally altering the present money system or creating new complementary currencies, demonstrated in her 1987 book (free to read online) “Interest and Inflation Free Money (ISBN 0-9643025-0-0)” that all widgets produced in a debt based economy such as ours incur interest costs totaling 50% of the total cost of production for each item.

                      That means a can of L&P that costs $1.00 to the consumer, incurs $0.50 of interest throughout the chain of production to consumption.

                      Kennedy also demonstrates that we can remove the interest load of 50% of the cost of each item, by replacing a private debt based system with credit as a public utility issued by the Government.

                      If New Zealand implemented a system like this – the cost of production for anything in our Nation would drop – potentially – by 50%.

                      You can scale that as large as you like, but $500 Million USD is still less then $1 Billion USD.

                    • The Baron

                      Thanks for the link NZFP. I won’t read it now, but will come back in some other appropriate thread once I have had a look at the ideas in a bit of detail.

                    • lprent

                      Bloody hell a thread that has maxed out on depth and is still on-going…..

                      Baron: If it is hard commodity goods then there are very very few things that NZ has any significant advantage in. Apart from resource extractive industries like farming I can only really think of a few. That was a secondary reason why I dropped out of production and operations management 20 odd years ago (the primary being that programming was more fun).

                      We really have to sell brains and design skills because there are bugger all other resources (Brownlee is pretty much an idiot to think otherwise). Besides when the final ore is pulled out of the ground, the final river polluted with effluent, and the final aquifer pillaged – we still need to have an income.

                      The only reason that I stayed in NZ was because the net came along. It means that we are able to trade worldwide in high design value goods where the shipping costs essentially don’t matter.

      • Bill 3.2.2

        Jeez. I kind of despair sometimes.

        There is nothing at all wrong with trade, David.

        But there is a lot wrong with the market, ie the environment that determines terms of trade. In short, it encourages thuggery and penalises decency.

        And it wasn’t simply trade that got the anglo-saxon world ahead. It was advantageous trade arrangements ‘agreed to’ at the point of a gun, ie colonialism. For example, Indian cotton manufacturing was outlawed and weavers had their thumbs cut off as a matter of course. The exported raw material then led to Paisley and Manchester becoming world centres for cotton manufacturing.

        Which means that trade within a market environment impoverished both British workers and Indian weavers. And then it got worse, with opium being forcibly planted where rice used to grow leading to starvation in India and a nice export crop to China. It’s beyond me where you get this idea that trade necessarily enriches. More recently, we could consider SAPs in the context of trade enriching people or societies.

        On the idea that trade is a mechanism for sharing ideas, I’m tempted to simply pass. Trade is a mechanism for exchanging tradeable goods. Which means you are saying that only ideas that can be monetized are to be considered good ideas.

  4. burt 4

    So have I got this right, a lefty thinks we should be directing tax payers money to private enterprise – but not just any private enterprise, private enterprise in his local area.

    How can we implement the great socialist dream of the state being in control of giant monopolies for the production and delivery of all good and services in a perfect one size fits all model where nobody earns too much and nobody earns too little when we keep reverting to Tory tactics of encouraging innovation, competition and growth in the private sector? What sort of future is there for NZ when tax payers money is directed into the pockets of people with great ideas and vision rather than lavished on people only to win their votes every three years.

    This chap isn’t a true Labour man is he – he’s an extreme right wing plant trying to divert tax payers money to his old school mates. He should be protesting outside these organisations reminding them that their profits are unpaid wages and that their low staff numbers which give them a disgraceful level of agility is only because they are exploiting people under individual contracts.

    I bet both of these companies have people working for them that are being paid based on their value to the business rather than from a schedule of remuneration rates set in Wellington based on comparable roles in the public sector…. Shame – shut them down…. It’s not fair these people earn more than a beneficiary simply because they produce stuff the world wants – not everyone can be innovators and it’s not fair that innovators profit from things we all want…. The products these greedy capitalists are producing must be commandeered and repackaged by the state for the good of all.

    • r0b 4.1

      Feel better now Burt?

    • burt 4.2

      I’ll feel better when these companies have all their employees on a collective agreement and have massive tax hikes imposed on them to return their filthy profits to the state. There is an election next year, the unions needs funds to donate to Labour or there will be no big red billboards or pledge cards to remind people the country works best under Labour.

      • Bill 4.2.1

        Why not have all the companies set up as a single entity under the Industrial and Provident Societies Act which would allow them to explore and develop highly equitable and innovative organisational structures (eg worker collectives incorporating mixed job complexes etc) ) as well as novel renumeration systems (eg income sharing)?

        I think your harking on about the role of the state signifies a fundamental lack of understanding on the nature of socialism, Burt.

        It might please you to know that under the above scenario far more money would stay with those involved. The tax system doesn’t deal very well with returns (whose size is democratically determined by participants in the businesses after taking into account the cost of pre agreed criteria…such as reinvestment percentages etc) being paid from nominal shares as opposed to wages or salaries being paid.

  5. Hilary 5

    Testing of IT products is an area with great potential for the employment of people with high functioning autism or Aspergers syndrome. The pioneer in this work is Thorkil Sonne from Denmark who has now franchised his Specialisterne ASD employment concept internationally. He has a goal to employ 1 million people with autism in this field. It would be great if David and the LP could also pick up this idea.

    • burt 5.1

      Hilary

      What a great idea. I’m not convinced that people with Autism or Aspergers syndrome will be well placed to get a good grasp of business, user and functional requirements in a cohesive way that allows them to perform robust testing against detailed and sometimes complex real world requirements. But what a great idea – I hope Thorkil Sonne is onto something big here.

  6. nzfp 6

    […] there are some frustrating barriers to success. Here are a few […] Lack of funding for […]

    Lack of funding should never be a barrier – especially if the funding is required to create products and services that will add to the well being of the community.

    There is and has always been provision in the Public Finance Act that allows local government bodies to borrow at zero interest directly from the RBNZ. I made this point in another post HERE with regard to Len Brown and the Super City election.

    To recap, it goes like this:

    […] The Public Finance Act 1989 No 44 (as at 30 July 2010), Public Act section 65L and section 47 explicity states that the “Minister, on behalf of the Crown, may lend money to a person or organisation […] on any terms and conditions that the Minister thinks fit” […]

    To summarise, the “The Public Finance Act 1989 No 44 (as at 30 July 2010)” provides mechanisms which allow the Finance Minister, via the Reserve Bank, to lend to any institution it chooses on any terms it chooses – such as zero interest at a period of 100 years.

    Dunedin North could borrow what ever it needs to repay any outstanding debts it currently has to Private Banks that incurs an interest fee. Consequently, capital will be released from servicing interest on bebts – this newely freed capital could then be used to build high speed broadband as well as fund testing (and anyting else for that matter).

    A justification for funding of this type can be found HERE.

    Captcha: THERE – you go – no problem – no barrier – no frustration!

  7. Draco T Bastard 7

    High-speed Broadband for teaching. Videoconferencing is becoming an increasingly important teaching tool for the University of Otago with its distance students. The Key Government has shied away from real investment in getting decent internet access for people everywhere.

    If we got broadband out to everyone, as is essential in today’s economy, then people shouldn’t need to enrol in a university to see, and participate, in the lectures. This could bring about all sorts of efficiencies as far as our advanced education goes and would open up even more human and social development. Would require that all universities be fully government funded though.

    Lack of funding for testing.

    Print the bloody money @ 0% interest. It’ll be a lot cheaper than borrowing (governments should never need to borrow) and then brings about the more rational affect of maintaining $$$ value by taxes rather than interest rates as presently happens.

    • Colonial Viper 7.1

      Print the bloody money @ 0% interest.

      Yes. The Government must restore its natural right to produce money. Why should the banks be permitted to keep producing bank money out of thin air and then charge us high levels of interest on it.

    • nzfp 7.2

      Actually there is a lot of frustration – “Print the bloody money @ 0% interest” – damn right print the bloody money!!

      Afterall it explicitly states in NZ law that the NZ government can do this.

      Not doing this is costing our Nation.

      Our Government is required to implement a tender process when procuring any goods or services from any institution (public or private). Our Government should be required to implement a tender process for the cheapest system to create New Zealand dollars. It is immediately obvious that no Private Bank can create New Zealand public credit cheaper or with more stability then the Publicly Owned RBNZ!

      Capthca: restores – Credit as a public utility restores economic and social democracy!

      Even better – instead of printing themoney to lend – the Government should just print the money to spend – then there is no debt at all.

      For those people who get all caught up with the inflation fallacy – what do you think tax is for?

      If there is too much money sloshing around – a simple tax on bank trades will pull out the excess money!

  8. Colonial Viper 8

    One basic recognition is that international trade is being directed primarily for the good of corporations and other major business interests at the moment, and not for the good of the citizens of the countries involved (or their living environments). What % of oil wealth is distributed to the peoples of the Niger? What % of diamond wealth is distributed to the peoples of Angola and Sierra Leone? What % of Apple’s wealth is distributed to its contracted manufacturing workers in Shenzhen?

    Its the usual story. A few do reap most of the benefit, mainly in western developed countries (who incidentally direct organisations such as the World Bank and the IMF). And the many, often in poorer ethnic countries, get only a little if anything at all.

  9. Chris Bull 9

    I’m part of the Distiller, though I am writing this in a personal capacity and in no way does anything i write represent the group – I’m no official spokesman. We’re a completely community based effort that exists in order to help people grow technology startups in a “loving” environment, with the end goal being that the companies grow up much the same way that someone who was raised in a good, loving home would grow up – sympathetic to the environment that they exist in and aware of their responsibilities hence.

    As far as our group is concerned, we’re apolitical. Personally, I’m on the urban liberal end of the labour party spectrum, but this is in no way representative of the group as a whole, though I will comment that the extreme, cut-throat capitalists seem to go other places to further their Atlas fantasies.

    I feel very comfortable that I can be both pro-entrepreneurship and also support left-wing positions on things like health, infrastructure, culture etc. Sure, extremists like Draco will never be happy until revolution, but I don’t understand why running a community based “Incubator” is being so criticised – the quotation marks were used because we exist in someways as a reaction to the incubation system. As far as I’m concerned the Distiller is one of the most positive groups I’ve been involved with and think that, as the companies grow, we will make a good contribution to NZ society.

    In the end, businesses are an important part of our society, whether Draco likes it or not. Sure, positions around who should own natural monopolies are a different area, but in the space we work in to me it seems natural for a Labour candidate to approve of such a system. Being left wing doesn’t mean being anti-business/entrepreneurship as far as I’m concerned, maybe in 1917, but since then the world has moved on.

    • Colonial Viper 9.1

      Hi Chris, sounds like your team have put into practice what management science has known for decades but the Right Wing constantly ignores – entrepreneurial people and innovators are typically motivated by different things, of which money is just one. Great job and best wishes for continued ‘success’ – however your organisation defines it.

      And yes, I agree with you, the Left need to be strong supporters of kiwi innovation, team work and entrepreneurship. Its the only way we will become less dependent on external factors, and the only way we will develop and keep home grown talent.

    • Carol 9.2

      Sounds good, Chris. Thanks for the explanation. All the best with it.

    • lprent 9.3

      We run this site pretty much on an “agree to disagree” basis where we constrain the trolls and anyone else who wants to disrupt debate (outlined in the policy). It means that you can get a pretty wide range of opinion, often strongly put, and frequently deliberately designed by the author or commentator to forment debate and responses like yours. Don’t bother getting upset. Just argue your viewpoint as you have done.

      There are a wide range of opinions here. Personally I support incubators, but I’m an Otago MBA who has spent the last 20 years almost entirely working in high tech startups. But I have qualms about incubators that are to do with how to move the resulting companies out into commercialization, and how to recover funds to start new incubator businesses.

    • nzfp 9.4

      Hi Chris,
      I can’t speak for Draco – but I know we share economic viewpoints.

      Something I was trying to put across was that ample funding should be made available – directly from the Government via the RBNZ as explicitly stated in the The Public Finance Act 1989 No 44 (as at 30 July 2010), Public Act section 65L and section 47 – for such things as Technology Incubators – just like the Distiller group you have described.

      Your group could/should be funded by your local body Government – via zero interest loans from the RBNZ and Treasury – or even better by a National fund specifically for the purpose.

      The benefits are many and obvious.

      Good luck to you – read “The Public Finance Act 1989 No 44 (as at 30 July 2010), Public Act section 65L and section 47” and agitate for the new Dunedin mayor to setup a fund for you using this Act!

      Captcha: REGARDS – to you.

    • Draco T Bastard 9.5

      I don’t know why you’re mentioning me in there in the way that you do. I didn’t criticise your incubator. In fact, if I was still in Dunedin I’d consider joining it.

      In the end, businesses are an important part of our society,

      The services that businesses provide society (well, some of them are, others are just money making ponzi schemes) are important. It’s not business that I’m against – it’s the ownership and authoritarian bent of capitalism.

      Being left wing doesn’t mean being anti-business/entrepreneurship as far as I’m concerned, maybe in 1917, but since then the world has moved on.

      Go study history a bit more as it’s not that we’ve moved on but that we’ve gone backwards 2 centuries over the last 3 decades.

      Sure, extremists like Draco will never be happy until revolution,

      He who would move a mountain, starts by moving small stones.

      • Chris Bull 9.5.1

        Sorry, Draco. Reading your above posts you gave off a pretty hostile to business and trade attitude – unfairly so, in my opinion.

  10. Trevor Mallard 10

    Would have sort weightless exports such as these environmentally as well as economically good. Important we keep developing systems of keeping as much of the ownership here as is possible.

    • Draco T Bastard 10.1

      We can’t export ourselves out of debt when everybody else is trying to do the same thing and everybody else has the same problem – excess production. It’s why there’s a global currency war heating up.

      • nzfp 10.1.1

        We can’t export ourselves out of debt when everybody else is trying to do the same thing

        Not at all – and to add to that – (to quote American economist Professor Michael Hudson):

        debts that can’t be paid won’t be paid

        That’s another reason why there is a currency war.

        The debt deflation and conditions of the currency war we are in the middle of has been mathematical modeled and demonstrated by Australian economist Steve Keen in a recent presentation to the American Monetary Institute (AMI). Keen has shown that private debt based economies – such as ours – that become financialised and parasitical – such as ours – are doomed to debt deflation and crash.

        Keens presentation shows that exports will not lead to a global recovery – especially as Draco has pointed out – every man and his dog will be attempting the same strategy – and we cannot compete with China on this.

        However, we can change our economy and monetary system and focus on technology and business incubation for internal demand and where it fits external exports. It should be noted that a fundamental change in our economy will promote a more local – business and entrpreneur friendly – economy which is sustainable and environmentally responsible anyway.

        You can read the details and watch a video of Keens presentation, as well as download the software and datasets Keen used to model the system – for yourself from his website:

        http://www.debtdeflation.com/blogs/2010/10/04/jubilee-shares-and-the-american-monetary-act/

Links to post

Recent Comments

Recent Posts

  • Economy must deliver a fair go for New Zealanders
    The latest Half Yearly Economic and Fiscal Update (HYEFU) provides further evidence that the economy that the National Government and Bill English have is sitting on shifting sands and leaves many people behind, Labour’s Finance spokesperson Grant Robertson says today. ...
    23 hours ago
  • A Billion Better Things
    Earlier this week I posed some questions to Finance Minister Bill English about his support for the government’s plan to spend a billion dollars on a new prison. I was pretty disappointed in his answers, all of which flew in the face of his own ...
    GreensBy David Clendon
    24 hours ago
  • Govt already in ‘holiday mode’ on $2.3b owed to Kiwi workers
    The Government is dragging its feet while working New Zealanders are still missing up to $2.3 billion collectively owed to them through underpaid holiday pay entitlements, Labour’s Economic Development spokesperson David Clark says. “The cover was blown on this issue ...
    1 day ago
  • Why is New Zealand still the exception on deposit protection?
    I took the opportunity to question the Reserve Bank Governor, Graeme Wheeler, about New Zealand’s lack of deposit protection in front of the Finance and Expenditure Select Committee in Parliament yesterday. Why does the Reserve Bank continue to oppose protecting ...
    GreensBy James Shaw
    1 day ago
  • Statement on proposed United Nations role
    “There has been a high degree of media interest in New Zealand about a possible post with the United Nations. “My name has been proposed to the United Nations Secretary General to be his Special Representative in South Sudan. ...
    1 day ago
  • David Shearer proposed for UN peacekeeping role
    Mt Albert MP David Shearer is being proposed for a demanding and exciting role heading the United Nations peacekeeping force in South Sudan, says Labour Leader Andrew Little. “David has kept me fully informed about this opportunity and we are ...
    1 day ago
  • Karori Kids and Campbell Kindergarten must be saved
    The Minister of Education needs to show some leadership and secure the future of two not-for-profit early childhood education centres that could be faced with closure as the land they sit on is up for sale, Grant Robertson Labour MP ...
    1 day ago
  • Ministry reveals shocking charter school results
    NCEA results for charter schools have been massively overstated with documents revealing many students leaving school without basic NCEA level two qualifications despite this being a main educational target for the Government, says Labour Education spokesperson Chris Hipkins.  “Documents obtained ...
    1 day ago
  • Minister must protect MSD staff
      The Minister of Social Development should immediately implement safer work practices to ensure tragedies such as the Ashburton killings don’t happen again, says Labour’s Social Development spokesperson Carmel Sepuloni.   ...
    2 days ago
  • A vote for the Māori Party is a vote for National
    Comments made by the Māori Party leadership in the wake of John Key’s surprise resignation make one thing clear: a vote for them is a vote for a fourth term National Government, and the increasing inequality and poverty for Māori ...
    2 days ago
  • Collins and English split over police funding
    The bloodletting has already begun with splits and divisions emerging after the Police Minister knifed the Finance Minister via the media, says Labour Police spokesman Stuart Nash. ...
    2 days ago
  • Next Prime Minister must tackle foreign speculators
    The public rightly puts much of the blame for the housing bubble at the feet of foreign speculators, and the next Prime Minister must listen to their concerns, says Labour’s Housing spokesperson Phil Twyford. ...
    2 days ago
  • NZ student performance slips in international study – again
    The continuing fall in Kiwi kids’ performance in the OECD Programme for International Student Assessment (PISA) study shows the damage being inflicted by National’s cuts to education and one-size-fits-all approach, says Labour’s Education spokesperson Chris Hipkins. “For years, National has ...
    2 days ago
  • CYF reforms dangerous backward step
    Child protection has taken a massive step backwards today with the Government passing a Bill that will give significant powers to unspecified ‘professionals’ or contract holders, says Labour’s Acting Children’s spokesperson Carmel Sepuloni. ...
    3 days ago
  • Improve workplaces, and address domestic violence
    Last week the Productivity Commission put out a report about how to grow “weak labour productivity”. These views are being criticised as being straight out of the 1980s. What is a real problem is that we have a problem of ...
    GreensBy Jan Logie
    3 days ago
  • Palm oil industry implicated in human rights abuses
    The Green Party has campaigned for several years for mandatory palm oil labeling to give consumers choice. Most consumers do not want to support a palm oil industry that is destroying tropical rainforests and contributing to dangerous climate change emissions. ...
    GreensBy Mojo Mathers
    3 days ago
  • Syphilis on the rise in NZ
    Cases of syphilis are increasing in Auckland. You read that right, syphilis!  RNZ reported today that rates of syphilis have increased by 71 percent (between 2013-2015). We have known about the increase in syphilis figures for a while, but nothing ...
    GreensBy Julie Anne Genter
    4 days ago
  • We need to work smarter not longer
    The charade of this Government’s sound economic management is unraveling. Misleading GDP figures, pumped up by property speculation and high immigration, have given the impression that all is well, masking our continued productivity decline compared to OECD countries. In fact, ...
    GreensBy Barry Coates
    4 days ago
  • Statement on John Key’s resignation
    Labour Party Leader Andrew Little has acknowledged John Key’s contribution to Government.  “John Key has served New Zealand generously and with dedication. Although we may have had our policy differences over the years, I respect the Prime Minister’s decision to ...
    4 days ago
  • Positive plan secures victory
    The victory of Labour’s newest MP, Michael Wood, in Mt Roskill is the result of a well-organised campaign run with honesty and integrity, says Labour Leader Andrew Little. “I congratulate Michael Wood on his great victory. He will be a ...
    6 days ago
  • Wave of support for Kiwibuild continues to grow
    Apartment builder Ockham Residential has become the latest voice to call for the government to build affordable homes for Kiwi families to buy, says Labour’s housing spokesperson Phil Twyford. “Helen O'Sullivan of Ockham has now joined prominent businesspeople like EMA ...
    7 days ago
  • Cuba Si Yankee No – Fidel Castro and the Revolution
    The death of Fidel Castro is a huge historical moment for the older generation who grew up with the toppling of Batista, the Bay of Pigs debacle, the death of Che Guevara and the US blockade against Cuba. For younger ...
    GreensBy Catherine Delahunty
    7 days ago
  • Government slashes observer coverage, fails snapper fishery
    The Ministry for Primary Industries (MPI) has more than halved the number of fisheries observers in the East Coast North Island snapper trawl fishery (SNA1). This reduction in observer days, combined with major failures in an unproven and controversial video ...
    GreensBy Eugenie Sage
    7 days ago
  • ‘Exemplar’ Māori Land Court under siege
    TheMāori Land Court, hailed as an “exemplar” by the Ministry of Justice chief executive and Secretary, Andrew Bridgman is under siege by the Government through Māori land reforms and a Ministry restructure, says Labour’s Ikaroa-Rāwhiti MP Meka Whaitiri. ...
    1 week ago
  • He Poroporoaki ki a Te Awanuiārangi Black
    Kua hinga he whatukura o Tauranga Moana. Kua hinga rangatira o te iwi Māori. Ka tangi tonu ana te ngākau nā tāna wehe kei tua o te ārai. E rere haere ana ngā mihi aroha o mātou o Te Rōpū ...
    GreensBy Marama Davidson
    1 week ago
  • CYF reforms ignoring whānau based solution
    When approximately 60 per cent of children in state care are Māori processes need to change in favour of whānau, hapū and iwi solutions, said Labour’s Whānau Ora spokesperson Nanaia Mahuta.  “Widespread concern about Government reforms of Child Youth and ...
    1 week ago
  • Hip and knees surgery takes a tumble
    The statistics for hip and knee electives under this Government make depressing reading, says Labour’s Health spokesperson Annette King.  “Under the last Labour Government we achieved a 91 per cent growth in hip and knee elective surgery. Sadly under this ...
    1 week ago
  • Parata’s spin can’t hide cuts to early childhood education
    No amount of spin from Hekia Parata can hide the fact that per-child funding for early childhood education has been steadily decreasing under the National government, Labour’s Education spokesperson Chris Hipkins says. “In the 2009/10 year early childhood services received ...
    1 week ago
  • Nats will jump at chance to vote for KiwiBuild Bill
    National will welcome the chance to vote for a real solution to the housing crisis after their many, many failed attempts, says Labour MP for Te Tai Tokerau Kelvin Davis. Kelvin Davis’s Housing Corporation (Affordable Housing Development) Amendment Bill was ...
    1 week ago
  • Million dollar houses put homeownership out of reach of middle New Zealand
    35% of New Zealanders now live in places where the average house costs over a million dollars, and it’s killing the Kiwi dream of owning your own place, says Labour’s housing spokesperson Phil Twyford. Latest QV stats show that Queenstown ...
    1 week ago
  • Opportunity for political parties to back Kiwi-made and Kiwi jobs
    The First Reading in Parliament today of his Our Work, Our Future Bill is a chance for political parties to ensure the government buys Kiwi-made more often and backs Kiwi jobs, says Leader of the Opposition Andrew Little. The reading ...
    1 week ago
  • Solid Energy must open the drift
    Solid Energy is showing no moral spine and should not have any legal right to block re-entry into the Pike River drift, says Damien O’Connor MP for West Coast-Tasman.  “Todays failed meeting with  representatives from the state owned company is ...
    1 week ago
  • 20,000 at risk students “missing”
    A briefing to the Minister of Education reveals 20,000 at-risk students can’t be found, undermining claims by Hekia Parata that a new funding model would ensure additional funding reached students identified as at-risk, says Labour’s Education spokesperson Chris Hipkins. ...
    1 week ago
  • Crime continues to rise
    Overall crime is up five per cent and the Government just doesn’t seem to care, says Labour’s Police Spokesperson Stuart Nash. ...
    1 week ago
  • Treasury fritters $10 million on failed state house sell off
    The Treasury has wasted $10 million in two years on the National Government's flawed state house sell off programme, including nearly $5.5 million on consultants, says Labour Finance spokesperson Grant Robertson. "New Zealand needs more state housing than ever, with ...
    1 week ago
  • National slow to learn new trade lessons post TPPA
    Yesterday, the Minister for Trade misused economic data in order to try to make the case for more so-called ‘trade agreements’ like the TPPA which are actually deregulatory straitjackets in disguise. In welcoming a Ministry of Foreign Affairs and Trade ...
    GreensBy Barry Coates
    1 week ago
  • Skilled migrant wages plummeting under National
    Wages have plummeted for people with skilled migrant visas working in low-skilled occupations, driving down wages for workers in a number of industries, says Labour’s Immigration Spokesperson Iain Lees-Galloway. “Documents acquired by Labour under the Official Information Act reveal that ...
    1 week ago
  • Child abuse apology needed
    The Government's failure to act on recommendations from Judge Henwood, based on years of work by the Confidential Listening and Assistance Service (CLAS) will further undermine any faith victims may have put into the process, says Labour’s Children’s Spokesperson Jacinda ...
    1 week ago
  • Reserve Bank again highlights National’s housing failure
    National’s failure to deal with the housing crisis in New Zealand is once again being exposed by the Reserve Bank today, in a scathing assessment of the Government’s response, says Labour Finance spokesperson Grant Robertson “Governor Wheeler is clearly worried ...
    1 week ago
  • Palm Oil Labelling: Possible Progress?
    On Friday, the Minister for Food Safety, along with her Australian colleagues finally looked at the issue of mandatory labelling of palm oil. We’ve been calling for mandatory labelling for years and we were hoping that the Ministers would agree ...
    GreensBy Mojo Mathers
    1 week ago
  • National: Fails to achieve
    The ineffectiveness of the National Government’s approach to schooling has been highlighted by the latest Trends in International Maths and Science Study (TIMSS) report released overnight, Labour’s Education spokesperson Chris Hipkins says. ...
    1 week ago
  • Faster into Homes – a new pathway for first home buyers
    This week Parliament will select another members’ bill from the cookie tin (I kid you not, it really is a cookie tin) and I’ve just launched a new bill I’m hoping will get pulled – to help people get into ...
    GreensBy Gareth Hughes
    1 week ago
  • Selling off our state housing stock isn’t working for NZers
    I want to end homelessness and ensure that everyone has a warm, safe, dry home. This National Government has let down New Zealanders, especially the thousands of New Zealanders who are struggling with something so basic and important as housing. ...
    GreensBy Marama Davidson
    1 week ago
  • Government needs to ensure fair deal on EQC assessments
    Kiwis affected by earthquakes might not get a fair deal if the Government pushes ahead with secret plans to let private insurers take over the assessment of claims, says Labour’s Canterbury spokesperson Megan Woods. “Under questioning from Labour the Government ...
    1 week ago
  • Key’s priorities the real ‘load of nonsense’
    The Prime Minister’s fixation with tax cuts, despite a failure to pay down any debt and growing pressure on public services is the real ‘load of nonsense’, says Labour Finance spokesperson Grant Robertson.  “We’re getting mixed messages from National. John ...
    1 week ago
  • Free Speech and Hate Speech
    Last week we were very concerned to hear that an Auckland imam, Dr Anwar Sahib, had been preaching divisive and derogatory messages about Jewish people and women during his sermons. It was a disturbing incident coming at the end of ...
    GreensBy James Shaw
    1 week ago
  • Young Kiwis struggling under record mortgage debt
    The Government needs to step in and start building affordable homes for first homebuyers now more than ever, says Leader of the Opposition Andrew Little. ...
    1 week ago
  • Tairāwhiti says No Stat Oil!
    Tairāwhiti says yes to a clean environment for our mokopuna today and for generations to come. Tairāwhiti are have a responsibility to uphold their mana motuhake over their land and their peoples and are calling on the Government to honour ...
    GreensBy Marama Davidson
    2 weeks ago
  • Swimmable Rivers tour – Ōkahukura/Lucas Creek
    When Environment Minister Nick Smith said in Parliament that some waterways – like Auckland’s Lucas Creek – are not worth saving because no-one wants to swim in them, he forgot to ask the locals we met last week who have put ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • Wellington business relief package needs flexibility
    The Government’s Wellington business support package is welcome news but needs to be implemented so that all affected businesses get the help they need, says Labour MP for Wellington Central Grant Robertson. “Wellington businesses will be pleased that the Government ...
    2 weeks ago