web analytics

National cause of dire economy

Written By: - Date published: 2:20 pm, December 21st, 2010 - 13 comments
Categories: benefits, cycleway, Economy, employment, tax - Tags: ,

National still seem to be getting a lot of cover for their economic mismanagement from the Global Financial Crisis way back in 2007-2008.  But New Zealand’s failure to be “roaring out of recession”, as John Key promised, is no longer tied to the GFC.  It’s Bill English and National’s economic policies that mean that the government deficit is pushing the limits with no reward for average kiwis.

We appear to be headed to a double-dip recession – we’ll find out on Thursday if it starts in the second half of this year, or spanning into 2011.  Meanwhile Australia are roaring out of recession, and the promise, nay, the fundamental purpose of this government1, for our wages to catch up with Aussie is slipping ever faster and further away.

If Australia can do it, why can’t we?  People look to Greece and Ireland and say “at least we’re not as bad as them” – but they were countries that had, respectively: overspent previously, and with massive corruption problems; or had had to bail out their massive banks after making themselves a global financial hub, much like John Key wants here.  Their governments’ cupboards are well and truly bare.

Ours weren’t.  Bill English admitted the great state of the books when he came into government.  Cullen’s 9 prudent years of surplus and resistance to the right’s nagging for tax-cuts had left the country in a great position to weather the recession, with zero net crown debt.

$14 billion spent on National’s tax cuts later and the government’s cupboard is starting to get awfully bare, but we’re not recovering from recession…

Tax cuts for the rich do not stimulate the economy.  They allow the rich to pay off their debts – as we all have far too much personal debt in New Zealand – but they do nothing for the recovery.

A Labour-led government would instead have had a large stimulus package, much like what worked for Australia.  The alternative was, that instead of paying off the rich’s debt, you kick off government projects that need doing, and provide work for those who are struggling to find it.  John Key’s much-maligned Cycleway isn’t wrong in principle, just scale: it provides merely a handful of jobs, where tens of thousands have been lost under this government.

And those people on benefits cost money.  The right want to cut benefits, but the most effective way to do that is to provide people with jobs.  The unemployed want to work, they want to provide for their families.  Housing New Zealand has a shortage of houses, and we have a surplus of builders – get them building!  Auckland’s public transport system needs major improvements – now’s the time!  North Shore and other hospitals need expansion – expand them!  There are many projects that need doing – not make-work schemes, but useful expansions of the economy that could be quickly started.

All those extra employed people wouldn’t be on benefits.  They spend their pay packets at shops, providing more work for others, who in turn spend their additional money – creating jobs and all generating extra GST, business and personal tax…  That’s how a government should spend $14 billion to get an economy roaring out of recession.

Instead the Key-Hide government have given us tax cuts for the rich and an economy that’s whimpering.

1 At least that’s what John Key told us.

13 comments on “National cause of dire economy ”

  1. Draco T Bastard 1

    There are many projects that need doing – not make-work schemes, but useful expansions of the economy that could be quickly started.

    But, despite how worthy those things are, you would need to raise taxes to do them and there’s no way NACT were ever going to do that. And, besides, having all those people in work would push up wages and John Key did promise to lower them as one of it’s election promises.

    • Bunji 1.1

      Other than maybe having an ETS where the polluter contributes to the government coffers rather than vice-versa I don’t think there’d really have been any need for tax rises – just not implementing National’s tax cuts. It’s okay to spend some (especially on stimulus) in recessionary times – it’s why you pay down the debt in good times, so you can. Government expenditure should be counter-cyclical.

  2. Bored 2

    Bunji, in what we have come to regard as normal times you might get away with the argument that the Nats are to blame for the economy….normal times might include cheap abundant energy, cheap abundant credit based upon putting debt on future generations etc etc aka the growth economy.

    If the Nats are to be hammered for financial irresponsibility and venality you have a case, but it is really far worse than that. The crime is much bigger. They are guilty of living within a paradigm whose time is up without realising it. Are you falling into the same trap?

    • Bunji 2.1

      If you’re asking me to hammer the Nats on their pay-the-polluter ETS scheme, their “follower rather than leader” stance and general lack of movement on anything to do with climate change, I’m happy to. Their lack of commitment to New Zealand’s clean, green, hi-tech image is truly shameful.

      A proper ETS and more spending on R&D to minimise our contribution to global warming would definitely be in my list of priority policies. But this post is purely of Nats economic handling in their own paradigm – it doesn’t work.

      Edit: as you mention borrowing from future generations – I’m quite happy to hammer National on gutting the Cullen Fund and Kiwisaver too…
      (and yes, equality will serve us better than growth too)

      • Bored 2.1.1

        Bunji, that and a lot more. The key line from me (feck I hate that scumball getting into my language) is that the economic paradigm has changed, what we regarded as “conventional” is over, gone for good. I really believe that the Nats are clueless and venal in the “conventional” sense, but to damn for that is to miss the point. The “conventional cures” as espoused by Labour are also a “past tense”. I condemn the Nats for their myopic lack of any vision, but I am also questioning if Labour really pose anything more than a “velvet gloved” approach to the same path to failure?

        • Robert Atack 2.1.1.1

          B – that goes for all of them, and 99.4% (‘we use to say .6% got it) of everyone else, there must be 1 or 2 that understand things, they are the corrupt ones, the rest are just stupid.
          And as most people worship this Easter Island cult, we will end up in the same pot … literally.
          We just have to accept reality, Reg says it best

          The Spirit in the Gene: Humanity’s Proud Illusion and the Laws of Nature
          «As for pointing to our mental failures with scorn or dismay, we might as well profess disappointment with the mechanics of gravity or the laws of thermodynamics. In other words, the degree of disillusionment we feel in response to any particular human behavior is the precise measure of our ignorance of its evolutionary and genetic origins.»
          – Reg Morrison

          Oh and the Green party being one of the biggest worshipers in the ‘Everyone should have a fare share’ religion.

  3. r0b 3

    Yes, before the election National were dithering, and Labour were ready with a real plan:

    If actions speak louder than words, Labour was the winner on Day One of the official election campaign – game, set and match. In the fight over which of the two major parties is best at running the economy, Labour scored a significant tactical victory. …

    Key’s earlier speech at National’s campaign opening in Auckland’s SkyCity Convention Centre said nothing new on economic policy. In fact, it said nothing new about anything.

    If that was not bad enough, Labour was getting ready to lay out something really meaty just a few blocks away in the Auckland Town Hall. There, Helen Clark trumped Key by delivering the recovery package he had been demanding, including contingency plans to save jobs and the promise of a mini-budget in December. The upshot was that Labour looked like it was governing; National looked complacent and flat-footed.

    We could have had a real recovery, but nahhh – competence is so boring – it was time for a change.

  4. Jacko 4

    Brian Gould’s recent Death Spiral article http://www.bryangould.net/id141.html
    supports this perspective.

  5. Scott 5

    Hey, I’m as much a partisan hack as the next guy, but let’s be fair – the Nats didn’t cause the global financial crisis. That arose due to factors beyond the control of anyone in our country.

    They aren’t doing anything to get us out of it, though. 🙂

    • lprent 5.1

      I think that the last point was what the post was about. They have essentially taken us back into nationals traditional debt to pay for tax cuts – which do bugger all for the economy as a whole. Now they’re scratching their heads looking for the end of the recession to increase their tax take – and it isn’t happening. They’ll look at cutting government spending, and finding that there isn’t that much to cut – at least not that causes more drop in their revenues. But they will do it anyway.

      It is the usual idiotic response from our right governments. With minor variations it was what they did in the 90’s as well. How to drag an external recession out and make last for years longer than required. I always find that right wingers are always stupid enough to try things that have already failed. It has been the trademark of national governance throughout my working life, from Muldoon onwards.

    • ak 5.2

      They aren’t doing anything to get us out of it…

      Wouldn’t mind so much if they’d done nothing. But they promised “north of fifty dollars a week” for our votes, then gave us frack-all. Then they gave millions to their rich mates, and put our grandchildren in hock to pay for it.

      Liars and thieves. That own the media, so you’ll never hear of it.

    • Colonial Viper 5.3

      Why aren’t we closing the gap? I hear Australian incomes are even further ahead of us now than when the Bill and John show took over.

Links to post

Recent Comments

Recent Posts

  • NZ economy’s strong momentum will support rebound from Delta outbreak; COVID fund replenished
    The economy showed strong momentum in the period leading up to the recent Delta COVID-19 outbreak, which bodes well for a solid economic rebound, Grant Robertson said. GDP rose 2.8 percent in the June quarter, following on from a 1.4 percent increase in the previous March quarter. This was a ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Projects create benefits into the future
    Making a well-known lake swimmable and helping to halt the decline of the endangered hoiho/yellow-eyed penguins are among a suite of new projects being supported by the Government’s Jobs for Nature programme across the southern South Island, Conservation Minister Kiri Allan says. “It’s no secret that many of our most ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • New members appointed to Kāpuia
    The Government is adding four additional members to Kāpuia, the Ministerial Advisory Group on the Government’s Response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques. “I’m looking forward to having Pamela MacNeill, Huia Bramley, Melani Anae and Katherine Dedo  join Kāpuia and contribute to this group’s ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Timeline confirmed for Emissions Reductions Plan
    Cabinet has agreed to begin consulting on the Emissions Reduction Plan in early October and require that the final plan be released by the end of May next year in line with the 2022 Budget, the Minister of Climate Change, James Shaw confirmed today. “Cabinet’s decision allows organisations and communities ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Pay parity pathway for early learning teachers confirmed
    Pay parity conditions and higher funding rates for education and care services will come into force on 1 January, 2022, Minister of Education Chris Hipkins confirmed today. The Government signalled this work in Budget 2021. “From 1 January, 2022, centres opting into the scheme will receive government funding and be ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Speech to the New Zealand Nurses Organisation Conference 2021
    Kia Ora tatau katoa.   Ka tuku mihi ki nga nēhi, He pou Hauora o Aotearoa, E ora ai tatou.   Whakatau mai  I runga i te kaupapa o te ra Te NZNO conference.   Tena koutou tena koutou Tena tatou katoa   Good morning, and thank you inviting me ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government investment in farmer-led catchment groups sweeps past 150 mark
    171 catchment groups have now been invested in by the Government 31 catchment groups in the Lower North Island are receiving new support More than 5,000 farmers are focussed on restoring freshwater within a generation through involvement in catchment groups  Government investment in on-the-ground efforts by farmers to improve land ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Fight to protect kauri on track
    The Government is pitching in to help vital work to protect nationally significant kauri forests in Auckland, Minister of Conservation Kiri Allan says. “Ensuring the survival of these iconic trees for future generations means doing everything we can to prevent the potential spread of kauri dieback disease,” Kiri Allan said. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Joint statement of Mr Bernard Monk; Hon Andrew Little, Minister Responsible for Pike River Re-entry,...
    [Note: The Parties have agreed on terms to fully and finally settle the proceeding and will jointly issue the below statement.] At the heart of this litigation are the lives of the 29 men tragically lost at the Pike River mine on 19 November 2010 and to whom we pay ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • More financial support for businesses
    Today’s decision to keep Auckland in a higher COVID Alert Level triggers a third round of the Wage Subsidy Scheme which will open for applications at 9am this Friday. “The revenue test period for this payment will be the 14th to the 27th of September. A reminder that this is ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Aotearoa New Zealand provides further humanitarian support for Afghanistan
    Aotearoa New Zealand is providing a further $3 million in humanitarian assistance in Afghanistan, Foreign Minister Nanaia Mahuta announced today.  “There is significant humanitarian need in Afghanistan, with the crisis disproportionately affecting women and girls,” said Nanaia Mahuta. The UN has estimated that 80% of the quarter of a million ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Innovative te reo prediction tool announced in Te Wiki o Te Reo Māori
    A new Māori language prediction tool will play a key role in tracking our te reo Māori revitalisation efforts, Minister for Māori Development Willie Jackson announced today. He Ara Poutama mō te reo Māori (He Ara Poutama) can forecast the number of conversational and fluent speakers of te reo Māori ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Further Government support for people to access food and essential items
    The Government is responding to need for support in Auckland and has committed a further $10 million to help people access ongoing food and other essential items, Minister for Social Development Carmel Sepuloni announced today. This latest tranche is targeted at the Auckland region, helping providers and organisations to distribute ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Half a million Pfizer vaccines from Denmark
    The Government has secured an extra half a million doses of Pfizer COVID-19 vaccines from Denmark that will start arriving in New Zealand within days, Prime Minister Jacinda Ardern announced today. “This is the second and larger agreement the Government has entered into to purchase additional vaccines to meet the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Inland Revenue providing essential COVID support for businesses
    Inland Revenue is seeing increased demand for Resurgence Support Payments and other assistance schemes that it administers, but is processing applications quickly, Revenue Minister David Parker said today. David Parker said the Resurgence Support Payment, the Small Business Cashflow (loan) Scheme and the Wage Subsidy are available at the same ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand marks 20th anniversary of 9/11 attacks
    New Zealand is expressing unity with all victims, families and loved ones affected by the September 11 2001 terrorist attacks, and all terrorist attacks around the world since, including in New Zealand. “Saturday marks twenty years since the 9/11 terrorist attacks in the United States, which killed nearly 3,000 people ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to SPREP Environment Ministers
    Talofa Honourable Ulu of Tokelau Faipule Kelihiano Kalolo Tēnā koutou katoa and warm Pacific greetings from Aotearoa to your excellencies, ladies and gentlemen. The new science released by the Intergovernmental Panel on Climate Change on 8 August paints an alarming picture of the projected impacts of climate change on the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Additional Resurgence Support Payments to support business
    Businesses affected by higher Alert Levels will be able to apply for further Resurgence Support Payments (RSP). “The Government’s RSP was initially intended as a one-off payment to help businesses with their fixed costs, such as rent. Ministers have agreed to provide additional payments to recognise the effects of an ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • More Dawn Raids scholarships announced
    Details of the ‘Manaaki New Zealand Short Term Training Scholarships’, a goodwill gesture that follows the Government’s apology for the Dawn Raids of the 1970s, were released today by Pacific Peoples Minister Aupito William Sio. “These scholarships that are targeted to the Pacific will support the kaupapa of the Dawn Raids’ ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • One-way quarantine-free travel for RSE workers starting in October
      One-way quarantine-free travel for Recognised Seasonal Employer (RSE) workers from Samoa, Tonga and Vanuatu starts in October New requirement for RSE workers to have received their first vaccination pre-departure, undertake Day 0 and Day 5 tests, and complete a self-isolation period of seven days, pending a negative Day 5 ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Govt boosts Pacific suicide prevention support
    Applications have opened for the Pacific Suicide Prevention Community Fund as the Government acts to boost support amid the COVID delta outbreak. “We know strong and connected families and communities are the most important protective factor against suicide and this $900,000 fund will help to support this work,” Health Minister ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Govt parks the expiry of licenses, WoFs and regos
    As a result of the Delta outbreak, driver licences, Warrants of Fitness (WoFs), Certificates of Fitness (CoFs), vehicle licences (‘regos’) and licence endorsements that expired on or after 21 July 2021 will be valid until 30 November 2021, Transport Minister Michael Wood has announced today. “While this extension won’t officially ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • COVID-19 community fund to provide support for vulnerable women and girls
    Minister for Women Jan Tinetti today announced a $2 million community fund that will provide support for women and girls adversely affected by COVID-19. “We know that women, particularly those who are already vulnerable, are disproportionally affected by the kind of economic disruption caused by COVID-19,” Jan Tinetti said. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Next phase of support for Fiji’s COVID-19 response announced
    A further NZ$12 million of support for Fiji’s COVID-19 response has been announced by Foreign Minister Hon Nanaia Mahuta today. The package builds on previous tranches of assistance Aotearoa New Zealand has provided to Fiji, totalling over NZ$50 million. “Fiji remains in a very challenging position in their response to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Robotic asparagus harvester aimed at addressing industry challenges
    The Government is backing a $5 million project to develop a commercial-scale autonomous robotic asparagus harvester, Agriculture Minister Damien O’Connor announced today. The Sustainable Food and Fibre Futures fund (SFF Futures) is contributing $2.6 million to the project. Project partner Robotics Plus Limited (RPL) will build on a prototype asparagus ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Additional Pfizer vaccines to arrive tomorrow
    More than a quarter of a million additional doses of the Pfizer vaccine are on their way from Spain to New Zealand, Prime Minister Jacinda Ardern announced today. The additional doses will arrive in Auckland on Friday morning to help meet the current surge in demand for vaccination. “It’s been ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Young people to have their voices heard in Youth Parliament 2022
    The dates and details for Youth Parliament 2022 have been announced today by Minister for Youth Priyanca Radhakrishnan, and the Speaker of the House of Representatives. Youth Parliament is an opportunity for 141 young people from across Aotearoa New Zealand to experience the political process and learn how government works. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Boosting support for tertiary students affected by COVID-19
    Students facing a hard time as a result of COVID-19 restrictions will continue to be supported,” Education Minister Chris Hipkins confirmed today. The Government is putting a further $20 million into the Hardship Fund for Learners, which will help around 15,000 students to stay connected to their studies and learning. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • COVID-19: Immediate relief available for Māori and iwi organisations
    The Government has reprioritised up to $5 million to provide immediate relief to vulnerable whānau Māori and communities during the current COVID-19 outbreak Minister for Māori Development Willie Jackson announced today. The COVID-19 2021 Whānau Recovery Fund will support community-driven, local responses to gaps in access and provision of critical ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New beef genetics programme to deliver cows with smaller environmental hoof-print
    The Government is backing a genetics programme to lower the beef sector’s greenhouse gas emissions by delivering cows with a smaller environmental hoof-print, Agriculture Minister Damien O’Connor announced today. Informing New Zealand Beef is a seven-year partnership with Beef + Lamb New Zealand that is expected to result in more ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Appointments to the New Zealand Qualifications Authority
    Education Minister Chris Hipkins today announced new appointments to the board of the New Zealand Qualifications Authority (NZQA). Former Associate Minister of Education, Hon Tracey Martin, has been appointed as the new Chair for NZQA, replacing the outgoing Acting and Deputy Chair Professor Neil Quigley after an 11-year tenure on ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt supports residential house building by allowing manufacture of building supplies
    The Government has agreed to allow some building product manufacturing to take place in Auckland during Covid lockdown to support continued residential construction activity across New Zealand. “There are supply chain issues that arise from Alert Level 4 as building products that are manufactured domestically are mostly manufactured in Auckland. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government invests in scientific research to boost economy, address climate change and enhance wellb...
    Research, Science and Innovation Minister Hon Dr Megan Woods has today announced the recipients of this year’s Endeavour Fund to help tackle the big issues that New Zealanders care about, like boosting economic performance, climate change, transport infrastructure and wellbeing. In total, 69 new scientific research projects were awarded over ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Transport to drive economic recovery
    The Government is investing a record amount in transport services and infrastructure to get New Zealand moving, reduce emissions and support the economic recovery, Transport Minister Michael Wood announced today. The 2021-24 National Land Transport Programme (NLTP) was released today which outlines the planned investments Waka Kotahi NZ Transport Agency ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government congratulates NZ Paralympic team
    The Government has congratulated New Zealand’s Paralympic Team following an outstanding showing at the Tokyo Paralympic Games. “Our New Zealand Paralympian athletes have once again shown incredible talent, tenacity and determination at the Tokyo Paralympic Games winning 12 medals, with every athlete who represented New Zealand making us so proud,” ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Aotearoa mourns passing of creative icon Billy Apple
    Arts, Culture and Heritage Minister Carmel Sepuloni has expressed her condolences at the passing of Billy Apple, one of New Zealand’s most influential artists. “Today we’ve lost a giant of New Zealand art. Billy was a creative visionary, an inspiration and a friend to so many,” Carmel Sepuloni said. “Billy ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government attempted to deport terrorist
    The lifting of final suppression orders relating to the Auckland terrorist shows Immigration New Zealand had been attempting for years to deport him and also sought to detain him while deportation was considered in order to keep him out of the community. “The individual arrived in New Zealand in October ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Prime Minister’s update on the 3 September Auckland terrorist attack
    ***Check against delivery*** I want to begin with an update on the status of our victims from yesterday’s attack. We’re aware now that there were a total of seven people injured. There are five people in hospital, three are in a critical condition. The remaining victims have been treated and are ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tonga’s language week goes virtual 
    This year’s Tonga Language week is going to be a virtual affair because of the nationwide lockdowns for Covid 19, said the Minister for Pacific Peoples Aupito William Sio. “We have been working closely with the Tongan community ahead of Uike Lea Faka-Tonga, and they have selected the theme Fakakoloa ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Resurgence Support Payment amended to include new businesses
    The Government’s Resurgence Support Payment (RSP) has been updated to better support newly established businesses. The RSP is a one-off payment that helps businesses with costs like rent or fixed costs during higher alert levels. When this COVID-19 response scheme was first established last year the criteria was included that ...
    BeehiveBy beehive.govt.nz
    2 weeks ago