Nats have held us back for four years
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- Date published:
7:47 am, May 8th, 2013 - 22 comments
Categories: debt / deficit, economy, national, spin -
Tags: bernard hickey, expansionary austerity, paul krugman, wasted years
It has always been clear that the NZ economy would get back on its feet one day. Thanks to the previous Labour government’s prudence (zero net government debt) we weathered the global financial crisis in good shape and were out of recession in the June quarter of 2009, before the Nats’ first budget.
We should have taken off again then, like Australia, but Australia had a plan and we did not. We had the Nats. Their misguided “expansionary austerity” budgets stifled the recovery. Instead of “roaring out of recession” or the “aggressive recovery” that we were promised, we have just limped along – because the Nats cut when they should have (like Australia) stimulated the economy.
The evidence for the foolishness of austerity measures is growing ever stronger, as Britain (where the Tories are the leading proponents of this nonsense) has gone to the brink of a triple dip recession. Paul Krugman has been leading the criticism:
Paul Krugman’s call to arms against austerity
An interview with the Nobel prize-winning economist, whose book roundly attacks the ‘delusional’ deficit-reduction strategy
…More than four years on, austerity is being questioned as never before, not least because most countries implementing a deficit-reduction policy have failed to grow. Krugman, his blog and comments on Twitter, have become the focal point for objectors worldwide.
Speaking to the Guardian to publicise the second edition of his book End This Depression Now, he argues that his battle will go on until policymakers realise that their reliance on deficit reduction is a “delusional” misreading of basic economics. But despite his persistent criticism, austerity remains the default position for most western governments.
Here in NZ our own Bernard Hickey is the voice of reason (though he could learn a thing or two about snappy headlines!):
NZ PM Key defends government drive to return to surplus and start reducing debt despite doubts overseas that ‘expansionary austerity’ is actually working
Prime Minister John Key has defended the government’s focus on returning to budget surplus and reducing the government’s debt load, saying it made sense to strengthen the nation’s balance sheet through government debt reduction, given households remained indebted and foreign debt was still high.
He also warned that higher debt could trigger credit rating downgrades that increased New Zealand’s interest rate premiums.
His comments followed intense debate over the last month in Europe and the United States over a strategy of reducing government debt to improve economic growth rates.
The strategy has relied on academic research by US economics professors Carmen Reinhart and Kenneth Rogoff into the connections between government debt and economic growth, in particular in this academic paper ‘Growth in a time of debt’ published in 2010. It suggested a tipping point was reached when government debt rose over 90%, significantly reducing growth rates to below zero%.
However, those conclusions were questioned last month in another academic paper which said the Reinhart/Rogoff was based on a spreadsheet error and was skewed by the omission of data on episodes of high debt, including, most importantly, in New Zealand from 1946 to 1949, when our country showed both high growth and high debt. …
However, Key said the government remained committed to its strategy of returning to surplus by 2014/15 and then reducing debt from almost 30% of GDP in 2017 to 20% of GDP by 2020. The Reserve Bank pointed out in its March Monetary Policy Statement that the government’s austerity strategy was driving a tightening of fiscal policy equivalent to 3.2% of GDP over the next four years, which was a factor dampening momentum in the economy.
Well we’ve been here before, but currently we have another round of “green shoots of recovery” type stories, and talk of an optimistic budget. No doubt we’ll be hearing a lot more of this spin, but keep in mind that the bulk of those “green shoots” are due to factors beyond the Nats’ bidding (the stimulus of the Christchurch rebuild, and the good performance of old Labour-built assets the NZ Super fund and ACC). Unfortunately as Russel Norman points out, the real economy of the jobs market and the tradeable sector is still getting worse.
We will get there in the end no doubt, but it will be in spite of this bungling Natational government, not because of them. All National have done is hold us back for four years.
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Mema Paremata for Te Tai Tokerau, Mariameno Kapa-Kingi, has reflected on the decisions made by the councils of the North amidst the government’s push to remove Māori Wards and weaken mana whenua representation. “Actions taken by the Kaipara District Council to remove Māori Wards are the embodiment of the eradication ...1 week ago
- Govt already seeking advice on Treaty referendum
On one hand, the Prime Minister has assured Aotearoa that his party will not support the Treaty Principles Bill beyond first reading, but on the other, his Government has already sought advice on holding a referendum on our founding document. ...1 week ago
- Release: Aged care will be worse off if redesign rushed
New Zealanders needing aged care support and the people who care for them will be worse off if the Government pushes through a flawed and rushed redesign of dementia and aged care. ...1 week ago
- Release: Govt fails hundreds of workers as mills close
Labour is devastated at news hundreds of workers are set to lose their jobs following the closure of Winstone Pulp mills. ...1 week ago
- Job losses from mill closures consequence of Govt inaction
Hundreds of jobs lost as a result of pulp mill closures in the Ruapehu District are a consequence of government inaction in addressing the shortfalls of our electricity network. ...1 week ago
- Ngarewa-Packer devastated for Ruapehu following WPI closure
Te Pāti Māori Co-Leader and MP for Te Tai Hauāuru is devastated for the Ruapehu community following today’s decision to close two Winstone Pulp mills. “My heart goes out to all the workers, their whānau, and the wider Ruapehu community affected by the closure of Winstone Pulp International,” said Ngarewa-Packer. ...1 week ago
- Release: Cabinet should stop the Treaty Principles Bill
National Party Ministers have a majority in Cabinet and can stop David Seymour’s Treaty Principles Bill, which even the Prime Minister has described as “divisive and unhelpful.” ...1 week ago
- Release: Staff gagged to keep fast track list secret
The National Government is so determined to hide the list of potential projects that will avoid environmental scrutiny it has gagged Ministry for the Environment staff from talking about it. ...1 week ago
- Release: Labour challenges Te Whatu Ora gag orders
Labour has complained to the Te Kawa Mataaho Public Service Commission about the high number of non-disclosure agreements that have effectively gagged staff at Te Whatu Ora Health NZ from talking about anything relating to their work. ...1 week ago
- Greens call on Treaty Principles Bill to be abandoned after letter from Christian leaders
The Green Party is once again urging the Prime Minister to abandon the Treaty Principles Bill as a letter from more than 400 Christian leaders calls for the proposed legislation to be dropped. ...1 week ago
- Sign the petition: Keep military-style firearms off our streets
Help us tell the Government that reintroducing military-style firearms should not be up for debate. ...2 weeks ago
- Vast majority of councils support Māori wards
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- Release: Government on the wrong side of Māori wards
The National-led government has been given a clear message from the local government sector, as almost all councils reject the Government’s bid to treat Māori wards different to other wards. ...2 weeks ago
- Release: Labour congratulates Kuīni Ngā Wai hono i te po Paki
The Labour Party congratulates Kuīni Ngā Wai hono i te po Paki on being crowned as the eighth Te Ariki Nui – head of Te Kiingitanga. ...2 weeks ago
- Green Party welcomes new Maaori Kuiini
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- Urgent intervention needed on supermarkets
The Green Party is calling on the Government to intervene in the supermarket duopoly dominating our supply of groceries following today’s report from the Commerce Commission. ...2 weeks ago
- Release: Rainbow youth neglected in mental health funding
Labour backs the call from The Rainbow Support Collective members for mental health funding specifically earmarked for grassroots and peer led community organisations to be set up in a way that they are able to access. ...2 weeks ago
- Release: Transport in NZ has to be more than just roads
As expected, the National Land Transport Programme lacks ambition for our cities and our country’s rail network and puts the majority of investment into roads. ...2 weeks ago
- Foreign Minister to travel to New York, French Polynesia
Foreign Minister Winston Peters is travelling to New York next week to attend the 79th session of the United Nations General Assembly, followed by a visit to French Polynesia. “In the context of the myriad regional and global crises, our engagements in New York will demonstrate New Zealand’s strong support for ...10 hours ago - Thanking social workers on their national day
“Today, on Aotearoa New Zealand Social Workers’ Day, I would like to recognise the tremendous effort social workers make not just today, but every day,” Children’s Minister and Minister for the Prevention of Family and Sexual Violence Karen Chhour says. “I thank all those working on the front line for ...13 hours ago
- Minister of State for Trade heads to Laos for ASEAN meetings
Minister of State for Trade Nicola Grigg will travel to Laos this week to attend the Association of Southeast Asian Nations (ASEAN) Economic Ministers’ Meetings in Vientiane. “The Government is committed to strengthening our relationship with ASEAN,” Ms Grigg says. “With next year marking 50 years since New Zealand became ...13 hours ago
- Members appointed to retail crime MAG
The Government has appointed four members to the Ministerial Advisory Group for victims of retail crime, Justice Minister Paul Goldsmith and Associate Justice Minister Nicole McKee say. “I am delighted to appoint Michael Hill’s national retail manager Michael Bell to the group, as well as Waikato community advocate and business ...15 hours ago
- Speech to the New Zealand Nurses Organisation AGM and Conference 2024
It’s my pleasure to be here to join the opening of the NZNO AGM and Conference for 2024. First, I’d like to thank NZNO Kaiwhakahaere Kerri Nuku, NZNO President, Anne Daniels, and Chief Execuitve Paul Gaulter for inviting me to speak today. Thank you also to all the NZNO members ...16 hours ago
- Improvements for New Zealand authors
Minister of Internal Affairs Brooke van Velden says changes to the Public Lending Right [PLR] scheme will help benefit both the National Library and authors who have books available in New Zealand libraries. “I am amending the regulations so that eligible authors will no longer have to reapply every year ...1 day ago
- Minister commends Police for gang operation
Police Minister Mark Mitchell congratulates Police for the outstanding result of their most recent operation, targeting the Comancheros. “That Police have been able to round up the majority of the Comancheros leadership, and many of their patched members and prospects, shows not only the capability of Police, but also shows ...2 days ago
- New appointments to the EPA board
Environment Minister Penny Simmonds has announced a major refresh of the Environmental Protection Authority (EPA) board with four new appointments and one reappointment. The new board members are Barry O’Neil, Jennifer Scoular, Alison Stewart and Nancy Tuaine, who have been appointed for a three-year term ending in August 2027. “I would ...2 days ago
- Enabling rural recovery works in Hawke’s Bay
Cabinet has approved an Order in Council to enable severe weather recovery works to continue in the Hawke’s Bay, Environment Minister Penny Simmonds and Minister for Emergency Management and Recovery Mark Mitchell say. “Cyclone Gabrielle and the other severe weather events in early 2023 caused significant loss and damage to ...2 days ago
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From today, low-to-middle-income families with young children can register for the new FamilyBoost payment, to help them meet early childhood education (ECE) costs. The scheme was introduced as part of the Government’s tax relief plan to help Kiwis who are doing it tough. “FamilyBoost is one of the ways we ...2 days ago
- Prioritising victims with tougher sentences
The Government has today agreed to introduce sentencing reforms to Parliament this week that will ensure criminals face real consequences for crime and victims are prioritised, Justice Minister Paul Goldsmith says. "In recent years, there has been a concerning trend where the courts have imposed fewer and shorter prison sentences ...2 days ago
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The first quarterly report on progress against the nine public service targets show promising results in some areas and the scale of the challenge in others, Prime Minister Christopher Luxon says. “Our Government reinstated targets to focus our public sector on driving better results for New Zealanders in health, education, ...2 days ago
- Asia Foundation Board appointments announced
Foreign Minister Winston Peters has announced the appointments of Hone McGregor, Professor David Capie, and John Boswell to the Board of the Asia New Zealand Foundation. Bede Corry, Secretary of Foreign Affairs and Trade, has also been appointed as an ex-officio member. The new trustees join Dame Fran Wilde (Chair), ...3 days ago
- Endeavour Fund projects for economic growth
New Zealand’s largest contestable science fund is investing in 72 new projects to address challenges, develop new technology and support communities, Science, Innovation and Technology Minister Judith Collins says. “This Endeavour Fund round being funded is focused on economic growth and commercial outputs,” Ms Collins says. “It involves funding of more ...3 days ago
- Social Services Providers Whakamanawa National Conference 16 September 2024
Thank you for the introduction and the invitation to speak to you here today. I am honoured to be here in my capacity as Minister for the Prevention of Family and Sexual Violence, and Minister for Children. Thank you for creating a space where we can all listen and learn, ...3 days ago
- Parihaka infrastructure upgrades funded
The Government will provide a $5.8 million grant to improve water infrastructure at Parihaka in Taranaki, Regional Development Minister Shane Jones and Māori Development Minister Tama Potaka say. “This grant from the Regional Infrastructure Fund will have a multitude of benefits for this hugely significant cultural site, including keeping local ...3 days ago
- Serious assaults down 22% in Auckland CBD
Cross-government action to tackle crime and antisocial behaviour in Auckland is getting traction, says Police Minister Mark Mitchell. “Our central cities should be great places to live and work, but in recent years they have become hot spots for crime and anti-social behaviour. In Auckland, businesses and residents suffered as ...3 days ago
- Increased certainty for contractors coming
Workplace Relations and Safety Minister Brooke van Velden says upcoming changes to the Employment Relations Act will provide greater certainty for contractors and businesses. “These changes to legislation are necessary to ensure businesses and workers have more clarity from the start of their contracting arrangement. It is an ACT-National coalition ...3 days ago
- Draft critical minerals list released for consultation
A draft list of minerals deemed essential to New Zealand’s economy and strengthening its mineral resilience has been released for consultation, Resources Minister Shane Jones says. The draft Critical Minerals List identifies 35 minerals essential to economic functions, are in demand internationally, and face high risk of supply disruption domestically ...3 days ago
- Government eliminates $190 million in trade barriers to boost the economy
The Government has successfully removed trade barriers affecting nearly $190 million worth of exports to help grow the economy, Minister for Trade and Agriculture Todd McClay today announced. “In the past year, we have resolved 14 Non Tariff Barriers (NTBs), returning significant value to kiwi exporters. These efforts directly boost our ...4 days ago
- Reo Māori the ‘beating heart’ of Aotearoa New Zealand
From private business to the Paris Olympics, reo Māori is growing with the success of New Zealanders, says Minister for Māori Development Tama Potaka. “I’m joining New Zealanders across the country in celebrating this year’s Te Wiki o te Reo Māori – Māori Language Week, which has a big range ...5 days ago
- Need and value at forefront of public service delivery
New Cabinet policy directives will ensure public agencies prioritise public services on the basis of need and award Government contracts on the basis of public value, Minister for the Public Service Nicola Willis says. “Cabinet Office has today issued a circular to central government organisations setting out the Government’s expectations ...6 days ago
- Minister to attend Police Ministers Council Meeting
Police Minister Mark Mitchell will join with Australian Police Ministers and Commissioners at the Police Ministers Council meeting (PMC) today in Melbourne. “The council is an opportunity to come together to discuss a range of issues, gain valuable insights on areas of common interest, and different approaches towards law enforcement ...6 days ago
- New Bill to crack down on youth vaping
The coalition Government has introduced legislation to tackle youth vaping, Associate Health Minister Casey Costello announced today. “The Smokefree Environments and Regulated Products Amendment Bill (No 2) is aimed at preventing youth vaping. “While vaping has contributed to a significant fall in our smoking rates, the rise in youth vaping ...6 days ago
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Regulation Minister David Seymour, Environment Minister Penny Simmonds, and Food Safety Minister Andrew Hoggard have welcomed interest in the agricultural and horticultural products regulatory review. The review by the Ministry for Regulation is looking at how to speed up the process to get farmers and growers access to the safe, ...6 days ago
- Bill to allow online charity lotteries passes first reading
Minister of Internal Affairs Brooke van Velden says the Government is moving at pace to ensure lotteries for charitable purposes are allowed to operate online permanently. Charities fundraising online, such as those run by the Heart Foundation, Coastguard NZ, Auckland Rescue Helicopter Trust and local hospices will continue to do ...6 days ago
- Tax exempt threshold changes to benefit startups
Technology companies are among the startups which will benefit from increases to current thresholds of exempt employee share schemes, Science, Innovation and Technology Minister Judith Collins and Revenue Minister Simon Watts say. Tax exempt thresholds for the schemes are increasing as part of the Taxation (Annual Rates for 2024-25, Emergency ...6 days ago
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- Targeted supports to accelerate reading
The coalition Government is delivering targeted and structured literacy supports to accelerate learning for struggling readers. From Term 1 2025, $33 million of funding for Reading Recovery and Early Literacy Support will be reprioritised to interventions which align with structured approaches to teaching. “Structured literacy will change the way children ...7 days ago
- Survivors invited to Abuse in Care national apology
With two months until the national apology to survivors of abuse in care, expressions of interest have opened for survivors wanting to attend. “The Prime Minister will deliver a national apology on Tuesday 12 November in Parliament. It will be a very significant day for survivors, their families, whānau and ...7 days ago
- Rangatahi inspire at Ngā Manu Kōrero final
Ehara taku toa i te toa takitahi, engari he toa takitini kē - My success is not mine alone but is the from the strength of the many. Aotearoa New Zealand’s top young speakers are an inspiration for all New Zealanders to learn more about the depth and beauty conveyed ...7 days ago
- Driving structured literacy in schools
The coalition Government is driving confidence in reading and writing in the first years of schooling. “From the first time children step into the classroom, we’re equipping them and teachers with the tools they need to be brilliant in literacy. “From 1 October, schools and kura with Years 0-3 will receive ...1 week ago
- Labour’s misleading information is disappointing
Labour’s misinformation about firearms law is dangerous and disappointing, Associate Justice Minister Nicole McKee says. “Labour and Ginny Andersen have repeatedly said over the past few days that the previous Labour Government completely banned semi-automatic firearms in 2019 and that the Coalition Government is planning to ‘reintroduce’ them. ...1 week ago
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The Government is taking immediate action on a number of steps around New Zealand’s response to mpox, including improving access to vaccine availability so people who need it can do so more easily, Health Minister Dr Shane Reti and Associate Health Minister David Seymour announced today. “Mpox is obviously a ...1 week ago
- Next steps agreed for Treaty Principles Bill
Associate Justice Minister David Seymour says Cabinet has agreed to the next steps for the Treaty Principles Bill. “The Treaty Principles Bill provides an opportunity for Parliament, rather than the courts, to define the principles of the Treaty, including establishing that every person is equal before the law,” says Mr Seymour. “Parliament ...1 week ago
- Government unlocking potential of AI
Science, Innovation and Technology Minister Judith Collins today announced a programme to drive Artificial Intelligence (AI) uptake among New Zealand businesses. “The AI Activator will unlock the potential of AI for New Zealand businesses through a range of support, including access to AI research experts, technical assistance, AI tools and resources, ...1 week ago
- Promoting faster payment times for government
The Government is sending a clear message to central government agencies that they must prioritise paying invoices in a timely manner, Small Business and Manufacturing Minister Andrew Bayly says. Data released today promotes transparency by publishing the payment times of each central government agency. This data will be published quarterly ...1 week ago
- Government releases Wairoa flood review findings
The independent rapid review into the Wairoa flooding event on 26 June 2024 has been released, Environment Minister Penny Simmonds, Local Government Minister Simeon Brown and Emergency Management and Recovery Minister Mark Mitchell announced today. “We welcome the review’s findings and recommendations to strengthen Wairoa's resilience against future events,” Ms ...1 week ago
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E te māngai o te Whare Pāremata, kua riro māku te whakaputa i te waka ki waho moana. E te Pirimia tēnā koe.Mr Speaker, it is my privilege to take this adjournment kōrero forward. Prime Minister – thank you for your leadership. Taupiri te maunga Waikato te awa Te Wherowhero ...1 week ago
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- West Papuan fighters who kidnapped Kiwi pilot propose terms of release
RNZ Pacific Pro-independence fighters in the Indonesian-ruled West Papua region have proposed the terms of release for the New Zealand pilot taken hostage almost 18 months ago. The armed faction of the West Papua National Liberation Army (TPNPB) kidnapped Phillip Merhtens, a 38-year-old pilot working for the Indonesian internal feeder ...3 hours ago - Budget 2024: Light at the end of the tunnel
The House - The government's maiden Budget is finally reaching the end of its long approval process, and it's going to be just in time. ...5 hours ago - How do ecosystems collapse? Our study shows evolution plays a role – and can delay a disaster
Source: The Conversation (Au and NZ) – By Christopher Blake, PhD Student, Monash University Piyaset/Shutterstock Dying coral reefs, rainforests transforming into savannas, grasslands turning into deserts – these are ecosystem “tipping points”, boundary lines we’re desperate not to cross. In dynamic systems filled with life, these critical thresholds ...5 hours ago
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While commercial surrogacy is technically illegal in New Zealand, the involvement of fertility services in surrogacy through assisted reproductive technology is a commercial activity paid for by intending parents, with potential harm for birth ...8 hours ago - Politics with Michelle Grattan: Adam Bandt on why the Greens are playing hardball on housing
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra The government has found many of its key measures stuck in a legislative quagmire, with both Greens and Coalition playing hardball with Labor’s plans. This week the government’s housing legislation has stalled in the ...8 hours ago
- Digital health research can be positive for Indigenous people. But our study found it needs to follo...
Source: The Conversation (Au and NZ) – By Andrew Goodman, Postdoctoral Fellow in Indigenous Health, CSIRO Digital technologies are transforming health care for all Australians, and this includes Aboriginal and Torres Strait Islander peoples. Electronic health interventions (eHealth) can involve features such as telehealth, instant messaging and mobile apps that ...8 hours ago
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Source: The Conversation (Au and NZ) – By Bruce Watt, Associate Professor in Psychology, Bond University Benoit Daoust/Shutterstock Articles about badly behaved people and how to spot them are common. You don’t have to Google or scroll too much to find headlines such as 7 signs your boss is ...8 hours ago
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Source: The Conversation (Au and NZ) – By Justine Bell-James, Associate Professor in Environment and Property Law, TC Beirne School of Law, The University of Queensland Enrico Della Pietra/Shutterstock When Labor came to power federally after almost a decade in opposition, Environment Minister Tanya Plibersek pledged to turn around ...8 hours ago
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Source: The Conversation (Au and NZ) – By Melissa Tham, Research fellow at the Mitchell Institute, Victoria University The federal government has released a highly anticipated report into Australia’s childcare system. The report, by the Productivity Commission, says addressing affordability should be a priority. It recommends fully subsidised childcare for ...8 hours ago
- New teen accounts on Instagram are a welcome step, but real ‘peace of mind’ requires more
Source: The Conversation (Au and NZ) – By Tama Leaver, Professor of Internet Studies, Curtin University As Australia and other countries debate the merits of banning kids under 14 from social media, Meta has announced a significant “reimagining” of teenagers’ experience of Instagram. These new “Teen Accounts” will be set ...8 hours ago
- Ministers defend level of scrutiny on gang patch ban changes
Two ministers have argued politicians' scrutiny - by Cabinet and Parliament - is enough, and the Attorney-General says it wasn't necessary to examine the changes. ...9 hours ago
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Source: The Conversation (Au and NZ) – By Amin Saikal, Emeritus professor of Middle Eastern and Central Asian Studies, Australian National University The alleged Israeli attack on members of Hezbollah via their pagers is another ominous development propelling the Middle East towards a full-scale regional war. It leaves Hezbollah with ...10 hours ago
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Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra A former senior member of the Hawke and Keating governments, Gareth Evans, has accused the Albanese government of political timidity, condemning its instinct to “move into cautious, defensive, wedge-avoiding mode”. In a speech on ...10 hours ago
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The treaty principles bill is dominating 2024 political headlines. Is it really all about 2026? Church leaders oppose it. Christopher Luxon is increasingly exasperated by getting asked about it. And David Seymour has reworded a critical part of it. Is the Act leader on the back foot over a ...11 hours ago
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Analysis - Proponents argue even marginal time savings for some drivers justify the changes, Timothy Welch writes, but at what cost? ...12 hours ago
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Source: The Conversation (Au and NZ) – By Steven Rynne, Associate Professor, Sports Coaching; Affiliate, UQ Poche Centre for Indigenous Health, The University of Queensland In the world of elite sport, where everything is planned down to the last minute detail, surprisingly few are prepared to acknowledge the inherent role ...12 hours ago
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It just got easier for authors to get paid for the use of their books by libraries. But is it enough? What is the Public Lending Right scheme and why am I hearing about it now? The Public Lending Right scheme (PLR) is an annual payment to New Zealand authors ...12 hours ago
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The leaders said that new partners could contribute to the so-called AUKUS "Pillar Two", which does not involve nuclear submarines. ...12 hours ago
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- Funding cuts could see ‘significant change’ for Whakaata Māori
Its chief executive says the organisation is looking "at everything possible" to achieve cost savings and ensure the next 20 years for Whakaata Māori. ...13 hours ago
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In response Shane Reti said they had more funding than ever, and now needed "bold new thinking". ...13 hours ago
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Psychiatrists who heard Matt Doocey's comments shook their heads in apparent disbelief and started murmuring. ...13 hours ago
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Its "precarious" financial position isn't the most pressing, Lester Levy says. ...14 hours ago
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Source: The Conversation (Au and NZ) – By Yee-Fui Ng, Associate Professor, Faculty of Law, Monash University The federal government has just introduced a new bill that seeks to combat disinformation and misinformation on the internet. This is a laudable measure in the context of a rise of dangerous ...14 hours ago
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Anyone can visit the public database and select whether they are interested in drought, rainfall, wind or temperature, which season they are interested in and whether they would like to see projections for low, medium or high greenhouse gas emissions. ...16 hours ago
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Source: The Conversation (Au and NZ) – By Andrew Partington, Research Fellow (Health Economics), Flinders University Jsme MILA/Pexels Australia is facing a surge in hospital presentations in older adults. Between 2015–16 and 2019–20, hospitalisations among people aged 75–84 increased by an average of 3% annually, the largest rise of ...18 hours ago
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Yeah, and the reason why that is so is because austerity helps transfer the communities wealth into the hands of the few. Stimulatory policies, like raising taxes on the rich and increased government spending, do the opposite.
So, how much per week is this government presently borrowing?
What we really need to do is drop the delusional economics system and the theory that supports it. Until we do that, our society will always be held back and poverty will be rampant.
“…do the opposite.”
Are you sure? My impression was that austerity gives them (the “few”) a larger percentage of a much smaller pie, so they end up worse off in real terms.
Probably just faulty memory on my part.
Over the long run. But given the marginal utility value of a dollar when you are pulling in millions of the damn things, the only thing that counts is the relativities. Real terms doesnae get a look in, the numbers are as arbitrary as a role playing game’s ‘Experience points’ score.
It is the creation of a crisis that is all important. Once the crisis is going they then have to hock all of the state assets off to their mates. Then they just sit back and wait for the money to start rolling in …
+1
Exactly and that is what this government are doing. Create or use a crisis to sell off the states assets making the people poorer but a few very much richer as they now own and control the resources that the many need – the resources that the many once owned.
Why don’t you buy a few shares ?, there’s still time to become one of their mates.
Why not? Maybe because I believe society exists and those who want all the wealth for themselves are parasitic scum. Maybe I know that a rising tide lifts all boats, but many of my fellow humans have had their boats taken off them, or have never had one. Maybe I’m just choosy about my mates.
Yeah, I agree, he should eat cake too.
twat
Remember when English step-changed the economy away from the housing sector and towards productive ‘proper’ jobs by slashing the shit out tof he top marginal tax rates?
Remember when after that, when it didn’t seem to be working, he defended himself by saying that the low unemployment under Labour led governments was fake because it was propped up by house price inflation?
Now watch this drive. *schwing*
House price inflation, you say?
Outstanding (though US-centric) documentary on massive inequality, the attitudes and people which have brought it about, and what to do about it.
National has mis-managed the Economy for Fourrr Loooong Years and ……..
Nats might be crap but this guy doesn’t inspire any confidence either;
“David Parker: The rights and wrongs of regulation”
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10882038
Parker is saying he wants to remove a lot of the existing regulations in the ‘competitive markets’. Nice one, an open invite to every white collar crook in the country.
Yep, just as it was in the 1980s and 1990s. The reason why the 5th Labour government actually started putting that regulation back.
I have often qustioned Parker’s commitment to the labour movement. He loves the politics of opposing the Nats but I quite often think he would be better suited in their camp.
I don’t think he will advance the movement in a way a labour finance minister should.
He does give that impression. These free market theorists just don’t seem to grasp the fact that business attracts a lot of ethically challenged people, they’ve got this bizarre notion that competition keeps everyone honest. Nothing could be further from the truth.
The easiest way to be ‘competitive’ in business is to bend & break the laws. If we don’t have strong regulation, and even more important robust enforcement of regulation, then we end up with the wrong people dominating the business sector. That’s pretty much the scenario we have now and he wants to let more of them in.
+1
Without regulation we don’t have a market – we have a free-for-all with the biggest and meanest sharks ‘winning’.
“The real economy of the job market…..is still getting worse”
Really.
If Norman is referring to unemployment, this is currently around 6.9% in NZ and predicted to drop to 6.8% in the very near future. During the whole of the GFC period it’s remained well below 10%, a regular level for most other western countries,.
Australia and the US currently enjoy similar unemployment rates to NZ.
Most European countries still experience unemployment at 12% or above. It was a lot higher during the period of the GFC.
The basket case economies of Greece and Spain (maybe Ireland too) are in the 25% -30% unemployment range. (Partly as a result of the growth of the state at the expense of the private sector).
By contrast NZ has done very well both economically in general and in the job market in particular.
Norman either doesn’t know what he’s talking about, or he’s making it up for political reasons.
Or maybe you don’t understand how politicians arrive at an unemployment figure in this country?
If it wasn’t for all those people moving to Aussie and all the jobs needed for rebuilding Christchurch, even the official figure would be horrendous.
But you hit the nail on the head in regards to the direction of this article. European countries are practicing austerity and have high unemployment. The basket cases have extreme austerity and extreme unemployment.
Austerity does not (and has never in the history of economics) worked.
Mike
I note I was conservative in my assumption about how much unemployment would drop by in NZ; as you will have heard its dropped to 6.2% according to the latest figures. I also note that the number of new jobs has increased. These are official figures; not those spun by politicians.
I’m ambivalent about the austerity verses throwing money at the problem argument. I suspect that decisions on this should be made on a case by case basis.
In the case of Greece in particular austerity is inevitable because of the way that government and that society recklessly spent and squandered borrowed money. In their case most of the borrowings were spent on such things as unrealistically generous superannuation plans; a bloated public service (public service jobs for life/salaries significantly higher than the private sector etc), massive tax avoidance and so on. Little if any of the borrowed money went on stimulating the productive sector of the economy – which is the point presumably of “throwing money at the problem”.
Greece and, I suspect, Spain’s extremely high unemployment rates are an outcome of this economic behaviour; austerity is the consequence not the cause.