web analytics

SSTimes finds more $ in the pocket

Written By: - Date published: 9:15 am, November 2nd, 2008 - 22 comments
Categories: economy, election 2008 - Tags:

From this mornings SSTimes:

New research has revealed a dramatic reversal in financial fortunes for the average Kiwi family, which is now $60 better off each week than it was six months ago. Falling mortgage costs teamed with the government’s October 1 tax cuts and a beefed up Working for Families package are the main reasons for the windfall, with a slight drop in petrol prices also helping.

Pundits are divided on whether the reversal will boost Labour’s chances when voters go to the polls on Saturday, but say it will help our recovery from the global financial crisis.

So do we think it is going to make a difference to Saturday’s vote? We’ve moved on quite a long way since backpocket issues took on such prominance. Having a bit more money might not be at the forefront of people’s minds as a positive, but nor is the lack of it the irritant it once was.

22 comments on “SSTimes finds more $ in the pocket ”

  1. burt 1

    Hands up how many people feel $60/Week better off?

    CAPTCHA: Dunne schoolroom

  2. Burt – I feel well off. Maybe you should take some personal responsibility and work harder if you’re feeling a bit poor…

  3. milo 3

    burt: it’s nonetheless very good news, even if it is largely due to petrol and interest rates. It does also show that tax cuts and self-correcting markets help out in the long term. 🙂

    Of course, much of it also is due to Working for Families, which I still object to due the inefficiency of delivery. Have a universal family benefit instead, paid for by reduced tax cuts at the upper end and administrative savings from the more efficient distributive system, I say.

  4. randal 4

    and did you read mathew hootons bitter rancid little diatribe too?

  5. Ari 5

    It does also show that tax cuts and self-correcting markets help out in the long term.

    The markets haven’t had time for self-corrective measures, especially seeing the necessary business bankruptcies are being prevented. Petrol is going down because investment (and thus oil speculation) is going down because the market is shivering in its little boots, and is only just considering whether it might like to go outside again and face the real world.

    Food prices are following petrol.

    If you can’t even understand capitalism, you have no right to be advocating it above some other alternative. (Not that we have any anti-capitalist parties in parliament anyway)

  6. Chris G 6

    “self-correcting markets help out in the long term”

    Where was the self correcting mechanism evident here? I saw things like OCR being cut… thats intervention, keynesian stuff, not self correcting stuff.

    The only evidence is of the market burning itself out.

  7. max@gmail.com 7

    Godamn it Burt – you ARE $60 a week better off OK.

    The gummint statistics told you so, just before the election. It must be true.

  8. maxq 8

    Godamn it Burt – you ARE $60 a week better off OK.

    The gummint statistics told you so, just before the election. It must be true.

  9. dave 9

    the average family is still worse off than at the same time last year before all the prices went up – even with tax cuts – due to increased power bills and food prices.

  10. Chris G 10

    Inflation is its name I think, dave.

    The Nats gonna make it/would have made it better though aye dave?

    Get real.

  11. milo 11

    Ari, Chris G – markets are volatile and follow cycles. That’s exactly what we are seeing. The Libor spiked and is now coming down. The Carry trade market peaked and is now unwinding. Confidence in oil price increases overshot and is now unwinding.

    “Markets clean up their own messes”. And they are. Markets are never “perfect”, but they still work.

  12. Ari 12

    Ari, Chris G – markets are volatile and follow cycles. That’s exactly what we are seeing. The Libor spiked and is now coming down. The Carry trade market peaked and is now unwinding. Confidence in oil price increases overshot and is now unwinding.

    Indeed they do. You seem to be under the illusion, however, that these cycles resolve quickly and can be talked about in terms of days or even weeks. That is not the case.

    “Markets clean up their own messes’. And they are. Markets are never “perfect’, but they still work.

    No, the governments of the world are underwriting and bailing out as fast as they can. Government assistance is external to the market as you well know. Unless you’re going to take the ridiculous line that our interventionism is having no effect, (and any economist with half a brain will clobber you for trying THAT) you need to acknowledge that the turn around is artificial to the market system.

    A market that worked would not need government interference to stop it from crashing. It would have low points, that we accept, and governments would often try to interfere in those, (as they should) but that is fundamentally different to the massive confidence crisis we are seeing here. Why are we seeing it? Because the USA encouraged bad credit and didn’t regulate lending sufficiently. Which means what? That the market failed to fix its own mess satisfactorily.

  13. Chris G 13

    “markets are volatile and follow cycles. That’s exactly what we are seeing”

    Where are you looking? Your eyes must be looking a different way to mine. Government intervention happening the world over to choke inflation and sort shit out, eg. OCR being cut 2 or 3 times in last few months.

    reality check: The market and its cycles are detrimental to everyone and your a mad man for thinking otherwise and just accepting it in your ‘matter of fact’ style.

    ” It does also show that tax cuts and self-correcting markets help out in the long term”

    Of course self-correction is a mechanism in the market, but it is very rarely left to its own accord nowadays for self-correction to occur. Government intervention and Keynesian economics post-depression are all evidence of that. To suggest that they ‘help out’ in the long term. Your ignoring that they also ‘screw shit up’ in the long and short term.

  14. dave 14

    The Nats gonna make it/would have made it better though aye dave?

    No. And I’m well aware of how inflation works, thanks.

  15. Chris G 15

    Sure, just checking.

    captcha: $3,299,544,601 Fark!!! maybe it knew you said inflation

  16. Felix 16

    I think milo might be taking the piss a little to spark an argument. No-one is really that naive. (burt probably bought it but no-one else would.)

    As for who feels rich? I feel like I’m quite well off even though I don’t have much money. I don’t seem to need much these days.

    Does anyone feel like they’re doing it really hard?

  17. Chris G 17

    I feel fine, and I’m meant to be a poor student.

    Loved it on FOX the other week and some dimwit said: “How does Obama honestly think that a family on $250K income (!!!!) aren’t feeling it right now” re: No tax cut for those on that ridiculous amount of money.

    Well f**k me! if they are feeling the pinch, their either buying one too many chandeliers… or if its genuine: The other 95% of us are Dead!

    Maybe thats why Johnny Friendly is giving them a bigger tax cut than Labour and giving less to middle-low income earners? wait… that isnt starting to make sense.

  18. I reckon we have been more prosperous under Labour in terms of our kids finding jobs, having decent food on the table, petrol in the tank, regular outings, holidays each year and opportunities to make a bit of extra, than most NZers have experienced for many decades.

    It seems to me that either most people were asleep for 20 years up ’til 1999 or they suffer from amnesia.

    I had 3 sons unemployed in the 1990s. Within two years of Labour coming to power all 3 were working and not just work but work with a future. All have got good jobs now thanks to apprenticeships bought in by Labour and the mentoring of small business schemes.

    You can say what you like but I am bloody grateful to Clark and co.

  19. Rex Widerstrom 19

    We’ve moved on quite a long way since backpocket issues took on such prominance.

    I disagree. Where once we could creditably look to our political leaders for… well, leadership; and inspiration and a sense of our place in the world and a lot of other attributes which would influence our choices, their collective behaviour over the last few decades means there’s only one meaure left on which we can creditably rate them — whether they’ve left us personally better off than we were before.

    I don’t see the same sense of avarice amongst NZers as I do amongst many Australians, where they’d consciously exclude other factors and vote for any party that offered them more money. I just think NZers are left with no faith or trust in their politicians and have to resort to empirical measures to differentiate. Their personal economic wellbeing is an easily grasped empirical measure.

    So I think Labour can probably take some considerable comfort from this news as it relates to their chances at the polls.

  20. burt 20

    Rex

    Labour finally shows signs of agreeing with the two most significant items National campaign on – taxes are too high and interest rates are also too high.

    I think a dose of National party policy from Labour just in time for the election is going to remind voters why they want a change of govt.

  21. Rex Widerstrom 21

    You may be right, burt. But I’ve been talking on the phone to a lot of people back in NZ today.

    The majority have had a gutsful of this government but aren’t especially enamoured of the alternatives. More people than I’ve ever encountered are wondering whether they’ll even bother to vote (not something I’ve encouraged, in fact I’ve done what I can to suggest they ought to bite the bullet).

    In contrast, the left know they’re in serious jeopardy and none will stay home.

    I’ll be particularly interested to see the number for those who don’t cast a vote this election. I hope it will be small, but I suspect it may not. And I also suspect those who don’t vote will be those who, if they had, would have voted for an option other than Labour.

  22. “burt
    Hands up how many people feel $60/Week better off? ”

    This is kind of the point of what a lot of people have been trying to say. How you “feel” is actually a pretty crap measure of anything. All its really used for is deciding who to vote for (though for some, I’d argue that how they feel is effected by who they vote for, always looking for the worst in National or Labour for example).

    People take what is going on in their immediate surroundings, the major events in their friends and families immediate surroundings, and what they see, read and hear in the media, then go and try and make a generalization about the whole country from it.

Recent Comments

Recent Posts

  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruapehu cycle trails gets PGF boost
    The spectacular Mountains to Sea cycle trail in Ruapehu District will receive $4.6 million in funding from the Provincial Growth Fund for two additional trails, Regional Economic Development Minister Shane Jones announced today. “This is an exciting development for the local community, and one that will provide significant economic opportunities ...
    BeehiveBy beehive.govt.nz
    3 weeks ago