web analytics

Sugar rush

Written By: - Date published: 6:37 am, February 13th, 2009 - 24 comments
Categories: economy, national/act government - Tags:

John Key and Tracey Watkins have both (completely by coincidence) said we must avoid responding to the recession with a ‘sugar rush’ of spending. They’re just making excuses for National’s hopelessly inadequate policies for dealing with the recession but they are right about the need to avoid a sugar rush we don’t want to just spend a bunch of money to get a buzz now only to crash when it wears off. Instead, we need to spend on projects that will have a long-term benefit to the economy once the stimulation from the spending on them has worn off. Unfortunately, a sugar rush is exactly what we’re getting from National/ACT.

Look at what National has announced moving forward a few road and school projects, a temporary reduction in provisional tax. Ultimately, (as Vernon Small acknowledged in the Dom yesterday) there’s nearly no new money, it’s just money that was budgeted anyway being spent a little earlier. It’s just like having your dessert for afternoon tea you get the sugar a little sooner but the body you have the next day is the same either way.

We need more spending and we need to be using it to rebuild our economy. We need an ambitious, long term plan for growth and sustainability. Right now, all we’re getting is some candy.

24 comments on “Sugar rush ”

  1. I kind of agree with you on this Steve, but must ask where will this money come from?
    Not much point re litigating the past, but a lot of our money has been spent in the last decade. It is a real pity the cupboard was left bare when we most need it.

  2. BLiP 2

    Goober John Key and his Party’s announcements are a cynical attempt to maintain headlines, to be appear to be setting the agenda, and actually doing something. The drip-feeding of the so called measures to manage the recesssion amounts to little more than existing programmes being tinkered with and then re-announced to a gaggle of waiting media. I believe this particular PR dark art is generally referred to as “feeding the chooks”.

  3. Bevanj 3

    From what I’ve heard and read of late there’s never been an example of a government to successfully pull off a big spend up to get a country out of recession.

    I’m keen to hear of examples if anyone has any.

    Less spending particularly rash spending certainly won’t mortgage our (and kids) future any more than it is.

  4. vto 4

    yeah, lets just carry on borrowing. its worked well so far.

  5. vidiot 5

    Yeah let’s rush out and spend all the money that we had saved for a rainy day, oh FFS there is none !

    Perhaps culling the Cullen fund and using that money to do a mass kick start of the economy is what we need, only down side is that fund is worth about 60% of what we have put in to it, and getting worse every day.

  6. vto 6

    Sheesh, dont want to sound like some mindless personal attack SP but this post lacks any depth or reasoning, and is a repeat of several recent ones.

    You say “We need more spending …”. Perhaps you could explain why and how it would fix the depression.

    You also say “We need more spending and we need to be using it to rebuild our economy. We need an ambitious, long term plan for growth and sustainability. Right now, all we’re getting is some candy”. ha ha – you’ve stolen that line from the nats over the last 9 years.

  7. SeaJay 7

    Re: Goober John Key – Elections over, could we leave the name calling to the dogs over at kiwiblog perhaps? Whoops. Now the economy stupids, or the stupids economy ( that lovely Bill English is looking a bit haggard ) HuffingtonPost have a writer suggesting new recipients of unemployment benefits be able to use that income to subsidise a wage from a new job. That’s something.

  8. @ work 8

    “barnsleybill

    I kind of agree with you on this Steve, but must ask where will this money come from?
    Not much point re litigating the past, but a lot of our money has been spent in the last decade. It is a real pity the cupboard was left bare when we most need”

    Bill, I’ve got next to no money in my current account, but thats ok, I’ve spent the last month paying off my secondary account, so that ones back to 0 also, should anything need more money than I’ve budgetted for (say a recession) I can borrow back the money I’ve spent the last month paying off.

    Cullen could not have paid back as much of the debt as he did, while keeping up surplus’, simple as that, and with tax cuts he couldn’t have done either.

  9. vto. I’ve talked about the detail of why we need to spend more and on what in previous posts.

  10. ak 10

    @work: … and with tax cuts he couldn’t have done either.

    Yes, @, rather amusing to see the “winners” still clinging to the ridiculous notion that Culls was somehow simultaneously a cold-hearted grinch hoarding our precious hard-earned tax dollars – and spending like a drunken sailor at the same time (especially when even their wee John Doh! admits that Labour left us in relatively good shape).

    Poor boys. Barnacle and his flailing ilk are slowly dawning to the fact that the mythical invisible hand that they have been whacking off to and trying to force down out throats for years has finally shown its true colours: it now has its icy grip on all our cojones and sipping a few Labour Lites will do little to ease the pain.

    Luckily, the yanks and ockers stuck to a full-strength brew: going by his performance to date, the MilKey Bar Kid will eventually crave their affection too – and tag along with the inevitable return to economic sanity.

    The writing’s on the wall Bill, and your Devil Woman’s left the building: get your head out of the bowl.

  11. senzafine 11

    Why would we want to go down the path of Massive government spendups in the form of bailouts and infrastructure spends When 1929-1939 has proven that such strategies do not work to beat recession, in fact they do the reverse – strengthen the recession to a depression.

    Hoover believed he had an ambitious plan for long term growth. So did Roosevelt. All they actually achieved was putting their countries and citizens through immense and unnecessary pain.

  12. senzafine. That’s certianly not a mainstream view of the Great Depression. Not only did the New Deal create employment, it created an infrastructure that the US is still benefiting from now – the Hoover Dam being the most visible example.

  13. vidiot 13

    And do you seriously think that a project the size of the Hoover Dam in NZ will do us any good ? The last time it was tried (Clyde) was a complete over-spend, and needless to say I doubt the greens would like you damming up any valleys these days either.

    If you want to think big (oh shit that’s Robs thoughts), think nuclear, think Kaipara Harbour and then also think of moving parliament from Wellington to somewhere much safer (like South of Whangarei). Imagine how many jobs that would create.

  14. BB,

    Actually you’ve got that totally wrong. A lot of our money was used to pay back debt to the international banking cartel and should have been spend on our infra structure and our country’s and it’s inhabitants well being.

    The labour government made an issue out of prioritising the repayment of international debts in order to liberate this country from the scourge of compound interest payments and made an effort to pay back our international debt asap.

    If you want to know how money was created by the privately owned international banking cartel with it’s two centres in the City of London and the Federal Reserve of New York you should watch “Money as Debt“.

    And if you want to learn of the history of our privately owned international banking system you should watch the “Money Masters“.

    Incidentally John Key was a one of only four upon invitation only advisors of the Federal Reserve from November 1999 until 2001. One of the most important moments in the existence of the privately owned Federal Reserve of New York. In November 1999 the Glass Steagall act was repealed. This was the final bit of regulative legislation gone. It was the banksters wet dream come true. The total deregulation of banking. Derivatives and speculation here we come!

    This is what caused the great Depression and it will collapse our entire global economy again.

    And this is what John Key had to say about it at the APEC meeting:

    So now the party is over and the taxpayers of the world are left to underwrite in one form or another the liabilities and obligations of banks and, by extension, their hedge-fund clientele.

    That means that he thinks that we should pay for the disaster he and his banking scum mates have created.

    The banking elite has bee creating money out of thin air and since the 70s we have only had fiat money without any relation to for example gold. We’ve been had and John Key knows all about how we’ve been had.

    What will happen next? We will borrow from the international Money Masters instead of issuing our own currency and we will end up living in this country as it’s being owned by the same scum and if it’s up to John Key and his bankster mates we, our children and our children’s children will slave away to pay the Money Masters back their loans they created out of thin air instead of spending our hard earned money on ourselves and this country.

    All they are doing now is collapsing the economy to the point where everybody is so poor and so scared that we will accept anything and if we don’t? The the police has it’s instructions and the prisons NActional will be building with private money will be waiting and DNA collected from every sucker who think that they are entitled to free speech and demonstration will make sure that everybody will be to scared to actually stand up for themselves.

  15. Felix 15

    The Nats are talking up the amount of their spending, the opposition are claiming responsibility for large amounts of it, and others are questioning whether spending up is effective anyway.

    It’s ironic that suddenly the govt is claiming superiority for chucking more money around that the previous one – the reverse of their position for the past 9 years.

    Not that I’m surprised or bothered, but I am concerned that the focus is all on the quantity and not the quality of the spending.

    Any govt spending can create / save jobs, stimulate circulation etc in the short term. That’s important, but a big spend-up is also an opportunity to invest in long term productivity. The Kopu bridge is a good example of a project which will create work and stimulate the local economy but not provide any significant long term economic benefits.

    This doesn’t mean it’s not worth doing, just that there are probably better ways to spend the money.

    Investing in energy generation is an example of the opposite – the same short term benefits from the construction process but resulting in real national assets which can save us untold dollars as we navigate the energy issues we face along with the rest of the world.

    Let’s keep thinking beyond getting through the next couple of years, eh?

  16. northpaw 16

    Ah… at last.. the cheerful Eve with a latest rendition which would improve by omission her 4-letter S-word (tho on second thoughts slag might make an appropriate substitute if only to bolster the barons of industrialization forerunner)..

    to the blog – ‘sugar rush’ had me think well, where’s the harm.. ah yes, diabetics.. Can we suppose that both JK and TW had food and fat on their minds..?

  17. Magnus 17

    BevanJ,
    I don’t have the time, nor the inclination, to deliver a history lesson, but an example of a Government spending big to relieve severe economic hardship can be found no further away than our own shores.
    From 1935, the First Labour Government spent enormous sums of money on numerous social programs, infrastructure projects, schools, hospitals, healthcare and the like. This after decades of a conservative government being tighter than a fishes arsehole with the public purse which only exacerbated the effects of the Great Depression. Which leads me to another point. In lean times, history has proven that the effect of governments (the overwhelming majority of which were conservative) cutting back spending in economic downturns has been nothing short of catostrophic. Research the government of Joseph ward for an example.
    So far as lifting this country out of economic difficulty goes, history has not been kind to the right. They’ve created economic crises, been elected on the back of them, and even made them worse, but not once have they lifted this country out of one.
    I hope for the sake of everyone that they manage to turn this piss poor record around.

  18. gingercrush 18

    What is so fundamentally great about Obama’s stimulus plan and Britain’s? Sure its a whole lot of money but what it is actually being spent on?

  19. Ah Northpaw,

    Do you understand what I’m trying to tell you? Or are you even interested? Did you watch the video’s in order to educate yourself? Nah, I didn’t think so, why educate yourself if you can stay stupid and narrow minded all on your lonesome.

    A small group of very rich people are creating “money” out of thin air to loan to suckers like you and they charge you a fortune in interest. If you did that you’d be in jail.
    What’s more at this moment they are buying real world assets with their funny money. If you or I did that we’d be in jail.

    Who made them God and entitled them to print money out of thin air?

    Nah, lets harp on calling scum, scum instead of asking ourselves why it is that we are paying through the nose for money we could print ourselves through our representatives and with very strict save guards.

    How about paying no tax and keeping our hard earned money were it belongs; in this country for the people who earned it with their hard slog.

    That should appeal to your right wing mindset (Still in the old obsolete left/right paradigm yawn). Here’s what Ron Paul has to say about it.

    Ron Paul is a Conservative Republican presidential candidate but the chance you have heard of him through our corporately owned MSM.

    And this is a video called Fiat Empire about fiat (Out of nowhere funny) money and why the federal Reserve of NY violates the American Constitution.

    Gingercrush,

    It’s a whole lot of money borrowed from the Federal Reserve by the US Government to be given back to the banks who own the Federal Reserve in the first place and we get to pay a bucket full of interest on top of paying back the money they created out of thin air. It’s called a Scam.
    To fully understand the Scam please watch the two video’s I gave links to.
    Give it a shot. What’s the worst that can happen?

    In the best case you learn something and in the worst case you can have a good laugh about how ridiculous the video’s are.

  20. northpaw 20

    Travellerev,

    Dearie me, I sure don’t think I deserved Do you understand what I’m trying to tell you? Or are you even interested? Did you watch the video’s in order to educate yourself? Nah, I didn’t think so, why educate yourself if you can stay stupid and narrow minded all on your lonesome.

    Could this be the same Eve as prior posts had suggested a welcome change and earned a note for me from jozinny..? If it is, then the above would seem the result of connotation collapse..

    Not to harp, for I am as intent as yourself in knowing what gives, but for me the solution is more important. Slag, for instance, is the waste of a hot process. Unlike scum which floats and floats and floats and generally remains buoyant(present) for always. Slag, a solid impurity, is either taken off or sinks or is consumed by the hot mix upon which it, too, floats.

    More apt. I’d say. Though earlier I had left such thinking to your better judgement.
    Right now, this looks like tis not me that needs help.. or release from whatever tension has built up..

  21. northpaw 21

    What is so fundamentally great about Obama’s stimulus plan and Britain’s? Sure its a whole lot of money but what it is actually being spent on?

    To state the obvious this “whole lot of money” is available to those willing and able take it for what it can do primarily for Americans.

    What it is not for — and sufficient expertise combined with electors’ strength has prevailed upon the Senate — is fake scams and schemes (eg, the republican senator for Utah) to have up to $50bn of the Stimpack taken up with long term construction costs of nuke facilities when that money is for affordable renewable energy projects. [ A point the msm has missed to date.. ]

    A point I include here to suggest that when you have budgetary abusers like this to put up with.. why would you seek attract more from forward announcements..?

  22. Bevanj 22

    Thanks Magnus I’ll get to reading.

  23. Northpaw,

    I haven’t got a clue what you’re on about but it sounds very mysterious and I’m sure it means a lot to you.

    In one of my previous post I stated that in the banking world scum floats to the top and NP, JK floated all they way to the scummiest part of the international banksters world. The city of London, Wall street and the Federal reserve of New York.

    Try watching the Money Masters and Money as Debt for an explanation of this statement. I haven’t got the time to waste.

  24. Do I have to spell it out to You?
    More government spending ultimately has to mean higher taxes or more borrowing which also means higher taxes to pay off the debt. Or they can crank up the reserve bank printing press and create more money leading to runnaway inflation Zimbabwe style.
    We already pay nearly half our income in various taxes and levies. How much more do you suck out of us? How many more private businesses do you want to go under or go overseas?
    Can you not see how job losses and a deeper recession would result from perpetuating excessive government spending?
    When the government spends our money, we spend less on goods and services then what happens to the workers who are providing the goods and services we can no longer afford? Government spending only creates jobs at the expense of jobs in the private sector. Watch out for the unintended consequences for goodness sake!

Recent Comments

Recent Posts

  • Put our most vulnerable first
    Don’t forget whānau and communities most at risk, says the Green Party, as the Government lays out its three-phase plan for Omicron. ...
    2 days ago
  • Boosting our immunity against Omicron
    With Omicron in the community, it’s vital we all do our bit to help to slow the spread, keep each other safe and protect our health system. One of the most important ways we can reduce the risk of Omicron is to get a booster dose as soon as we’re ...
    2 days ago
  • Equitable response to Omicron vital
    The Green Party supports the Government’s decision to move Aotearoa New Zealand to traffic light level Red at 11.59pm tonight, but says its success will depend on the support that is made available to the most vulnerable. ...
    5 days ago
  • How we’re preparing for Omicron
    As countries around the world experience Omicron outbreaks, we’re taking steps now to ensure we’re as prepared as possible and our communities are protected. ...
    1 week ago
  • What’s Labour achieved so far?
    Quite a bit! This Government was elected to take on the toughest issues facing Aotearoa – and that’s what we’re doing. Since the start of the pandemic, protecting lives and livelihoods has been a priority, but we’ve also made progress on long-term challenges, to deliver a future the next generation ...
    2 weeks ago
  • Tackling the big issues in 2022
    This year, keeping Kiwis safe from COVID will remain a key priority of the Government – but we’re also pushing ahead on some of New Zealand’s biggest long-term challenges. In 2022, we’re working to get more Kiwis into homes, reduce emissions, lift children out of poverty, and ensure people get ...
    2 weeks ago

  • Penguin rehab and native forest restoration get helping hand
    A long-running penguin rehab facility which has been hard hit by the tourism downturn, and work to restore native forest habitats in the Catlins are being supported through Jobs for Nature funding, Conservation Minister Kiri Allan says. Otago’s Penguin Place and The Hokonui Rūnanga Catlins Biodiversity Project will receive combined ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Resilient economy reflected in Crown accounts
    The Government’s financial accounts continue to reflect a resilient economy that has performed better than expected and puts the country in a strong position to respond to Omicron, Grant Robertson said. The Crown Accounts for the five months to the end of November were more favourable than forecast in the ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Government announces three phase public health response to Omicron
    Reducing isolation period for cases and close contacts at Phase Two and Three to 10 and seven days Definition of close contact required to isolate changes to household or household like contacts at Phase Three Increased use of rapid antigen tests with test to return policy put in place for ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Ambassador to Thailand announced
    Foreign Affairs Minister Nanaia Mahuta today announced the appointment of Jonathan Kings as New Zealand’s next Ambassador to Thailand. “Aotearoa New Zealand has a long-standing relationship with Thailand, celebrating the 65th anniversary of diplomatic representation between our countries in 2021. We also share much in common at regional and multilateral levels ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government’s Family Package continues to deliver for New Zealanders
    The Families Package helped around 330,000 families in its first year - more than half of all families with children in NZ These families received an estimated $55 per week more from Families Package payments in 2018/19 than in 2017/18, on average Families Package increases to the maximum possible Accommodation ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand retains top spot in global anti-corruption rankings
    Justice Minister Kris Faafoi has welcomed news of New Zealand’s ongoing position as top in the world anti-corruption rankings. The 2021 Corruption Perceptions Index released by global anti-corruption organisation, Transparency International, ranks New Zealand first equal with Denmark and Finland, with a score of 88 out of 100. “This is an ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Testing improvements see New Zealand well prepared for Omicron
    New Zealand’s PCR testing capacity can be increased by nearly 20,000 tests per day to deal with a surge in cases as part of our wider COVID-19 testing strategy, Associate Minister of Health Dr Ayesha Verrall said. “We have continued to adapt our public health response to safeguard the health ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • 5,000 portable air cleaners for schools on their way
    As schools are preparing to return, Education Minister Chris Hipkins has announced 5,000 air cleaners have been ordered for New Zealand schools. “As we know, along with vaccination, testing, good hygiene and physical distancing, good ventilation is important in minimising the risk of airborne transmission of the virus that causes ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand to move to Red from 11.59pm today
    All of New Zealand will move to the Red setting of the Covid Protection Framework (CPF) at 11:59pm today as Omicron is potentially now transmitting in the community, Prime Minister Jacinda Ardern says. “Nine COVID-19 cases reported yesterday in the Nelson/Marlborough region are now confirmed as Omicron, and a further ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Mandatory boosters for key workforces progressing well
    More than 5,785 (82%) border workers eligible for a booster vaccination at 6 months have received it so far, COVID-19 Response Minister Chris Hipkins says. “That’s a really strong uptake considering we announced the requirement the week before Christmas, but we need to continue this momentum,” Chris Hipkins said. “We ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ to move to Red
    Nine COVID-19 cases reported yesterday in the Nelson/Marlborough region have now been confirmed as the Omicron variant, and a further case from the same household was confirmed late yesterday. These cases are in a single family that flew to Auckland on 13 January to attend a wedding and other events ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand to provide further help for Tonga
    Aotearoa New Zealand is giving an additional $2 million in humanitarian funding for Tonga as the country recovers from a volcanic eruption and tsunami last weekend, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today. This brings Aotearoa New Zealand’s contribution to $3 million. “This support will ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Quarterly benefit numbers show highest number of exits into work
    The Government’s strong focus on supporting more people into work is reflected in benefit figures released today which show a year-on-year fall of around 21,300 people receiving a main benefit in the December 2021 quarter, Minister for Social Development and Employment Carmel Sepuloni said. “Our response to COVID has helped ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Northland to move to Orange, NZ prepared for Omicron 
    Northland to move to Orange Rest of New Zealand stays at Orange in preparedness for Omicron All of New Zealand to move into Red in the event of Omicron community outbreak – no use of lockdowns Govt planning well advanced – new case management, close contact definition and testing rules ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • RNZAF C-130 Hercules flight departs for Tonga as Navy vessels draw nearer to Tongatapu
    A Royal New Zealand Air Force C-130 Hercules has departed Base Auckland Whenuapai for Tonga carrying aid supplies, as the New Zealand aid effort ramps up, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today. “The aircraft is carrying humanitarian aid and disaster relief supplies, including water ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand prepared to send support to Tonga
    New Zealand is ready to assist Tonga in its recovery from Saturday night’s undersea eruption and tsunami, Foreign Affairs Minister Nanaia Mahuta and Defence Minister Peeni Henare said today. “Following the successful surveillance and reconnaissance flight of a New Zealand P-3K2 Orion on Monday, imagery and details have been sent ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Aotearoa New Zealand stands ready to assist people of Tonga
    The thoughts of New Zealanders are with the people of Tonga following yesterday’s undersea volcanic eruption and subsequent tsunami waves, Foreign Affairs Minister Nanaia Mahuta says. “Damage assessments are under way and New Zealand has formally offered to provide assistance to Tonga,” said Nanaia Mahuta. New Zealand has made an ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Record high of new homes consented continues
    In the year ended November 2021, 48,522 new homes were consented, up 26 per cent from the November 2020 year. In November 2021, 4,688 new dwellings were consented. Auckland’s new homes consented numbers rose 25 per cent in the last year. Annual figures for the last nine months show more ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Report trumpets scope for ice cream exports
    Latest research into our premium ice cream industry suggests exporters could find new buyers in valuable overseas markets as consumers increasingly look for tip top quality in food. Economic Development Minister Stuart Nash has released a new report for the Food and Beverage Information Project. The project is run by ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Honouring the legacy of legendary kaumātua Muriwai Ihakara
    Associate Minister for Arts, Culture, and Heritage Kiri Allan expressed her great sadness and deepest condolences at the passing of esteemed kaumātua, Muriwai Ihakara. “Muriwai’s passing is not only a loss for the wider creative sector but for all of Aotearoa New Zealand. The country has lost a much beloved ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Have your say on proposed changes to make drinking water safer
    Associate Minister for the Environment Kiri Allan is urging all New Zealanders to give feedback on proposed changes aimed at making drinking water safer. “The current regulations are not fit for purpose and don’t offer enough protection, particularly for those whose water comes from smaller supplies,” Kiri Allan said. “This ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Planting the seeds for rewarding careers
    A boost in funding for a number of Jobs for Nature initiatives across Canterbury will provide sustainable employment opportunities for more than 70 people, Conservation Minister Kiri Allan says. “The six projects are diverse, ranging from establishing coastline trapping in Kaikōura, to setting up a native plant nursery, restoration planting ...
    BeehiveBy beehive.govt.nz
    3 weeks ago