Was National a good economic manager?

Written By: - Date published: 9:30 am, March 10th, 2018 - 75 comments
Categories: Economy, national, same old national, the praiseworthy and the pitiful - Tags:

No.

For your next set of arguments with people still pining for John Key, who look back at near-history and feel it was a time where everyone was relaxed and people had a generally good time, and attribute that feeling to those time-honoured National skills managed the economy so well, here’s the actual performance, laid out by the CTU in simple graphs and brief commentary.

The summary says it all:

It’s a crucial part of the mythology around National Party Governments that they are “good economic managers”, as their new leader, Simon Bridges, is repeating. The business commentariat repeat it endlessly too. How true is this?

‘Economic management’ often confuses fiscal – management of the government’s finances – with management of the entire economy over which the Government of the day has relatively limited influence: it cannot take credit or blame for existing trends or random events – luck. And what is ‘good’? The business media have typically assumed that ‘good fiscal management’ is simply holding down spending, balancing the budget and reducing debt. But it is hardly good management to hold down spending if in the real world people can’t find jobs or cannot afford acceptable housing or are living in poverty or can’t get the health care they need. Similarly ‘good economic management’ is not just strong GDP growth. It is hardly good economic management if GDP is growing but the income is not fairly spread or growth is in areas that provide a poor basis for future development or creates growing environmental degradation.

I look at National’s record on growth in GDP (and GDP per person), productivity, trade, employment, unemployment and joblessness, wages and salaries, inequality, poverty, housing and environmental sustainability. Even on GDP growth its record is mediocre; it has a little to be proud of in employment but less so when looking at the quality of the employment and continuing levels of joblessness. In the other areas there are demonstrable failures.

Its management of government finances started well in its handling of the Global Financial Crisis: using debt rather than austerity reduced the social and economic impacts. It sensibly funded the Canterbury earthquake recovery partly from debt. Yet there their praiseworthy fiscal management largely ends. Their 2010 tax cuts were inappropriate in a recessionary economy with high levels of inequality and poverty. National used the crisis and a supposed excessive debt level (even at its peak, still much lower than most countries in the OECD) to justify a programme of spending cuts for its entire period in office. It put off spending in a host of areas that would inevitably come home to roost on a future Government including in Health, Superannuation, Education, Housing, Poverty, Environment and Conservation.

This is not responsible fiscal management: it is turning a blind eye to the future. On this record, National cannot fairly claim to be a good economic or fiscal manager unless its definition is so narrow as to ignore the consequences of its management policies.

75 comments on “Was National a good economic manager? ”

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  1. cleangreen 1
    10 March 2018 at 10:17 am

    Good article Advantage,

    No,no,no.no!!!!!!

    How can National ever claim it “Was a good economic manager”?

    Just look at their sad record!!!!!!

    Well firstly; – they have already sold everything except the barn door in nine years.

    Then while promising we would all be expecting a “brighter future”.

    Then they borrowed another $60 Billion to give tax breaks to the rich.

    What they didn’t do;

    Upgrades on Infrastructure, roads, and rail, and airports, and ports,

    These are urgent needed repairs now required as all agencies, & local councils are claiming these are all crumbling along with local municipal asserts and their infrastructure of buildings drains water supplies, are all in desperate need of upgrading.

    So we are simply in deep shit after National ‘s nine years of mis-management of robbing Peter to pay Paul and carry out a silent undeclared program of austerity, so we have been savaged severely by National.

    • Wensleydale 1.1
      12 March 2018 at 12:20 am

      Sadly, it doesn’t matter whether the “good financial managers” narrative is true or not. It will be parroted endlessly because people believe the myth. It’s become part of National’s brand. “National – good with money, shit at everything else, especially people.” And yet, they’re not even good at the one thing they’re supposed to be good at. When you look at the things they get up to while in office, you’d be forgiven for concluding that the National Party is little more than a giant money-go-round, and a means of securing lucrative future employment post-parliament, with the various corporates you did favours for while you were a minister. It’d be funny if it weren’t so sad.

  2. arkie 2
    10 March 2018 at 10:23 am

    My question is how the meme of RW parties as ‘good economic managers’ is maintained in the face of the evidence. Are there effective ways to counter this narrative?

    • Loop 2.1
      10 March 2018 at 11:40 am

      Arkie

      ” My question is how the meme of RW parties as ‘good economic managers’ is maintained in the face of the evidence. ”

      The answer is simple. Repeat the lie many, many times and some will believe as if it were the truth.

      The same applies when the “black hole” in Labours budget. Joyce said he’d leave politics if he was wrong. FINALLY he left, not because of the “black hole” though,but at least he’s gone!

      • arkie 2.1.1
        10 March 2018 at 1:16 pm

        indeed, ‘catapult the propaganda’ as G.W. Bush said.

        I’m interested in what methods can be used by us on the Left, to counter it effectively, to let the truth sink in.

        The management of an economy can be a pretty nebulous metric to measure let alone explain. Apart from mandating the reading of this post, i can’t think of a good way to challenge the RW narrative,

      • greywarshark 2.1.2
        10 March 2018 at 5:47 pm

        I don’t count on Joyce having left us for good though. He won’t be doing good wherever he is, and he won’t be distanced from NZ interests for too long.
        Walk out the front door and go in the side door somewhere I would think.

  3. adam 3
    10 March 2018 at 10:34 am

    Can we talk inflation? The last government ruled over almost runaway inflation.

    Yes I know, the usual turds will bring out the official rate at this point. But a few things are missing from the official rate. The two big ones are rent increases and house prices. Both these have been removed from the official rate, and if you can honestly say these have not been running high I will eat my hate.

    The unseen, or insidious inflation which has passed by most, (well not really, but treasury has turned a blind eye) is the reduction in product size. Especially food products. A few grams here and there and bob’s your uncle, same price, less product – no change to the official inflation rate.

    The national party sat and did nothing whilst this went on. So yeah, agree with Ad completely.

    • Whispering Kate 3.1
      10 March 2018 at 10:48 am

      It’s not just food products but cosmetic products as well. Now I know you are going to say they are not necessary but I am also including moisturisers and deodorants in here as well. They introduce a new product, remove the existing one from the shelves and hey presto its in a smaller packet, weighs less and costs more. Happens all the time and has happened like this for as long as I can remember.

      Even worse the new one introduced is not as good in a subtle way that the user can recognise the difference if they are regular users of the product. Do they think the consumer is a bit slow on the uptake or is it just pure arrogance that they know they can get away with it. No wonder consumers become cynical about the whole process of delivering a fair trade on their manufacturing.

      Meanwhile as Adam says in his comment above, people’s incomes are not keeping up with the never ending creep of costs – then they have the nerve to say the inflation rate is low and successful.

      • smokes kreen 3.1.1
        10 March 2018 at 1:00 pm

        Anyone who buys Pro sensitive Toothpaste will also have noticed the recent $2 – $3 a tube increase (depending where you buy it). Also, I’m not sure whether Council rates and insurance premiums are measured for inflation. Our Council is proposing a 9.5% rates increase for each of the next two years. Our house and contents policies also rose by a massive amount (about 25%). Wages are certainly not keeping up with these kind of increases.

        • Whispering Kate 3.1.1.1
          10 March 2018 at 3:30 pm

          The Rapid Relief was $9.99 at the supermarket today – a bloody rip off if you ask me.

    • dukeofurl 3.2
      10 March 2018 at 11:02 am

      Thats right.
      The end of year CPI announcement talked about ‘drops in the price of new cars’
      New cars !
      It was only ‘specials’ for end of year , but still. ( The impact of new cars was shown by Toyota at certain months have 80%+ are sold to rental fleets, yet the assumption is these are ‘consumer purchases’)

      The current CPI includes everything but nothing in that major items which are must haves are buried under the dross of nice to haves.

    • Draco T Bastard 3.3
      10 March 2018 at 2:02 pm

      Almost everything you wrote there is wrong.

      • adam 3.3.1
        10 March 2018 at 3:49 pm

        Yeah, right.

        • Draco T Bastard 3.3.1.1
          10 March 2018 at 4:09 pm

          Rent is included in the CPI and Stats does take into account the reduction of packet size.

          House prices are left out of the CPI and that is a concern but it was the only thing that he was right about.

          It’s difficult to have a conversation about something when one of the participants is talking bollocks.

          • dukeofurl 3.3.1.1.1
            12 March 2018 at 2:21 pm

            What about car prices ?

            Heres an example of a certain well known hatchback which was tracked over 10 years
            The ‘real price’ increased from $29500 in 2001 to $36000 in 2011.
            Thats 22% over that period.

            But not in the CPI , its adjusted price has fallen to $28900 over those 10 years.

            The reason why they only use the adjusted price is because the later car is higher quality. Even though you cant buy the ‘equivalent quality’ car that is the price used.

            And what were these ‘quality improvements’ ?

            the engine size increased from 1.6 litres to 1.8 litres
            the transmission changed from a five-gear manual to a four-gear automatic
            a CD stereo replaced a cassette stereo and four more speakers were included, taking the total to six
            the car now comes with an extra remote key and power windows
            traction control and rear disk brakes became standard
            airbags were upgraded from being only on the driver’s side to being a full package of front, side, curtain, and driver’s knee
            tilt steering and driver’s seat height adjustment were added
            tyres became wider
            luggage capacity decreased.

            They are mostly nonsensical of course, and impossible to quantify ,tyres became wider, or 4 more speakers.

            All new cars have upgraded features, they arent like ‘I prefer to have the 1.6 engine please’ and anyway the car is likely to be heavier and a larger engine maintains performance.
            http://archive.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/new-car-prices.aspx

            We can easily see the number of biscuits in a pack has decreased and ‘raise the price accordingly’ as the quantity has decreased.

            What about the quality/quantity of chocolate in the biscuit. ?

            In reality only specific changes in quantity or quality can be addressed by the CPI where the numbers change, but wider tyres isnt a quality increase ( when it may be driven by the heavier weight of a car)

            http://archive.stats.govt.nz/browse_for_stats/economic_indicators/prices_indexes/new-car-prices.aspx

            • Draco T Bastard 3.3.1.1.1.1
              12 March 2018 at 5:52 pm

              The ‘real price’ increased from $29500 in 2001 to $36000 in 2011.
              Thats 22% over that period.

              But not in the CPI , its adjusted price has fallen to $28900 over those 10 years.

              So, what you’re saying is that the nominal/I> price had increased but the real had decreased.

              As I said – it’s difficult to have a conversation when someone’s talking bollocks.

    • halfcrown 3.4
      10 March 2018 at 7:56 pm

      “The unseen, or insidious inflation which has passed by most, (well not really, but treasury has turned a blind eye) is the reduction in product size. Especially food products. A few grams here and there and bob’s your uncle, same price, less product – no change to the official inflation rate.”

      Agree with that, but you have all got it wrong Treasury or whoever measures inflation by only the important things like the increase in the price of Moet or the latest Mercedes car. Unimportant items like food, rates rent insurance are never considered.

      • patricia bremner 3.4.1
        11 March 2018 at 12:16 pm

        I agree Halfcrown. The size of our favorite deodorant has shrunk, covered by “Turn it upside down design”, thin on one end!! Price has doubled.

        Milk Cheese Butter …… crazy.

        insurances and services for the home, electrical plumbing and maintenance have increased beyond belief.

        Drs. and charges on prescriptions, petrol and car maintenance.

        I am so lucky to have taken up the GSF teacher’s pension. (21 years worth of saving) This closed 1991?
        It gave us, when we first got it, another amount equal to a single weeks pension fortnightly. Now, because it is increased according to the CPI, it is equivalent to two thirds of a single week. Losing a third. So the CPI is gradually measuring less of value.

        So don’t agree to NZ superannuation going to the CPI instead of wages. It would be worth a third less.

  4. Delia 4
    10 March 2018 at 10:41 am

    Crippling rents, selling of state housing which used to house the vulnerable, and jacking up GST on groceries is not sound economic management.

  5. AB 5
    10 March 2018 at 11:35 am

    ‘Good economic management’ is not actually a thing in itself.
    Economic management can be assessed only in terms of whether it fulfils ends that are themselves non-economic. This is what Rosenberg’s piece is trying to do by implying that anything that results in avoidable suffering (poverty, unemployment) can’t be ‘good economic management’ because it fails the ethical sniff test in terms of outcomes.

    The genius of RW propaganda on the economy is that it has elevated their preferred fiscal settings into the very definition of ‘good economic management’ and these settings are treated as ends in themselves. That these settings favour existing wealth and power therefore never needs to be mentioned.

    • Incognito 5.1
      10 March 2018 at 12:06 pm

      Excellent comment!

    • Macro 5.2
      10 March 2018 at 12:25 pm

      Yes AB, that is it in a nut shell. We have allowed politicians, media, economic gurus, and now the great uneducated populace to think that “good economic management” means continually achieving “positive” numbers on a range of economic measures such as GDP, CPI, Workforce, etc. In doing so we completely overlook the fact that these numbers do not actually describe economic reality. Indeed the very creator of the measure for GDP Simon Kuznets in 1934 in his first report to the US Congress warned of the limitations of the very measure he had helped to develop. In 1962, he went further adding:

      Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.

      Do we hear any discussion in the MSM as to what goals for growth in the economy of NZ we need apart from Dairy?
      The economic reality that has been achieved under the past few administrations is one of increasing inequality, homelessness, and despair. NZ has an appalling record on child abuse – both physical and sexual.
      http://newzealandchildabuse.com/child-abuse-in-new-zealand-today
      Children are part of the economy too. What else is the economy for, if it is not to provide goods, security, safety, and well being for all people?
      No Government can take pride in being a good manager of the economy until they ensure that all people in the country are well provided, and cared for.

      • Macro 5.2.1
        10 March 2018 at 4:18 pm

        Just further to the above comment re Simon Kuznets – a Noble Laureate for his work in Economics – the advice he gave the US congress wrt to GDP was that in no way should growth in GDP be regarded as a measure of economic wellbeing. Advice which most economic commentators today studiously disregard.

    • patricia bremner 5.3
      10 March 2018 at 2:44 pm

      Yes, they are very good at creating situations to increase their own capital by:

      Selling off Public assets to Private interests.
      By buying up property and land,
      Reducing the value of labour and welfare.
      Having high immigration.
      Austerity budgets for everything except cows and roads, is another.
      This with tax cuts aimed at the top goup is the cream. Happens every time.

      • patricia bremner 5.3.1
        10 March 2018 at 4:11 pm

        Oh!! I forgot raising GST, and borrowing billions.
        How could they be worse?? Lying? Saying it was people’s poor choices? Not doing the prefu properly? So it goes.

  6. Loop 6
    10 March 2018 at 11:56 am

    Not an economist, nor do I claim to understand the intricacies of finance, but…..when I got my calculator out it appears En Zed debt increased 1000% under nationals 9 year reign.
    This begs the question, has any of the Labour governments coming in to power following national governments increased debt to this degree?
    Also some on this site are being a bit less than complimentary about how naughty national have been with the selling of assets etc. I don’t disagree but prebble and dougless. Ring any bells? And how many this stratagem put out of work? The signing of the free trade agreement with china and what this has done to En Zed industry. Ring any bells?

    • Nic the NZer 6.1
      10 March 2018 at 12:38 pm

      You should go through the MMT post recently put up. This stuff is 100% accessible for lay-people.

      Its superficial and often incorrect to be concerned about the level of government debt as an economic indicator. The outcomes the CTU is concerned about are more relevant anyway, and the debt increases were actually largely out of government control anyway and fundamentally the government can not ever run out of money (government borrowing happens but for different reasons to what you may think).

      One important reason this is miss-leading is that NZ government debt is NZers savings. This should be obvious if you think about it as the NZ government is on the opposite side of a balance sheet from NZers, e.g everybody else who mostly transacts in NZ$.

      • Loop 6.1.1
        10 March 2018 at 2:19 pm

        Nic, Thanks. The article is interesting though I will have to read and re-read it a number of times. Numbers are not my friend as they are for some. With the little I’ve read already I feel a little more enlightened. Cheers

      • patricia bremner 6.1.2
        11 March 2018 at 12:23 pm

        Perhaps I should have said, the borrowed money was not spent wisely for the economy/people to meet needs.

  7. R.P. Mcmurphy 7
    10 March 2018 at 12:50 pm

    fixed income recipients are beginning to hurt as creeping inflation eats away at pensions and the basic cost of living.

    • Draco T Bastard 7.1
      10 March 2018 at 3:59 pm

      Last time I looked NZ Super recipients aren’t on a fixed income – it goes up at the same as the average income goes as it’s based on being a %age of the average income.

  8. Sanctuary 8
    10 March 2018 at 1:22 pm

    I was listening in (probably impolitely, but there you go) on a couple of your fairly typical NZ businessmen the other day. They work for a company that has less than 200 employees, both Pakeha middle aged men and both live on the North Shore and drive SUVs. Both are, in my opinion, over rate their own ability and are over paid for the impact they have.

    But anyway.

    They are both as white cracker stereotypical National as you can get.

    Listening to them, I realised that the whole “good economic managers” thing is actually just “allowing white men in the private sector to do what ever the hell they want”.

    it isn’t about the economy, it is more like a badly coded appeal to class war.

  9. UncookedSelachimorpha 9
    10 March 2018 at 1:49 pm

    Where are the RWNJs on this one?

    Strangely silent.

    • mac1 9.1
      10 March 2018 at 3:06 pm

      Getting the lines to run on a weekend is a bit difficult. This having to defend National’s record on economic management is not easy, because we defenders of the Economic Faith of English and Joyce cannot believe that it could be attacked, or faulty, or wrong!

      It is the Economic Faith after all. We are the party of business. Business is about money. Economics is about money. We have lots of it- well, some of us do and the rest of us wanna have lots. So we know about economics, right?

      Stands to reason.

      Eh?

      You mean Key and English and Joyce did not have their financial shit together? You mean I’ve been duped? You mean that I have wasted my energy defending the indefensible?

      Brain hurts. Must get the Word from the true prophets of the Faith. I cannot be wrong………… must not be wrong…….

  10. CS 10
    10 March 2018 at 1:58 pm

    No National are not competent economic managers aside from being right in not implementing viscous austerity in the face of the GFC.

    I give them credit for that. And any progressive who goes on about public debt increases under National being proof that they were incompetent compared to Cullen is shooting themselves in the foot. Because a good government does exactly that in a crisis.

    But, I must put it out there that Labour in the Clark/Cullen years was no better an economic manager. So those who tend to go on about how great Cullen was, be warned, it doesn’t wash with me!

    Cullen happened to run a surplus because he presided over a massive increase in private debt and the very household debt explosion that has rendered so many families unable to make ends meet.

    Here I defer to Steve Keen:

    “[Private] debt thus plays a pernicious role in our political system, as well as in our economy. Because a private debt bubble stimulates demand while it is expanding, the incumbent on whose watch the bubble begins gets undeserved reputation for effective economic management. Then when the bust occurs the blowout in government spending that results lands the hapless incumbent at the time with the charge of being a poor steward of the nation’s finances.”

    So neither Labour nor National are competent economic managers IM – sometimes probably not humble enough 😉 – O.

    • Draco T Bastard 10.1
      10 March 2018 at 4:03 pm

      So neither Labour nor National are competent economic managers

      That’d be true – they’re still hanging on to capitalism despite its proven failure.

  11. Matthew Whitehead 11
    10 March 2018 at 2:32 pm

    Actually National’s record on employment wasn’t great- what it mostly did was kick people off benefit despite them not getting a job yet, so they no longer counted as “unemployed” and had to beg for private assistance, and promote McJobs to everyone else.

    • CS 11.1
      11 March 2018 at 7:19 am

      Both National and Labour accept the concept of the NAIRU – the idea that a certain proportion of NZ citizens must be kept unemployed and impoverished to control inflation by putting downward pressure on wages.

      They both avoid true full employment in the name of controlling inflation.

      Currently the labour underutilisation stats are at about 11% I believe. Hence no wage pressures in NZ.

      They both have presided over a system where the labour income share has decreased and has not kept up with productivity.

      They both allow the rich to get richer and the poor to get poorer.

      Labour stubbornly refused to extend benefits to beneficiary families with children who couldn’t fulfill work requirements. Shame on them. Unforgiveable.

      A plague on both their houses.

  12. Sparky 12
    10 March 2018 at 2:46 pm

    And TPP11 signing Labour are? All you guys can think of to talk about is past tense National when the current mob are behaving in a very convincing way JUST LIKE THEM!!!! Unbelievable.

    • Draco T Bastard 12.1
      10 March 2018 at 4:04 pm

      Not all of us are doing that. Enough are of course.

    • Matthew Whitehead 12.2
      10 March 2018 at 4:24 pm

      Didn’t I just do a big post about how Labour were lying about having bottom lines on TPP and how their spin on having made it better is basically all BS?

      Just because Labour suck on TPP doesn’t mean that National don’t actively try and loot the economy in additional ways. *shrug*

      • Stuart Munro 12.2.1
        10 March 2018 at 5:59 pm

        It’s not all bullshit – they did avoid the copyright extension nonsense which would have given us a significant up front cost. But they folded on ISDS for no good reason. Sometimes no deal is the best deal.

        • Matthew Whitehead 12.2.1.1
          10 March 2018 at 6:24 pm

          No, they didn’t avoid it. It’s just suspended. This means that there is actually a fairly decent chance that the corporate Democrats in the US will start up TPP12 again in 2020 and we will be looking at a 70-year copyright term for some inexplicable reason.

          Do not expect anything that is suspended in that agreement to be permanently gone, it’s only gone so long as we can keep the US out of the deal.

          That said, I do give Labour credit for some very, very minor gains agreed to in TPP11, although the only one I’m certain applies to them is that there is apparently some weak acknowledgement of the Treaty of Waitangi in there, probably indirectly.

  13. Stuart Munro 13
    10 March 2018 at 2:46 pm

    Good economic management would have something to do with the medium and long term. Under the previous government the cry of ‘skills shortages’ was used ad nauseam to justify the import of cheap foreign labourers. But in eight years a responsible government could readily have trained whatever was required – that’s enough time for a PhD.

    Good economic management would be broadly based and diversified so that a botulism scare wouldn’t knock the socks off the NZ economy. It would develop from existing bases and abundant local resources. And it would probably solicit some expertise on lifting productivity, having thrown that baby out with the cheap labour bath water.

    Good economic management would not leave necessities like housing to the vagaries of the market. It would plan so that housing was available at a reasonable price, so that it simply wasn’t a major issue, much less the basis of a dysfunctional inflation ladder that sucks up local liquidity and deters investment in productive sectors.

    It would also involve losing the failed far-right neo-liberal mandarins of Treasury. Having achieved nothing for NZ it’s time these faux technocrats were shown the door and a younger, more centrist and more competent group took their place.

  14. Ed 14
    10 March 2018 at 3:03 pm

    Simple answer.
    No.

  15. CHCOff 15
    10 March 2018 at 6:24 pm

    NO, the worst rorting in New Zealand modern history.

    TO be balanced with that, the path was inevitable laid by the full embrace of ‘free trade’ that started with the free trade deal with China.

    THe modern ‘rock star’ western inflation ‘free market’ economy that is less dynamic than a communistic one!

    It hasn’t been complete economic suicide though, the plan seemed to be that New Zealand becomes a pacific Switzerland (recently rated the most corrupt nation by a non profit type group’s project analysis which does that sort of thing) type of safe haven for big international capital to escape to – as in a place to go for avoiding it’s mis-management of resources elsewhere.

    All of the above is why there is not alot of choice in joining the TPP currently (to be sensible about it), whether it’s going to be an acceleration to national societal disaster trends or not depends on what extent any alternative approaches can get back to basics with a different approach from what has been the past few decades really.

  16. Tanz 16
    10 March 2018 at 8:29 pm

    They are far better at economic management than Labour. Huge surplus, no debt, less taxes, full employment. Now all being undone by Labour and co, who only love to spend other people’s money. No wonder Lab can’t win an actual election. Still, Cullen is terrifying the masses with his tax plans, that’ll really bolster the polls for the govt, not.

    • Stuart Munro 16.1
      10 March 2018 at 8:48 pm

      These are simply lies Tanz.

      Full employment – not since Rogergnomics
      No debt – try $90 billion
      Huge surplus – not on balance of trade
      Less taxes – unless you count gst

      Labour have not been great economic managers – but they’re a hundred times better on their worst day, than any Gnat since Muldoon. Cullen is perfectly competent, if not adventurous – which made him NZ’s best finance minister in the last fifty years. The run of the mill is that bad, and the Gnats were the worst of them. Bill couldn’t even run Solid Energy without crashing it – if he hadn’t borrowed like there was no tomorrow he’d’ve crashed the whole economy.

    • Incognito 16.2
      10 March 2018 at 8:59 pm

      They are far worse at economic management than Labour. No or miniscule (within rounding error) surplus, large debt, more taxes, under-employment. Now all being undone by Labour and co, who love people more than money. No wonder National can’t win an actual election and form a government. Still, Joyce is was terrifying the masses with his tax hole, that’ll really bolster the polls for the govt.

      FIFY

    • NZJester 16.3
      11 March 2018 at 12:29 am

      No Debt Really?
      It was the Helen Clark government that paid down the countries debt to a record low, something that John Key’s National Government immediately borrowed against when they got into power to pay for a Tax cut. Then they did a tax swap with PAYE and GST moving the burden of tax onto the poor to keep offing up more tax cuts for the rich.
      Over their time running the country they failed to keep up the funding of essential services in line with inflation and the rise in population. I have seen family members rejected from the official waiting lists for operations becoming part of the growing hidden unofficial waiting list that grew while under National. While some small amount of the debt was legitimate to help out with disaster cleanups, the majority of it was wasted.

      • CS 16.3.1
        11 March 2018 at 7:41 am

        NZ Jester – but the legacy of that low public debt in the Cullen years was a huge explosion in private household debt. Households borrowed and borrowed and borrowed and bid up house prices and bought rentals. And now we have housing costs as the number one reason for poverty and inequality in NZ.

        Cullen presided over a speculative boom that increased tax receipts allowing him to reduce public debt. He was hugely irresponsible in his effort to look fiscally prudent.

        A speculative boom based on kiwis selling houses to each other and overseas banks creating money for them to do so. And now the economy creaks on like a zombie under the weight of very high household debt sapping demand, destroying growth.

        Households such as my own spend nothing to stimulate the economy because of the weight of household debt and no wage increases.

        We have normalised the idea now that low income households paying high rents can’t provide lunches for their children and private charity should do so. Or that low income teenage girls need charity to buy sanitary products.

        National did nothing to end the situation either.

        Meet the new boss…. same as the old boss. Oh and who’s behind Labour’s economic policy these days – Cullen! The actual old boss.

        Sometimes I think Cullen gets away with a lot on the Left because he sort of looks like Michael Joseph Savage.

        This blog from Chris Trotter raises questions as to whether Cullen actually understands concepts like endogenous money, the reality of banking and the fact that savings are not required to make loans. http://bowalleyroad.blogspot.co.nz/2017/10/adults-in-room_7.html

        • Loop 16.3.1.1
          11 March 2018 at 12:21 pm

          Hiya CS. Just wondering what you categorise as “households”?
          1) family “households” struggling to make ends meet?
          2) politicians/specutators/corporates “households” investing in property as rentals?
          3) foreign corporates “households” buying up just about everything they could use as rentals?
          4) “Households” with enough expendable income to speculate in property?

          No matter which “household” you are referring to, they ALL prey on the ideology that most Kiwis are desperate to achieve, their own home.
          I don’t know if there is something successive governments could have done to stem the property market hysteria, but they sure should have tried a bit harder.
          The likelihood of not being able to own ones own home is only going to add to social disruption that started with the vast generational unemployment caused by the first looting of public owned enterprises mid-late 80’s.

          • CS 16.3.1.1.1
            11 March 2018 at 5:51 pm

            Reserve Bank data on household debt including debt on rental properties owned by households.

            https://www.rbnz.govt.nz/statistics/key-graphs/key-graph-household-debt

            Note the steep increase from 2000-2007.

            Household debt comprises mortgage loans, consumer loans such as credit cards, and student loans.

            I think home ownership is a good thing by and large. I’m glad I own my own modest home. I see the benefits in stable schooling and attachment to community. I just wish every family had that option. But exploding debt to income levels due to a lack of regulation on lending, foreign buyers and tax loopholes that encourage speculation yadda yadda yadda is not.

            The debt compounded by no real wage increases is also a problem. Nothing inflating my debt away like it did for my parents’ generation.

    • Craig H 16.4
      11 March 2018 at 3:01 pm

      You must have mistaken National and Labour, because three out of four of your chosen measures (“Huge surplus, no debt, less taxes, full employment”) are far more true of the 5th Labour Government than the 5th National Government.

  17. RedLogix 17
    11 March 2018 at 1:04 am

    This article asks exactly the same question of Australia:

    https://www.theguardian.com/commentisfree/2018/mar/09/labor-v-liberal-who-best-runs-the-australian-economy

    and concludes:

    On both measures, the level of economic growth and that growth relative to the US, Labor is a better performer than the Coalition.

    .

  18. Westiechick 18
    11 March 2018 at 11:07 am

    I don’t think we could have taken another 3 years of “good economic management” . Enough damage done in the 9 they had.

  19. Beowulf 19
    13 March 2018 at 8:37 am

    Not for me ..

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    In the ever-evolving world of technology, server-based computing has emerged as a cornerstone of modern digital infrastructure. This article delves into the concept of server-based computing, exploring its various forms, benefits, challenges, and its impact on the way we work and interact with technology. Understanding Server-Based Computing: At its core, ...
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    2 days ago

  • Vroom vroom go the big red trucks
    The absolute brass neck of this guy.We want more medical doctors, not more spin doctors, Luxon was saying a couple of weeks ago, and now we’re told the guy has seven salaried adults on TikTok duty. Sorry, doing social media. The absolute brass neck of it. The irony that the ...
    More Than A FeildingBy David Slack
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  • Jones finds $410,000 to help the government muscle in on a spat project
    Buzz from the Beehive Oceans and Fisheries Minister Shane Jones relishes spatting and eagerly takes issue with environmentalists who criticise his enthusiasm for resource development. He relishes helping the fishing industry too. And so today, while the media are making much of the latest culling in the public service to ...
    Point of OrderBy Bob Edlin
    2 days ago

  • Again, hate crimes are not necessarily terrorism.
    Having written, taught and worked for the US government on issues involving unconventional warfare and terrorism for 30-odd years, two things irritate me the most when the subject is discussed in public. The first is the Johnny-come-lately academics-turned-media commentators who … Continue reading → ...
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  • Despair – construction consenting edition
    Eric Crampton writes – Kainga Ora is the government’s house building agency. It’s been building a lot of social housing. Kainga Ora has its own (but independent) consenting authority, Consentium. It’s a neat idea. Rather than have to deal with building consents across each different territorial authority, Kainga Ora ...
    Point of OrderBy poonzteam5443
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  • Coalition promises – will the Govt keep the commitment to keep Kiwis equal before the law?
    Muriel Newman writes – The Coalition Government says it is moving with speed to deliver campaign promises and reverse the damage done by Labour. One of their key commitments is to “defend the principle that New Zealanders are equal before the law.” To achieve this, they have pledged they “will not advance ...
    Point of OrderBy poonzteam5443
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  • An impermanent public service is a guarantee of very little else but failure
    Chris Trotter writes –  The absence of anything resembling a fightback from the public servants currently losing their jobs is interesting. State-sector workers’ collective fatalism in the face of Coalition cutbacks indicates a surprisingly broad acceptance of impermanence in the workplace. Fifty years ago, lay-offs in the thousands ...
    Point of OrderBy poonzteam5443
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  • PM’s South East Asia mission does the business
    Prime Minister Christopher Luxon has completed a successful trip to Singapore, Thailand and the Philippines, deepening relationships and capitalising on opportunities. Mr Luxon was accompanied by a business delegation and says the choice of countries represents the priority the New Zealand Government places on South East Asia, and our relationships in ...
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  • $41m to support clean energy in South East Asia
    New Zealand is demonstrating its commitment to reducing global greenhouse emissions, and supporting clean energy transition in South East Asia, through a contribution of NZ$41 million (US$25 million) in climate finance to the Asian Development Bank (ADB)-led Energy Transition Mechanism (ETM). Prime Minister Christopher Luxon and Climate Change Minister Simon Watts announced ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
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  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
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  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
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  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
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  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
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  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
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  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Patterson promoting NZ’s wool sector at International Congress
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  • Removing red tape to help early learners thrive
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    BeehiveBy beehive.govt.nz
    5 days ago

  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • McClay reaffirms strong NZ-China trade relationship
    Trade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Prime Minister Luxon acknowledges legacy of Singapore Prime Minister Lee
    Prime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong.   Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • PMs Luxon and Lee deepen Singapore-NZ ties
    Prime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong.  During today’s meeting, Prime Minister Luxon ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Antarctica New Zealand Board appointments
    Foreign Minister Winston Peters has made further appointments to the Board of Antarctica New Zealand as part of a continued effort to ensure the Scott Base Redevelopment project is delivered in a cost-effective and efficient manner.  The Minister has appointed Neville Harris as a new member of the Board. Mr ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Finance Minister travels to Washington DC
    Finance Minister Nicola Willis will travel to the United States on Tuesday to attend a meeting of the Five Finance Ministers group, with counterparts from Australia, the United States, Canada, and the United Kingdom.  “I am looking forward to meeting with our Five Finance partners on how we can work ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Pet bonds a win/win for renters and landlords
    The coalition Government has today announced purrfect and pawsitive changes to the Residential Tenancies Act to give tenants with pets greater choice when looking for a rental property, says Housing Minister Chris Bishop. “Pets are important members of many Kiwi families. It’s estimated that around 64 per cent of New ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Long Tunnel for SH1 Wellington being considered
    State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the Government has also asked NZ Transport Agency (NZTA) to consider and provide advice on a Long Tunnel option, Transport Minister Simeon Brown ...
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    6 days ago

  • New Zealand condemns Iranian strikes
    Prime Minister Christopher Luxon and Foreign Minister Winston Peters have condemned Iran’s shocking and illegal strikes against Israel.    “These attacks are a major challenge to peace and stability in a region already under enormous pressure," Mr Luxon says.    "We are deeply concerned that miscalculation on any side could ...
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  • Huge interest in Government’s infrastructure plans
    Hundreds of people in little over a week have turned out in Northland to hear Regional Development Minister Shane Jones speak about plans for boosting the regional economy through infrastructure. About 200 people from the infrastructure and associated sectors attended an event headlined by Mr Jones in Whangarei today. Last ...
    BeehiveBy beehive.govt.nz
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  • Health Minister thanks outgoing Health New Zealand Chair
    Health Minister Dr Shane Reti has today thanked outgoing Health New Zealand – Te Whatu Ora Chair Dame Karen Poutasi for her service on the Board.   “Dame Karen tendered her resignation as Chair and as a member of the Board today,” says Dr Reti.  “I have asked her to ...
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    1 week ago

  • Roads of National Significance planning underway
    The NZ Transport Agency (NZTA) has signalled their proposed delivery approach for the Government’s 15 Roads of National Significance (RoNS), with the release of the State Highway Investment Proposal (SHIP) today, Transport Minister Simeon Brown says.  “Boosting economic growth and productivity is a key part of the Government’s plan to ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Navigating an unstable global environment
    New Zealand is renewing its connections with a world facing urgent challenges by pursuing an active, energetic foreign policy, Foreign Minister Winston Peters says.   “Our country faces the most unstable global environment in decades,” Mr Peters says at the conclusion of two weeks of engagements in Egypt, Europe and the United States.    “We cannot afford to sit back in splendid ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • NZ welcomes Australian Governor-General
    Prime Minister Christopher Luxon has announced the Australian Governor-General, His Excellency General The Honourable David Hurley and his wife Her Excellency Mrs Linda Hurley, will make a State visit to New Zealand from Tuesday 16 April to Thursday 18 April. The visit reciprocates the State visit of former Governor-General Dame Patsy Reddy ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Pseudoephedrine back on shelves for Winter
    Associate Health Minister David Seymour has announced that Medsafe has approved 11 cold and flu medicines containing pseudoephedrine. Pharmaceutical suppliers have indicated they may be able to supply the first products in June. “This is much earlier than the original expectation of medicines being available by 2025. The Government recognised ...
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    1 week ago

  • NZ and the US: an ever closer partnership
    New Zealand and the United States have recommitted to their strategic partnership in Washington DC today, pledging to work ever more closely together in support of shared values and interests, Foreign Minister Winston Peters says.    “The strategic environment that New Zealand and the United States face is considerably more ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Joint US and NZ declaration
    April 11, 2024 Joint Declaration by United States Secretary of State the Honorable Antony J. Blinken and New Zealand Minister of Foreign Affairs the Right Honourable Winston Peters We met today in Washington, D.C. to recommit to the historic partnership between our two countries and the principles that underpin it—rule ...
    BeehiveBy beehive.govt.nz
    1 week ago

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