Bernard Hickey sets out the “theory” behind National’s tax cuts, and sums up the impact of the tax package as a whole: “Simply put, it’s not working”.
Why isn’t it working? Well the fact that the theory is nonsense probably doesn’t help…
Peak oil. We’ve long had warnings from scientists and greens. Right wing governments never listen to those. But recently we’ve also had warnings from organisations that you might think that any government would pay attention to. The IMF is the latest to sound the alarm.
John Armstrong is losing patience with the Nats: “National is certainly consistent when it comes to cutting spending. It consistently fails to practise what it preaches…”
This post is largely by the head of the IMF. “[T]he pendulum will swing … from the market to the state,” Mr Strauss-Kahn says, “The benefits of growth must be broadly shared, not just captured by a privileged few … the invisible hand must not become the invisible fist.”
Actually Phil Goff has it right – these clowns should resign – all they seem to be able to do is screw the economy and cut juicy public-money deals for their mates.
Oh yeah, and photo ops. Can’t forget the photo ops.
The economy, shall we say politely, is facing some difficulties. With a National government there was no plan as to how to weather the economic storm, we just got tax cuts for the rich and an economy that just can’t get growing.
Bill English wants to cut things that are “nice to have”, like the adult education classes (that he used to praise in opposition), and keep “necessities”, like tax cuts for the already wealthy. This is the kind of economic “wisdom” that has Bill leading us into an all time record budget deficit.
The latest piece from economist Bernard Hickey is a despairing warning on the subject of borrowing. With the current government making things worse not better, is there any way out of this downwards spiral?
The economy grew just 0.2% in the December quarter, enough to avoid the technical definition of recession but did it feel like that […]
As I predicted in this post last year, productivity has risen sharply in the latest stats but for all the wrong reasons.The Herald gushes “NZ employers squeeze more out of fewer workers” but that’s fundamentally wrong. We’re getting less out of even fewer workers. “Labour input” fell 4.3%, while GDP fell 0.8%. Why anyone would think this is a Good Thing is beyond me.
Digested: the Reserve Bank cuts rates, the dollar weakens, oil prices rise and Sovereign Homes goes out of business.
Hey National – stop lying and inventing dodgy stats to try and prove that we’re all better off. The tax cut received by most people was derisory, and the cost of living is shooting up fast. Even the Kiwiblog heartland isn’t buying the lies. If you can’t convince them, you can’t convince anyone…
3065 people have already claimed the special benefit for people left unemployed due to the Christchurch earthquake. Once that payment expires in a […]
We know from history, and from our own recent experience, that tax cuts don’t cause growth. Privatisation and public service cuts don’t do us any good either. What does cause growth? Public spending. What’s more, public spending is much more efficient than the private sector too…
By every significant measure our economy is a mess. Bill English is finance minister for what is looking increasingly like the most useless do-nothing NZ government in living memory. So is he working on a plan to put things right? Is he rolling out the big ideas that will get New Zealand moving again? No – he’s lashing out at public servants. Pathetic.
The PM has obviously been stung by the surge of negative publicity generated by the TV3 piece on the residents of McGehan Close. The revival of this particular piece of exploitative hypocrisy risks tarnishing the sacred Key brand. Can’t have that. So Key is trying to convince us that the Nats have done “as much as possible” for the underclass…
The “Great Recession” saw a greater spike in unemployment in New Zealand compared to its drop in GDP than almost everywhere. Whilst GDP slumped, unemployment did less so in all but 2 countries across the world: NZ and Spain. The Government, far from being relentlessly focussed on jobs, has ensured with its policies that workers were laid off in swathes.
Couldn’t resist this excellent BODY cartoon…
By backing private public partnerships David Cunliffe has potentially given the government a free pass on privatisation – one of the biggest issues of the next election.
That’s bad policy and bad politics. I expected better from him.
I know it’s in National’s DNA to fight regulation where ever they find it but it looks like the meat industry and government ‘watch dog’ MAF’s […]
In three short years John Key and National have gone from economic bravado, to failure, to lies, excuses and whining. As the economy languishes they will have nothing to offer except more lies and excuses.
This is a time for fresh thinking, both globally and locally. But we won’t get it from National.
Seems these days that when people get in to financial strife, the Government is all too happy to offer a helping hand loaded down with wadges of cash. Sometimes…
And then sometimes something altogether more short and sharp is offered. Depending…
“I also want to pay a special acknowledgement to my friend and deputy, Bill English. What a great job he is doing as Finance Minister. He’s delivered two Budgets that have steered New Zealand out of recession and put the economy firmly back on track to grow and create jobs”. Or has he?…
Contrary to the sunny prognostications of Nice Mr Key, job queues are getting longer. How much more great economic management from John and Bill can the country stand?
More often than not we discuss politics and the economy only within the boundaries of current political structures.
But these structures can only offer limited democratic participation.
Perhaps the answer for the left is to embrace movement politics.
Some within Labour believe that the tide of popularity is beginning to go out on the National government. Commentators seem to be waking up too. John Armstrong takes the Nats to task for their scare-mongering on benefits. And Fran O’Sullivan, cuts to the chase – it’s the economy stupid.
In his own surreal and ultra-privileged way Paul Holmes has discovered the recession. And it seems to have shaken him up a bit. Paul cuts loose with some Holmes truths about the useless Nat government. But in claiming that there is no alternative Holmes reveals nothing but his own lack of vision…
The rate at which National have been spinning of late is giving me nausea. It can’t be long until they get to the Hitch-Hiker’s Guide scenario of declaring black to be white and getting run over on the nearest zebra crossing.
For the last several decades the over-riding mantra across western governments has been that what is important above all else is economic growth. Now is the time to question whether it should still be our main aim and guiding light.
John Key trotted out a huge lie in Parliament last week: “It took 9 years for Labour to make a complete and utter mess of the economy; it might take a bit longer than that for us to sort it out”. Let’s compare National and Labour’s economic records shall we.
Auckland Transport Blog saying the bleeding obvious about the aggrandizement project that appears to be Steven Joyce’s grand vision for the future of transport in Auckland. If he was concentrating on reducing the road toll on this stretch of road, there are simpler and cheaper ways than wasting taxpayers money.
Economists, bankers, Treasury officials, financial wizards of various kinds, they like to pretend that they know what they’re talking about. All too often they don’t. Predicting the behaviour of complex systems is hard. Consider for example, the big banks’ predictions on the winner of the Football World Cup…
The point of an ETS isn’t to just blindly pay more, it is to change our behaviour so that we don’t have to. National don’t get it, so they have brought us the worst of all possible ETS schemes. Badly designed and devoid of vision. An ETS with all of the costs and none of the benefits.
Tories claim that tax cuts “cause growth” in the economy – they “grow the pie”. But it’s rubbish. No honest review of the long term historical picture can sustain the claim. Tax cuts don’t cause growth.
In 2008, Bill English was sprung secretly telling National members that he and Key would sell Kiwibank “‘eventually but not now”. After being caught out, English and Key categorically ruled out asset sales in the first term of a National government and said they would seek a mandate to make any sales in a second term.
