8 Comments
Oct 9Liked by The Spinoff

I'd really love to see a column on the idea that the Reserve Bank is not fit for purpose. That giving the Reserve Bank only one lever to pull to control inflation, interest rates, is predicated on the fallacy that all inflation is caused by excessive consumption, with interest rates used to reduce consumption. That the last burst of inflation we saw was not caused by excessive consumption, but instead a combination of profit taking by national and international firms, and external events such as the Ukraine war. That the last lot interest rate rises from the Reserve Bank mainly served to hurt the economy, ruin businesses, and impoverish people.

Expand full comment
Oct 9Liked by The Spinoff

I think several things have clearly happened. 1 Grant Robertson and Jacinda Adern had a tight fiscal watch as the primary concern had to be well being in face of Covid. 2 The improving trends were clear in 2022 and there was no doubt we were near the top of nations succeeding and trending positively. Never lost triple Gold Star economic rating. 3 The trends internationally are improving which have strongly benefitted us. This is continuing and we benefit. 4 Austerity fantasies and impositions and running down the public service while hand out tax benefits to the entitled most undeserving while putting more people out of work does not get the settings right long term.

By the time people realise just how stupid Nicola’s obsession with reducing any and all spending they will have “served their time and the country will need life support.

The “Whata Ora” or Health Department is a very special case. The balance is to meet the financial requirements. Have super dedicated efficient hard working dedicated staff - as we have in New Zealand. Cover the costs and make up gaps. Don’t set artificial upper levels to budget’s but have strong tight and passionate managers who know healt systems through and through!

Expand full comment

I wonder if the thousands of New Zealanders this government has made unemployed, thousands trapped in poverty, and thousands trapped in rental properties feel we've turned Nicola Willis' hyperbolic corner?

Expand full comment

Nope, Nicola Willis is wrong. When inflation is coming down and we're already in recession, an interest rate cut is a sign that the RB things the recession will deepen, perhaps into a full-blown deflationary spiral, and wants the public to borrow and spend to stimulate the economy. The proper function of government in this circumstance would be to take on the role of stimulating the economy by infrastructure and public service spending. The private borrowing alternative will, as usual, be absorbed by the housing market and have little effect on the economy of real goods and services.

Expand full comment

🙋 Absolutely "user pays" is causing a 2 - tier system in Aotearoa when it comes to accessing "news", with the free sources increasingly closing OR being paywalled. Many excellent contributors are writing on Substack as a growing resource, but although a few have a free layer, most are subscription-only which limits access to low income households from taking advantage. Of course writers & analysts need to be paid, & don't begrudge that at all, just does mean that you increasingly need $$$ to have independent news & analysis these days, and make more effort to find it 🤷.

Expand full comment

Same as it ever was. Quality newspapers used to cost shillings whereas picture-paper rags would be pennies.

Sadly, public service broadcasting is little more than 'business-as-usual' propaganda these days, I do wonder however, what proportion of the general public are really interested in 'real' geopolitics and economics?

Expand full comment

🤷I take your point about the general public & whether or not they are "interested" - but that is NOT the job of journalism to decide IMHO. Were the general public " interested" in what President Nixon was doing behind the scenes before journalism exposed it all? And even then it took a long time for the general public to take any notice. Likewise with Trump et al, and our very own CoC participants in Aoteroa - we certainly WON'T care if we don't know, and that is how bad actors get away with stuff. Plus it establishes a public record for the future at the very minimum.

Expand full comment

Absolutely agree with all this. I guess it's more a plea of despair for the wilful ignorance of the general public than to excuse the dire lack of integrity in journalism. I live in the central north-island, and am thus buried knee-deep in ignorance.

Amusingly, in the UK, the Financial Times gives the most balanced reporting, since the business community need facts, not opinions or propaganda. It is thus often considered to be 'Britain's most Left-leaning newspaper', lol!

Expand full comment