Comments on: On the trade-offs in the Budget

By: Key’s economic bravado now reduced to whining « The Standard

Key’s economic bravado now reduced to whining « The Standard — Wed, 20 Oct 2010 12:53:11 +0000

[...] is still saying the same, in May 2010. The IMF agreed, and according to ccording to Reserve bank Governor Dr Allan Bollard in 2008 [...]

By: Jason

Jason — Mon, 31 May 2010 05:43:26 +0000

A little late on this one.

If Treasury have really assumed that rich and poor alike spend all of their weekly income, that’s pretty messed up.

StatsNZ have a rich data series on who spends what and how much they earned: google “Household expenditure for group and subgroup by household income group”. Put that together with the income distribution, and it looks as if you’ve got to be in the $34k-$45k bracket before income>expenditure while those on $131+ spend ~40% of income.

BTW: I would be happy to justify increased debt if it was also being used to increase infrastructure and/or promote employment as a means of beating a recession, however regressively structured tax-cuts coupled with the anticipated reductions in crucial services is just destructive.

By: Suzanne

Suzanne — Mon, 24 May 2010 20:27:49 +0000

Thanks for the analysis, Gordon
What about the cuts in services? We all talk about the tax cuts for everybody, and the borrowing needed to pay for it (in theory) at the beginning. But there are some cuts in services announced to pay for all this also. Coal front health, social services, etc…The burden will be on the users this time!

By: Wayne McIndoe

Wayne McIndoe — Sun, 23 May 2010 22:58:32 +0000

At last an independent analysis of the budget and perhaps its longterm impications once ETS and the GST rise sets in, I think it leaves a way out for Labour as low income earners spend all their wages per week and cannot save their tax cuts as is suggested, hence inflation increases – we wait with baited breath

By: Joanna

Joanna — Sun, 23 May 2010 20:31:04 +0000

Thank you for the brilliant analysis, Gordon.
Key’s exhortation to lower earners to refrain from jealousy was political spin at its most offensive.
I have been scratching my head to personally find some good in this budget. As a retailer I am appalled. Like many, I struggle to make a living, as do my customers who won’t appreciate a hike in prices. The extra GST will have to come out of my pocket.
National are indulging in so-called “trickle down” economics of the Reagan era. It didn’t work then and still doesn’t.
During the 25 years I lived in the USA I always defended NZ when Americans would describe it as 30 years behind. This government has made it true. We’re back in the 80′s.

By: fabregas4

fabregas4 — Sun, 23 May 2010 09:25:50 +0000

I love the idea that the well off will pay more GST once they receive their tax cut. Of course they will – but it will be because they are buying all the things the poor average Joe would like but simply can’t afford.

By: Sly

Sly — Sun, 23 May 2010 05:42:07 +0000

“So it is the turn of the rich pricks to have their day in the sun”
Stupid Man when do the Rich Pricks not have their turn in the sun. They can go where its shining any time they want.

Sigh!

By: Elizabeth Smyth

Elizabeth Smyth — Sat, 22 May 2010 11:03:24 +0000

Thanks Gordon for the commentary. When the TV 1 news commentator gave it 7.5 out of 10 as a budget, I really wondered whose reality he was judging it on? Not mine, thats for sure.

By: Gosman

Gosman — Sat, 22 May 2010 01:42:40 +0000

You do realise this is a center right government don’t you Gordon?

Center right government’s are all about incentivising people to increase their wealth, and therefore the wealth of the country or so the theory goes.

You might well disagree with this ideology but to try and state that a right leaning government should focus on reducing inequality is just plain silly.

If you want a Government to worry about income inequality then might I suggest that you vote for a left leaning party at the next election.

By: Johnny Smythe

Johnny Smythe — Sat, 22 May 2010 01:28:29 +0000

Hi Gordon, enough of the Budget. We’re are well over it. The Big Question is: What about the Jackson Report? How long is the Government cover-up of murky doings at the Film Commission going to continue? In fact the rumblings of suspicion that
it is indeed a cover-up is going through the Film
Industry (or what’s left of it) like a wild fire.
It’s about time that Journalists like yourself really got the truth out – as it will become worse the longer it is repressed. Go for it.
Yrs Johnny