Clark and Cullen had a secret and desperate strategy that every voting age NZer would end up on some sort taxpayer subsidy so they would be forced to vote Labour.
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Clark and Cullen had a secret and desperate strategy that every voting age NZer would end up on some sort taxpayer subsidy so they would be forced to vote Labour.
Looks like one of Keys attack on Labour will be Labours increased spending will increase interest rates.
Given National votes are more likely to have interest bearing savings, maybe this could backfire! ;)
So arm chair economists, would increased govt spending increase inflation resulting in increased interest rates?
Cunliffe, by royal decree, has already denied it would.
That's true, but there was no party sufficiently established to soak up the votes and become a permanent natural partner, permanently weakening the main party, like the Greens have done with Labour. That will be to Labour's disadvantage in the next phase as MMP evolves. From memory the Winston first cult gained in 2002, but nobody knows which way they'll jump so they'll eventually disappear, soon as the leader drops out (one way or the other). I think National will be in for a lengthy ride unless a party likely to coalesce with National surfaces and can poll in double digits. That's not in sight - so the choice is either a strong party with support (National) Or a two party coalition with 3 leaders and several minor prop up parties (Labour). Really no choice - is there!
Is that what it looked like to you MVT? After they had ensured the tax base was strong and older crown debt paid down, Clark and Cullen started bringing NZ's equality index (the Gini) back towards something sensible. It started to trend down, but is nowhere near the levels it used to be at, decades ago. Globalisation from 1984 had a profound effect on that metric. John Key has been careful to not make it any worse, because that would certainly turf National out.
Iceman, don't trot out that old line about power prices during Labour's term. Maui gas ran down during that era, and wholesale gas prices went up nearly 100%. With gas being used at Huntly for base load, and Huntly setting the spot prices, what did you think would happen? It was out of the govt's hands. Give them credit, Labour/Greens do have a policy that will give us the best of both worlds, some power supply competition, but with a real watchdog.
Labour govt spending went up in tandem with the tax take, they had more people employed, they developed more tax income, and if any of those jobs were artificial, why is it that National can't do it for less, despite slashing jobs from the public sector? They just pay for the extra work by using private sector consultants.
EZ you said in your earlier posts that had we had a Labour Government we would have had more dividends from the Gentailers in the last couple of terms. I assumed that would be because they were charging more. How do you conclude that dividends would have been higher if Labour was in Government ?
It seems to be well accepted around the world that post the GFC the rich and the super rich have prospered at the expense of everyone else.
In NZ the middleclass are fast becoming the new working class struggling under 2 incomes to maintain their expected living standards while working longer hours and losing the quality of life they expect. That the Key led National Govt. is maintaining popularity by borrowing and using a compliant
press to spread the message the Country is in good shape and god knows what will happen if those red green spendthrifts get into power will possibly work for awhile. At some stage possibly sooner than later the good news will end and CGT and tax rises will happen. National will increase GST and
cut Govt. spending first but they are running out of options unless they adopt the Act policies of let the poor get poorer while the rich prosper or as Fungus Pudding says work harder and increase your capabilities. Yeah right
Westerly
I don't usually agree with you F P but a good concise political analysis.
The poor have never been so well off in NZ. The middle range earners have never been so well off, and yes, some wealthy have become wealthier. When people have spare disposable income they will become wealthier. The only way to avoid that is for them to waste the surplus earnings. It's just compound interest - can't stop that. Think back to the fifties and sixties if you are old enough to remember those times. Even the supposed wealthy in NZ had next to nothing in those days. Go and have a good look around the planet - NZ is impossible to beat, even for the low earners.
It's only a small amount by comparison, but the govt would have had more of the electricity company dividends in the last 2 years, if they hadn't partly sold them down. It's the compounding loss of those funds that will matter more.
I agree with Westerly, the press is fairly compliant regarding John Key and his govt. But it's always easier for the encumbent. I wouldn't expect too much from Labour for up to three months, it's the last three months before the election, that counts.