Core responsibilities are guns and gay bashing

"…The government is justified in collecting tax revenue in order to fund its core responsibilities, such as defence and the maintenance of law and order. It is therefore pleasing to see the significant investment in the police force extracted by NZ First, which demonstrates that the government has not forgotten its core responsibilities. However, when it taxes to fund activities outside core areas of responsibility, more often than not, it transgresses its proper boundaries, thereby overtaxing hard-working families and denying society the chance to flourish on its own terms.…" â€" Maxim 'Real Issues' 205
Health, Education, Welfare, Arts need not apply.

Update: It appears that most people utterly missed my brilliance with the title so now i need to explain the joke. Do you know how lame that is? It's really lame. Guns = defense. Gay Bashing = Police, a witty reference to the “Issues”. “you might want to loose the scarf, its a bit gay”.

Comments

stan

definitely. health and education ought to be gradually privatised to gain maximum efficiency (but this can only be afforded if we have tax cuts to grow the economy), welfare needs reform - those on sickness benefits ought to remain but a time limit (ACT's policy is approx. two years) needs to be set for able-bodied workers. the DPB should not be increased if you have more than one child because parents have to be responsible for their families damn artists, they should have to fund their own projects just like any other entreprenuer government is like a Church you have to compulsorily donate to. why is it that we rely on them to be charitable by redistribution when it should be up to individuals to make a difference in their community?

Matt

health and education ought to be gradually privatised to gain maximum efficiency
You are aware of the state of, for instance, the (privatised) health system of the US?
damn artists, they should have to fund their own projects just like any other entreprenuer
How many artists do you know who would have enough business knowledge? That is, assuming that their art is commercially viable in the first place. What next? Scientists and Uni Professors have to fund their own research "just like any other entreprenuer"? Admittedly, we do have performance-based funding for research, but even that's a problem, where worthwhile (even important) long-term goals are already being ignored over short-term progress.
why is it that we rely on them to be charitable by redistribution when it should be up to individuals
Obviously, individuals aren't making a difference in their communities, so the government has to step in. And if it helps those who are struggling, I'm all for it.

stan

You are aware of the state of, for instance, the (privatised) health system of the US? hey bro, i don't actually know much about the US system so it'd be cool if you gave a summary or something... from what i hear people criticise it because the poor don't have access to it or something? i don't know. but i do know that the NZ health system is very inefficient because there are long waiting lists and private hospitals are unable to compete with them because the government thinks the solution is to keep pouring money into subsidising state health (effectively a monopoly on health care). i'd recommend reading ACT's health policy which is written by Heather Roy, who has had experience in the health sector, it explains it better than i do http://www.act.org.nz/policy_health_details.aspx. if there is a balance between the poor not being able to afford health but that health treatment is immediate but expensive and long waiting lists (1052 in NZ died in 2004 waiting for treatment that could have saved them), i'd prefer a privatised health system. as for the fear that the poor won't be able to afford it, this is not the health system's fault, but due to the lack of economic prosperity. i think it's up to the private sector (charities, Churches, whatever) to look after the poor, not the government to try manage both welfare and health at the same time - this is a good ideal, but not praciticable. take education for example, the reason people think privatising education is such a immoral thing is because it is seen as a rich man's thing, but we don't make items such as food public. this is because of competition, and the fact that is has become affordable to buy our own food. the left-wing vision is admirable, but when trying to achieve these goals we have to settle for less. although our economy has grown steadily at around 3% each year for the last few years, economists argue that we could have been growing at 5%, and today's newspaper said AU may grow up to 7% next year (i better go check that actually 'cos it seems pretty high, maybe it's what Don Brash estimated), while NZ is stalling at 1%. because of this our country as a whole is getting poorer, and if the country gets poorer of course we have ot rely on the government to provided services such as health and education - because we as private individuals are unable to afford it How many artists do you know who would have enough business knowledge? That is, assuming that their art is commercially viable in the first place. why is it that they deserve to be funded though? for example, you can apply for lots of grants under NZ on Air and it is compulsory for radio stations to play 15% NZ music. but what about the small business owner who has to start up their own business, with their own money, and arguably are doing more to contribute back into society than an artist (in a material sense), yet has to pay a third of his earnings in taxes (33%) to the State with no compensation at all? as a musician i am perfectly capable of getting a part time job to buy a guitar and make my own music and studying at the same time (to provide a backup) without being on the artists' dole and doing it full time. i am also happy with the fact that i should have to earn my record deals, if a company thinks i make good music i will negotiate with them as to how to market the music and what i will get paid and what their profits will be without the taxpayer being forced to fund the making of my CDs. What next? Scientists and Uni Professors have to fund their own research “just like any other entreprenuer”? Admittedly, we do have performance-based funding for research, but even that’s a problem, where worthwhile (even important) long-term goals are already being ignored over short-term progress. here my right-wing ideologies are less practicable (because for example university course fees would be like $20,000 per year apparently). but could you explain long-term goals and short term progress? i don't get what you mean. perhaps education should be subsidised because there is a benefit from students graduating and getting jobs Obviously, individuals aren’t making a difference in their communities, so the government has to step in. And if it helps those who are struggling, I’m all for it. yeah but see that's the point - government takes away responsibility from the people. for example as Christians we don't even have to reach out to the community because the government can. and this results in less accountability because it's such a large system what we're doing is paying our taxes to the government, and then applying to get it back, it's not corruption but it's like, working for families, where middle income earners have an incentive to support the government because it offers them "hand-up" money, but it was theirs (or someone else's) in the first place. and then the government in order to stay in power has to keep enticing them like that, paying handouts for things we don't really need (like no interest on student loans, or an irresponsible welfare system - keeping beneficiaries poor and dependant without any incentive to get ahead) resulting in not really looking after the economy, because the government just keeps spending and redistribution without creating and productivity (through tax cuts for example, which would result in more investment by private individuals and responsibility to manage their own financial situation - such as for superannuation instead of the Cullen fund). the point i'm making is, because there is more government, there is less individual responsibility. why work at the Salvation Army for your neighbours when they can just get government grants? and the more money private individuals get to keep, the more charitable they are. not all will be, but don't you think there'd be a sense of responsibility to do something good if you have a lot of money? not if the government will do it for you. and i'm not saying that's a bad thing for the government to do, but it just doesn't recognise the fact that the government as a monopoly is unable to manage this efficiently and is trying to hold on to this monopoly because it gives them power. that's a bit of an overstatement but you just look at Labour's last election policies and know they'll do anything to win with your money

Angus

1052 people died in NZ per year waiting for treatment that could have saved them? I don't know who compiled that statistic, but technically speaking from a economic perspective, almost *everyone* who dies in a given year is awaiting treatment that could have "saved" them. It's just a question of how aggressive you're willing to be in providing care, and much you're willing to spend on said treatment -- healthcare is a fiscal black hole and will absorb as much money and manpower as you are willing to throw into it. When you accuse the health system of being "inefficient", it's true by design, as a perfectly "efficient" healthcare system would cost an infinite amount of money to run -- everyone eventually dies of something, and you can spend as much as you want forestalling the inevitable. (Mid-post disclaimer: I'm a medical student and both speaking in generalities and playing "devil's advocate" -- relax, I'm very much in favour of treating patients as well as possible. Also, this in no way represents the opinons of my employer at all, blah blah). Also, in NZ the private healthcare system can and does "compete" very effectively with the public system. You can take out health insurance or just stump up the cash and completely skip waiting lists. If you want a procedure in Dunedin, for instance, you can get the very same thing (often by the very same physician/surgeon) at a private clinic much sooner than the months-long waiting lists. Here's an interesting bunch of statistics about NZ healthcare expenditure. As you can see in NZ we spent roughly ~8% of our GDP on healthcare (in 2001, has risen since then); this is far below the US's ~14% from their private system, and much in line with other OECD countries with public healthcare. In fact the US and South Africa are/were the only two industrialised countries without a public healthcare system. That's from last year's health economic lectures, I might be wrong, feel free to research further. Some quick searching reveals a forecast that this year 21% of total government expenses will be on healthcare -- the current Budget says the Govt is spending $10.6 billion a year and it's rising. If you and/or the private sector want to "reach out to the community" to the tune of that amount, be my guest ;). Generally I'm skeptical of the private sector "looking after the poor" given that doing so is the very opposite of profitable. Try, for instance, being homeless with a mental illness in America for a while. I'm sure you wouldn't find it a very appealing existence. I do applaud your charity if that's how you choose to spend your money, but a governmental approach is often the best solution to reliable year-to-year funding for the needy in the amounts that are required to effectively help. So, yeah, I'm biased, but I don't think our healthcare system is at all bad. Public healthcare everywhere "sucks" in the sense of waiting lists but that's a worldwide problem as medicine gets increasingly more expensive to practice; privatisation isn't really a fair answer at all.

Greg

Wow... Stan I think you have just broken the brehaut.net record for longest ever post... FWIW, here's my 2 cents: To me it seems you each have a convincing argument, and can each pull out endless examples of why your idealogy works and why the other's won't (read P.J. O'Rourke's Eat The Rich and you'll see what I mean). Anyway, that is why I've come to the conclusion that it doesn't matter where a government is on the left-right spectrum economically (within reason of course), other factors (such as general fiscal responsibility) are what will determine a country's prosperity. Which, given that politicians are a dodgy lot at the best of times, means you can pretty much take your pick. Personally, I voted solely on the conscience issues... and ended up centre-right... who knows where I'll be next time...

Christina

"what about the small business owner who has to start up their own business, with their own money, and arguably are doing more to contribute back into society than an artist (in a material sense), yet has to pay a third of his earnings in taxes (33%) to the State with no compensation at all?" Most small business owners running start ups are well able to be funded through NZTE, or any number of other government-sponsored programmes that help run their startup or fund it. I know this, because the company I work for is a small start up, and we're in the process of applying. And yes, you probably can apply for lots of grants with NZ on Air, but how many get accepted? (Although I realise that argument can be used in both directions). The question is more of a cultural than an economic one, I think. Do we want music/art/a creative side to our culture and country? Something more to life than just work, death and taxes? There are more ways of contributing to society than purely through economic means. Which brings me to the point of privatisation and letting the rich help the poor. In my experience - which, granted, is limited and flawed, and highly subjective - the rich are far more tight-fisted with their money than those who can't afford it. Try doing the 40 Hour Famine, and going round the streets looking for sponsors - the most generous people will be in the poorest areas. It's a nice ideal to think that people with money will naturally wish to help others with less, but our culture and society is very individualistic and a right-est tendency; "let each help themselves". Also, I've noticed that when exceedingly wealthy individuals or corporations are generous and help those in need, they often do it in a very pharis-aical manner, e.g. "oh look at us aren't we brilliant and caring? Don't you want to buy our product?" Although having said that, on the swing side there are many genuinely kind and generous people out there, who do there best to make the world a better place. I think that's all I have to say about that, this seems to be a bit of a tense topic to discuss, (although very interesting to see people's POVs) so I'll leave it here :)

Christina

Dammit I meant pharisee-like, oh well :)

abi

I want to move to Australia. As soon as I find a bug spray that doesn't smell, I'm going. Yay for lower taxes. If NZ govt going tax me lots, I'm going somewhere warmer and I'm taking my brilliance with me.

stan

hey, thanks for that Angus, it's good to have so much insight. i agree that there needs to be government as well as individual effort, i'm not advocating complete privatisation. but i do think that issues such as health and poverty are separate - the most important thing is to have a health system that is efficient, so that patients can be treated when they need to be instead of being on waiting lists. the fact that there are people that can't afford it - that's really unfortunate, but it's not the health system's fault for being expensive, it's (to take only one factor out of many) because there aren't tax cuts which result in more investment and less costs which results in more businesses which results in more employment which results in more people being able to afford things. the solution should be to solve poverty (through a better economy), not to settle for a health system that isn't run to its best possible outcome because it has to factor in poverty anyhow you know a lot more about the health system than i do but from what i've read by Heather Roy the current government is opposed to increased private competition in the health sector, and from my (less-informed) point of view i think the balance needs to be tipped over to privatisation more because although the US has people who suffer their health system provides more immediate care, and poverty is an issue that needs to be dealt with through economic prosperity to a larger extent than current (ie. having an 8 billion dollar surplus instead of tax cuts) rather than having economic prosperity stall to cater for poor people

Matt

Stan, you seem to put a lot of faith in tax cuts. The problem here is that it's by no means proven that they have the results you suggest. Sure, there *might* be increased investment -- or the country might just collapse due to lack of government funds. The right-wing would have us believe the former, the left-wing the latter, and we're back in the same old place.

stan

Matt... bro... you need to study some economics. i know i sound quite ignorant by saying that for not giving a reasoned answer but i can't exactly tell you to take my word for it, you'd need to see the evidence yourself and understand how tax cuts work. ask any economist about the reforms of Douglas, Prebble and Richardson and what impact it has had on today's economy (the top tax rate used to be 66%, farmers were mass subsidised, the labour market was heavily regulated, state owned enterprises were causing an inflation rate of 15%, the Reserve Bank didn't have responsible monetary control). i also suggest you have a skim over the McLeod tax review (link below) i have faith in tax cuts because of the proven past economic results, not because i believe in potential economic results. the country can't collapse because there is an 8 billion dollar surplus - this means 8 billion more than the government is already spending. a flat tax rate of 20% (as costed by treasury, ACT being the only party willing to have their economic policy costed) would cost 5 billion a year, and that is not taking into account the increased economic benefits. and there can be no negative impact on the economy, because not a single cent needs to be cut from health, education, welfare - these are already accounted for, the 8 billion is the extra tax take there *will* be increased investment. there is no question about that - look at the stock markets and how much they fluctuate depending on economic conditions. look at Dubai as an example of increased overseas investment due to low company taxes. i don't know much about the US but apparently Regan's tax cuts helped grow the economy too (i'm not sure about it 'cos i haven't studied it) anyhow, i truly think that Helen Clark (political scientist lecturer) and Michael Cullen (economic history lecturer - before the 80s reforms) don't have the necessary competence to look after the economy, and it's easy for them to "scare" people by saying "if we have tax cuts we'll have to cut spending on health" because the majority of NZers don't know how an economy works either, and well, from your last comment Matt (i don't mean this in a mean way) it shows how little you know about economics. it's kinda like a non-Christian arguing about how stupid it is that you have to be "good enough" to be a Christian but they haven't read the Bible and don't know that's the complete opposite of what you need for God to accept you http://www.treasury.govt.nz/taxreview2001/PressReleases/24Octobermediarelease.html

Andrew

I've always found it hilarious how ready people are to believe "fix the economy and everything else will magically fix itself". It's like it's a silver bullet or something. It also sounds kindof like salesman talk "for one small payment of reducing taxes you can get... <insert 1001 benefits here>". We've had lower taxes in the past and if they really provided the 1001 promised magical benefits for everyone and created a utopia, then the government that lowered the taxes would still be in power. Guess what? The promised utopia didn't happen. it’s kinda like a non-Christian arguing about how stupid it is that you have to be “good enough” to be a Christian but they haven’t read the Bible and don’t know that’s the complete opposite of what you need for God to accept you. Lol! Yeah, those non-Christians are totally ignorant of how easy it is for the rich to enter the kingdom of God (Mat 19:23-24) because they haven't read the Bible and so don't realise that justification is by faith alone (James 2:24) and that our eternal state does not depend on us being good (Rom 2:6-10). Isn't it great that we Christians read the bible and so know better... </sarcasm>

Brehaut

Ok, enough parroting ACT material stan, its obvious you aren't open to discussion. If you have anything to add about Maxim (a so-called christian organization) and its policies feel free, but don't mention your friends at Toad Hall again.

Brehaut

Stan, you just had two posts deleted. Your input is no longer welcome.

Greg

Ooooh censorship... that's rather right wing of you Brehaut.

Clint

Actually, blog censorship has been the domain of the left wing blogs so I'm not surprised that this blog too has fallen into the trap of censoring opinions because they do not fit your perfect little world. By the way, who were you referring to as being from Toad Hall? Do you need me to give you a lesson in free speech, privatisation or just respecting other peoples opinions?

Brehaut

re: clint et al. Actually, censorship is the domain of both wings, when a party swing toward government control over anarchy. If you missed it, last years ACT ad campaign had Mr Hides head on the back of christchurch busses, he looked remarkably like Toad of Toad Hall. Next up on the agenda; what the fuck. If i was into just crushing peoples opinions that disagreed with mine, i a) wouldn't have left many peoples previous comments up b) intentionally stired up a ruckus and c) enabled free commenting. You may notice that Stan was given a warning. He disregarded it. This post is not a discussion about ACT or associated policies, it is about Maxim and theirs. Yes there is some intersection, and i feel that that intersection has been 'discussed' enough. If you wish to continue it further post about it yourself, you are free to link back to it from here. This post is also not about treating my other readers with condescension or belittling comments. Finally (and this part is important), "bite my shiny metal arse."

Clint

If Stan upset you so much why didn't you just say so and stop hiding behind lame ass excuses. I don't buy it whatsoever. I guess you have shown your maturity though, you harrass politicians for the way they physically look and then quote cartoons to emphasis your point. I guess I am dealing with some real immaturity here. If I was Stan I'd keep well away from this narrow minded blog. Perhaps you should warn commenters that their comments will be removed if they upset your fragile little mind?

stan

Andrew, don't you mean what the fuck are YOU talking about? condescension or belittling comments? what a load of bullshit. i am simply pointing out that looking at economic history there is proof for my claims, and that some of your commenters haven't studied it. it is equivalent of saying, "you have your facts wrong, here is why, perhaps it's because you haven't studied it". that is not belittling or condescension. i have done my best to explain my views and showing respect for everyone else here (when i debate economics i attack the policy not the person) but i've just lost all my respect for you if that's what you think i been doing. and plus ACT and Maxim's policies are very similar that's why i brought it into the picture. i'd appreciate it if you apologised for accusing me of belittling the other commenters please

stan

Yes there is some intersection, and i feel that that intersection has been ‘discussed’ enough. If you wish to continue it further post about it yourself, you are free to link back to it from here. whoops sorry i missed that bit, but your next sentence is the one i'm offended by. did you even ask your readers if they felt like i was treating them like that? if i was belittling them and they brought it to my attention i would apologise. but i think you're the only one who thinks that's what i'm doing. a maths teacher telling a kid he doesn't understand maths isn't belittling him, but simply saying he hasn't studied it, and perhaps if he did he would understand it better

Matt

*chorus of small children* "Good afternoon, Mr Staaaaannn"

Matt

The fact is, Stan, that for all your "proof for your claims," this country seems to, on the whole, disagree. Mr Toad's Hide's party is only in parliament because he won his electorate. On the party vote, he gained significantly less than the greens -- I believe that tells us something. (Of course, you *could* claim the the majority of this country is stupid--and I won't be surprised if you do--but we seem to be relatively healthy economically at the moment, and this after two-and-some-terms of Left Wing Tyranny ™. The proof, as they say, is in the pudding.

Clint

Umm, Matt. What are you advocating? Are you upset that Rodney won a seat democratically? I guess you lefties have an answer to that don't you?

Brehaut

Clint for all your ranting about opinions, you seem to have only two:

  • lefties are evil little people out to destroy the country
  • I am a meat head.
Feel free to weight in on maxims policies, or perhaps the implications of a christian organization saying that money should not be spent on help the poor, the sick or the underprivileged. How about you give me something to censor?

Clint

Am glad you have shown us the extent of your maturity on all this. I have nothing to fear in that case. Still going to attack Rodney because of his appearance? Or is it going to be on how somebody walks, or sounds funny? Wow, it's like being in the playground again...

Matt

Are you upset that Rodney won a seat democratically?
Clint: What the hell? How did you reach that conclusion. I thought my point was pretty clear, that being that Rodney's party is obviously not very popular, or widely respected, and that the outcome of the last election is pretty solid proof of that. My reference to his electorate was simply that, were it not for him winning that, his party would not be in parliament at all. (Compared to, say, the greens, who actually reached 5% of the party vote). Also, please, have a sense of humour. Rodney *does* look somewhat like a toad. I don't think any less of him because of it (that would be truly childish), but yes, his appearance does amuse me in my less mature moments. I suppose you don't approve of editorial cartoons either? I mean, caricature? How childish, indeed.

Brehaut

remarkable! still no opinions! nothing for me to censor! what is my feeble mind going to do? Notice how i mentioned the ad was on the back of chch busses rather than just say 'rodney looks like a toad har har'? amazingly thats important! He head was positioned near the bottom, causing it to roll under the back of the bus, distorting the image. Also, i suggest you start writing letters to all the newspapers and website that publish those horribly unflattering political cartoons in which they make hideous caricatures of beloved party members.

Mike

Whoaaaaa! Forgive me for interrupting this little muck-flinging fight, but I was under the impression that this post was about Maxim - not ACT. And moreso, not about who Rodney Hide looks like. Stan, I can see your point of view. I used to lean much more towards your side of the debate, but I have since changed my mind. Capitalism exists on the premise that if you give people the freedom to do what they want with their money, they will want to make more of it. Some (those with the education and ability) will make more. Others (those with not as much education) will not. You seem to understand a bit about economics - so no doubt you will be aware of the rugby ball - hourglass analogy of New Zealand family income streams. Basically a couple of decades ago, the majority of New Zealanders were in about the middle income bracket. Now, for whatever reason this has changed to an hourglass shape - with more people in the extremes of the income spectrum. This constitues a problem, as under traditional right-wing policies, this is only going to get worse. If education is privatised, what you end up with is rich kids at good schools and poor kids at bad schools. The good schools are good because they have more money to throw at things like hiring good quality teachers and having up to date amenities. This creates a disparity, as the kids from poor families grow up with less education than the kids fron rich families. In this economy - education means a better paying job (on the whole). They grow up and have kids, and because they're not so well off financially, their kids go to bad schools, and grow up just like their parents. I was initially a bit of a sceptic of the Labour government's "closing the gaps" policies, but now that I think about it, it kind of makes sense. If we end up with a binary population of educated and rich, and uneducated and poor, then the country will not function as well as it could. You could however say that the poor uneducated people can just fend for themselves, but to do that would turn this from a political/economic debate into a moral one. (And I suspect reveal more about a person's character than their politics). Personally - I think that instead of giving tax cuts, the government would do much better to use the money to put into community education about how to use money more effectively. I'm from the North Island, and it is terrifying to see some of the communities up there and see how much personal debt affects people's lives. Companies like DTR and the innumerable finance institutions have a stranglehold on the middle to low income bracket. The "buy now - pay later" mentality means that in a lot of cases these families are getting themselves further and further into debt... all so they can have a flash car or a fancy cellphone. Take a drive through the poorest districts of South Auckland sometime. You'll see people struggling to pay for power and groceries, but every house has a Sky dish on the roof. I hate to say it but giving people with little or no financial sense more money makes about as much sense as giving a monkey a loaded gun. Yes, they might do something useful with it, but more than likely it will only make the problem worse.

stan

I’ve always found it hilarious how ready people are to believe “fix the economy and everything else will magically fix itself”. It’s like it’s a silver bullet or something. It also sounds kindof like salesman talk “for one small payment of reducing taxes you can get… ”. are you willing to rebut any of it? explain why tax cuts will not result in more investment. explain why tax cuts will not give workers more incentives to get ahead. explain why tax cuts will not result in employers having lower costs to run their business. i think it's sad how you think it's hilarious, considering it makes such a difference to people's lives We’ve had lower taxes in the past and if they really provided the 1001 promised magical benefits for everyone and created a utopia, then the government that lowered the taxes would still be in power. Guess what? The promised utopia didn’t happen. you know why it didn't happen, 'cos Roger Douglas was kicked out of the Labour party before he was able to impose the 20c flat tax rate. but you know what he DID do (along with Richard Prebble and Ruth Richardson)? remove taxpayers funded subsidies for the national agricultural sector so that overseas markets were able to enter the market and compete (resulting in lower prices for consumers). he also removed trade barriers which although were good for the local companies created a deadweight loss so that the nation's marginal profits were essentially a redistribution of wealth from the consumer to the producer (as opposed to wealth coming in from overseas). privatise the Think Big projects of Muldoon which were inefficiently run by the State because they were costing so much we had to borrow for welfare and transform them into a cost efficient private enterprises at no cost to the taxpayers (NZ Post, Rail, as examples). inflation (increases in prices) was at 15% so he introduced monetary policy (Reserve Bank Act) which decreased it down to 3%. and believe it or not, there were tax cuts (as you say) where the top rate was cut from 66% to 39%. this resulted in the 1001 benefits i explained above. so tell me, have you asked your parents about the Muldoon era and the State of the nation's wealth back in those days? are the benefits of economic growth which we reap today not a utopia compared to a country in debt? this progress has been stalled by big spending governments such as the National/NZ First coalition in the mid 90s and current Labour administration, which focus on redistributing the economic pie, rather than increasing it. i'm not saying there shouldn't be redistribution, but at the moment the tax take is too high, and productivity and growth aren't increasing as fast as it can. why is that government no longer in power? because the remains of the 4th Labour government are now in a 2% party and no-one believes in them. your argument is invalid because majority rules is not always correct. do you believe in Jesus, and if so, if He is the King of all Kings and can offer so much hope and salvation how come only a relatively small percentage of NZers are believers? does that mean He's wrong? Lol! Yeah, those non-Christians are totally ignorant of how easy it is for the rich to enter the kingdom of God (Mat 19:23-24) because they haven’t read the Bible and so don’t realise that justification is by faith alone (James 2:24) and that our eternal state does not depend on us being good (Rom 2:6-10). Isn’t it great that we Christians read the bible and so know better… well what are you saying? that we Christians don't know better? and even so, does that make the fact that we are saved by grace, despite many thinking that it's by works, wrong? Ooooh censorship… that’s rather right wing of you Brehaut. this depends really. take race for example. left-wing liberalism will say racism is wrong and should be outlawed. right-wing/classical liberalism says you are free to choose whether you want to be racist (subject to the "harm" principle). you are thinking of conservative right, ie. National. ACT are liberal right The fact is, Stan, that for all your “proof for your claims,” this country seems to, on the whole, disagree. Mr Toad’s Hide’s party is only in parliament because he won his electorate. On the party vote, he gained significantly less than the greens â€" I believe that tells us something. (Of course, you *could* claim the the majority of this country is stupidâ€"and I won’t be surprised if you doâ€"but we seem to be relatively healthy economically at the moment, and this after two-and-some-terms of Left Wing Tyranny â„¢. The proof, as they say, is in the pudding. yes, the proof is in the pudding. economic growth is slowing down as a result of Labour's policies of spending and redistribution. the reason we have been economically healthy is because of the past reforms. policy effects on economic growth do not happen overnight. if you lower taxes, companies take time to develop their businesses and reap the benefits. the impact of a high tax system gradually slows their growth as they are unable to compete with overseas companies that are developing at a faster rate. name one Labour policy that increases economic growth. arguably raising a beneficiaries' standard of living will allow more people into the workforce - but why do we have so many on welfare? because there isn't enough incentive for them to get off welfare, and not enough companies are there to employ them because they can't afford them. and i know the employment statistics are high at the moment, but they do not take into account disability beneficiaries, which have increased by 60,000 over the last 6 years Labour have been in power. is this because of a change in welfare regulations, or have we all of a sudden got a lot more sicker people in the nation than there previously was? and also the DPB, are we oblivious to the fact that when it was introduced single parenting has increased? tell you what, NZ is currently 41st in the OECD competitiveness rankings, AU is 6th. the wage gap has increased from around 20% to over 30%. yes, we have experienced growth during this Labour administration (although economically not attributable to them, and also there are outside factors such as an influx of US immigration and investment after the terrorist attacks), but we could have experienced much higher growth if we allowed the production sector to grow along with the country's growth Feel free to weight in on maxims policies, or perhaps the implications of a christian organization saying that money should not be spent on help the poor, the sick or the underprivileged. is that so Brehaut? well i haven't had a look at their policies in depth but i'm sure they support private charities rather than government charity. i doubt they advocate that individuals ought not to spend money on helping the poor. by the way where do you get off saying it shouldn't be spent on the sick or underprivileged? please give us an example of where Maxim have stated this. you know Jesus said we should help the poor and disadvantaged, you know who the bad guys were back in those days - tax collectors who gave money to the Pharisees to win favour with them. do you know who Labour are bribing, middle income earners with welfare packages and students with no interest on student loans - do we need this money more than the beneficiaries? does a family who texts their daughter who is sitting on the couch in the living room to call her for dinner need that money more? Clint: What the hell? How did you reach that conclusion. I thought my point was pretty clear, that being that Rodney’s party is obviously not very popular, or widely respected, and that the outcome of the last election is pretty solid proof of that. My reference to his electorate was simply that, were it not for him winning that, his party would not be in parliament at all. (Compared to, say, the greens, who actually reached 5% of the party vote). let's discuss the Greens then. what are their policies for the economy? Buy Kiwi Made? that's the only one i can think of off the top of my head. well so we should not buy clothes from the Warehouse because they are imported. we should all pay for highly priced local goods. that way our local producers can make more money, despite the fact that consumers can buy them cheaper from overseas, despite the fact that we are supporting something that cannot give us the best results. think of it this way - we can buy bread from the bakery, or from the supermarket. although by doing this we are supporting the baker's family, we are effectively not allowing the market to determine what it can produce at a low cost. we are supporting the bakery at the expense of prosperity. reducing trade. why should NZ clothes/primary resource producers ever want to get into tertiary markets (eg. computers, other high technology markets) when we can always rely on the consumer to support our low level production? but by the way, ACT's policies have always been to have a flat tax of 20% since 1996 when they entered Parliament, and before that as the Association of Consumers and Taxpayers think tank. one law for all NZers regardless of race. welfare reform. tougher sentencing on crime instead of paroling to solve the prison costs issue (considering most jailed criminals are reoffenders). National took on all these policies in the 2005 election, despite not promoting this in 2002 under Bill English, but look at how the nation voted. it's similar to a small town pastor preaching about the good news of Christ, only a few hear the message and accept it. then all of a sudden someone famous becomes a Christian, a whole bunch of their fans will start thinking about it. so ACT may only be on 2% now, but their policies have made it into the mainstream Stan, I can see your point of view. I used to lean much more towards your side of the debate, but I have since changed my mind. good on you, because the more you mature the more you find the right view. this cannot happen with suppression Capitalism exists on the premise that if you give people the freedom to do what they want with their money, they will want to make more of it. Some (those with the education and ability) will make more. Others (those with not as much education) will not. You seem to understand a bit about economics - so no doubt you will be aware of the rugby ball - hourglass analogy of New Zealand family income streams. Basically a couple of decades ago, the majority of New Zealanders were in about the middle income bracket. Now, for whatever reason this has changed to an hourglass shape - with more people in the extremes of the income spectrum. the reason many are unable to come out of the lower income bracket is because there are no opportunities for them besides relying on welfare. there are no opportunities because there is not enough investment This constitues a problem, as under traditional right-wing policies, this is only going to get worse. If education is privatised, what you end up with is rich kids at good schools and poor kids at bad schools. The good schools are good because they have more money to throw at things like hiring good quality teachers and having up to date amenities. This creates a disparity, as the kids from poor families grow up with less education than the kids fron rich families. In this economy - education means a better paying job (on the whole). They grow up and have kids, and because they’re not so well off financially, their kids go to bad schools, and grow up just like their parents. i have addressed this in my post above (3rd, i think) - if the country's wealth as a whole is increased, the general standard of schools will increase. you can look to poor countries and look at their State run school systems - it is the standard of the country's economy that affects the standard of schools - and privatisation is the ideal eventual outcome because everyone will be able to afford it. going to one school in one area will be like buying vegetables from one shop instead of another - there will be little difference in price because of the competition. education will be a "necessity" product (such as food, which takes up a small proportion of income), rather than a "luxury" product (such as boats) as it is now because private schools are rare, and that the people who can afford private schools currently not only have to pay for their private education, but also pay tax to fund the State system, which is why only the very rich can afford private schooling I was initially a bit of a sceptic of the Labour government’s “closing the gaps” policies, but now that I think about it, it kind of makes sense. If we end up with a binary population of educated and rich, and uneducated and poor, then the country will not function as well as it could. You could however say that the poor uneducated people can just fend for themselves, but to do that would turn this from a political/economic debate into a moral one. (And I suspect reveal more about a person’s character than their politics). yes, redistribution helps but the point is, this current Labour government is sitting on a surplus. this surplus is not being spent on welfare, health, education - it's there for Michael Cullen to sit on. i would agree with you if current spending cannot be afforded but the fact is that there is a surplus and have been for the past few years, and the government is taking more than it needs, which stops the money being used elsewhere to progress the economy. and it's not just the rich that benefit from tax cuts, in addition to all the factors i've explained previously (investment, jobs, etc) when middle income earners have more money to spend they will spend more at shops, increasing the shops profits as well Personally - I think that instead of giving tax cuts, the government would do much better to use the money to put into community education about how to use money more effectively. I’m from the North Island, and it is terrifying to see some of the communities up there and see how much personal debt affects people’s lives. Companies like DTR and the innumerable finance institutions have a stranglehold on the middle to low income bracket. The “buy now - pay later” mentality means that in a lot of cases these families are getting themselves further and further into debt… all so they can have a flash car or a fancy cellphone. Take a drive through the poorest districts of South Auckland sometime. You’ll see people struggling to pay for power and groceries, but every house has a Sky dish on the roof. I hate to say it but giving people with little or no financial sense more money makes about as much sense as giving a monkey a loaded gun. Yes, they might do something useful with it, but more than likely it will only make the problem worse. yes that is sad, but do you really think the way to help those poor people is to sustain them through welfare? they can't get out of that situation unless there are opportunities for them, and there won't be opportunities without increased business. i don't know what you mean by having a flash car and struggling to pay groceries - if you have to pay for necessities like that why would you have sky? what welfare does, from what i've seen in poor communities like Washington Valley in Nelson, is they rely on benefits all their lives, don't bother getting a job because there is no time limit on benefits, and their kids are raised on welfare, and then their kids go on it when they grow up 'cos it's what their parents did, they drop out of school and do drugs and spend their benefit money on drugs 'cos they get the money free with no obligations from the government, and have no sense of responsibility because it's not going to be taken away from them, and it's sad to see an endless cycle like that. Labour claim they care about those people... but what are they doing? they're spoiling them. and they don't wanna go to Church, like the Salvation Army, they only come in when they've spent their money on drugs and can't afford food so they take it free from the Sallies, and we give it to them... but they don't stay, we can't help them 'cos they just go away and don't feel like they have a responsibility to make a difference in their lives, to change, we offer them work but they're like nah it means we'll have to start doing something instead of doing nothing and getting free money (although there is lots of benefit fraud too where you get money from the government and work under the table) yes redistribution is necessary. but responsible redistribution - welfare for those in need. work for the dole for able-bodied workers. DPB for parents currently with children - they can't just keep reproducing and thinking they can afford it because the government will support them - they have to think that if they want a family they will have to be able to provide for themselves first. students don't need interest free student loans. middle income families don't need tax rebates. the government monopoly cannot just keep being subsidised - eventually we will lose our doctors to overseas hospitals where they will get paid more anyway, in case this post gets deleted read it and debate it at jesuscrux.blogspot.com (if you delete this Andrew i'd appreciate it if you directed people here)

stan

by the way, great post Mike, you get down to the issues and give sensible reasons why Left-wing ideology helps. i guess the only flaw i am debating is the fact that the current Left-wing government in this country is saying they need more, that the balance between how much money the government has (to use and develop but not use irresponsibly and wastefully) and how much the people have is not right

Clint

Um, I'm lost here. Who did that 2nd last post before me? Whoever it is I am interested (and agree) with their comparisons in the poverty in Nelson, and wonder how they know this... I have just come back to NZ and am fired up after seeing how Labour have abandoned their voters and left the poor unable to empower themselves OUT of poverty. Instead Labour want to trap even more NZers into the welfare net through WFF. But at least we are being more rational here..top job!

Mike

Stan - Your post comment was quite long and in depth - I would like to resopnd to one part of it however: do you really think the way to help those poor people is to sustain them through welfare? they can’t get out of that situation unless there are opportunities for them, and there won’t be opportunities without increased business. i don’t know what you mean by having a flash car and struggling to pay groceries - if you have to pay for necessities like that why would you have sky? I may not have made myself clear on this point, I don't think that the solution is to sustain people through welfare. I view welfare as a temporary measure in the majority of cases to help people while they look for work. In saying that, you really don't get that much money on welfare. I think that you would be doing very well if you could live comfortably on it - I see two of the biggest problems as credit and lack of financial education. I quite liked the way that you phrased your comment.. "if you have to pay for necessities like that why would you have sky?". The simple reason for that is that a lot of people haven;t been given the education to deal with money well. It is a serious problem. In your drive around South Auckland, as well as Sky dishes, you will also see Xboxes and plasma TVs. It doesn't take a lot to see why this happens. If you worked a crummy low-paying job (like at a meatworks, or driving a forklift.. take your pick) that only just managed to support your family, you'd feel a bit put out that you couldn't afford the big plasma screen TVs like you see on Shortland St. So you go out and buy one on finance, or hire purchase. The TV might be worth $4000 (say). After you factor interest and repayments on that the price will be closer to $8000 (This real cost is of course hidden and obscured in small print. I went into DTR the other day because I liked the look of a CD player I saw there. They actually wouldn't give me a total price for it - all they had was a "per week cost". They were even evasive when I asked how long the repayment term was.) But in the meantime, you have this TV and for a brief while you feel successful and affluent - proud even that you can "afford" this TV for your family. But in the meantime, your budget is straining under the load of your repayments to the loan company, so you work longer hours to pay them off, which makes you feel even more depressed, so you go out and buy an Xbox or whatever. The cycle continues, so you go and get one of those credit cards and load that up, and then you "consolidate your debt into one easy loan". On and on until the repo people start taking your stuff away, by which time, due to the miracle of depreciation your TV is only worth $1000 and you end up $7000 out of pocket for a TV you don't have. As I said before - it's a lack of education. I think that programs like sorted.co.nz are great because they help people avoid being caught in traps like that. I would like to see more government funding put into more initiatives along those lines. In regard to your comment about employment - I completely agree that people need to have opportunities to work so they don't have to be on the dole. I concede that investment in the business community is a big part of that. However, unemployment is at the lowest it has been in NZ in the last 15 years. I think we're around 4%?? (Please feel free someone to look that up and quote a more accurate figure). I would argue that in the majority of cases it's not a lack of jobs that is the problem. (Some small Northland towns excepted). Industry is screaming for apprentice builders and plumbers. Heck, they make so much that I might even take up a hammer one summer. It's a culture thing - and I stuggle to see how tax cuts will change that. I would be most interested to hear any ideas you might have.

Greg

Hahahahahaha this is all too much. Brehaut, you've created a monster! Good to see that some rational discussion is poking its head above the trenches, lets hope the mud slingers have beaten a retreat.

Clint

Unemployment has gone down, but you do know that much of this has been soaked up into the sickness benefit. Labour cannot empower people out of benefits if the people don't want to get out of the cycle. And I'm speaking from plenty of experience. Tax cuts can help. Firstly it allows families more autonomy to look after their own affairs, getting people off the Govt teat is important. Less Govt meddling in our personal and family affairs will free up expenditure on those who really need it. I am still struggling to understand why WFF is giving money to people earning up to $100,000. Since when did Govt think these people need a handout?

Fraser

La vida e bella, no? I like the starfish analogy...

Andrew W

Stan, are you willing to rebut any of it? explain why tax cuts will not result in more investment. explain why tax cuts will not give workers more incentives to get ahead. explain why tax cuts will not result in employers having lower costs to run their business. Sure, I’m happy to tell you why it’s wrong once… 1. People often forget that the government is the biggest spender. Tax cuts = govt has less money = govt spends less money. The idea that tax cuts leave more money in people’s pocket for them to spend is irrelevant because that money would be spent anyway by the government. Tax cuts are not thereby adding more money to the system. If you’ve studied even highschool history you’ll know that the solution that consistently worked for the depressing of the 1930s was for governments to increase their spending. Rich individuals with a lot of money tend to invest it carefully to get more for themselves, whereas governments tend to splash spend and the latter is far better for economic growth as it pours money back into the system rather than trying to take it out. 2. The idea that workers need tax cuts as an incentive to get ahead is hilarious. No one is going to turn down a $4000 or $10,000 salary raise no matter what the level of taxes are. Regardless of what the taxes are they still get more money. 3. I just can’t understand how you think lower taxes = employers having lower costs to run their business. Do you mean that employers could pay their employees less because less is going in tax to the government? But in that case the employees aren’t seeing much gain from these tax cuts are?! You’re just reducing their total salary to remove tax cuts. From the employee’s point of view the part of their salary that was going to the government to fun things like free health care and education is now going to their employer. As an employee, I would NOT be happy about that happening. remove taxpayers funded subsidies for the national agricultural sector so that overseas markets were able to enter the market and compete (resulting in lower prices for consumers). he also removed trade barriers which although were good for the local companies created a deadweight loss so that the nation’s marginal profits were essentially a redistribution of wealth from the consumer to the producer (as opposed to wealth coming in from overseas). Translation of your paragraph there… they (a) screwed over local farmers in favour of foreigners. Well at least the consumers got lower prices right… oh but wait, because local business had been screwed over they didn’t have as much money from their jobs now, so the lower prices were effectively similar to the old ones. Net effect of action = give our money to foreigners. (b) Removed trade barriers, screwing over the local businesses some more, all in an effort to steal money from overseas countries. well what are you saying? that we Christians don’t know better? and even so, does that make the fact that we are saved by grace, despite many thinking that it’s by works, wrong? I’m a Christian theologian Stan. I’m amused by your statement that because you read the Bible you know you’re saved by grace not works. That’s not at all what the Bible says, it’s just what you’ve been taught to believe the bible says. Check out the verses I quoted for starters. Client, Unemployment has gone down, but you do know that much of this has been soaked up into the sickness benefit. Yes, I do. I had a good look at the figures last year because someone then made the same claim. The answer is: Very few of those have gone into the sickness benefit. The total number of beneficiaries has been decreasing. The sickness benefit has increased due to its criteria being widened by National a decade ago.

peterquixote

jeez Rueben thank for explaining your meaning in the title. You give your readers no credit, and you give yourself none. the guy with the scarf Rueben wasn't just gay he was an obiously registered fucking effeminate whining faggot for chriusts sake, so, does NZ want him in the force,

peterquixote

I notice you decsribe yourself as , narrow minded, belligerent, immature, pinko-commie-hippy-liberal-lefty with a fragile mind who can't handle anything that contradicts his ignorant and ill-informed view of the world. not good Ruby, not good,

Matt

obiously [sic] registered fucking effeminate whining faggot
You obviously missed the bit where he was at the careers expo with his girlfriend. Now who's narrow-minded and belligerent? (I note the tagline of *your* blog is "quixote, making the world fit in to my reality")

Greg

I think certain members of the 'blogosphere' need a quick punctuation lesson. http://en.wikipedia.org/wiki/Comma_%28punctuation%29 http://en.wikipedia.org/wiki/Full_stop http://en.wikipedia.org/wiki/Comma_splice

Brehaut

I see what you're doing there peter and its very clever. You reference my own site as a burn. Very clever, Very witty well done. Really turned it round on me.

Ruth

I think that focussing on education is a really good thing. I'll stay out of the business side cos I don't really care. But I think that just focussing on one area is very simplistic. There are a huge number of reasons why people live in poverty/are on welfare. And it's also cyclic. - eg, They don't have a job so on welfare, so don't have much money, spend lots of time stressing about how to get enough money, apply for job, get rejected, get depressed, spend money on non neccessities, have no money, no food, health goes down, too sick to work, have no money....It is really tragic. You can't just reduce it to economics-People are too complex. Formulas don't work with people. There is no one solution to it. A whole bunch of things need to be done. Like Fraser, I like the starfish analogy.

Mike

Good point Ruth. This is a problem that cannot be reduced to one or two factors. If we can agree that we need to help rectify the situation - to tie this back into the original post - is helping rectify the situation the responsibility of the Government? If not the government then what community group has the resources to do so? Will privatisation of the welfare system result in less unemployment and poverty? How could you begin to privatise the welfare system? Where would the income come from? ACC (while privatised) is covered by compulsory payments from wages and is effectively tax under another name. If tax cuts occur, and core government services are privatised, then your average taxpayer will not have any more money in their pocket than before, because he is now paying privately for all the services that were supplied by the government. To Clint and Stan, perhaps your real argument is that we shouldn't have a government? I mean everything that we could need we could pay for as we use. We could have toll roads, we could privatise the courts system, creating a utopia for people like us who are able to afford up front the tremendous cost that these things entail. The poor people can just work harder and become rich like everyone else. In case you couldn't tell by my tone, I was being cynical. It makes sense for large public expenses to be borne by the government because they are the only body that have the resources to do so. You could argue that we could get McDonalds to take over the maintenance of our roads, but once that happens we dont have a leg to stand on once they realise that it is unprofitable for them to maintain them. The obvious solution to this is to stop all government services that are unprofitable - which to be blatantly honest - is all of them. Government services exist to provide us with amenities that we want/need that would be commercially unviable otherwise. I want to have the ability to dial 111 when i am ill and get taken to hospital even if I have no money on me. Chances are I'll never use that service, but I pay tax to ensure that the service exists in case I need it, and so that other people can use it. I dont agree that privatisation is an effective method of providing those services we need yet would not exist without subsidy.

stan

i've posted a reply, read it at jesuscrux.blogspot.com - it talks about welfare, rebuts Andrew's economically invalid arguments, and address' the issue of education

Tony

Oh come on, we really don't need 3,000 word essays about all this. Get to the point people! My 2c, and screw all of you 1) Tax cuts = good, Michael Cullen=Bad, Rodney Hide=Mr Toad/fascist nutter, Tony=right leaning 2)"...such as defence [and] law and order." Health should be number one. Less people=less policemen, less tax. Waiting lists=more and more on ACC rather than getting fixed up. Maxim are usually the media arm of ACT. 3)We are very blessed that artistic endevours are recognised and funded in this country. If anyone has read the latest listener you'll see Dick Hubbard lamenting the lack of soul Auckland has and how damn ugly it is. He comments how he wants the vibrancy of Wellington. Auckland is totally run by suits and it shows. Theres no art in the architecture, no cohesion in design. Wellington is the opposite, and its unsurprising its the art capital of NZ. Funny that its the nation's capital and home to the smartest people in NZ too.

stan

here's a sample: hi Mike, i read your post regarding bad financial management, they are all valid and unfortunate concerns... as for the DPB, Labour made it so that it was no longer work-tested... it's a tough love approach - but helps those who are trapped in the system... how many times do i have to say - yes government has a role in spending... you know what, if you're a doctor, or lawyer, or whatever... i have no idea what you're talking about. less company tax means more money for the employer to expand their businesses... a) if local markets can't compete they SHOULDN'T. comparative advantage... i did check out the verses - you know what, there's also a verse which says the widow gave everything she had, but the Pharisees gave out of their wealth... the problem is though Ruth, they don't bother going for jobs... i've never advocated privatising the welfare system - it's there as a safety net... i think my arguments can be summed up here in this policy paper by ex-ACT MP Deborah Coddington...

stan

ps. here's a media release from Don Brash which addresses some of your concerns about the right-wing Mike “The Budget yesterday confirmed that Labour has given up the fight.…” â€" Don Brash Update: Removed verbatim copy. Don't be retarded, use a link if its more than a paragraph or if you aren't actually adding anything.

Mike

Stan, having read your comments, am I fair in saying that you agree that the government's responsibilities should include more that "guns and gay bashing"? Based on your comments you have advocated the need for some form of welfare system and reduced waiting lists in hospitals (presumably with some form of governmental regulation). With regard to the initial thread of this post, I interpret that you agree that Maxim is being a bit simplistic when it comes to the services that the government needs to supply. Please feel free to correct me.

Andrew

Stan, a) You seem to not properly realise that companies only pay tax on their profits. You keep saying that lower company taxes would mean they paid their employees more. But the pay to employees comes out before tax anyway, so your logic makes no sense. Small businesses are likely to send their profits in the direction of a larger salary to the owner and thus make no taxable profit. So the only thing dropping business tax does is make medium to large business make a slightly larger profit only if they are already making one. b) This is the real world. Unfortunately, nice sounding theory doesn’t always work effectively in the real world because of there are implementation-level issues that aren’t accounted for. Though a free market in theory provides a whole lot of nice idea benefits, unfortunately in the real world there are 101 details and problems that stop free markets behaving 100% efficiently and 100% how they are supposed to. eg. consumers behave irrationally, companies act selfishly to the detriment of the wider best interest etc. c) Reducing governmental control in the market is a bit analogous to reducing governmental control of social behaviour. Do you think taking all the policemen off the streets in the name of creating a freer world is a sensible thing to do? When you free up either too much, what you are effectively doing is granting a licence for those who can cause hurt to others for their own gain to do so. The less regulated the market, the more free people are to screw it and everyone else over as much as they can. And it’s in their interests to do so. Telecom’s recent announcement that they exploited consumer confusion for profit is but one example. Greater profit for Telecom, so that must be the free market causing efficiency right? But no, it was just the free market endorsing greed, which causes inefficiency. c) You say “if local markets can’t compete they shouldn’t”. You think an ideal world was where every area focuses on one thing and does it well. So what does that mean for groups of people/countries who aren’t best in the world at any one thing? Well, they can’t sell their products anywhere because someone else is making those products better and cheaper than them. So they lose out. What about people in countries where what that country is good at producing is a particularly cheap commodity? You end up with an entire society of lower class people in lower class jobs. Globalising the economy with each country producing one thing it’s best at ends up putting the entirely of that country on the same level but each country on a different level to each other one. So the country that’s at the top of the pyramid, comprising the elite, wins out. (Which is why America has been so pro free-trade in the past (because it benefited them, the elite) and is now becoming anti free-trade as China and European economies are becoming superior) You end up redistributing social inequity around the world based on geographical location which is not helpful. d) The most immediate and certain effect of freeing up markets is job loss as NZ companies shut down due to not being able to compete with slave-labour produced imports from overseas. Frankly, I do not give a damn about international economic efficiency, I see it as the NZ Government’s obligation to look after NZ business. Why the hell is economic efficiency even a goal? I don’t care even the tiniest tiniest little bit whether overall production is as efficient as it could be. It absolutely should not be the greatest goal of a government. What I care about is people, and if, at the end of the day I had to make huge sacrifices in production to ensure NZers didn’t loose their jobs I wouldn’t even consider it a decision â€" the choice is obvious, the people come first. Economic efficiency can go to hell where it belongs. e) You mention the example of the Pharisees giving only a little and the widow all she had. Which did God prefer? Point proven â€" God likes higher taxes. The Pharisees were the selfish ones who wanted to pay less in tax and keep more for themselves. Doubtless they were the rich business people who were using their money to try to gain as much more profit as they could for themselves. Probably they comforted themselves with the claim that in doing this they were actually “investing” their money “back into the system” and that in trying to screw everyone else over for more gain they were actually doing a social good. Had they lived today, I’m sure they would have voted Act. The widow was happy to give away what she had to a central authority and see it used to benefit everyone. Since you know the truth from reading the bible, I’m sure you’re well aware that Jesus said the Pharisees were in the right and the widow was in the wrong.

Brehaut

Stan, Hypertext is a wonderful thing. Use it.

Greg

Andrew, regarding your 3rd point (c), I think you are forgetting the crucial cheap labour factor. Poor countries automatically have an advantage over the rich in producing many things, because their citizens will work for less. Of course this is offset by a whole lot of other factors, but cheap labour is very significant. This is what drove the economic resurgence of post war Japan and Germany, is currently driving the economic booms of China and India, and helping countries like Bangladesh get their feet off the ground. If anything, I market regulations are what allows the rich to exploit the poor- as you said, the USA is becoming less keen on free trade because it is helping India and China to catch up. Of course, free trade and globalisation are not going to rescue the poor countries of the world on their own. Infrastructure, knowledge capital, technology and the like all need to be invested into a subsistence economy to get it off the ground. Once an economy gets a start however, the sky's the limit. Just look at how far India and China have come. Also, the value of the commodity a country produces has nothing to do with its potential economic growth. As an economy matures, and it's people grow wealthier, it moves from producing low value goods to higher value goods. No country is going to remain stuck on making clothes and bead necklaces. Look at Japan for example- 30 years ago 'Made in Japan' had the same stigma that 'Made in Korea' has for us today. Today 'Made in Japan' means high quality.

TONY

I still advocate the abolition of GST on *most* items (excluding liquor and cigarettes) over tax cuts. We get taxed when we get money, then we get taxed when we spend it. A good point with the "free market" crap, i.e. privitsation of SOE's is Telecom. National sold a shite load of gov't assets, the most prominent being the power companies and the telecommunications. Where has competiton in the power market got us? High prices, an outdated grid, lack of responsibility, south Island paying for the power to be pushed across cook strait, lack of future-proofing as each company is aimed at getting the most $$$. Not the utopian ideal thats for sure. And telecom? The raping of NZ $ and funnelling to American investors. Yeah, makes a great case for free markets.

Ruth

the problem is though Ruth, they don’t bother going for jobs… a) how do you know this? b) maybe the underlying reasons why they don't bother going for jobs need to be addressed.

stan

Stan, having read your comments, am I fair in saying that you agree that the government’s responsibilities should include more that “guns and gay bashing”? Based on your comments you have advocated the need for some form of welfare system and reduced waiting lists in hospitals (presumably with some form of governmental regulation). With regard to the initial thread of this post, I interpret that you agree that Maxim is being a bit simplistic when it comes to the services that the government needs to supply. Please feel free to correct me. well, if you look to my first post in this thread that's what i have been advocating all along. i doubt Maxim are being simplistic, i think Andrew has been simplistic in labelling their core responsibilities as guns and gay bashing without producing any evidence that they believe this. >> a) You seem to not properly realise that companies only pay tax on their profits. You keep saying that lower company taxes would mean they paid their employees more. But the pay to employees comes out before tax anyway, so your logic makes no sense. Small businesses are likely to send their profits in the direction of a larger salary to the owner and thus make no taxable profit. So the only thing dropping business tax does is make medium to large business make a slightly larger profit only if they are already making one. no, they get taxed for their income as well as their profits - go to the IRD website i'm pretty sure that's how it is. otherwise businesses wouldn't aim for real profits and not have to pay any company tax at all. 86% of businesses in NZ are small businesses. these people are local store owners, like dairy owners and fish n' chip shops. they have families too believe it or not, and are not the "greedy capitalist owners" you seem to think they are. i don't know what you mean about my logic not making sense with regard to employees? because of reduced business costs, the company is able to make more profits thus hire more people, increase the efficiency of their service, lower their prices. they cannot afford to keep large profits for personal use if it is a small business, as they have to remain competitive in the market. if say one bakery is selling bread at $10, and they get a tax cut - that money can either go towards the owner's own pocket, or in reducing the price of the bread. if it goes to the owner's own pocket, perhaps the store next door will lower the price of their bread in order to crowd out the competition and get all the buyers to go over there. so the owner keeping the money actually loses more by keeping his profit than reducing the cost of their business >> b) This is the real world. Unfortunately, nice sounding theory doesn’t always work effectively in the real world because of there are implementation-level issues that aren’t accounted for. Though a free market in theory provides a whole lot of nice idea benefits, unfortunately in the real world there are 101 details and problems that stop free markets behaving 100% efficiently and 100% how they are supposed to. eg. consumers behave irrationally, companies act selfishly to the detriment of the wider best interest etc. the biggest factor which prevents free markets from operating efficiently is government intervention. there are barriers to entry for ordinary people starting up new small businesses to compete despite the consumer demand being their because of large startup costs and the 33% tax they have to pay >> c) Reducing governmental control in the market is a bit analogous to reducing governmental control of social behaviour. Do you think taking all the policemen off the streets in the name of creating a freer world is a sensible thing to do? When you free up either too much, what you are effectively doing is granting a licence for those who can cause hurt to others for their own gain to do so. The less regulated the market, the more free people are to screw it and everyone else over as much as they can. And it’s in their interests to do so. Telecom’s recent announcement that they exploited consumer confusion for profit is but one example. Greater profit for Telecom, so that must be the free market causing efficiency right? But no, it was just the free market endorsing greed, which causes inefficiency. no, what the government is doing is favouring itself as a supplier over the people being the suppliers. the government is introducing market controls such as tax and subsidies to beat the competition of the private producer (or favouring one producer over another, for example big businesses being able to afford to stay in the market but small businesses not). the idea behind criminal law is to allow maximum freedom in society, the equality for everyone to be able to do what they want without being prevented by someone else from infringing on their right to be free. what the government is doing is state sanctioning theft, by taxing businesses so that they can't be free to run as efficiently as they would like to. i've already posted on Telecom as being a natural monopoly at bevear.org - this is similar to the health system and education system - competition, which is the most important part of a free market, was restricted. if you do not allow competition the free market cannot operate efficiently. i'll explain more in response to Tony's post below, but in response to what you're saying about big businesses being able to "screw people over", this is because there aren't enough small businesses in the market to compete for the consumer - when there is a competitive market if you try to screw over the consumer your competitor will point that out to the consumer in order to win them over. this cannot be done when the State mass subsidises a certain area so that others who have to comply with costs can't compete, or in situations of natural monopolies where one company has all the resources not available to others >> c) You say “if local markets can’t compete they shouldn’t”. You think an ideal world was where every area focuses on one thing and does it well. So what does that mean for groups of people/countries who aren’t best in the world at any one thing? Well, they can’t sell their products anywhere because someone else is making those products better and cheaper than them. So they lose out. What about people in countries where what that country is good at producing is a particularly cheap commodity? You end up with an entire society of lower class people in lower class jobs. Globalising the economy with each country producing one thing it’s best at ends up putting the entirely of that country on the same level but each country on a different level to each other one. So the country that’s at the top of the pyramid, comprising the elite, wins out. (Which is why America has been so pro free-trade in the past (because it benefited them, the elite) and is now becoming anti free-trade as China and European economies are becoming superior) You end up redistributing social inequity around the world based on geographical location which is not helpful. if there is a country that aren't best in the world at anything, then other countries won't trade with them. that does nothing to support your argument at all. if another country is making products cheaper than them, and can sell them to local consumers at a lower price, what's wrong with that? are you saying the local consumers should subsidise the local producers to keep producing for them at a high price? that just screws up the economy anymore because they are not getting any income, just a redistribution from the consumers to the producers, at the same time keeping out overseas imports. local self sufficiency and anti-competitiveness towards trade does not increase the country's wealth at all. richer countries won't trade with weaker countries if they get no return from it in the first place. i don't know what point you're trying to make about globalisation - as you say so yourself if America is being anti-free trade now then they're screwing up the competitive market. if a country is on a different level to another country, that has nothing to do with equity - if one country can produce, say clothes at a cheap price, like China, then American capitalists will "exploit" their labour (instead of using their own country's labour) to produce the clothes. because of the cheap cost though, other producers will see the same advantage and enter the market to get cheap labour. as a result of more and more competitors entering gradually all the labour will be employed, and because there are many different companies in the clothing market some will try to beat their competitors by offering their "slave labour" higher wages than the other company to get them over, and then the other companies will be forced to raise their wages too, and eventually the country will get more and more rich (like China is now). this could not have happened if barriers to trade were in place. so in answer to your statement, free trade should be completely endorsed so that "social inequity" whatever that means won't be redistributed and the free market will gradually allow all countries to prosper >> d) The most immediate and certain effect of freeing up markets is job loss as NZ companies shut down due to not being able to compete with slave-labour produced imports from overseas. Frankly, I do not give a damn about international economic efficiency, I see it as the NZ Government’s obligation to look after NZ business. Why the hell is economic efficiency even a goal? I don’t care even the tiniest tiniest little bit whether overall production is as efficient as it could be. It absolutely should not be the greatest goal of a government. What I care about is people, and if, at the end of the day I had to make huge sacrifices in production to ensure NZers didn’t loose their jobs I wouldn’t even consider it a decision â€" the choice is obvious, the people come first. Economic efficiency can go to hell where it belongs. right, so we shouldn't have cities like we do today. we should still be an agricultural economy where everyone's a farmer and we're still supplying it to the rest of the world while our country is stuck in a third world state while other countries are prospering and growing into first world business societies. again, you're advocating a return to the 70s under Muldoon, that the country is self-sufficient despite the huge cost to the economy. that we just keep subsidising our local producers in order to beat off cheap overseas imports, that we don't allow those overseas countries to prosper and get the benefits from trade, that we ourselves don't get the benefit from trade. surely you can see the economic ignorance in your own argument - you say you don't give a damn about economics, well you're saying we should still be in the primary production sector, that we should save all employees at the expense of the country getting poorer and falling behind other countries. you're basically saying a meat worker should be able to keep his job despite machines being able to do it at a cheaper cost, and the prices would still be high in order to make it so that our own local meat industry can keep running and paying its employees, funded by the consumer. i think it's sick that you're saying economic efficiency should go to hell, 'cos you're saying it's perfectly ok that the State run health system is resulting in deaths every year due to the long waiting lists, that it's ok that so many able bodied workers are on welfare and stuck in a cycle of dole bludging, that families can't afford to look after themselves and provide for themselves because of high tax, that we have to rely on the all so loving government which cares about us so much it's redistributing our money so responsibly and that preventing economic growth is ok because they want to run the businesses, nevermind about the cost to society as a whole and that the people are getting poorer - just so long as they stay in power and can keep buying off the employees, keep them happy by funding their jobs despite the fact that they're living in a country where letting the people become rich and able to provide for themselves is a sin. saying economic efficiency is irrelevant is as stupid as saying we should all pay our workers the high income bracket of $60,000 a year, funded by the taxpayers. who gives a crap about the cost, so long as the people can be paid. take a look at communist history and you'll see the results of what you're advocating >> e) You mention the example of the Pharisees giving only a little and the widow all she had. Which did God prefer? Point proven â€" God likes higher taxes. The Pharisees were the selfish ones who wanted to pay less in tax and keep more for themselves. Doubtless they were the rich business people who were using their money to try to gain as much more profit as they could for themselves. Probably they comforted themselves with the claim that in doing this they were actually “investing” their money “back into the system” and that in trying to screw everyone else over for more gain they were actually doing a social good. Had they lived today, I’m sure they would have voted Act. The widow was happy to give away what she had to a central authority and see it used to benefit everyone. Since you know the truth from reading the bible, I’m sure you’re well aware that Jesus said the Pharisees were in the right and the widow was in the wrong. so tell me, do you work, and if so, how much tax do you pay? how can you judge the Pharisees if you're not offering to give the government 80% of your income? no you're wrong because it was the Pharisees themselves who ran the temples where the widow's money went. what the current government is like is a Church, it forces its members to donate 19, 33 and 39% of their income. all its services are catered for, the pastor's salary, the cost of the building, etc. and it has say $8000 left over. instead of returning it to the congregation (by say setting a flat rate of 20% which would have decreased its revenue by $5000, still enough to afford all the essential services), it threatens them by saying, we cannot cut the rate at all because if we do we'll have to cut funding to the youth group, get rid of the number of hours we do community work... whatever! just a blatant lie. and in order to keep tricking the congregation every now and then it throws some money back, like chucks in $1000 to getting new instruments for the band, or buying chocolate bars to throw at whoever's birthday it is... while in the meantime the people have to go home to go to work and feed their families don't get any of it back. you still haven't justified the surplus and appear to be shutting your mind to it, you keep threatening people getting their money back by pointing to "evil rich people" keeping what they earnt in the first place and saying that by returning it to them the central authority will somehow no longer be able to do its job, it's like saying if we cut the tithing to 20% we'd have to shut down the Church or something. and it's not even a Church, but a big institution that's run by people who force you to give to them first, before you are allowed to donate to your own charities and causes. you're like Judas saying, why the heck was that oil poured over Jesus' feet when it could have been sold to feed the poor (despite the fact that it's not, that it's being used to keep government bureaucrats employed int he health system, give students interest free loans, redistribute money from ordinary workers to families who may already be on high incomes)? the money already is going to the poor - it's called welfare, and all Labour are able to do now, when someone mentions tax cuts, is say oh if you do that we'll have to take the benefits away from beneficiaries - which is a lie, because not a single cent will be taken from them, and all Labour can really do is increase the welfare bracket through Working for Families, because it cannot raise the welfare rate - if it does then people who are working 40 hour weeks will prefer to do nothing and get the same amount of money from the State, because the poor who need it are already getting it - the Church is spending $10,000 on pastor's salaries already and it has an extra $8000 left over, and it's saying to the people - oh if you take back any of that $8000 we're gonna have to fire the pastor. stop lying to the people - since you know the truth from reading the Bible, i'm sure you're aware that the tax collector who was cheating people out of their money by collecting 4x more than he needed to repented and returned it back to the people. Judas and the Pharisees would have voted for Labour, because he was a part of the Labour government. Jesus would have supported ACT - letting the widow keep her money 'cos she needed it more than the temple >> I still advocate the abolition of GST on *most* items (excluding liquor and cigarettes) over tax cuts. We get taxed when we get money, then we get taxed when we spend it. A good point with the “free market” crap, i.e. privitsation of SOE’s is Telecom. National sold a shite load of gov’t assets, the most prominent being the power companies and the telecommunications. Where has competiton in the power market got us? High prices, an outdated grid, lack of responsibility, south Island paying for the power to be pushed across cook strait, lack of future-proofing as each company is aimed at getting the most $$$. Not the utopian ideal thats for sure. And telecom? The raping of NZ $ and funnelling to American investors. Yeah, makes a great case for free markets. National didn't sell a shit load of government assets - the 4th Labour government did. National was responsible for the creation of the SOEs, trying to get a "utopia" by having the State run all the businesses and employ the nation's people by providing everyone with jobs. if companies like Telecom and NZ Post were still SOEs we'd still be paying high prices for local calls, we'd still be waiting weeks until letters got delivered. if you're happy with a country that still had it's "Think Big" projects and inflation rate of 15% and people not being able to afford food then you wish the government had continued to run Telecom and a whole bunch of other industries that were screwing up our economy. yes Telecom made a heap load of profits, but if it wasn't privatised it'd be making no profits, and still delivering a crap service at a high cost. your argument is also invalid because there is no free market competition in natural monopolies such as Telecom. in order for the free market to compete all businesses have to be able to enter the market - no barriers. the governmetn has a big barrier to entry for small businesses that are unable to compete efficiently with overseas markets and expand and grow because of the high tax >> a) how do you know this? b) maybe the underlying reasons why they don’t bother going for jobs need to be addressed. i did address this, because of the soft welfare approach people in poor areas end up stuck in a cycle of State funded poverty, they don't work because they don't need to, they can pay for their drugs 'cos the taxpayer gives them free money

stan

oh Ruth i tihnk i realise what you're talking about - you were referring the line i wrote above - if you go to the post at jesuscrux.blogspot.com you will see that i explained why they don't bother going for jobs (that line was just a sample from the post i made at jesuscrux.blogspot.com - i wrote a huge long post and didn't want to take up too much space on Andrew's blog)

Matt

Stan, if you were to write more concisely (try, no more than a couple hundred words, rather than the three-and-a-half thousand of your last big post) those of us with limited time would be far more able and likely to read more of your posts, and give you a far fairer hearing than you're currently getting. See if you can limit yourself to a couple of paragraphs each post. :)

stan

by the way Andrew you realise you've contradicted yourself by saying there's something inequitable about the US being against free trade with China. you were the one advocating that we should do everything to protect local producers - here you are saying there is something wrong with the US doing this by preventing China's prosperity and the benefit to their own consumers yeah, you're right Matt... i wish i was more concise! unfortunately i have 3 assignments on at the moment and putting effort into editing them and making them make sense takes priority! if anyone is getting confused about what i'm saying and would like better explanations with well-researched evidence and statistics etc. (because it isn't "just theory" as some of you say it is, i just don't have time to rewrite a textbook about economic history and its material results) i'm happy to send them ACT's (detailed) policy books, e-mail jesuscrux@hotmail.com

Brehaut

“Jesus would have supported ACT”
Yes, because jesus was all about economics and supporting the fat cats, and definitely not about paying taxes without complaint. Something about ‘Give to Caesars what is Caesars...’ no wait, it's gone. Oh, sorry you're talking about Supply Side Jesus, i missed that somehow. Carry on, you're totally right.

Mike

Stan - I'm impressed that you have the time to write such verbose comments given how overworked you claim to be. :) Hurrah for procrastination!

Rodney Grub

Hey Stan. Keep sticking it up them. You are a true ACT man. Never give the pinkos an inch. Love to join the debate, but I must get back to the dance floor. By the way, is Parliament sitting next week? I'd really like some more time off as I just love all this extra exposure I'm getting. What is the ratio of people who watch question time to those who watch Dancing with the Stars?

Matt

I was amused to read a particular Letter to the Editor in the press yesterday. The writer, an Australian on holiday in New Zealand, said that the current "Australia is better than New Zealand because of lower tax" fuss is bollocks. In fact, he said, the Australian health system in particular is suffering greatly as a result, is in a shambles, and (I quote) "waiting list times are at an all-time high." So, maybe lower taxes and privatisation aren't the golden bullet eh?

Angus

Wow, this conversation has gone quite far in my absence! FWIW I'm posting this from Australia :). Just some random points: 1) Stan, I agree with the conciseness thing, and can you also italicise sections you quote. I found it very difficult to figure out what you were quoting in a conversation of this length. 2) Companies do pay tax on profits, not income. That's why they report EBITDA (Earnings Before Income Tax, Depreciation and Amortisation) -- you take depreciation/amortisation/expenses/etc off your income before paying tax on the remainder. I've done accounting at school and just submitted a company tax report this last weekend, so I hope my understanding is correct! 3) Public education is a good thing as like healthcare, those whom will derive the most benefit compared to the affordable alternative are those who can afford the alternatives least. 4) The "rising tide carries all boats" and "supply side" theories are interesting. They don't seem to be working too well in the USA at the moment -- by most accounts the US is leaning more towards the hourglass than the rugby ball. On the other hand Ireland has been doing pretty well for itself since its tax cuts. 5) I think NZ could indeed stand for some tax cuts across all brackets (it does bug me how the kid in the Working For Families advert has an iPod, for crying out loud!) but the "20% flat tax" and "no income tax just GST" schools of thought are probably overkill given the level of service we as a country expect from the government; tax cuts of that degree would have to be accompanied by at least some privatisation/cutbacks, I suspect. 6) Have fun everyone :).

Greg

Greg

Ok that didn't work... http://www.stuff.co.nz/stuff/gallery/photo/0,2540,237605,00.jpg

Tony

"National didn’t sell a shit load of government assets - the 4th Labour government did. National was responsible for the creation of the SOEs, tryin....." You seem to do this a lot. Your argument, while quite cohesive, actually had very little to do with the issues I put forth. The "free market crap" I put forth was the power companies...didn't want to touch that one did you? The beauty of SOEs is that they must respond to public pressure, even if in a monopolistic market. Thats better than a free-market oligopoly e.g. petrol stations - notice they all move their prices at once? Jesus is a revolutionary, a Messiah and considering he is King of Kings and Lord of Lords, the Root of David and shall rule from the seat of David; He is the ultimate monarch. Why would he support a democratic party, let alone one that styles its self after Robbin' Good "Steals from the poor and gives to the rich" camels needles rich men and all that?

stan

been reading your posts and links to other blogs, i don't really have time to reply 'cos besides having to study full time and working i feel like youse have been ignoring most of the points i'm making, and taking selective bits of what i say and turning it into something it's not - for example linking to that supply side Jesus cartoon with him ignoring the lepers, and saying that ACT would "take from the poor to give to the rich", what the heck, completely ignores all the welfare policies i've discussed and why the current system doesn't work, and all i've said about surpluses and excess tax take, it's like painting a picture of God being all angry and ignoring the fact that Jesus' death has already been preached, and basing all your arguments on the assumption that economic theories don't work yet putting all your trust into the "constant supply of money redistribution theory" - you say give to Caeser what's his, well if you trust Caeser to be the best provider and not the people and community

stan

oh yeah i didn't mean your post though Angus, thanks for a sensible reply

Tony

I feel this comment on the Tragedy of the Commons Myspace sums everything up: "Sometimes if people are making inappropriate noises they must be out done. ie: Culprit: ahhagh Hero: BAAHHH! Culprit: Ahhhagh! Hero: BAAAAAGHHHHHH!!"