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Tuesday, November 09, 2010

Recovery? What recovery?

Govt tax take drops - $1.1b below forecast
Government tax revenue was $1.1 billion or 8.2 per cent lower than forecast for the three months to the end of September. Publishing the Government's financial statements for the September quarter today, The Treasury said the figures showed the economy was recovering more slowly from recession than expected.

Treasury say the figures showed the economy was recovering more slowly from recession than expected? Really? Doesn't this news coupled with the fact that for the first time in 9 years the total amount of businesses in nz shrank suggest that the recovery isn't just slower than predicted, but is in fact sliding backwards? I don't wish to sound cynical, but aren't we facing a crises of capitalism? The never ending growth of consumerism with SUV's, plasma TV's and cosmetic surgery all on the credit card funded by property speculation wasn't in fact sustainable, who woulda thunk it?

I'm not sure implementing free market, low tax, deregulation dogma by the government to counter a global crises caused by free market, low tax, deregulation dogma is anything other than utterly insane. But don't you fret whanau, the wealthy are being looked after just fine, you stay quiet and aspirational now.


At 9/11/10 10:40 am, Blogger Johnny said...

Whats important is that the government balance the books for the short term, so next election some accountants will vote for them, we should make politicians accountable forever, for the decisions ( or indecisions ) they make.
Sorry you fucked peoples lives up with your crappy workmanship so you are going to be sued and you perks taken away. well they can (sort of)do it for badly constructed houses cant they ?

At 9/11/10 11:06 am, Anonymous sdm said...

And you still want to increase borrowings and spend more?

At 9/11/10 12:48 pm, Anonymous Frank Macskasy said...

"And you still want to increase borrowings and spend more?"

Sdm - we're currently borrowing two hundred million a week - whilst giving ourselves (or top income earners anyway) hefty tax cuts.

That makes no fiscal sense to me whatsoever. Especially since the tax cuts are being mostly saved and hence make no appreciable impact on our stagnant economy.

At 9/11/10 2:58 pm, Anonymous Tim2 said...

"The Reality is..." this government doesn't really know whether it's Arfa or Marfa. The other day Spud said it was all because spending was down....except that figure just came out to show they were up. But then we had to have an economic guru come out and say that figures were "confused" because we could be sure whether the spending was up because the GST component might be a distortion.
Except that errr....doesn't that mean things are costing more ayway?
Then of course there were recent comparisons done on food prices.

"the reality is...." be careful of the spin.

If the Labour Party can't find opportunity in any and all of this, then they're probably destined for oblivion short-medium term.

And if the NZ Public don't wake up soon, then they deserve the inevitable. I hope they've made room in their graves for the SUV and Plasma Screen.

Oh shit...I forgot...that really really really really really nice man Jim Mora is on. Gotta go! I might miss another sage offering me considered opinion and good advice. Then again, if I've missed anything I can probably get a dose of media cliquedom from good ole Russell.

At 9/11/10 3:03 pm, Anonymous Tim2 said...

Agree with FM ... @ sdm..sit down, have a break and consider things s l o w l y and logically.
If you cant do that, go apply for a highly paid consultancy with Jonkey - its an earn that's guaranteed for a few months, POSSIBLY a few months plus 3 years.

At 9/11/10 4:11 pm, Anonymous Anonymous said...

Top income earner contribute around 76% of net income tax revenue.

So Bombers saying lets tax the people who not only generate wealth but ALREADY pay the lions share of tax. Really smart move.

Frankly I'm begining to think they should move to Monaco just to prove to all these leftards just how vulnerable their welfare state is to their goodwill.

Once the money stops rolling in then we'll see them squirm.

At 10/11/10 7:11 am, Anonymous Sdm said...

@anon 4.11 - quite correct. And remember of course that there are a number of people who pay no tax effectively with WFF.

What you have is a shrinking proportion of the population supporting even more people, and unfortunately that is unsustainable. Bomber has said we should borrow more - but offers no solution as to how we ever pay it back or even fund the financing costs.

NZ is simply living beyond its means. The fact that bomber can articulate this for an individual consumer, but somehow doesnt think the same rules apply is the problem.

At 10/11/10 8:22 am, Blogger Bomber said...

I'm so sick to death of you putting words in my mouth scott, your precious little capitalism and belief on the free market so that rich greedy merchant bankers can fuck us is as sad as your apologist position on Israel.

We know from previous recessions that hard right doctrine only cause casualties in society, Roger Douglas's hard right economic policy as social policy saw our suicide rate triple, something Scott doesn't seem to give a toss over.

Our debt rate is globally low, THANKS TO LABOUR PAYING IT DOWN WHEN THEY WERE IN POWER!!!!!! To avoid the weak from being crucified via the actions of your greedy corporate mates on Wall St a Government SHOULD BORROW MORE in the bad times and have faith in their vision to know times will get better and that is when we will pay the debt down again.

As a boss man scott I appreciate you see little value in saving weaker human beings than yourself from the scrap heap of society, that's where we differ.


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