Our "stimulus" package

Very interesting series of research and articles from Tim Watkins - basically, we don't have any stimulus.
http://www.pundit.co.nz/content/the-truth-about-nationals-so-called-stimulus-not-a-penny-more

The "$9billion" the Government has been talking about is all previously announced spending - there is nothing new since the election.
Perhaps most blatantly they have included the Kiwirail purchase (which they railed so hard against) and extra cash we may have in our pocket now because they changed the Kiwisaver rules.

I'm not necessarily against us not having a significant stimulus, and National's overall election plan did see us moving to a larger deficits/stimulatory footing, but the spin that it's some world-leading stimulus plan to counter the global conditions is appalling spin. Yet the usual media outlets are very rarely mentioning this reality...

seems the usual meida outlets are allowing the spin to be news... and in opinion pieces lies some actual thought and insight as to the whys, whats and hows

makes good sense to save the ammo imo...

Saving the ammo - not so sure. If you want to do it you have to pre-load it to a certain extent to make it efficient. Otherwise it's just trying to fill the holes that get created as opposed to gearing the economy to not fall into the slump.

Regardless though, if they feel our economy doesn't need/can't afford it then don't claim you are doing it when you clearly aren't! I thought the market needed clear, unambiguous signals Mr Key?

Personally I think this would be the ideal time to "stimulate" the vital but short-training state services - police, defence, customs etc.

Basically, you provide VERY necessary personnel funding for those forces to expand; reduce unemployment; but do it without distorting the market through basically subsidising profit-making private enterprise (who would otherwise sub-contract for most of the stimulus money).

I know defence wants another 2000 people, I doubt police would deny another 1000, and considering customs only inspects 2% of all imports, a few 100 more would be very welcome.

When the economy improves, and it's harder to attract pers, you've alreayd got your numbers

I dont disagree with that vadz.

F and P saga unfolding interestingly. Iconic NZ company lol - I was there when Michal Horton was doing the deals getting the Fishers and the Paykels out in the '80's.

"Key has indicated that while the Government does not want to be a "primary banker" for stretched companies, it continues to keep its powder dry.

Just a note on the doom and gloom -

I have just been down through and around taranaki. Interestingly most of the building merchants down there said they werent seeing much of a down turn. The exception was dairy where the latest fonterra price made a lot of farmers cancel construction projects. The builders are still booked till around march next year with people doing smaller projects or things for which they couldnt get builders in the past. A few builders are buying jobs to keep busy.

While tga and a few other boom towns have gone completely bust, in the rest of the north island non-developers seem to have got through the uncertainty and are using the low interest rates and more competitive building industry to get additions and maintenance jobs done.

the effectss on NZ from other countries downturn will have more impact than the current rosey view of a few people you met on your trip Bob

NZ is still in denial

that seems a little pessimistic BD but i guess we shall see eh.

hard to be anything but if you read the news... one hopes this won't be nearly as bad as many economics types are prediciting but I can't see any light coming from ours or any ther govt thus far

Oh wait - someone has. The WSJ! Except because they love the idea of no stimulus they just report it as this wonderful market approach to the crisis.
http://www.pundit.co.nz/content/key-to-the-wsj-no-fiscal-stimulus-please-were-kiwis

So here's a whole interview with our PM about how they're NOT undertaking any stimulus - where's our media uproar about having been told we had the "5th largest stimulus in the world" etc etc by the same guy? Unbelievable.

The WSJ story is popping up on a few blogs today it seems - with differing takes and perspectives on the article

meanwhile the NZ media awaits Mike McRoberts nightly walk to makeup where he likes to stare in the mirror and polish his Qantas media awards... he will then "get the news" off the tele prompter

of course one must also ask will the opposition parties notice this?

*sorry* misread the thread title as our stimulating package

Should I be flattered that you "came in" anyway?

Well Stuff.co.nz went with this title

"Key's economy plan hailed by WSJ"

Perhaps I'm just not smart enough to see the subliminal uproar.


"Mr Key said his focus was on chipping away entrenched regulations that drive away foreign capital. This was in contrast to the US and Australia, which are reregulating their markets."

On a serious note, do you think most Kiwis are aware this is what he is planning, ie: less regulation?

Im pretty sure thats part of how he got in? Less bureaucracy/regulation/red tape.