Over $15 billion has been transferred to businesses by the Government via the Wage Subsidy Scheme since Covid hit in 2020. The scheme has turned out to be effective at both keeping businesses afloat and enriching the already wealthy. Now that the scheme is back in operation, and because it’s also likely to be used …
The supermarket sector is finally about to receive some serious government intervention. Following a scathing report from the Commerce Commission, it’s now almost inevitable that the Labour Government is going to have to introduce some major changes to this vital but uncompetitive retail sector. And these moves are likely to be popular. The report, released …
Jacinda Ardern’s household wealth increased by an estimated $290,000 over the last year. Although she earnt nearly half a million dollars from her job, her windfall was solely due to the value of her Auckland house increasing. And by her own policy designs, it’s a capital gain which is untaxed. Similarly, her finance minister Grant …
Will the rich get richer under Labour’s latest tax policy? Based on the analysis in reaction to yesterday’s announcement, the answer would seem to be yes. The consensus from commentators is that inequality and severe economic problems will remain unchanged or even be made worse by Labour’s new policy. Although the policy incorporates a small …
Inequality and poverty look to be the forgotten issues of the election campaign, with not much more than lip-service being paid to them on the campaign trail. Yet decisions are currently being made that appear to be fuelling a greater gap between rich and poor. Newsroom’s Bernard Hickey has tweeted this week to sum up …
Millionaires and billionaires can step up today and start making proper contributions to improving the world. They do not need to wait for governments to act. A group of 83 wealthy people calling themselves “Millionaires for Humanity” earlier this week released an open letter calling on governments to raise taxes on people like them “Immediately. …
Hearing the Prime Minister castigate the Warehouse for laying off 1,000 workers after receiving $52 million in wage subsidies reminds me of the fabled frog who agreed to carry a scorpion across a river. The scorpion stings the frog halfway across, dooming both to drown. The frog cries “Why on earth did you do that?” …
What is the Government thinking ? The Herald on Sunday reported that a $371 million government contract for the electrification of the Papakura to Pukekohe rail line was awarded to overseas companies, said to be a joint bid from Chinese-owned firm John Holland and South-African-owned McConnell Dowell. Construction companies Fletcher and Downer, which were originally …
How radical or transformative is Grant Robertson’s 2020 Budget? Opinions are divided over this week’s landmark economic package. Some are viewing the big spend as a return to traditional Labour – or even socialist – politics, while others see it as “business as usual”, albeit on a grander scale. Seeing red Leftwing political commentator Chris …
In ancient Rome, a victorious general would parade through the city to the temple of Jupiter in a gilded chariot amidst a frenzy of adoration. But to keep the triumphant commander tethered to reality, the trusted slave holding a laurel wreath above his head would whisper repeatedly in his ear: “Memento mori” — “Remember you are …
Never let a crisis go to waste, the cliché goes. Which is why, given predictions of a serous economic slump, some of prime minister Jacinda Ardern’s stalwart supporters are urging her to remake the economy for the better. But those hoping that the PM will embark upon a Hugo Chavez-style rejection of the neoliberal paradigm …
As is often the case with crises, the coronavirus pandemic has been a boon for New Zealand’s political leadership. Jacinda Ardern’s decisive and effective health response to the virus has garnered both New Zealand and herself adoring headlines around the world, particularly in countries starving for basic governmental competence. New Zealand’s exceptional handling of the …
When New Zealand holds its post-virus general election later this year, the country will go through a fiercely ideological debate about economics and resources. On 19 September, New Zealanders are scheduled to go to the polls. By then, the country is likely to have eliminated Covid-19, providing an enormous boost for Jacinda Ardern’s government, which is blitzing the …
It’s surprising that no cartoonist has yet portrayed Finance Minister Grant Robertson as Gollum, fiendishly protecting his “precious” surplus. His obsession over keeping government spending at low levels while the tax take soars is starting to look more than a little odd – and not just in the eyes of supporters of the coalition partners, …
What sort of topsy-turvy political world have we arrived at? This week, the Government continued to defend its fiscally conservative approach, in direct opposition to economists who suggest more spending is warranted. Even Treasury, the Reserve Bank, the private sector, and National appear to be open to much greater spending. On Tuesday, Finance Minister Grant …
The Greens may have achieved their sought-after mainstream credibility, and scored some wins in government, but commentators warn this will not necessarily result in more votes. On the contrary – it might even result in a loss of enthusiasm from their own side. This can be seen in the fact that much of the praise …
The sudden departure of ANZ CEO David Hisco this week has been sold as the bank having high standards of accountability. The intention is obviously to reassure the public, customers, shareholders, regulators and the politicians that all is well, and the local board of ANZ has everything under control. But not everyone’s convinced. And there …
For each Budget, the government of the day spends huge amounts of resources getting its message and branding across about its spending decisions. Careful attempts at framing their Budget are made, and all of this largely gets reported. This year is no different, and so you can read, watch and listen to hundreds of media …
What is a leftwing political party and government for? Ultimately, they exist to ameliorate inequality, making the world better for working people, the poor, and marginalised. The point is to transform society – restructuring in favour of the powerless, against the wealthy. That’s the theory, at least. In the wake of the Labour-led Government’s capitulation …
Are the purported benefits of the Tax Working Group’s proposed capital gains tax an illusion? So far, questions about the potential effectiveness of the tax are the biggest challenge to the proposal, as there are strong doubts about whether the new tax would really achieve its desired aims. The best arguments in favour of introducing …
During the last decade, there has been an explosion of concern around the world about economic inequality. Here in New Zealand there has been a growing debate about how to deal with this, and virtually all parts of the political spectrum now pay attention to this problem. It is in this context that the Tax …