Home > The Body Politic > JohnKey Python’s Flying Circus?

JohnKey Python’s Flying Circus?

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And the election gets sillier by the day…

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Full Story

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John Key says,

We’ve created 5000 extra jobs in the last quarter. What it shows is that slightly more people are looking for work … And what that indicates is there is more confidence coming back into the economy for people to start looking for work.”  Source

What the f—?!

I’m sorry, Dear Leader, but what does “confidence in the economy” have to do with people looking for work? The unemployed are not there by choice, Dear Leader, they are there because a global banking crisis and following recession threw millions of people out of work; bankrupted companies; and brought entire nations to their economic knees.

And let me remind you, Dear Leader, that of the 154,000 New Zealanders currently jobless, you personally made about 2,000 of them redundant by cutting back on government workers despite your promise to cap the civil service – not cut it.

This is the sort of gormless, vacant optimism and spin-doctoring that has been the “signature” of this government. The fact that Prime Minister John Key is so unfeasibly popular with the punters is the only reason he can make such bizarre utterances – and not be laughed out of Parliament.

Mind you, Key’s comments were perhaps equalled by right-wing blogger and National Party apparatchik,  David Farrar, in his regular NZ Herald column,

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Source

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Farrar was attempting to explain-away the Dear Leader’s broken promise of not raising gst.  Key made this promise to the people of New Zealand in 2008,

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Source

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On 1 October 2010, Key’s government raised GST from 12.5 to 15%. This despite Dear Leader stating,

National is not going to be raising GST. National wants to cut taxes not raise taxes. We acknowledge the point [made], which is that there is a decade of deficits facing New Zealand. But that comes back to our core point …the fastest way to eliminate those deficits and get New Zealand back into surplus is to get New Zealand growing again.”  Source

So what did Farrar – who has worked for the National Party, and still conducts polling for them – have to say about John Key’s broken committment?  In his blog today (4 November), Farrar stated,

Now some may say what about John Key on GST. Did he not change his position? Well, yes he did. And I would never argue that MPs should never change a position. But Key’s change of stance was on the back of an independent report that recommended reducing income tax and lifting GST so that there are greater incentives to work and save. That allowed the public to understand the change of stance (if they had not, then Key would not have remained so popular).”  Source

Whoa, there, National Boy! Back up that blue pony of yours and let’s go over that again?

And I would never argue that MPs should never change a position

David – there is a Big Difference between “changing a position”, say, pre-election, as Goff did on the issue of raising the eligibility age for superannuation (from 65 to 67) – and making a committment pre-election and changing it post-election.

If Labour had done that, “son”, you and every right wing blogger in the Universe would be  burning electrons to post screeds of Righteous Wrath on your websites, in utter condemnation of such a betrayal.

But you haven’t. And you won’t.

Next,

But Key’s change of stance was on the back of an independent report that recommended reducing income tax and lifting GST…

What? An “independent report” you say? Oh, well, that’s different then, in’it? I mean, really, if a politician can fall back on an “Independent Report” – then that makes it just bloody hunky-dory.  No problemo.

One question, but.

Does that same pretext work for left-wing governments?

Or is the rule only for governments of a right-wing flavour?

We just need to know what the “rules” are – ‘cos, y’know,  it seems to be a “dynamic situation”…

And following on (and I personally love this bit),

“…reducing income tax and lifting GST so that there are greater incentives to work and save.”

Really?! Well bugger-me-with-a-boy-scout-brigade, but I thought my “incentives to work and save” were to (a) pay the mortgage so my very nice Bank Manager doesn’t throw me and my family out of my home and I end up living under a bridge (b) pay the bills that seem to drop into my letter box on an hourly basis and (c) buy food, which is kinda traditional, if you want to stay alive.

So in other words,  if our Masters on the Ninth Floor want to “incentivise” us to work harder, raising taxes on our Goods and Services is the way to go about it?

Right.

Got it.

So if we set GST at 99%, we should be working like demons, I guess?

And lastly, Farrar finishes of with this comment, which is gaspingly patronising, to put it mildly,

That allowed the public to understand the change of stance (if they had not, then Key would not have remained so popular.”

Oh, thank you, master. May we serfs roll around in your mud, a wee bit longer?

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  1. alan bonard
    6 November 2011 at 1:49 pm

    I wish it were funny. It increasingly look like reality from where I sit.

  2. Gosman
    8 November 2011 at 8:57 am

    What is the main structural problem with the NZ economy Frank?

  3. Gosman
    8 November 2011 at 9:26 am

    The National party promised Personal Tax cuts before the last election. This was a key policy plank in their election manifesto. Given the economic situation that the country faced over the past three years in what way could they keep that key promise Frank?

  4. 8 November 2011 at 10:22 am

    Gosman :

    The National party promised Personal Tax cuts before the last election. This was a key policy plank in their election manifesto. Given the economic situation that the country faced over the past three years in what way could they keep that key promise Frank?

    ???

    What are you talking about? They did make tax cuts. April 2009, and October 2010.

  5. 8 November 2011 at 10:31 am

    Gosman :

    What is the main structural problem with the NZ economy Frank?

    The main points, as I see them are,

    1. A lack of savings, as exacerbated by the canning of Labour’s superannuation savings scheme in 1975, when voters elected a Muldoon-led government. A lack of savings made us reliant (and vulnerable) to overseas borrowings.

    2. A distortion in the taxation system which saw capital gains from housing tax-free. This meant that mum & dad investors put their money into non-productive property, instead of industries, R&D, and other wealth-producing areas. As an aside, mum & dad investors used borrowed money from overseas to fund the housing/farm speculation boom. The “profits” being made in buying and selling properties were therefore not just tax-free, but funded from other people’s savings from overseas.

    3. A lack of investment in upskilling and investing in people for long-term benefits. For example, when a person loses his/her job, then instead of just paying that person $201.40 a week (net), they should be supported into some form of re-training/upskilling/education. So that as the economy shows signs of picking up, we have a readily-available source of trained staff – instead of shortages as we’ve experienced in the past.

    So long term, thry helps raise wages; productivity; helps the unemployed find jobs sooner; and reduces welfare costs. Win/win, as I see it.

    Leaving these things to the market has been an abject failure, as pointed out in my piece, “Labour: the Economic Record 2000 – 2008“.

  6. Gosman
    8 November 2011 at 10:52 am

    The lack of savings is correct. The other two tend to flow on from this fundamental issue with out economy.

    There are two ways of dealing with this.

    One – You replace the role of the private sector in savings with the Government and increase the rate.

    Two – You encourage the private sector to increase the savings rate by increasing disposable income.

    Now the first is a left wing policy and the second is a right wing policy. Given the fact that National is a party of the Right it would be silly for them to try and resolve the situation following left wing solutions.

    People either spend or save their income. The richer people get the more they are likely to save as opposed to the proportion they spend. Increasing a consumption tax following economic theory should discourage spending. Hence the savings rate should go up with a combination of a personal tax cut and an increase in consumption taxes. This is what in fact has happened in Nz over the past few years.

    You can also achieve this to a degree with Government taking a more active role in the economy. However as you are likely taking a greater proportion of funds away from the wealthier people in society you will also reduce Private sector savings. There then becomes the risk of the Government investment crowding out the Private sector.

  7. travellerev
    9 November 2011 at 6:22 am

    For those of you with John Key voting friends here is something you might want to share with them: aotearoaawiderperspective.wordpress.com/2008/12/17/open-letter-to-eugene-bingham-or-would-you-have-voted-for-john-key-if-you-had-known/

    • Gosman
      9 November 2011 at 10:33 am

      Ah Travellerev. Our very own nutty conspiracy theorist blogger.

      I see that not only do you fail to understand derivatives at all given you thought they were all illegal between the 1930’s and the 1980’s but you also think Currency trading is linked directly with trading in Mortgage debt.

      You are an excellent advert for the economic illiteracy of the hard left Travellerev so I commend you for continuing to make your wacky ideas public.

      Hey by the way how’s Richard Gage’s goal of getting Architects and Engineers signed up so he can push for a re-investigation of September the 11th going? Last time I looked he wasn’t doing much bettwer than he was a year ago.

  1. 8 November 2011 at 8:41 am

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