Message from @NewRogernomics
Discord ID: 649098314331193354
market can do it, but it's how the money enters the system. trying to do it via monetary policy just creates the very inequality they are trying to solve
Though...NZ went through a major economic transformation in the 1980s-1990s, as well as being cut off from the UK market and having the oil shock all at once in the 70s.
they are chasing a phantom going for budget surplus and austerity
NZ used to be an economy that was way more regulated and restricted.
you dont need to that
i'm all for laizzez faire, but you do have to be honest about monetary system
In NZ, policy tends to fluctuate by political party.
Labour is more willing to be flexible, though National has a major policy platform around running surpluses, low govt debt, and decreasing welfare spending.
Every election cycle, the govt debt and surplus level is brought up, as a measure of whether the govt is effective or not.
that entire conversation is a disaster
Both parties though tend to be consistent in policy to reduce the debt to gdp though.
Not the best site, but allows you to see it roughly.
they need to stop
It is hard to stop policy set by the reserve bank and political parties though.
You'd have to change minds in a big way.
that's usually impossible, people have to die and new people come in
nobody can admit they were wrong
Hope you aren't getting frustrated too much talking with me. 😄
i know, it's a major issue in the states
Literally, ask anyone from NZ what they think about government budget deficits and debt to gdp, and they'll view it as a metric of poor government policy.
partly it's because of neoclassical economics, but there is definitely some purposeful lying in there to brainwash people
the emphasis on monetary policy is really what keeps the crop of elites in power
Well, if you look at govt policy...there was a massive drive to lower the gdp to debt ratio, create a budget surplus, and have low inflation.
From the 1980s-1990s at least.
poor people can't rebel
(easily)
in the US, we give lip service to it, but ignore it enough that we do ok
historian recently dug up some JFK quotes to show he understood this
NZ mostly survives through exports and tourism, and a lot of foreign investment, which is a curse and a blessing.
one of our major parties, at least in pretend form, is tied to that very issue, so it's a challenge to their very soul
Mostly the population grows through immigration.
but same party is also in bed with military industrial complex, which is a huge tool of fiscal policy
yea, the immigration issue also come sfrom same misunderstanding. I think that might be one way around it
the nativists might be convinced if you show them about how the labor woes are really caused by the policies
NZ is kinda the reverse of the US in that we spend way too little, even when we know where money needs to go.
dangerous well to drink from but something has to give
NZ govts have a heavy fear of inflation and government debt.
yea, the US has a military industial complex and the hypocracy around championing it makes it sort of impossible to do completely euro-style austerity pushes here