|Last Updated: Mar 25th, 2013 - 16:46:15
Thought for the Day
Inflation is defined as the increase in the money supply.
The Economist published the following figures for money supply growth in various countries over the last 12 months: Australia +9.1%, Britain +11.7%, Canada +7.7%, Denmark +14.7%, U.S. +8.1%, the Euro area +7.3%.
In New Zealand our growth in money supply (M3) for the last year is 7.6%.
The Consumer Price Index is carefully chosen and shows much less inflation. This is why our governments persist in adjusting wages and pensions to CPI rather than money supply. The average worker is then continually falling behind true costs.
Our taxes are adjusted into higher tax brackets as our wages increase but government payments back, such as pensions, even when adjusted for the CPI are always behind real inflation. So we get poorer.
Real Estate and gold will always hold their value and are currently showing the effects of the continual high inflation of money around the world.
The average Kiwi tries to ignore the government and buys another house. Smart, eh!
Apr 1, 2006, 15:20
Productivity Growth in New Zealand: Will the Naysayers Eat Their Words?
The truth will out!
With thanks to Statistics New Zealand and Roger Kerr we have the up-to-date information on productivity growth in New Zealand for the last 15 years. It makes for interesting reading. . .
Apr 7, 2006, 13:35
New Zealand Economic Growth: On the Road to Helsinki or Hobart?
Wolfgang Kasper visited New Zealand in 2002 and had this to say: "When I first visited New Zealand in the 1970s, this unenterprising culture was palpable and pervasive. The contrast to the East Asian countries, where I had then just worked, could not have been more dramatic. But, after long reflection, I have come to the conclusion that here lies the fundamental explanation why New Zealand has wrested timid growth from bold reforms."
This is a keynote address given by Professor Kasper (an Australian economics professor) to the New Zealand Economic Association Annual Meeting, 27 June, 2002.
Read the rest of his speech at the link above and see if he is right.
Mar 27, 2006, 14:34