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Andrew Riddell's avatar

Why New Zealand is lagging

We have an austerity government - the last budget changed tax treatment for landlords at $2.9 billion lost revenue over 4 years, roughly $12 billion income tax reduction (higher for higher incomes) paid for by borrowing, most government departments have to find 6% savings, health operational spend a 3% real per capita reduction, provision for new spending in the out years was so small that Treasury included a warning in their budget fiscal update that it was insufficient, would not cover inflation. Then the Housing Minister froze state house building, most hospital and school new builds frozen. Record numbers of tradies off to Australia.

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Cameron Murray's avatar

Yeah, the austerity approach during the current economic downturn seems bad

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Andrew Riddell's avatar

Our Finance Minister genuinely thinks public finances are the same as household finances.

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Md Nadim Ahmed's avatar

Speaking of the government subsidising education, I was on the student finances website the other day. Apparently the government has extended student allowances to people who got into a Startup accelerator program. That's cool.

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Md Nadim Ahmed's avatar

The media keeps talking about Australia's falling productivity growth. I don't understand why Australia's productivity growth is slow despite a hot jobs market and public investment in infrastructure. What do you think of the situation?

Do you see a productivity boom on the horizon with the solar and batteries revolution?

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