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New Zealand hands out extra cash to fight 'inflation storm'

56 Comments
By NICK PERRY

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56 Comments
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More cash just means more inflation.

8 ( +17 / -9 )

Uh (hesitantly raises hand). Isn't having too much money floating around the CAUSE of inflation? Especially combined with a scarcity of goods? This is a solution that wil exacerbate the problem...

5 ( +13 / -8 )

well more money prints - less value.

but no problem soon hordes of vaccinated tourists will bring money to NZ back...

-4 ( +5 / -9 )

Better not be carrying that cash in those boxes.

-3 ( +1 / -4 )

NZ$350 X 2million... hummm, we need one more clerical error, finger crossed ;D

1 ( +1 / -0 )

Think they are on top of this, as much as people are negative, you don’t live in NZ.

6 ( +7 / -1 )

Japan can learn a thing or two from New Zealand...

3 ( +9 / -6 )

wait I thought inflation was Bidens fault, how can it be that NZ is experiencing inflation as well!?

Fox talking heads in 3 2 1

-4 ( +5 / -9 )

Hope they don't ask that village in Yamaguchi-ken for any help handing out the money.

5 ( +7 / -2 )

She's literally bribing half of the population to vote for her, like she did with uni students the other times. She breaks every promise she makes, but she makes sure to throw out money before elections. And let's not pretend this spending and lying is because of the pandemic. She was tanking the economy long before covid came, which was late March 2020, because she literally waited until we got it before closing and giving herself unlimited powers.

Let's not pretend unemployment is looking good when she's fired anyone expressing their medical freedom; including countless doctors and nurses.

https://www.gbnews.uk/news/new-zealanders-desperate-to-leave-as-thousands-flee-controlling-and-fearful-jacinda-ardern/289655?fbclid=IwAR0OPJn4Rd5m7elaPE5xjvwBLbWUhfJeyrizJgoc8vk_PROnPxdQ2Sk9oXo

Here's a more accurate article about the horrors of NZ^

-5 ( +7 / -12 )

Just…. Face palm….

-5 ( +3 / -8 )

 the government’s books would return to the black by 2025 after it borrowed heavily during the pandemic

Borrowed and spent, no doubt - there’s your inflation.

wait I thought inflation was Bidens fault, how can it be that NZ is experiencing inflation as well!?

All the governments that borrowed and spent wildly are responsible; New Zealand’s government is culpable as is the US administration.

Personally I think the initial spending in 2020 under the prior US administration was the start, but it takes time for these things to show up in inflation, just as it will take time to bring inflation down under high interest rates.

But as Jeff Bezos pointed out in recent days, Joe Manchin in the US saved the Biden administration from making an even worse mess of the situation.

Jeff Bezos is supposedly a lefty leaning owner of the Washington Post, so it’s pretty big news that someone like that is calling out his team for criticism. Should be a big wake up call. Elon Musk is flaming them on Twitter too.

-3 ( +3 / -6 )

People quoting uber neo-liberals like Joe Manchin and Jeff Bezos to support no giving assistance to the people of New Zealand in a pinch.

They will talk about money printing and devaluation of the currency and debts, but will never utter a peep when Japan or other nations ignore their populace and pour money into financial markets with QE and subsidize oil wholesalers and hotel owners.

New Zealand is a social democracy that is responsive to the needs of its people, not an oligarchic elite.

2 ( +7 / -5 )

no giving assistance to the people of New Zealand in a pinch.

Here’s the basic lesson.

Policy should be judged not by the well-meaning intentions, but by the outcomes.

Spending money like crazy leading to inflation hurts the people in a pinch, exactly as Sir Bezos has been pointing out, and Manchin too I recall. And Larry Summers.

-2 ( +2 / -4 )

never utter a peep when Japan or other nations ignore their populace and pour money into financial markets with QE and subsidize

Huh, I always rail against subsidies. You weren’t talking about me?

-2 ( +1 / -3 )

Sir Bezos has been pointing out, and Manchin too I recall. And Larry Summers.

A neo liberal rogue's gallery of coal mine oligarchs and Wall Street bailout architects.

Are you saying they have ever had the best interests of anybody, particularly the people of New Zealand at heart?

And not their bottom line class interests?

0 ( +2 / -2 )

She's literally bribing half of the population to vote for her, like she did with uni students the other times. She breaks every promise she makes, but she makes sure to throw out money before elections. 

She won and will again. You just have to deal with it.

Maybe tell your favourite nominee to use the same tactics instead of crying about it.

5 ( +7 / -2 )

A neo liberal rogue's gallery of coal mine oligarchs and Wall Street bailout architects.

Uh, a bunch of sane democrats who found their party deserted them.

-4 ( +0 / -4 )

"sane democrats"

If your metric for "sanity" is using your legislative influence to subsidize your personal financial investment in a climate polluting industry (Manchin) or bailing out banks on the public dime that used the market as a casino (Summers)...

I think most constituents of New Zealand or the US would prefer to be "crazy" and embrace socialism.

-1 ( +2 / -3 )

Let's not pretend unemployment is looking good when she's fired anyone expressing their medical freedom; including countless doctors and nurses.

Then they’ll all vote against her, what’s the problem? Get campaigning!

Remember, when she wins again it’s because you and the countless doctors and nurses didn’t campaign enough.

2 ( +5 / -3 )

This is the most ridiculous thing I have ever heard hand out money to fight inflation.

New Zealand hands out extra cash to fight 'inflation storm'

But hey I don't expect much from their PM Jacinda.

-1 ( +3 / -4 )

But hey I don't expect much from their PM Jacinda.

Crikey, another one!

Too bad you can’t vote against her.

2 ( +4 / -2 )

When the government gives out money its a way of them saying "We are over taxing the people". Again the state of Cala-fool-ya has a surplus of 97 billion dollars. This is a state not a country. It's always the same reason and to the same people " half of all adults who earn less than X amount of money per year that gets these hand outs . This always includes the same rhetoric "extending other temporary measures aimed at combatting spiraling living costs, including a cut to gas taxes and half-price public transportation fares". In California the citizens have paid for the same roads 20 times over and they continue to raise taxes on gas. These politician must attend the same schools for thought because their actions are the same no matter where they live or country they come from.

0 ( +2 / -2 )

wait I thought inflation was Bidens fault, how can it be that NZ is experiencing inflation as well!?

Boy, oh boy.

Its almost as if the world's biggest economy somehow has an effect on much smaller economies around the world....

NZ handing out money to fight inflation is like pouring gasoline to put out a fire.

The economic illiteracy is astonishing.

-5 ( +2 / -7 )

I think most constituents of New Zealand or the US would prefer to be "crazy" and embrace socialism.

You do have the freedom of thought.

Not sure when New Zealand next has elections, but 6 months from now should show clearly enough what constituents of the US think of socialism, and well-intentioned policies that make things worse.

0 ( +1 / -1 )

There's no such thing as extra cash !

Handouts ?

-2 ( +0 / -2 )

When the government gives out money its a way of them saying "We are over taxing the people". Again the state of Cala-fool-ya has a surplus of 97 billion dollars. This is a state not a country. It's always the same reason and to the same people " half of all adults who earn less than X amount of money per year that gets these hand outs . This always includes the same rhetoric "extending other temporary measures aimed at combatting spiraling living costs, including a cut to gas taxes and half-price public transportation fares". In California the citizens have paid for the same roads 20 times over and they continue to raise taxes on gas. These politician must attend the same schools for thought because their actions are the same no matter where they live or country they come from.

Don’t tell us, tell your politician of choice! They’ll surely win with this kind of smart insider thinking.

Always lots of complaints, how about fixing them? Always lots of solutions, how about implementing them?

If you know what is wrong and how to fix it, why doesn’t everyone else?

-1 ( +1 / -2 )

"NZ handing out money to fight inflation is like pouring gasoline to put out a fire." Please read the article again. The Labour government is giving money to needy people. It will not not cause inflation. The inflation arguments raised here are old conservative tripe.

2 ( +4 / -2 )

Next thing I'll be hearing is helping the needy will swell the "surplus population."

(That was the British Conservative argument for not helping the starving Irish during the so-called "Potato Famine.")

2 ( +4 / -2 )

The NZ payouts are very generous. I wouldn't consider a $44k income 'needy'. Better to give more cash to the genuinely poor. Giving cash to comfortably off people smacks of buying votes.

Nobody's government debt is going to be dropping any time soon. We are nowhere near a peak in rising costs. The last few decades of growth have been based on internet expansion and globalisation. Ending globalisation and suppressing internet technologies will flip the economy from growth to decline. Nationalist economics don't work.

Interesting that people are happy to take cash from their kids via government borrowing when times are hard, but do not offer to pay more tax to bolster public finances when times are good.

2 ( +3 / -1 )

Typical Labour GOVT, taking it off the people who do work to give it to the people who don't want to work. This is what happens when you have MMP, the parties with the lowest amount of votes end up ruling the country.

2 ( +3 / -1 )

New Zealand’s government said Thursday it will hand out an extra few hundred dollars to more than 2 million lower-income adults to help them navigate what it describes as “the peak of the global inflation storm.”

New Zealand mishandled the Covid crisis, which caused it to go into a recession, and the economy is still suffering, so instead of staying with the zero covid policy and getting their country healthy, NZ eased restrictions, which caused the infection rates to surge and as a result the economy did not fully recover and now the country resorts to this feeble attempt to fight inflation.

-5 ( +3 / -8 )

NZ and Oz are a one trick pony; whenever the cracks become serious enough that they threaten to derail the debt bondage model of society, the John Frum ‘free’ money spigot is cranked open to the max, moral hazard be damned and the surf lovers road to serfdom can is kicked further down the road.

-2 ( +2 / -4 )

Uh, I think thus will make inflation worse.

0 ( +4 / -4 )

Any young New Zealander with any sense of ambition should get out while they can. The current government is running New Zealand into the ground.

-2 ( +4 / -6 )

New Zealand mishandled the Covid crisis, which caused it to go into a recession,

The zero covid policy is what caused the recession, which was solved after abandoning it, something that did not come with negative effects to their health services, that happened (the same as every other country in the world, including China) when omicron entered the country.

-1 ( +3 / -4 )

I’m in the food import business and can say that this is certainly not the “peak fo the inflation storm” - much more is coming..

5 ( +5 / -0 )

Just hope they don't direct deposit into the account of the guy first on the list. /s

There is a world-wide recession now. A slow input of cash (not all at once) for people at the lowest end of the economic scale is a good thing vs kids going hungry.

Plus, I doubt low-income people will be putting new tires on their vehicle with this money, unless what many in the US did with their checks. The US income limits were much too high - probably 50% too high.

2 ( +3 / -1 )

If I owned a liquor store in a poor neighborhood in New Zealand, I just happily raised my prices.

-1 ( +2 / -3 )

GBR48

The NZ payouts are very generous. I wouldn't consider a $44k income 'needy'.

Well let's have a look at it. This is the top end of who gets the allowance.

In NZ if you earn $70,000, after tax that is $55,000. Rent for an average 2 bedroom house in Auckland is $30,000. So that leaves you with $25,000 to make ends meet. That's $480 / week ($US300 / week). That isn't a lot and those people will be struggling with increased prices.

Better to give more cash to the genuinely poor.

The "genuinely poor" will also get the cash.

Giving cash to comfortably off people smacks of buying votes.

No it doesn't. For Labour to buy votes, they would have to give money to well off people. This demographic mostly already vote Labour.

-1 ( +0 / -1 )

I love all the armchair economists who parrot more spending = inflation. It isn't as simple as that. This money is to ease the impact of higher prices on essentials like food and heating. The people who receive this money won't be going out and buying big screen TV's. It just means they won't have to go quite as hungry or cold. That's not going to drive up inflation.

-1 ( +2 / -3 )

virusrex

New Zealand mishandled the Covid crisis, which caused it to go into a recession,

The zero covid policy is what caused the recession, which was solved after abandoning it,

I agree, virusx, except that after the initial 6 week lockdown, NZ went for about a year with businesses completely open with no restrictions, which was only possible because of the zero-covid policy.

It was actually during the lockdown of Auckland for delta, after many more people had been vaccinated, that zero covid was abandoned.

something that did not come with negative effects to their health services, that happened (the same as every other country in the world, including China) when omicron entered the country.

Agreed. NZ ended up with a lower financial impact and health impact through its policies.

-2 ( +1 / -3 )

@2020hindsights

The people who receive this money won't be going out and buying big screen TV's

Apparently New Zealand is different from here in the US.

Here, it would be big-screen TVs, Air Jordan sneakers, and iPhones. And maybe aluminum rims and a spoiler for the '99 Civic.

2 ( +3 / -1 )

CaptDingleheimer

The people who receive this money won't be going out and buying big screen TV's

Apparently New Zealand is different from here in the US.

Here, it would be big-screen TVs, Air Jordan sneakers, and iPhones. And maybe aluminum rims and a spoiler for the '99 Civic.

At $27 per week per person isn't going to buy you a big-screen TV, especially when you are struggling to pay for food and heating.

-3 ( +0 / -3 )

At $27 per week per person isn't going to buy you a big-screen TV, especially when you are struggling to pay for food and heating.

Rent-to-Own!

The US gvmt checks weren't weekly or monthly, they were lump sums, so some people had never seen so much money at once and blew it on "dubs" for their 1999 car.

I need dubs, 22s - 24s, I need dubs. Shinin' in da hood, I need dubs.

-- Master P

1 ( +2 / -1 )

"NZ handing out money to fight inflation is like pouring gasoline to put out a fire." Please read the article again. The Labour government is giving money to needy people. It will not not cause inflation. The inflation arguments raised here are old conservative tripe.

I see. So inflation won't happen because the handouts are going to poor people and market forces take that into account.

I learn something new here on JT every day!

0 ( +2 / -2 )

These poor people mentioned, apparently there are 2 million of them according to the article.

I thought there were like 5 million of them, which would mean the government is giving cash to half of the adult population, no?

But yeah, that definitely won’t cause more inflation… “yeah right”, I think they say?

-1 ( +0 / -1 )

master

The Labour government is giving money to needy people. It will not not cause inflation. The inflation arguments raised here are old conservative tripe.

I see. So inflation won't happen because the handouts are going to poor people and market forces take that into account.

fxgai

But yeah, that definitely won’t cause more inflation… “yeah right”, I think they say?

Some people really have a hard time with economics.

The inflation is already here. It has mostly been caused by supply chain issues and the war in Ukraine. Both of which have decreased the supply of goods and hence the price goes up.

Now for poor people, this will mean they will buy less food and heating because they can't afford it. With the handout that is proposed, will just mean that they will be able to afford more, but overall, most likely they will still spend less than before.

So the payouts are unlikely to be inflationary.

0 ( +1 / -1 )

. It has mostly been caused by supply chain issues and the war in Ukraine.

This is typical deflection employed by those guilty of inflationary policy.

Putin’s invasion of Ukraine did not start until this past February.

Inflation was here long before Putin lost his mind.

So long as people allow their favoured politicians to get away with such deflections that inflation will be here to stay.

Now for poor people

So look. The article says they are saying 2 million people in New Zealand are “poor” - that’s like half the adult population no?

Half the adult population of a developed country is “poor”?

No, this is not done caring handout to the needy. This is a broad-based handout. That is going to be inflationary.

Government spending more borrowed money on the kids does not solve inflation, it is a primary contributor to it.

-1 ( +1 / -2 )

Some people really have a hard time with economics.

And even more have a hard time with basic facts.

Russia invaded Ukraine on Thursday, February 24, 2022. Inflation has been surging since last summer

inflation-surge-to-continue-here-are-3-reasons-why

The inflation is already here. It has mostly been caused by supply chain issues and the war in Ukraine. Both of which have decreased the supply of goods and hence the price goes up.

Now for poor people, this will mean they will buy less food and heating because they can't afford it. With the handout that is proposed, will just mean that they will be able to afford more, but overall, most likely they will still spend less than before.

So the payouts are unlikely to be inflationary.

Ah I see. Giving handouts to the poor won't cause greater inflation because they are poor!

Again, Mr. Inflation knows who the free money is going to and what they will do with it, and he won't go up because he cares.

I'm getting some great economics lessons this weekend!

-2 ( +1 / -3 )

They should not condemn Russia's campaign on Ukraine, there you can get a friendly bargain price of Russian oil.

And the inflation problem will be smoothed. At leadt not that hurting like now!

-1 ( +0 / -1 )

fxgai

. It has mostly been caused by supply chain issues and the war in Ukraine.

This is typical deflection employed by those guilty of inflationary policy.

Putin’s invasion of Ukraine did not start until this past February.

Inflation was here long before Putin lost his mind.

So long as people allow their favoured politicians to get away with such deflections that inflation will be here to stay.

Umm, did you read my comment. There was an and in there. *caused by supply chain issues and the war in Ukraine*

The supply change issues were caused by Covid and have affected the whole world. And that was before Putin lost his mind. It is why we have inflation. Then the war in Ukraine happened which caused high fuel and food prices, which has made the inflation worse. So no deflection here.

Half the adult population of a developed country is “poor”?

Agreed that I could have used a better word choice, but my point still stands. Let's called them "lower-income adults". They are still in the demographic that typically supports Labour.

1 ( +1 / -0 )

master

Some people really have a hard time with economics.

And even more have a hard time with basic facts.

Russia invaded Ukraine on Thursday, February 24, 2022. Inflation has been surging since last summer

And some have a hard time with basic reading. I didn't say that inflation was solely caused by the war in Ukraine. I said it was caused by supply chain issues and the war in Ukraine.

The supply chain issues were caused by Covid and have affected the whole world. It is why we have inflation. Then the war in Ukraine happened which caused high fuel and food prices, which has made the inflation worse.

Ah I see. Giving handouts to the poor won't cause greater inflation because they are poor!

No, again, that's not what I said. I said that it won't increase spending. Try reading the comments rather than what isn't there.

1 ( +1 / -0 )

I'm getting some great economics lessons this weekend!

Some say the best economics lesson is from Kevin Bridges. (warning - strong language):

https://www.youtube.com/watch?v=SrfjDfL0fxQ

0 ( +0 / -0 )

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