No Minister

HE WHO PAYS THE PIPER

with 2 comments

Tis said that economists oft resemble accountants minus the personality. Cameron Bagrie certainly fits that mold. That aside I have generally supported his views on the economy.

But I do find it surprising that he should label National’s proposed ditching of the 39% tax rate and the indexation of tax brackets as inflationary while ignoring the effect of the additional six billion dollar spending increase foreshadowed in next weeks budget. $1.6b in peoples hands to save/spend/reduce debt vs $6b of new government spending from a mob whose hallmark is ‘never mind the quality, feel the width’ and tell me just which one makes better sense in a country where the government is leveraging off its credit card and refining borrow and hope to new levels.

The government’s investment of $45m plus into the Public Journalism Fund continues to reap dividends for them. Extensive coverage of Bagrie’s view on National’s tax cuts proposal and nary a mention of the effect on inflation of the government’s additional $6b spend up.

Written by The Veteran

May 12, 2022 at 1:19 pm

2 Responses

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  1. I wondered too Vet – think it was on The Country last week when I first heard Bagrie say that.

    I always thought he was pretty good with his opinions but like you I find this one hard to follow.

    pdm1946

    May 12, 2022 at 1:59 pm

  2. $1.6b in peoples hands to save/spend/reduce debt vs $6b of new government spending from a mob whose hallmark is ‘never mind the quality, feel the width’

    It could be that he thinks people not spending the money could be a problem with a looming recession because that’s how Keynesians think; all spending, all consumerism, all the time.

    The idea that reducing personal debt and/or that investment spending (real investment as in building stuff) may be more important just does not enter into the Keynesian economic model; Helicopter Ben and all that.

    Tom Hunter

    May 12, 2022 at 2:43 pm


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