A new Treasury long-term insights briefing recommends that New Zealand governments rely more on the Reserve Bank to manage economic cycles and use fiscal policy sparingly during future crises.
The report implicitly critiques the Labour Government’s expansive Covid-19 response, which saw $66 billion in spending—much of it on projects not directly tied to the pandemic.
Treasury warns that such discretionary spending is difficult to unwind, drives long-term debt increases, and is less efficient than monetary tools. It also advises against building new infrastructure as crisis stimulus, citing long delays, and urges governments to pre-plan targeted, temporary tools like wage subsidies or maintenance projects.
Finance Minister Nicola Willis welcomed the report as validation of her criticism of Labour’s pandemic-era spending.
“Treasury’s language is spare and polite, but its conclusions are damning,” she said in a press release.
“The report makes clear significant errors were made in the fiscal response to Covid. Treasury is urging policy makers not to repeat those mistakes. Our Government will not,” she said.
Give it a rest Nicola. Blue flavoured poli’s went along with the covid response by and large. You are all guilty of not holding labours feet to the fire.
Maybe you were all operating under the fear response like the population was submitted to.
You hit the nail on the head.
Plus, it doesn’t matter what name you put on the extortion machine or who does it: relying more on the Reserve Bank to manage economic cycles and not on fiscal policy just shifts the profit to ‘investors’.
They were ALL, in the masonic lodge, operating on orders/directives from foreign owned corporations.
🤔, it amused me, the irony of this report. A baby will deduce fire is dangerous after scolding his fingers. Yet are the absolute disaster of the COVID Scandemic, subsequent society breakdown, mass exodus of educated citizens, literal collapse of society and….Treasury creates a nice polite report. Oh the incompetence is staggering and snake skins are venomous.
as Luxton said if he was empower at the time you would of been vaccinated a lot faster (he said in a interview with some anti vaccers )
Oh sure. Its not as if National and ACT were not endorsing the so called pandemic response and as for you lot, your spending isn’t exactly rosy either. Lining the pockets of the Kiev regime, who now are training 14 year olds for military service and near to $3 billion to be spent on wasteful military nonsense, no doubt to suck up to the USA. BTW care to explain, why we have foreign law enforcement setting up in sovereign New Zealand. Not good at all.
BOOM another conspiracy theory vindicated! How say you dhead chippy 🤬🤬🤬
The system is breaking and it’s no accident. The collapse we’re seeing is engineered. The 1% and 2% (ers) are bleeding the economy, and the middle class dry and they’re using financial manipulation/wizardry as a weapon.
The “Cantillon Effect” is the “engine” of the elite and the foundational system for what is now the greatest wealth transfer in history. The Elite are using this very “tool” to rape the economy and, We the People. The Cantillon Effect benefits those closest to the money printers, the 1% and 2% (ers) i.e. big banks, corporations, and political insiders. They benefit first, from newly created currency. They get full-value dollars before they trickle down to the people, by which time inflation has eaten the purchasing power to nearly gone. These elites buy hard assets (real estate, stocks, commodities) while prices are low, using fresh, cheap money. But by the time this money hits Main Street, the cost of living is already inflated and you get less for your dollar. This creates a wealth funnel, sucking prosperity upward (trickle up). The central banks keep rates artificially low creating the illusion of stability, making debt cheaper for corporations and government but deadly for savers. Artificially low rates inflate asset bubbles in stocks and housing which the elite cash out on while leaving the public holding the bag when these bubbles pop. (Real inflation is much higher than reported metrics like CPI. We are already living in a shadow inflation crisis, and it’s hidden in plain sight.)
Vast debt expansion devalues every existing dollar, robbing you of your purchasing power. The 1% and 2% (ers) buy tangible assets with leveraged, cheap dollars, while the average person’s wages are destroyed by inflation. Nothing is stopping the next inflation wave. Fiscal irresponsibility continues on a massive scale. No spending cuts, just bigger deficits. Just an accident, right?
When new “money” is pumped into the system, there is a lag effect from between the time “the new money” is created, and the time it makes its way through the economy. A key factor is Money Velocity, also known as the rate at which cash moves through an economy. Today the Money Velocity is near historic lows because the economy is barely functioning, and even certain sectors of the economy like manufacturing, are in contraction. To put up a “roadblock” to incoming inflation, (higher rates/stronger dollar) would slow the Cantillon Effect, but the 1% and 2% (ers) will not allow it. The greatest wealth transfer mechanism of all time must be kept going, as devaluation is the tool they use to siphon wealth quietly. Inflation, the stealth tax.
Kudos, Sir, for this is the most rational and succinct description of the parasitic paradigm humanity is stuck in.
The really sinister thing is that the contemprary blind water-carriers for the 1% will realize too late that they will be expedited 2nd up.