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Thread ID: 85682	2007-12-18 17:51:00	Proposed tax cuts	Myth (110)	PC World Chat

Post ID	Timestamp	Content	User
622494	2007-12-21 01:33:00	That is just ridiculous ! In most countries round the world they get tax cuts and have lower interest rates than us. It is just our Reserve Bank act and Michael Cullen that say that. in other countries there is much larger economies that are much more stable too now clearly neither of us are economists/accountants, but just consider this for a second: if we get more money, we spend more money, so seeing that they can earn more money people charge more for goods and services, giving them more money to allow them to spend more money - ad infinitum then, seeing the runaway inflation, lending interest rates are increased to try to remove money from the system to halt and possibly reverse the inflation ie, mortgage payments go up as a result of wage increases and tax cuts for those wondering, that if everything costs more and everyone is earning more, what's the big deal? if you have $10000 in a bank today, and in 5 years runaway inflation means $10000 is barely enough to buy a decent meal and your interest on the savings didn't balloon the $10000 to over a million, i think you'd consider it a big deal. eventually that $10000 can become useless - classic example being children in post war germany (or was it russia?) using paper money to make a kite because it was cheaper than using the money to buy paper. once money is worth less than the paper/plastic it's printed on people resort to batering and this modern lifestyle we all enjoy will go in the bin imo, inflation is the result of greed, and we aren't about to escape it nor reverse it without a war or depression or both	motorbyclist (188)
622495	2007-12-21 01:38:00	You are correct that both the Reserve bank governor and our finance minister say that. So are you saying they are wrong. They are both paid hundreds of thousands of dollars by us for those opinions, and it isn't just them who are making those points. People in finance would also back that up. It is partly because we import far more than we export, which is a major problem for NZ. Until we export more than we import, we are going to continue to have this problem. Essentially the government can't spend much more on both health and education, as it will also push up inflation, and raise interest rates. It is all about balance. I think inflation is one of the major problems NZ is going to face in the next few years. House inflation has been out of control over the last few years, and overall inflation will folllow. absolutely right though just because we pay someone to say/do something doesn't guarantee that they are doing a good, or even worthwhile job	motorbyclist (188)
622496	2007-12-21 01:57:00	[QUOTE=rob_on_guitar;626785] I was replying to a previous post, where they referred to the poll, saying that only 3 people supported giving the money to health . Oh gotcha:blush: . Cheers .	rob_on_guitar (4196)
622497	2007-12-21 03:23:00	in other countries there is much larger economies that are much more stable too now clearly neither of us are economists/accountants, but just consider this for a second: if we get more money, we spend more money, so seeing that they can earn more money people charge more for goods and services, giving them more money to allow them to spend more money - ad infinitum then, seeing the runaway inflation, lending interest rates are increased to try to remove money from the system to halt and possibly reverse the inflation ie, mortgage payments go up as a result of wage increases and tax cuts Clearly you will never be an economist. Technically inflation occurs when the money supply grows at a bigger rate than goods and services grow. Do Slovenia, Estonia, Croatia have bigger economies than us ? I don't think so. They all have low flat tax rates. I would say that NZ is fairly stable compared to many countries. Boring, but stable. Australia has wages 30 per cent higher than us and tax rates lower than ours yet their interest rates are lower than ours. (And don't say they have more mineral wealth) Just because Alan Bollard is paid heaps does not mean he is clever. His job is just to keep inflation low and he has only one tool (so do I) And his predecessor Don Brash did not get our inflation down form the high teens to the mid single digits on his own. World wide inflation slowed and most of our inflation is imported - oil, cars, bank rates etc. Regards Digby	Digby (677)
622498	2007-12-21 04:24:00	Clearly you will never be an economist. Technically inflation occurs when the money supply grows at a bigger rate than goods and services grow. Do Slovenia, Estonia, Croatia have bigger economies than us ? I don't think so. They all have low flat tax rates. I would say that NZ is fairly stable compared to many countries. Boring, but stable. Australia has wages 30 per cent higher than us and tax rates lower than ours yet their interest rates are lower than ours. (And don't say they have more mineral wealth) Just because Alan Bollard is paid heaps does not mean he is clever. His job is just to keep inflation low and he has only one tool (so do I) And his predecessor Don Brash did not get our inflation down form the high teens to the mid single digits on his own. World wide inflation slowed and most of our inflation is imported - oil, cars, bank rates etc. Regards Digby Different economists have totally differing and conflicting views on this, and there probably isn't a single solution for NZ. If interest rates are dropped, the housing market will no doubt pick up again, and more people will be borrowing from international banks. In the US they are heading towards something called stagflation, which I wouldn't be surprised if it happens here within the next 5 years too. Stagflation is a condition of slow economic growth and relatively high unemployment , accompanied by a rise in prices, or inflation. Stagflation occurs when the economy isn't growing but prices are, which is not a good situation for a country to be in. This happened to a great extent during the 1970s, when world oil prices rose dramatically, fueling sharp inflation in developed countries. Dejavu.	robbyp (2751)
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