Size of Fiscal Stimulus
This OECD chart shows that NZ’s fiscal stimulus is in fact the 6th largest in the developed world, as a percentage of GDP.
Hat Tip: The Visible Hand in Economics
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Tags: fiscal stimulus, OECD
May 6th, 2009 at 3:18 pm
That is something to be ashamed of not proud of.
May 6th, 2009 at 3:42 pm
My thoughts exactly. Can a National party supporter please explain why this is a good thing?
May 6th, 2009 at 3:48 pm
The TVHE thread is worth following.
May 6th, 2009 at 3:57 pm
What counts as part of this?
May 6th, 2009 at 4:14 pm
Hang on… all the righties in america are bashing the fuck out of Obama saying he’s getting the U.S in to lifetimes of debt and that. Are all the righties here therefore pissed off about our stimulus being hot on the heels of Obamas?
May 6th, 2009 at 4:32 pm
I reckon that what this illustrates, is the size of NZ’s infrastructure deficit – unlike other countries, we are not “stimulating” the economy by throwing money at a range of socialists pet constituencies. Infrastructure spending of good cost benefit ratio is about the only stimulus spending you will get me supporting – and this is not so much a stimulus because of the depression, this is just catch-up after years of neglect.
The same situation exists in defence.
By the way, all the public transport infrastructure and subsidy spending is just the lowest of the low quality, it can hardly even be described in terms of cost / benefit. Owen McShane’s latest NBR column had some typical figures from a Seattle study – Seattle has faced up to reality and they are flat out building new roads and lanes. Benefit per dollar ten times as great, or more, than public transport.
May 6th, 2009 at 4:49 pm
How’s the cost-benefit ratio of the Waterview Connection holding up Phil?
May 6th, 2009 at 5:31 pm
Does the $91 million gift to ten IWI commented on by Redbaiter form part of the stimulus. The Herald article doesn’t mention who authorised, why it was neccessary, who the spokesperson was , who released the information/ Pathetic really. What about the $54million for state house repairs, unproductive expenditure on accommodation for people already living in heavily subsidised accommodation not being required to take any responsibility, there for life. further repairs will probably be required six months after these are complete, there won’t be any National votes there though. This government has talked the talk not much sign of walk the walk yet though.
May 6th, 2009 at 7:29 pm
Exactly how does “stimulus spending” differ from printing money? A litlt bit more monetary inflation – just what we need! Has the whole world gone mad?
May 6th, 2009 at 10:22 pm
I guess it depends if it is merely spending on consumption or spending on infrastructure. The former is inflationary without merit, while the latter (assuming the infrastructure is useful – ie roads in busy areas) should give a return in terms of increased efficiency in the longer term. Hopefully we wont get too many trains with 3 passengers each…
May 7th, 2009 at 3:59 pm
Jarbury, that was a low blow. Of course I do not support the Waterview connection, or any infrastructure project that is about politics or pork rather than cost benefit. I do not see how anything I have said could be interpreted to mean anything else.
What I object to even more deeply, is projects like the proper original Wellington bypass, with extremely good cost benefit ratios, getting canned thanks only to noisy, vocal, antisocial minorities whose ideologies are based on lies and dissimulation. This is a classic case of all members of a silent majority being unwilling to waste time researching, debating, and fighting for something even though it is clearly to their benefit. Transit NZ are a disgrace for selling out on this.
Now we have a chorus of grizzles from Wellingtonians about how the half-baked new road, Karo drive, and all the extra intersections, causes delays for motorists and cyclists and public transport and pedestrians who are having to cross over it North-South. Well, DUH. DUH. DUH.