Rogernomics

[Pixie]

The reduction of government control of the economy by privatizing gummint owned businesses and relaxing economic regulations. Previously things like exchange rates and interest rates were gummint regulated - the idea was to let the market find it's own level.

There also used to be a whole range of tariffs protecting NZ industry, which were removed. This lead to the death of several industries (local car assembly a good example) and the rise of the Warehouse.

Along with tariff protection, the Gummint used to subsidise primary industries and/or exporters (supplemetry minimum pricing for meat and wool is an example). These were removed.

It was a brutal business, and lots of people were hurt - but it probably saved this country from third world status.

Gummint (means taxpayers)

[Pixie]

Oue economy is Govt policy.
We are coming out of the trough slowly but the huge amount of joblessness in prior years has cost us dearly.
It's the old saying, the devil makes work for idle hands. Working people have less inclination to steal, burgle etc.

How come? with the lowest unempoyment in history (according to Clark) do we have so much crime?

[TwoSeven]

We dont, the crime rate is about the same - just the types of crime have changed - if you look into it, you'll find that there is more drug related stuff, but then there are more serious drugs now than there were.

[Winston001]

Good stuff above. I don't agree with all of it but everyone is entitled to their view. I believed and still believe that the 1984 reforms were essential for NZ. But the irony is that if they hadn't happened, we would still be experiencing the current economic boom.

NZ is a tiny country, not just in size but as an economy. We have no control at all over our fortunes. We rely on the rest of the world to sell us manufactured goods such as cars, computers, tractors, etc. To buy the stuff we have to export like crazy and grab tourists so we can get some money to spend. We are simply unable to manufacture ourselves everything we think we need as a first world nation.

The current boom has nothing to do with government policies, or urban industry. It is purely commodity driven - plus tourism. World prices for agricultural products have been healthy for the past 4 years which translates into plenty of money coming to us. It has been a long long wait.

Unfortunately the $NZ has risen over the 4 years in recognition of our added wealth with the result that the boom is being strangled. Nothing lasts forever. The $NZ should start to fall from now because of our serious current account deficit but petrol will rise etc etc.

[Brian d marge]

My take on things,,,

Ill go back and show what was happening and why the changes were made ...the the effects , and what i like and dont like

Wayy back when ,,,,Bretton woods ,,they all got together and agreed on a price for money ( or how can we extract more money from Stephen ,,they planned ahead ,,you see)
Anyway that fell apart ..So that didnt work ,,,
Then a fella called Milton Freidman ..( what was his mother short for a name so she used the baby bottle sterilizing fluid Miltons as a name)...He went to school in chicargo and loved money ,,people called him a moneytourist ..)

Lots of people liked his ideas ....

Then in about 1972 the chicargo mercantile introduced an Idea currency contracts ....initially only seven were offered and on the first day there were 911 contract traded ( wierd Spooky or what ,,,,,)
Back in the pacific ...Stephen was running around in grey shorts no shoes and a ..I love the Bay city Rollers Tee shirt ,,,and was without both money and care ,,,,,,

So these overseas people ,,started moving BIG money around the world REAL quick So that the future price of money was being set ,,,Speculators came in ,,,,,and Small countries with low cash reserves had difficulty is with standing these shocks ....Stephen going to the bookshop and seeing the top shelf ,,,and having low currency reserves ,,,experiences a financial set back ....

So the powers that be knew this was going on,,,,,but this was a new way of setting the price of money ,,,No longer could they add a touch of lead to me soverein....

THEN while the powers that be were running round like headless chickens a fella called Andy krieger...bought some souviniers.... like most of NZ money ..He openly sold NZ s entire money supply on the open market and made a killing ,,,( I remember the adds on TV asking for any loose change you could spare,,,gold wedding rings ,,) ,,so The government devalued ,,,,well they had to ,,as we had no money ...

This meant that when Stephen went back to the bookshop ,,the scraps in his pocket were no match for the top shelf ,,,he couldnt afford Stuff,,,,

So
Messers , dean whane and Kerr ,,said Hang on ,,we have been telling you all along that we Know how to work in this sort of deregulated money enviroment ,,truuuussst us ssssss ....
Hookey said the powers that be ,,,,,,,
First You have to make NZ an attractive place for investors ,,ie if they give you money which we then Use ,,,you give them something back . so Lets go and make this place an attractive place for money to live ,,,,
And the three little Baskets went off happly into the sunset raping an pillaging all in a good cause ,,,,,,,

The Student load ,,,,Looks good on paper ,, I mean it goes down as an asset ,,,,NOT a DEBT ,,,,so I can see they aint going to change that soon ...mean while familys lose sons an daughters overseas due to big debts

So
The changes were going to happen ,,,But they sort of changed the rules ,,without informing the players ( or teaching the players how to use the new rules ) and for A LONG time most folk didnt know HOW to deal with the new improved game ,,( I also think it unfair to expect a person in their 50 s to try and retrain ,,,reskill or what eer you call it and what happened to the farmers was ,,,down right rude.... )

So we were left with a lot of people who well ..now on the bones of their arse ...a large underclass was created ( due to the speed and thoughtlessness at which the changes were implimented ) ...Now Idle hands,,,,do the devils work...

Now The phillips curve in an inverse relationship between inflation and unemployment ...and unemployment is High when inflation is low ( Did we have low inflation around 1992 ..??? oh well never let a bit of bollocks stand in the way of a good story,,,,)

Anyway The crime rate according to Crime,com,nz ,co , blah ....said that NZ crime rate has doubled since 1970 with the biggest gain being burgulary ,,,,,( sounds like people needing money to me ) ...with a Peak in crime in 1992 ... being around 60 percent being dishonesty ...

So by not doing anything ( unlike Maori who stood up for what they wanted and now have it ,,,) middle class NZ didnt do much ,,,and now have a gap between those with skills and those without ,,and that gap is getting bigger ,,,,With the associated problem of an under educated , poor underclass, ( As I said I would need about 6 to 700 a week to maintain my current lifestyle WHICH is NOT excessive ,,,,so if u are on 350 with a family or anything to do with being a student ,,,,,)

Other countrys who made the changes put in place the infrastructure before changing , so the population were eased into the new game,,,, we didnt,

So I guess what I am pissed about is , MY life has been compramised by a group of people who were at the end of the day thinking only of themselves . ( was going to say gibbs and kerr dean etc but it also extends to white middle class NZ who did not a lot to stop the rot ( see french farmers for a case in point )

So When I come back from me travels ,,I find the place in ruins ,,,,AND a country which to be honest is moving more and more away from the country I grew up in and like ....( I battered my head trying to do something ,,and will continue ...)
Things ( basics ) such as health, education , and electricity SHOULD NOT be in the HANDS of a PROFIT MAKING entity ( Since when is education a profit generating industry ...its an investment in your own country ,,, like a company training its staff,,,)
I am Ranting now arnt I ,,,,,,sorry ,,I think I will have to return you all to your regular sheduled programme........

BUT <<<<<<
Ye goverment has a responsability to the people AND the people have a responsability To themselves. AND TO others, to Produce a society in which ALL members have an Equal chance/oppertunity... to lead productive happy lives ...( sounds like a bit of wank ,,but no we are only here once so theres no point in living like shit ,,in the mean time ,,,,when its possible to change it )

For example ...ACC ...to return to the no fault system we had ...as far as I know would require a tax increase of ..... a couple of cents..( I think 1 cent in the dollar ) ,,,,,..I think I could live with that ,,,,

Stephen ...signing off before I enithatize 200 odd people with boredom ....

BTW
Lazy buggers should have a 3 week induction course in the army with regular refresher courses ...and SHOT ,,,if they use the phrase ,,Shee ll be right ,,,mate ,, ( hate that phrase ,,,,)

[Fart]

Rogernomics is what fixed muldoonism - its still used today (but just dont tell anyone).

Rogernomics is anti-planned economy - it supports free market enterprise with socialist reform (new labour).

Muldoon's "Think Big" project and his economic policies cost NZ tens of billions of dollars in which we are still paying off today and will do so for generations to come. NZ had no choice after Muldoon with our huge Trade deficit and large overseas debt, but to re-structure. Rogernomics was a strategy to restructure our economy through privatisation to relieve some of that debt and to free up our economy and our market.

Nz is experience economic growth today for the last three years is because of Rogernomics. If Rogernomics was not implemented, I doubt we will see a properous NZ we are experiencing today. We sacrifice short term pain for long term growth.

[TwoSeven]

New zealand is also in a unique position at the moment, because the value of our currency is dictated by money supply controlled by the reserve bank.

Money supply is dictated by exports minus imports. That is the demand for our currency minus our demand for foreign currency (what we sell less what we buy).

Inflation is the demand for our money. The reserve bank act means that inflation has to be between 0% and 3% (currently its 2.5%) of GDP (exports-imports).

Inflation is good, because it means there is demand for our products we make (people have to buy our currency to then buy our goods). Demand for a fixed resource (money) dictates its price (value of that money). Hence, when the Reserve bank reduces the supply of money, inflation increases and prices go up, this reduces the demand for our goods and exports drop.

The reverse also happens, the reserve bank increases money supply which reduces demand (as everyone finds it easier to buy our currency), the value of the money drops and so does inflation - however, exports then increase.

The main way for new zealand to get richer is for everyone to get off their collective asses and become more efficient (in both technology and production). It means we can skim more of the profit off. Also, stop borrowing (mortages, credit cards etc). When we borrow, it means we have to buy foreign currency to finance that borrowing - when we take out a mortgage, the bank has to borrow from its reserve banks currency account to finance the loan, the reserve bank then has to sell new zealand dollars at the going rate in order to finance the loan, in order to get a good rate it has to decrease money supply which increases inflation and makes everything more expensive - if our current account wasnt in such a bad shape and we all didnt owe money, we'd all be filthy rich.

[MikeL]

if our current account wasnt in such a bad shape and we all didnt owe money, we'd all be filthy rich.

And if we didn't think that economics was the most important thing in life, we could even be happy...

[DingDong]

Wrong Wayn. The Labour Party caucus works through by way of the democratic process. In other words policy of the party is delivered by the caucus majority. Douglas had the majority of votes for his reforms by way of Prebble, Moore, Clarke, Caygill etc. In the later stages of the fifth Labour Government Lange was many times presented with a fait accompli. He had lost control of his caucus.

Act has never suggested raising the tax of the wealthy.

Skyryder

I know how caucus works, democratic process chaired by that party leader who has no influence on what happens...? thats crap.
Douglas's idea was ripped to threads and flipped upside down and past on...
PM lost control, yes he did didnt he... wonder why??????
I didnt suggest ACT did anything... perhaps I should have explained better, I was thinking of going through my text books just to set it straight, nah... It was just my opinion, and thats yours... besides I've read those things enough already.

[Winston001]

More good stuff. We face an odd dichotomy. We are both a wealthy country - and poor. Wealthy compared to most of the world, but poor compared to Europe, USA, and Australia. And unfortunately human nature is that we look at those who have more and become envious. We don't look at Nigeria or Fiji and say "poor bastards, aren't we lucky".

In fact we have first rate health and education. But some other countries have a bit more so we become dissatisfied. We also have sod-all natural resources to plunder, unlike Australia. When they have a recession, they just dig out some more coal/copper/uranium/etc.

We instead have to sell whatever we can to the world so we can buy their medicines, books, computer software etc. And what we are particularly good at is agriculture. Not sexy or a vote buyer, but true. But this leaves us vulnerable to world commodity prices.

Ideally NZ would also exclusively make and export expensive widgets which every millionaire on the planet wanted. And needed new ones every 6 months.
So have a look in your garage - you never know what might be there.

[Fart]

The Nz economy is currently in very good shape. We have had good domestic and export growth for the last 4 years out pacing most OECD nations. The strength of our economy is clearly indicated in the strength of our $NZ and our interest rate. The high global commodity prices is reflected in our primary sector export, which in turn boost the entire NZ economy. The key is can we sustain this growth without creating a boom and bust cycle.

[Skyryder]

I know how caucus works, democratic process chaired by that party leader who has no influence on what happens...? thats crap.
Douglas's idea was ripped to threads and flipped upside down and past on...
PM lost control, yes he did didnt he... wonder why??????
I didnt suggest ACT did anything... perhaps I should have explained better, I was thinking of going through my text books just to set it straight, nah... It was just my opinion, and thats yours... besides I've read those things enough already.

I have no idea what your textbooks say but some time ago Lange was being interviewd on TV about his time as PM. One of the things (the only one now) that I remember him saying was that 'Rodger' had the numbers in caucus to implement his reforms. And that he was more often than not taken by surprise. Now I don't know if you have any contacts in political circles but if so check out Trevor de Cleenes role in all of this. He was Douglas's hatchet man at the time. The enforcer in modern parlanece.



Skyryder