Trump - The never ending thread...

[husaberg]

Treasury seem to view it as one of the major drivers.

As far as I can see that article was not written by the Treasury department.


it even says it doesn't reflect the view on the NZ Treasury department.

The economists looked at spending and inflation data and created models to look at which parts of that inflation were driven by demand and which parts were driven by supply.
The research was the work of Treasury economists, but did not represent the official view of the Treasury.

most of the article is a sound bite for Nicola willis
https://www.nzherald.co.nz/nz/politi...FI5YN2A4ERZWY/

[TheDemonLord]

As far as I can see that article was not written by the Treasury department.

it even says it doesn't reflect the view on the NZ Treasury department.

most of the article is a sound bite for Nicola willis
https://www.nzherald.co.nz/nz/politi...FI5YN2A4ERZWY/

National: The Sky is Blue
Labour: Whilst our experts have advise the Sky is Blue, it is the official position of the Government that they Sky, is in fact, Pink.

[onearmedbandit]

Pointing out that the article wasn't written by the Treasury Department does not mean government spending has no affect on inflation. It's well accepted in economic circles that it is one of the primary factors (fiscal policy). That was just the first response I got on google.

[husaberg]

Pointing out that the article wasn't written by the Treasury Department does not mean government spending has no affect on inflation. It's well accepted in economic circles that it is one of the primary factors (fiscal policy). That was just the first response I got on google.

Yes but pointing out "what you claimed was the viewpoint of treasury" when in fact was clearly not, makes your point that "treasury seem to view it "completely nonfactual.
You would have known this if you read the entire article.

[onearmedbandit]

Yes but pointing out "what you claimed was the viewpoint of treasury" when in fact was clearly not, makes your point that "treasury seem to view it "completely nonfactual.
You would have known this if you read the entire article.

Yup, I did misspeak on that, my bad. It should be obvious I didn't read the article as I used a screenshot of the google search, otherwise I would've linked the article directly. Regardless of my error in saying "Treasury" when I should've said "treasury economists" the point remains. Me misquoting something doesn't make the fact not a fact.

[sugilite:Me]

National: The Sky is Blue
Labour: Whilst our experts have advise the Sky is Blue, it is the official position of the Government that they Sky, is in fact, Pink.

How about a real world example. 2017 - NIWA these rivers are polluted and not swimable. National - we just lowered the standard and they are now swimable, hurrah!

Sent from my CPH2499 using Tapatalk

[TheDemonLord]

How about a real world example. 2017 - NIWA these rivers are polluted and not swimable. National - we just lowered the standard and they are now swimable, hurrah!

Sent from my CPH2499 using Tapatalk

Is this what you are referring to

It is still touger than the EU regulations on E.Coli specifically and given the officiousness of the EU - that suggests it is more than safe).

This will sound callous - but when I hear Kiwis complain about swimmable waters, it sounds like someone complaining that they have paired the wrong Cavier with the wrong Champagne.

[1/32 man]

Doing a bit of a Deeeman here....couldnt see much reference to Government spending causing inflation but I only looked at two links.



Inflation: What Causes It, and When Will it Subside? – AIER

aier.org
https://www.aier.org
American Institute for Economic Research - Since 1933. AIER Daily Economy News - Integrity, Research, and Principle.
‎AIER Events · ‎About AIER · ‎Donate Today
Causes of Inflation | Explainer | Education | RBA
More jobs and higher wages increase household incomes and lead to a rise in consumer spending, further increasing aggregate demand and the scope for firms to increase the prices of their goods and services. When this happens across a large number of businesses and sectors, this leads to an increase in inflation.

What is the main cause of inflation in NZ?
In general, inflation occurs when demand for goods and services in the economy is outpacing supply. This leads to widespread shortages of labour and materials. For example, when lots of people want to build a house, it becomes hard to source materials and construction workers, so building costs increase.16 Oct 2024

[TheDemonLord]

Doing a bit of a Deeeman here....couldnt see much reference to Government spending causing inflation but I only looked at two links.



Inflation: What Causes It, and When Will it Subside? – AIER

aier.org
https://www.aier.org
American Institute for Economic Research - Since 1933. AIER Daily Economy News - Integrity, Research, and Principle.
‎AIER Events · ‎About AIER · ‎Donate Today
Causes of Inflation | Explainer | Education | RBA
More jobs and higher wages increase household incomes and lead to a rise in consumer spending, further increasing aggregate demand and the scope for firms to increase the prices of their goods and services. When this happens across a large number of businesses and sectors, this leads to an increase in inflation.

What is the main cause of inflation in NZ?
In general, inflation occurs when demand for goods and services in the economy is outpacing supply. This leads to widespread shortages of labour and materials. For example, when lots of people want to build a house, it becomes hard to source materials and construction workers, so building costs increase.16 Oct 2024

All of that is correct, but it is missing the initial cause - what causes demand for goods and services to increase...

There are some non-governmental factors that can cause this, but the biggest one is the Government printing money to pay for things it otherwise couldn't afford which leads to the increase in demand (and then the rest of your statement is correct)

[pritch]

As far as I can see that article was not written by the Treasury department.
it even says it doesn't reflect the view on the NZ Treasury department.

But the comment is basically correct. During the post Covid inflation there were repeated accusations that US corporations were using the inflation as an excuse to boost their profits. It'd be surprising if companies here were not doing that too.

So basically you are all right.

[sugilite:Me]

Let's not forget the greedy companies that see the word inflation being reported and then go weeeeee and Jack their prices.

Sent from my CPH2499 using Tapatalk

[TheDemonLord]

Let's not forget the greedy companies that see the word inflation being reported and then go weeeeee and Jack their prices.

Sent from my CPH2499 using Tapatalk

Almost like their costs go up and they have to adjust for it....

[sugilite:Me]

Almost like you deliberately misinterpret my meaning for the sake of being argumentative.
But just in case you are either in toddler mode or naive Nancy mode - yes, some companies do need to adjust and many dishonest ones gouge biggly. The word "greedy" did cover that, so im going with you being in toddler mode

Sent from my CPH2499 using Tapatalk

[TheDemonLord]

Almost like you deliberately misinterpret my meaning for the sake of being argumentative.
But just in case you are either in toddler mode or naive Nancy mode - yes, some companies do need to adjust and many dishonest ones gouge biggly. The word "greedy" did cover that, so im going with you being in toddler mode

Sent from my CPH2499 using Tapatalk

Not necessarily.

When you run a small business, changing your prices might be as simple and as cheap as 5 minutes with a marker.

When you run a much larger business, changing your prices can be a multi-million dollar effort.

Not to mention public perception issues around prices continually going up (this thread serving as poignant evidence)

Therefore do you:

1: Do a small raise, in-line with current inflation, but risking having to either do a subsequent raise if things continue OR
2: Do a single Big raise, based on projections, negating the above two factors.

That all said - I find this whole argument academic - why is the ire not directed at the Government that caused the issue in the first place.

[F5 Dave]

Hey some of those greedy corporations have a wife and kid, and hungry Trust fund to feed.