AM host Ryan Bridge has hit back at Green MP Chlöe Swarbrick for her criticism of the Reserve Bank (RBNZ), amid questions over its handling of the economy.
The issue of the RBNZ’s plan to tackle accelerating inflation came up again this week when Governor Adrian Orr said it was raising the official cash rate by 75 basis points to 4.25 percent – the biggest jump on record. Orr later admitted the RBNZ was purposely engineering a recession to slow spending and bring inflation under control.
Swarbrick responded to Orr’s admission by accusing the RBNZ of sacrificing the “lowest income New Zealanders at the alter of economic orthodoxy”.
Let’s be very clear, Chloe is 100% right and Ryan is 100% wrong!
After causing the largest wealth transfer to the richest in NZs history, after giving rich prick property speculators a 1 Trillion dollar wealth grab, the plan to dampen down on the inflation this has caused is for an unelected technocrat to engineer a recession to throw 120 000 jobs onto the scrap heap?
Or put another way by Chloe, “sacrificing the lowest income New Zealanders at the alter of economic orthodoxy”.
Ryan throws his hands up in the air and cries ‘but what else is to be done’ because Ryan isn’t one of those about to have their job crushed by an unelected technocrat.
It seems unbelievable that all these ‘experts’ have is basic bitch economic orthodoxy to fall back on when it is clear we are in a unique crisis of capitalism.
Of course juicing the economy with $51 billion in the height of a once in a century pandemic was going to generate an inflation tsunami, how do we deal with that equitably should be the question.
Dumping 120 000 jobs is not a solution, that’s an amputation.
We need to be working on how we adjust parameters and social welfare to ensure those people aren’t simply sacrificed to the Market while the richest benefited with a 1Trillion dollar wealth jump.
Chloe is absolutely righteous in denouncing this madness.
If you lose your job now, you have a place to put that blame and in such a radicalised environment, Orr has painted an enormous target on the State’s back.
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Adrian Orr just had his own work contract renewed for another five years – by Grant Robertson.
Yes the situation caused by Government now being shifted to Orr.
That’s funny Bob, all your mates at NACT blame him and don’t want to reappoint him
Do you think it was a wise decision to give Orr another 5 years Wheely?
Australia is about to shit can their Reserve Bank Governor for similar decisions.
Orr has done brilliantly. Responsible for the drop in house prices and set to drop even further. That’s what everyone demanding fair home ownership wanted right?
Hardly surprising Orr got 5 more years.
Frank I think Orr is the same as just about every central banker and most of the politicians in the main political parties. The likes of Luxon blame Orr and then in same breath want to give tax cuts that will fuel inflation. He knew for months that the cash rate was going to go up but kept his position on tax so as not to do yet another walk back on an idea. Now he tries to appear like the last rate rise was a surprise as a convenient excuse to temporarily appear like he’s not there to look after the well off.
Lol that’s right
who benefits from austerity? as always ‘follow the money’
gagarin the poor will be hardest hit as I’ve said on this blog many times.
I think Chloe Swarbrick is disingenuous by blaming others but offering no alternatives and she’s an MP.
The alternative is on display in Zimbabwe and Venezuela. Hyper inflation – Orr knows it as does even Robertson.
Previous posters are correct this is all of Orr’s and Robertson’s making. So keen were they to avoid a recession during covidcult they impregnated the domestic economy with debt-fueled consumer spending. The proverbial can was kicked down the road to the end of the cul-de-sac. Now there is nowhere else to kick.
Wait till the economic ponzi housing scheme tips over early next year.
Then the real fun starts.
I’m pretty sure that hyper inflation was caused by economic sanctions against Zimbabwe and Venezuela. But hey, you keep using those examples.
Very well said Frank.
Austerity measures usually benefit the richest people. If you look at events where austerity measures have been in place, for example Britain in the Second World War, after the victory the Royal Family became wealthier whereas most other people did not. You see, they owned the palaces, castles and Manor homes which were attractive places to visit and usually accompanied with vast tracts of land.
This lasted until the seventies where inflationary pressures affected their wealth and indeed the financial lives of all of the nation. This is what is happening today too.
If we implement ‘austerity measures’ which is what Adrian Orr is doing in a sense by hiking interest rates and attempting to curb spending over Christmas, we are threatened with the risk of a recession. Then what happens? Well, traditionally the government of the day would look at selling assets to shore up their account books and they would need to raise taxes for a time.
This is why I am opposed to hiking interest rates at this rate.
I mean I don’t agree with Orr. But Chloe was part of the very government that put us in this situation, alongside the supply chain and Ukraine war issues. She’s just as responsible for the domestic side inflation as anyone in the Lab/NZF/Grn gvmt.
True and what’s worse she doesn’t realise.
She’s there to criticise only not offer anything constructive.
Spoken like a true follower of Putin and his warped idea of manliness
@ MB. You write:
“It seems unbelievable that all these ‘experts’ have is basic bitch economic orthodoxy to fall back on when it is clear we are in a unique crisis of capitalism.”
We are a ‘unique crisis of capitalism’ alright and it’s not why you think. Our particular crisis of capitalism is unique because of why and how the economy as defined by the crisis. And in a crisis, any crisis will do.
The crisis is agrarian. Yes, that’s right all you farmer haters. It’s agrarian but more specifically a crisis of their money. You see… our economy is born of farmers farming. Boy, I bet most of you just fucking hate that, don’t you? You will hate that, that farmer money put that latte in your cup in that cafe on Ponsonby Road. You hate farmers don’t you? Yes, you do but you love their money. It’s cheap, easy got and all you have to do to pocket it, it is to slide into a suit, drive to work in your Audi, fuck about pointlessly, drive home again and in a fortnight’s time when you check your bank account there’s another $6 k of your salary package. Or more. A lot more.
And it’s that a lot more that adrian orr is desperately trying to hide. That’s why any catastrophe will do. C-19? Great. Global heating, abortion, race issues, crime, rugby etc. Any loopy excuse to enact an MSM psy ops manoeuvre to hide the reality that farmers earn our money then it’s immediately, politely and legally swiped before our farmers see it land ashore. Aye Boys?
Chloe Swarbrick could re invent Aotearoa/ New Zealand into the Utopia it should have been spanning the last 140 years. Not this shit. Poverty, hardship, a bland, bleak little few islands where the hardship of the hoi polloi is a novel distraction from the criminal over-class lording it over everyone and everything. Aye Boys?
Graham Hart. Aw bless. Such a nice Boy.
https://www.stuff.co.nz/business/128825629/you-can-smell-where-the-money-is-graeme-hart-and-his-innate-sense-of-commerce
Watch your back Chloe Swarbrick. They’ll be watching you very closely. As are we. We think you’re fucking fabulous.
Phoney.
Yes Bob you are a phoney, thank you.
Quite correct Countryboy. The new intelligent political blood simply scares the old boys brigade and they will dismiss Chloe because of their own lack of intellect.
C’mon Bertie – Chloe gets more than her fair share of media coverage. The feckless don’t have to agree with her all the time or even most of the time (neither do I).
On this issue she has an excellent point – it’s just that her (the Greens) answer will plow us into the realms of Hyperinflation.
Trouble is Frankie my boy, you mention Greens and Greens having an opinion on anything and the loopy right wing idiots flood this site. At no point Frankie my boy did I say Chloe didn’t get her share of media attention. If your worried of hyperinflation then be afraid of the National party and their leader. Most political pundits have warned what will happen with inflation( it will explode) should Luxon’s tax policy be implemented. Be afraid, be very afraid.
The approach of the government to the inflation problem is not clever and represents a lack of thought for those they are supposed to bat for those at the bottom These are he ones to feel the sharp knive first but they are less in a position to weather the storm. An increase in accomadation benefit will go as rent rise to take advantage of the increase a tax break would be better helping bth benefituries and pensioners getting interest .
” After causing the largest wealth transfer to the richest in NZs history, after giving rich prick property speculators a 1 Trillion dollar wealth grab, the plan to dampen down on the inflation this has caused is for an unelected technocrat to engineer a recession to throw 120 000 jobs onto the scrap heap? ”
Correct me if I am wrong because I did not watch it but I bet that fact above was not acknowledged by this AM show ?
Or ….
” We need to be working on how we adjust parameters and social welfare to ensure those people aren’t simply sacrificed to the Market while the richest benefited with a 1Trillion dollar wealth jump ”
Valid points that are simply not acknowledged by the corporate media which means they pay lip service to these actions by the neo liberal establishment and its consequences for many New Zealanders who are always the same victims of unregulated capitalism enforced by a Labour government.
I think the 1Trillion which was mostly on paper has shrunk quite a bit now. People who had invested in property, shares and bitcoin had superb increase in equity on paper, which is shrinking everyday. Only winners are people who cashed out at market peak last year, and losers who invested further last year. Hence, while it may seem huge wealth transfer has happened, the situation has rapidly changed and is still moving.
I thought it was the trading banks that poured large amounts of money into the housing market, not the RBNZ.
how does kiwis having less disposable income because of food gouging result in too much money chasing too few goods? shurely if people are buying less or cheaper and more on rapacious rents that’s a downward pressure at the sharp end or are kiwis suddenly eating twice as much food…the indication seems to be spending on non-essential items is stagnating..so in a low wage economy where are these inflationary pressures coming from?
any ‘economists’ fancy explaining that one
If you need to ask the question than you probably would not understand the answer
An answer such as yours means, either, you don’t know the answer, you do know the answer but don’t want to answer it, or don’t understand the question.
g’wan trev enlighten me.
Supply and demand. Why is fuel and food cheaper in the states than in New Zealand, on average? And their wages are low too for those in entry level positions, especially.
It’s because of supply and demand.
When the pandemic hit, our country missed out more than what we usually do. Our borders closed; people curtailed spending; employees stopped hiring temporarily. Supply dried up but demand did not. In fact demand for many products skyrocketed.
So, supply and demand, gagarin.
Employers* stopped hiring temporarily
It’s interesting. Adrian Orr feels as though he needs to manufacture a short term recession for the long term good of the economy. As usual, Chloe Swarbrick has an opinion but no expertise. She has a right to have an opinion, sure, but she is not in Orr’s position.
As for Adrian Orr, his argument is fundamentally wrong. Manufacturing a recession by hiking interest rates, as well as specifically requesting that people spend less this Christmas, will only cost jobs, not create them. I don’t think we ought to be losing jobs in this country at this particular time. I see where he’s coming from though. I would say, maybe review it in June 2023 instead of forging ahead now. If we have a recession before the 2023 general election as Orr is wanting, I believe that it unfairly favours the current government whereas if we wait until next year then a fair general election can take place and any planned recession would occur after the general election.
This is where the option of other forms of taxation comes into play. A wealth tax, for example, whether it be ongoing or a one-off levy, would spare hundreds of thousands of New Zealand citizens who would be worse off.
That’s the point. An interest rate rise is intended to suck money out of the economy. That reduces economic activity and therefore reduces jobs. There really is no other option. The government is not going to reduce spending, or at least its growth, not in election year. Neither are they going to say “no” to any state sector wage increases. So the RB Governor has to do all the heavy lifting.
In my experience, it is essential to take some tough decisions to reduce inflation’s impact. For instance, say to the state sector that there will be no wage increases for 12 months, and that the next one can’t be used as a catch up. That will reduce demand in the economy and therefore defeat inflation.
In my recollection, there has never been a Labour government that has successfully dealt with inflation. It is always an incoming National government that has to do it. So the first two years of an incoming government is always a bit hard. Though it won’t be as tough as 1991. Ruth Richardson did overshoot in her zeal to restrain expenditure. I don’t imagine an incoming Luxon led government (should that happen) would go that far. Even after 30 years, the Richardson approach is seen as being excessive.
Yes I do see your point here although a wealth tax would ease the burden on low to medium income earners. The transfer of wealth from Central government, essentially, to our richest citizens occurred during the pandemic and the poorest people lost jobs, tightened up financially, and there was more pressure on this Nation’s food banks and charities. Now we’re going to allow this same sequence of events to occur after the pandemic when were not printing money this time but trying to get it out of the economy now instead?
Yes, indeed the Richardson approach was excessive and heavily criticised because of that fact. I don’t think it would do anyone much good if we entered into a similar political era.
Grasp,breath.
Socialist
Welly.trade union people,them other calling our care else,Bill,Ken,who them.
That egit, how come his brain block intelect allowed to be aired.
well t glad you’ve mastered banging the keys with your fists how about something comprehensable next time.
It’s either a north korean bot, or one of bob the gimps inbred offspring
This has all been caused by rich prick spending, not the average joe bloggs but try get any of these politicians to do anything about it, its never going to happen. They get all their donations from rich pricks to keep it that way.
As usual its us nobodies down the bottom who will feel it the most.
This country is a joke.
What would you suggest to improve it? A wealth tax? That certainly is the most obvious option.
Where was Chloe when the government printed all that money to pay people to sit at home?
Where was Chloe when the farmers had to leave crops in the field because the government wouldn’t let in contract workers from the islands. Islands that didn’t have Covid?
She was there, cheering Labour on.
Where were the decent wages to make farm labouring worthwhile for kiwis? Where was the decent housing to support kiwis to relocate to the regions to provide their labour? Where?
Nowhere sinic, Andrew’s tribe went into hiding.
Evidence? Bill English promoting a low wage economy.
This after unprecedented minimum wage hikes?
All of which are inflationary
Even if the wages were decent, kiwis don’t want those jobs anymore. Too hard. Too much sweat. Too unglamorous. Too bad, immigrants will take them gladly.
andrew the money ‘printed’ didn’t enter the real economy it just boosted property prices and was shipped overseas so basically had little to no effect on the real coal face NZ economy
Where was Chloe when National received the National party’ dodgy donations?
https://www.stuff.co.nz/national/crime/130612127/businessmen-given-community-detention-for-unlawful-donations-to-national-party
Still waiting?
Yes she’s hardly righteous, she’s a crafty politician.
If we get a change of Government then we won’t have to be afraid,very afraid.
Ummm? Let me think?. . Who is in power? Who mandated the RB?… Who have allowed the poor to be poorer?.. who have allowed socialism to make the poor more reliant on Government? Who has allowed crime to expand unabated? Who has not fixed child poverty/housing…
FFS the list goes on…
Who has rooted and divided a once united country …
Stalinda, Horseface, Jacinda, Stabcinda, Jaxunta,.
Never in NZs history has one person’s inept ability caused so much disharmony!
And many ” mentally challenged” people here support her!… Shame on you.
As for Swabrick… If she had half a brain she’d be dangerous!
She is in government blaming Orr yet should be blaming Ardern for not stopping their own self inflicted ” economy,” disaster
Very well put Tarquin Quintan.Your summary is accurate.
@ Tarquin Quintan,
“Who has rooted and divided a once united country …”
Have you forgotten John Key and Bill English already?
They didn’t divide us?
“As for Swabrick… If she had half a brain she’d be dangerous!”
Well that’s 4 x more a brain than you weirdo.
Tarquin Quintan, it appears Covid has entered into your body and Trumps hydroxychloroquine is your remedy.
So many names for our P.M. To be mentally challenged you need a brain, lucky that most of us have one. You obviously fell out of the line when lining up for one.
What an appalling opinion an immature beyond imagination.
Good to see mature balanced comments by Tarquin,very refreshing,vastly better than a tirade of abuse.
I guess when both your vocabulary and argument are exceeded you revert to abuse.
Keep your comments coming Tarquin.
Bones.Pike River,never forgot.
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