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  1. I’m not sure you are on the right side of the argument on this one. They want to redevelop 2800 existing homes into 7000 homes. We can’t continue to criticize the Government for a shortage of housing if we don’t let them increase the housing stock with initatives like this.

    I think a lot of New Zealanders who pay rent and mortgages are looking at Niki’s case and are not seeing a victim of a right wing government, but an egregious example of why the entire social security system needs to be rolled back.

    1. Hi JL073.

      Alan Blinder wrote in his book called Asking About Prices, “Wouldn’t it be nice to know? The factual basis for theories of price stickiness” in chapter 4

      – The overwhelmingly bad news here ((for your supply side issues) and for economic theory)) is that,apparently, only 11 percent of GDP is produced under conditions of rising marginal costs.

      – many more companies state that they have falling, rather than rising marginal cost curves.

      The answers in Alan Blinders book paint an image of cost structures of the typical firm that is very different from the one you claim to effect the New Zealand housing market.

      It is a capital mistake to theorize before one has data. – Sir Arthur Conan Doyle

      1. I’m sorry but I don’t understand your premise.
        There is a shortage of housing in Auckland. I believe the Government has a responsibility to provide more housing. They have launched an initiative to replace 2800 houses with 7000 houses. By opposing the initiative we are entrenching the housing shortage and affordability problems. I’m sorry that Niki has to move, but it’s a state house and not hers.

        1. [Comment deleted. You make good points, Sam, but it is lost in the poor ‘delivery’. Please re-phrase without the ad hominem. Thank you. – Scarletmod]

          1. Its dichotomy where youve got direct forign investment locally and a draw down nation wide, im not bullish on this move at all because it dosnt effect macro problems.

            So i sudbivide a whole bunch of sections assuming i can fit twice as many low income families in, in an enviroment of falling marginal costs.

            So the wealth that appears will evaporate just as fast as it appears and you can apply that to interest rates.

            In the 80’s intrest was about 17% and has fallen to about 1% which made foriegn investment attractive. We’ve still got a bit of room before we hit zero but the wealth we generated will evaporate just as fast as it appears.

            To live in a world of rising interest rates requirse direct government spending.

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