Chlöe Swarbrick is right to denounce Reserve Bank Governor’s manufactured recession
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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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.
Spoken like a true follower of Putin and his warped idea of manliness
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 .
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.
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
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?
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
@ Tarquin Quintan,
“Who has rooted and divided a once united country …”
Have you forgotten John Key and Bill English already?
“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.
Bones.Pike River,never forgot.