Economics 101
The National party assures us that their proposed tax cuts are funded in a way that is not inflationary. But according to a number of economists, the income streams they are counting on to fund the tax cuts do not exist. National will have to cut core services.
Tax cuts are inherently inflationary. Once the tax cuts are realized, National has no control over how the money is spent. As the money supply increases, that is the amount of money in circulation, inflationary pressures arise. Not only do National not have the money to fund their proposed tax cuts, any gains to the taxpayer will be quickly given back by rising inflation. And cuts to core services may mean that things like access to health care are adversely affected. Whether the tax cuts are funded in a non-inflationary way or not is irrelevant. The real inflationary pressure occurs when the money is spent. National has no control over that.
Poor old Adrienne Orr must be tearing his hair out listening to Christopher Luxon and Nicola Willis. For all their right wing think tank expertise, they appear to have a scant understanding of monetary policy. As one former Secretary to the Treasury once commented to me;
"If only politicians understood the basics of Economics 101, we would be a lot better off". These tax cuts would not make the country better off.
Worst Xmas ever?
There's a a lot of planning that goes into Christmas day and sometimes things just don't go to plan. But it can be a good thing - a family mishap or hilarious memory that you can laugh about in Christmases to come.
Whether you burnt the dinner or were stranded at an airport...
Share your Christmas mishaps below!
Suellen’s sweet Christmas tradition
The festive season is always a great excuse to indulge your sweet tooth, and this time of year poses the perfect opportunity to bring a real showstopper to the Christmas table.
For Suellen’s family, that showstopper is Croquembouche, an impressive tower of cream puffs bound together with spun sugar that is popular at weddings in France and Italy.
What began as a birthday treat at a local French café has become a cherished Christmas tradition for Suellen and her 17-year-old twin granddaughters, Ellie and Sadie. Every year, the trio gather in Suellen’s apartment at William Sanders Village to cook this festive dessert - a holiday highlight they all treasure.
Click read more for the recipe.
Poll: Would you rather: Christmas in summer forever or winter forever?
Just a bit of a fun poll to get you thinking.
If you had to live out your Christmas days, would you prefer it was a summer Christmas or a winter Christmas?
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61.7% Summer
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36.6% Winter
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1.7% Other - I'll share below
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