Showing posts with label 2023 General Election. Show all posts
Showing posts with label 2023 General Election. Show all posts

13 October 2023

2023 General Election what you wont hear

What's the most tedious element of this year's general election is the complete failure of pretty much all politicians to admit to what they can't do.

Child poverty is not and cannot be eliminated by government. Because an element of child poverty is about the poor choices a small proportion of people make as parents. A small number of parents (the left pretends it is zero, some on the right try to conflate this with all on welfare) are at best useless, at worst malign and unfit to be parents. Oranga Tamariki exists because there are people who abuse their children and neglect them, but no quantity of money thrown at people in poverty will eliminate it.  I'd argue the best solution to poverty is to get out of the way of people finding ways out of poverty, through employment and entrepreneurship and most of all, allow more housing to be built.  The barriers to all of this are the fault of governments, central and local, and this is what politicians should focus on.

Poverty doesn't exist because some people are wealth or on high incomes. As with parents, a very small number of wealthy people are so because they cheated or defrauded people, but by and large it is a mixture of hard work, entrepreneurship, opportunity and chance, and more than a few people have been wealthy and lost most or all of it.  The narrative from the left that because some people are rich, that means they took it from the poor is nonsense.  However, government can unjustly enrich people through protecting their businesses from competition, from printing money to inflate asset prices that government then constrains the supply of (see housing), from paying contractors or staff to undertake government work at taxpayers' expense, regardless of the cost.  Removing barriers to competition, ending monetary incontinence and reducing the role of the state generally will reduce all of this.  

Tax cuts don't take money from anyone, they take money from the capacity of politicians to spend other people's money.  You can make assumptions about what they wont spend the money on, but whoever or whatever it was meant to be for, is not taking money from people "in the future". It wasn't their money in the first place, and for more and more people, if their taxes are too high, they'll just go somewhere else.  That's when you get to the Berlin Wall theory of taking from the People - that successful people emigrating is stealing from the people you wanted to give their taxes to.  It's just nonsense.

There is always going to be a crisis in healthcare as it gets rationed by queuing and political/bureaucratic decisions. This is a feature of public healthcare systems that are taxpayer funded. Politicians can pretend they can "fix" this, but as long as the health professionals know they can get public sympathy for politicians to force people to pay them more, to deliver the same, and there is no discipline on what is and is not delivered by those who pay, it will continuously fail to deliver. What can be done is to more closely link what consumers want with what they get, including services tailored for them. This is why Maori health providers can be critically important if they deliver what consumers want, but it is also why this shouldn't be determined by a single Wellington based bureaucracy (or two in fact).  If you want universal healthcare, you're not going to deliver everything everyone needs when they need it, there are going to be compromises, and those compromises better be based on need.

Education of children isn't "one size fits all" and a Minister and a Wellington bureaucracy cannot know what is best in terms of techniques and content to teach all children everywhere. Education fails, in part, because of failing parents, some because of neglect some because they don't know what to do, so linking education to what parents want is critical to improving it for children.  Teaching unions, which primarily exist to benefit themselves and their members, have no monopoly on what is best for children, because their first interest, as in all lobby groups, is what is best for their members. Education needs to break out of being captured by producers and by bureaucratic conceit.  One side of politics thinks the producers should decide, the other side thinks it can decide, both are wrong.

Housing is a disaster and they are all to blame, but local government is to blame the most.  Look internationally (not Australia and the UK which have the same disease) and NZ's housing costs are insane. Nobody is willing to embrace the fundamental reform needed to fix this long-term problem, which requires treating planning on a property rights approach, liberalising building laws and liberalising immigration of those who will build.  It requires local government to get out of the way, and although the state can build more homes, it's simply nonsense to claim that this is the dominant answer.  ACT is closest to the right answer, but ACT is compromised because David Seymour wants to appease NIMBYs in Epsom (and likely Tamaki too).

Finally, the economy matters and it is economic growth (which some of the Greens reject as a concept) that enables more of everything. It enables more housing, better infrastructure, access to more technology and pharmaceuticals and expertise in healthcare, wider education and a better standard of living.  Government is an enabler of this only to the extent it provides a safe, secure and confident environment to invest, whether it be through law and order, property rights and a low, simple, easy to understand tax system.  

If you think politicians know best how to spend your money, then you're either admitting your own lack of intelligence or you're imbuing them with knowledge (and knowledge from public servants) to do this.  Few politicians have been great successes in their own lives in creating wealth for them and their families and others, and even fewer public servants have been. If politicians allow you to keep more of your money through tax cuts, then you too have choices how you spend that. If you are worried about poverty, then don't wait for a politician to tax you more and hope it will get to someone in need, donate your own money, property and time to helping people directly through a charity or even personally.

So if you choose to vote,  think about what most politicians aren't telling you. Many aren't admitting that they don't generate most of the wealth in the economy, that they money they spend is actually yours and that of millions of others, and that the more they spend, the more they have to take from you or (in many cases) your children and their children. You can pick politicians who say they'll make things better with more of your or other people's money, or give you something "free" which involves taking it from you or other people in the first place.  Most politicians are in this group.  Or you can pick those who want to get out of your way, and will focus on what government ought to focus on. Law and order, protecting individual and property right, and enabling others to maintain, upgrade and develop the infrastructure, services and economy that makes people better off.

New Zealand remains relatively poor per capita compared to most developed countries, and is only just above former eastern European communist dictatorships.  Those trying to sell you Scandinavian standards of living and public service without commensurate economies are lying to you.  


Hardly anyone talks about productivity, that to pay people more to do the same, means there is less money to invest, less money for producing or consuming other goods and services. Nothing is for free. If the government changes it wont be 1984-1993 Douglas/Caygill/Richardson redux, as if half the population even know what that was anymore. It might tinker a little to stop the slide getting worse. However if it stays the same with a lurch to the hard-left, it will just worsen a bit faster.  What might worsen more is the growing culture of entitlement and belief that society is made up of the oppressors and the oppressed, and the only solution to this is to do the same, in reverse.  For that is the underlying philosophy of the Greens and Te Pati Maori (and the bulk of Labour), who only see people through the eyes of Orwellian intersectionalism. 

Unfortunately, the record of National, for almost every time it has ever been in government, is not to reverse anything philosophically, but to say it is better at "delivering".  The reason being is that too many of you keep wanting a government to deliver, rather than letting you take more charge of your own life and charge of what you want to do for your family, community and society.  I can only hope that maybe some semblance of a different approach might come out after Saturday, but I'm not holding my breath.

05 February 2023

Bribing voters with their kids' money (and undermining your own policy objectives)

As a libertarian when a government cuts taxes I am pleased, even ones that are purportedly a user fee, because in fact so much of what is collected from those user fees is not directed to services consumed by the users - in this case fuel tax and road user charges.  It would, after all, be much better if the amount collected was what is needed to pay to maintain and upgrade the roads, rather than be directed to pet projects designed to "change behaviour" (subsidise transport modes you aren't willing to pay to use),.

However, it reeks of hypocrisy, as the Ardern/Hipkins Government proceeds to undermine a land transport funding system that once was seen as a shining example in a world where political pork barrelling is so often the order of the day (see Australia and the United States).  It's much more than that though.

Remember the "most transparent government ever"? Remember the commitment to (reducing) child poverty? Remember the belief that New Zealand taking action on climate change is meant to be a demonstrable commitment to values of environmental protection?

It's all bullshit of course.

Remember when Jacinda Ardern said tax cuts would STOP not cut, but stop investment (!) in health and education? This was when National proposed just to raise income tax thresholds, so inflation and wage rises wouldn't result in fiscal creep (when your increases in pay, to offset inflation) putting you into higher tax brackets.  

Remember when National proposed a cut in fuel excise, but Jacinda Ardern said it would mean the roads would fall apart?

"It maintains our roads and it builds our transport projects so if you were to remove excise, which every government has used, you basically remove your ability to maintain roads and build new roading projects," she told AM. 

It's all bullshit of course, because Labour did just that, it cut fuel excise and road user charges, and is paying for it by using "funds set aside for Covid" which are actually borrowings that are unspent.

Prime Minister Chris Hipkins is maintaining these cuts in tax through till the end of June 2023, not because fuel prices are high (they have been dropping for months), but because, he says, it relieves pressure on households.

Well it does, particularly higher income households. Infometrics research indicates that the highest income households save three times as much as lower income households.  That makes sense, as they pay the most fuel tax, because they drive the most and are likely to have the largest vehicles with the highest fuel consumption, but remember this is the Government that decried tax cuts "for the rich". 

Apparently it's ok to cut taxes for those that earn the most.... if Labour does it.

Transport Minister Michael Wood even said on Newstalk ZB that the tax cut was an "investment". Here's a clue, almost every single time a politician says something, that involves your money, is an "investment", it's a lie, because you'll never get anything back from it. In this case, Wood, known as a leftie in the Labour caucus, has helped us all out...

I agree with him, tax cuts are an investment - an investment in believing people know best how to spend their own money.  It was theirs in the first place. 

What's particularly hilarious is the contortion of the tax cut.  Ignore James Shaw bloviating that it is subsidising fossil fuels

It's bullshit.

For a start, it is cutting a tax, not subsidising the market price of fuel, secondly it is just one "fuel". Diesel doesn't carry excise tax, as diesel vehicles pay per kilometre to use the roads.  New Zealanders are still pay the market price for fuel, plus (for petrol) some fuel tax and GST.  However, you can rely on the Greens to exaggerate for hysterical effect.

After all fuel tax and road user charges do not raise money for general spending, but for the National Land Transport Fund, so that Waka Kotahi can spend money on roads, subsidising public transport and now Kiwirail and coastal shipping.  They are effectively user charges so there is some user pays, although it's worth noting what this government spends the money on, and how far it has undermined the system that was once deemed best practice by the World Bank.

(From the 2021-2024 National Land Transport Programme)

69% of spending is on roads, the remainder is mostly spent on subsidising public transport and Kiwirail (26%), 4% on upgrading footpaths and cycleways and the remainder on administration and subsidies for coastal shipping.

Setting aside the 20% which actually isn't spent by the government, but comes from local government rates (on average half of spending on local roads and a bit less of public transport is from local government), 56% comes from road use fees in the form of tax on petrol, and road user charges on diesel powered vehicles, plus motor vehicle registration/licensing fees. 24% already comes from general taxes (either current or future).

By cutting fuel tax and RUC, Labour is substantially raising the proportion of money derived from borrowing from future general taxpayers, to around the same as fuel tax and RUC.  

Labour is now subsidising roads more than any government for decades.  Of course it is subsidising public transport like no government ever before, to the point that public transport users are now paying, on average, only around a quarter of the cost of paying for the bus driver and the diesel and maintaining the bus (or train). 

This is the same government that has an explicit target of cutting on average, 30% fewer km every year (50% if you live in a city) because it isn't just about climate change, it wants to mould you into a green citizen, that walks and bikes for most short journeys, rides public transport whenever it is available and just drive less. It's a centrally planned and controlled vision that doesn't respect people making the "wrong" choices, it is also supported by cutting speed limits, because it isn't just about safety, it happens to make driving less attractive compared to slower modes of transport.

However, Labour is now subsidising road use, and that includes road freight (note rail and shipping operators don't get any cut in fuel tax or road user charges, because they don't pay any, but they get subsidised anyway by other means).

So you have a Labour Government that says tax cuts (proposed by National and ACT) will threaten health and education.... but then implements tax cuts, completely blanking out the fact that this either means less money for other spending or it means more borrowing - for tax cuts.  How "sustainable" is that?

It says tax cuts will benefit the rich the most, and then implements tax cuts that do just that.

It says cutting fuel tax will jeopardise spending on transport, and then implements tax cuts on fuel.

Finally, it claims climate change is the great crisis that especially needs New Zealand, the country that emits 0.09% of global CO2 emissions  must radically change how it lives, by constraining private motoring, but then subsidises road use like no government in recent history.

Votes are much more precious that policy objectives though, as is leaving a fiscal bomb for the other side if the election is lost, although if it were up to me, the next government could think long and hard about whether it subsidises public transport and rail from general taxes anyway (assuming it wants to do that), and leaving fuel tax and RUC for roads only.