City AM on the US "recovery"

With all the excitement of the "obvious" economic recovery in the US, and the farcical sleight of hand by the Obama Administration claiming it has "created job" by taking from Peter to pay Paul, City AM's Allister Heath has a more measured view...

America’s growth rebound is good news as far as it goes. But the bulk of the third quarter’s growth rate was attributable to car purchases, construction and state spending. I still believe in a global square-root shaped recovery: a growth spurt starting in the third quarter, followed by a lengthy period of stagnation as budget deficits are cut and consumers deleverage. We shall see.

Bearing in mind car purchases were driven in part by subsidies, construction likewise, about the only US state spending that may have a productive spin off is spending on infrastructure that the private sector is crowded out from that is starved (such as roads), but that alone wont offset the net deadweight sunk cost of all of the other state spending.

The Obama and the Bush Administration both gambled that to NOT print money and spend it would make things worse - the question is whether it has simply made it gentler but last much longer, and for the cost to be born not by those who participated in the riskiest activities, but by future generations of taxpayers who gain nothing from current non-capital based government spending.

So despite the hype, a substantial number will not believe the recession is over yet, for right now there may simply be a government (future taxpayer) funded bubble of speculation and demand, that will be spent in the not too distant future.

Socialism rules on water

or so you'd think from the Herald comments section on water privatisation.

Profits are evil, you shouldn't expect a return on money spent on assets, no of course not. I'm sure all those posting would work for a stipend to cover the costs of going to and from work wouldn't they?

Foreign companies are evil, not like New Zealand local government, it would never rip you off would it? Those people who can take your money by force, borrow money and make you pay it back by force. Yep nothing like government to look after you.

Foreign companies will price gouge and milk horrendous profits with privatisation. Even though this would seriously cut demand, and people would find alternatives (not easily mind you, but people can collect rainwater, bathe at pools, beaches or lakes, get watertanks, wash sparingly). Even though many rural water schemes today are falling apart because of gross underinvestment by councils. Blank all that out. Blank out the general public actually buying shares in water companies or even privatisation involving giving shares away. Real public ownership comes from politicians running things doesn't it?

Water is a "human right", which you need to infringe on the rights of others to provide. Funny how food is different. So if there is no water supply is someone having their human rights abused? Another bogus "right", bogus because it demands you force someone else to pay to make it happen - no genuine rights require anyone else to do anything, just let people be free.

Water is free, ignoring that it costs money to treat it, to pump it, to build and maintain pipes to reticulate it, and then to carry away the wastewater and treat it before ejecting it. Blank all that out.

"Electricity was privatised", just blank out the fact that 70% of the electricity market is held by three STATE owned enterprises (but leftwing hysteria is just catching).

The railways were "destroyed" even though a third of all railway lines were closed under state ownership, and when renationalised the railways were carrying record levels of freight on a per tonne km basis. Blank all that out, the myth is that something really valuable was destroyed and bought back for nothing - when in fact it was a business with a lot of sunk assets that needed to be fully depreciated, so it could focus on what it was good at. Another part of leftwing legend.

Finally, not one of the Marxist gits who post even consider that food, petrol, clothing and most housing are privately provided, most regarded as essential to most people, along with umpteen consumables like light bulbs, furniture, appliances etc. All by private companies, many foreign owned.

If you believed this showed what most New Zealanders thought you'd have good reason to understand why the GDP per capita of NZ is so absymal, being full of whinging non-entrepreneurial worshippers of the state, with a malignant view of economic incentives and overwhelming trust in government.

Who inculcates this hysterical hatred of private enterprise, belief business is just out to rip everyone off, overwhelming trust that state ownership makes things better and attitude of near class warfare about the provision of services that quite happily get done privately elsewhere?

Laws is wrong, but

he is expressing the frustration of those who see an underclass of violent, negligent and destructive people breeding, producing children who face a bleak and difficult future.

His solution as described in the Dominion Post is wrong. Damned if taxpayers should reward people for being indolent, otherwise it becomes a career option for the stupid - be sufficiently vile and threaten to breed and get someone else's money for nothing. It has been deliberately misconstrued as "totalitarian", as if people have a right to be appallingly bad parents, when the likes of Cindy Kiro (backed by Sue Bradford) did advocate a totalitarian solution, yet no mainstream media ever picked up on it.

However he has a point. A point that the Child Poverty (in)Action Group misses, because it worships at the altar of "higher benefits" rather than genuinely combating the lack of ambition and the feral behaviour of so many in poverty. Barnadoes Chief Executive Murray Edridge rightfully says any child could become a doctor but he is wrong in saying "as long as there was community support for them", as he implies that good parents are expendable. The truth is that they are not. Sue Bradford even trots out the usual "more resources" nonsense to combat violence.

No, you don't need money to stop killing your kids.

The fundamental problem is twofold.

Firstly, people are paid to breed. Many who are don't abuse their kids, but they inculcate a culture of entitlement. A belief that everyone owes them a living and should pay to raise their kids. However, you can be a murderer, rapist, violent criminal, burglar or fraudster and still be paid by the state to raise kids, and get more money with every child you have.

The first simple thing to do is to prohibit all people convicted of a serious violent or sexual offence from ever being able to claim welfare. That includes anything for raising children.

Oh, but what about the kids? Indeed, the parents should have thought of that. They are responsible for the children, they bear the burden of paying for that. If people want to help, they are free to do so voluntarily. However, taxpayers shouldn't be forced to pay for criminals to breed - simple as that. After that, you might ask whether taxpayers should be forced to pay for anyone to breed.

Secondly, the state needs to be willing to remove children from their parents when they abuse them or become an accessory to abuse of them. The threshold should be high, but effort should be put into intervening when there is clear evidence of criminal behaviour towards the children, or fundamental neglect. Indeed, it should be considered in sentencing whether criminals should be permanently denied custody of their children, if the offending is serious or the children were used as accessories.

Finally, parents who clearly can't look after their kids should surrender them as a last resort, those who say they care about child poverty might actually think about doing something about kids in those situations, rather than complain the government hasn't done it.

There has always been an underclass that neglects and abuses children, what we know now is that it is more publicised, and cases appear to be more frequent. However, the answer to this underclass is to stop feeding the attitudes of dependency, victimhood and blame passing that welfarism promotes, and indeed more than a few on the left promote (the nonsense that capitalism stresses people out so much, they turn on their children).

If only Labour were right

Phil Twyford, (Labour's list MP with a non-existent profile) says of the government's Auckland mega council plans:

"Council-controlled-organisations are to be established for water, transport, community services (including libraries and community houses), land development, the waterfront, and economic development. Each of them will report to a council-owned holding company."

The HORROR. Like electricity, the railways, NZ Post, Air NZ all under Labour. Too many function though surely?

It's not enough though, Phil is concerned that if his train is late, he wont get a swift response from the Mayor - because the Mayor gets involved in day to day activities right?

"If the trains aren't running on time, or the footpaths aren't being maintained, the mayor will have to talk to the CEO of the holding company who will have to talk to the CEO of the council-controlled-organisation. who will have to talk to the contractor who is delivering the service."

Um, well given the government owns Kiwirail, and the ARC already contracts a private company (Veolia) to run the trains, how would that change Phil, given that's the arrangement that was in place when Labour set it all up?

However he presents the best claim next, he's scared his little friends will be lost:

"This is corporatisation gone mad. There will be nothing for the elected politicians to do. I don't know why people would bother standing for office under this model. It will be impossible to hold the politicians accountable because they won't have the power to deliver.

Phil Twyford said a rump CEO of the Auckand Council would be left to administer corporate functions like information technology, human resources and finance, and public relations."

I'll believe it when I see it, and I'm convinced it isn't true, but if it is..

speed the day. I'll take back most of what I said about the mega city proposal.

If it can stop local politicians in Auckland from meddling in operations, from pushing their own little agendas at the expense of ratepayers, from even turning up to council meetings, it will be a great step forward.

Shame it's almost certainly vacuous hyperbole.

UPDATE: Let's remember how trains in Auckland are run at the moment...

The ARC has a council controlled organisation, called ARTA (set up under the last government) to CONTRACT OUT management of the passenger rail service, which it has done so to a company called Veolia. A private company. Veolia runs the trains, ARTA owns the trains (Kiwirail owns some too which are leased to ARTA), Kiwirail owns the tracks. Kiwirail is an SOE, effectively another arms length commercial organisation. So anyone complaining about the trains in Auckland going to a local politician would see that person following quite a trail of organisations down the line.

The Labour Party is complaining about the trains being just LIKE that, yet set the trains up to RUN like that.

So is Phil Twyford so stupid that even he doesn't bother to research the governance arrangements in Auckland for rail transport set up by the last Labour government before complaining about the current government doing what he says, is the same thing?

More language misrepresentation

Except this time it is the NZ Herald, simply getting things wrong.

The government is removing a restriction on councils that will allow them to freely choose to privatise water or to contract out the construction, operation, financing and management of water supplies to the private sector.

So why have a headline "Should water and wastewater services be opened up to private competition?"

You see there are no statutory restrictions on providing competing water or wastewater services, although councils would no doubt use the RMA to make it difficult. So this isn't about competition, it is about allowing councils to choose privatisation.

So like the ACC issue, privatisation and competition are being mixed up.

To be fair, it is unlikely that there would be competition in reticulated water supplies or waste water. That's not to mean there aren't potential alternatives.

People can, of course, buy bottled water, establish rain water collection systems, or could establish businesses to buy water in tanks. Waste water need not be carried away in pipe, but could be collected in sumps that can be emptied. Indeed, many people in rural areas and small towns do just that.

However, again, this is besides the point. All that is happening is councils will be able to use their "power of general competence" to privatise to a greater or lesser extent.

The very same people who wanted councils to be empowered, don't trust them to decide what to do with water and waste water services - funny that.