Our lecturer from 20years ago back at school of Archutecture Victoria Uni, passionate and full of clarity and understanding. Still teaching us to this day.
"I am extremely sad that Treasury continue to focus on internal debt of only 2.4% instead of private debt of 40-50%." "We have a lot of short term thinking..."
@@Joel-y6m How much of that private debt is a result of insanely high housing prices? (Money printing from the central bank has accumulated into assets).
@weightednormal3682 mortgages are about 60% of private NZ debt. Not sure what "money printing" has to do with it. It's true a reasonable amount of the Covid stimulus went into rich people's savings tho.
TOTALLY AGREE - SO WHY IS THIS GOVERNMENT NOT LISTENING TO THE ADVICE OF EXPERPERT ECONOMIST?? Is it because this current government is absolutely not looking at a long term economic plan??
Fuck it let's nationalise the entire fishing industry in the same manner Qatar nationalised natural gas! Now they have all the public services they want and zero income tax!
@@thestigdownunderthar would be great idea solve so much issues but I can see the absolute political outrage it would cause 😅 be some very upset kiwis arguing tsking away their company ?
We need to listen to this more. All our private debt is stuck in useless housing assets, instead of investing in productive NZ businesses. We can't rely on agricultural exports, as Dr Nana says, and I think politicians need to take a step further and encourage investment in more diverse productive industry. Without disruptive change, we're going to get further and further behind the rest of the developed world. We're far too risk averse, and we're paying the price today, and politicians in Wellington refuse to call it what it is. It's only going to get worse.
This government are doing nothing more than lobbying and making good on all the big investors they took money from. Its payback time. This is why they are ignoring actual advice on everything from education to housing.
Private debt takes hard-earned NZers $$$$ and throws it at foreign banks in interest payments. We are all slaves to this cycle, but social conditioning makes us think it's normal because everyone else around us is in the same boat. It's disgusting that no government has the guts to institute capital gains tax for investors- might slow down the house price rises and save first home buyers from having to compete so much with investors for the most basic housing.
@@angelap3572the point is our private debt is only “bad” because it’s unproductive. There’s plenty of countries around the world in which investment in something that isn’t speculation on houses is a norm, we just need to stop trying to either reinvent the wheel or pulling our wool over our own eyes. I agree that capital gains tax may help, but it’s a drop in the bucket of a wider cultural problem here. Things like blaming power companies for foreign owned mills closing is mighty rich when all these companies have done is extract the value, squeeze the blood out of NZ industrial output, and leave us holding the bag of underinvested, barely good enough infrastructure. We can do better, but it’s going to take a lot more people demanding fundamental change. If you do digging into the issues, our ministries aren’t even willing to take the risk of pointing this out either. Look at MBIE reports, look at MFAT. All publicly available, and no recommendation for making change for the better. They barely give lip service to productive industry (advanced manufacturing includes craft beer), and instead bang the forlorn drum of agricultural exports (uh oh) and crossing our fingers that we will attract high value immigrants (how?). It’s not all doom and gloom, we just need to stop skirting around the issues and pinning blame on whoever. If you’re on the left you’re blaming rich people and landlords, if you’re on the right, you’re benefit bashing and probably blaming Māori for the problems. It’s none of the above, and without working to improve our country over the next 10-15-20-30 years we’re going to be in the exact situation these people are doomsaying.
@@angelap3572incentivising productive investment vs lining the pockets of Aussie banks should be our number one priority as a country. We’re not going to see economic growth by jacking up our housing market more and continually banging on the tired drum of relying on milk powder exports. Let’s stop blaming Labour/National/landlords/Māori/poor people/immigrants etc etc and let’s encourage positive growth and change to enable a productive economy. We all want to see our country flourish, and yet we’re too scared to demand the drastic change required. It’s not a partisan issue, it’s a question of do we want to improve our society or do we want to continue to flounder in mediocrity.
This man is spot on.We need more productivity. Cutting healthcare, infrastructure and living standards is short term nonsense that will look good on the books short term but will only drive away talent. Immigration? Who would want to come here with our high taxes on foreign investment funds, high cost of living, expensive housing and shit health/police/education. We're only getting in the most desperate people who drive uber etc who will take more from NZ than they give. Solution: If you're so short on money tax landlords a bit of capital gain tax like every other country does... then build the infrastructure we need to build productivity. Stop flip flopping on cancelling projects. It costs money to make money.
@@jermunitz3020 "who would want to come here" you ask. Are you mad? We live like kings compared to the majority of the world. We don't even know how good we have it in NZ, that's a big problem! No one in NZ is moving to the country where the immigrants are coming from, for a good reason.....
@@scarrollnz those immigrants from the third world are Uber drivers. We need doctors and engineers and to keep educated kiwis here rather than moving overseas
@@scarrollnz Problem is, it's a bit of a grifter economy at the moment. Sacrificing and overtaxing the working classes and their health to prop up freeloading property speculators, tobacco industry et al. Sacrificing the healthcare system is going to backfire for older Kiwis though, as it pushes private health insurance up further and further to the point it's completely unaffordable for them even while the public health system is being eroded.
Great farseeing economist for decades. We all loved his Mum and Dad too in Petone. Nothing gives perspective like being close to ordinary New Zealanders eh.
Sensible comments from Ganesh. His parents had a corner grocery store near Wallaceville Railway Station and he went to Heretaunga College in Upper Hutt.
What happens in UK takes time to happen in NZ but it is now starting to happen. Rising house prices, fewer state houses, mass immigration and austerity. Look at the UK if you want to see the future of NZ. It's not pretty.
I'm starting to see the tidal wave of health challenges this country will face in the coming years and decades. My father is a middle baby boomer (68 years) and just had knee surgery. He has hand surgery scheduled for the new year, and now been told he will likely need his hip done soon. Otherwise he is "healthy"- eats well, no heart problems or diabetes, brain heath all seems good. He is just ONE person. Meanwhile his parents both in their early 90s are in and out of hospital, surgery after surgery. How on earth do we plan to pay for all of this treatment across the ballooning population of people in their 60s- 90s. And that's nothing to say for the health challenges of the younger population. I was in an Auckland hospital waiting room a few months back- good grief the state of people. Waiting room after waiting room full to the brim of morbidly obese people, and all I could think was we are screwed.
You have to tax the bad food. Food companies have responsibilities but they are let off in that health requirement .Too much food in New Zealand is of simple carbs and simpler sugars. Everything is sweet. It's over the top. It is known and documented that the right mix of fat, sugar and salt, is addictive.
of course this sudden increase of baby boomers is completely unexpected. Policies were advanced in the 70s that would have provided funding fr this and large infrastructure....but no lets put that on the back burner for now......
My beef is hospital rest home clients already signed of as chronically medically sick taking up beds in acute medical wards and and e depts in their 90s when young workers can’t get help needed get to work again . Put jnr drs into these resthomes for experience and keep on top of issues also better pslliative support . Get if lucky 2 go a week for up to 80 residents for about 2 hrs achieves nothing
Food is too expensive eat healthy only winners medical supply companies creating bariatric equipment etc who shareholders go back to big finance . And this body positivity rubbish if your 150 kg as long as your happy ha ha utter nonsense serves no one but people like black rock etc rest just waiting for diabetes cardiac disease etc dialysis
@@harmonyadams7577 the government doesn't produce food. Farmers do. The government doesn't "starve" children. Bad parents do. It's a nice idea to say that we should take food and give it to poor people. The government isn't the solution to everyone's problems, we need to teach more self reliance and responsibility. You can do better if you really want to. But most don't or won't.
@@harmonyadams7577 I think for some things we are paying more. I think NZ asva whole is not big enough. We are are too small for big systems and too big for the manual way of doing things. More supermarket chains would lower food costs. But they go to Aussie, not here because we're too small for the effort. Sydney had more population than NZ. Don't immediately discount that some parents make bad choices with their money and their kids suffer. We don't teach people about money, why would they be good with it?
@scarrollnz Yes I agree. But not all struggling parents make bad choices. Most parents want the best for their kids. The fact that some kids need to work and go to school at the same time breaks my heart. As a grandmother, when I have my 4 grandchildren over, I have to compromise quantity over quality so I can feed them. It's tough out there at the moment. My daughter and her husband work. They're hard workers. They're growing old before their time, before my very eyes.
I'm far from being an economist but surely some of the monies the prev govt spent over totally ridiculous and destructive reasons tells me that the govt HAS a fair bit to answer for
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over $350K.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up $450k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
Annette Marie Holt is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@WahChingUbetter an economist as finance minister than the English literature major whose only job remotely as a finance person was a cashier at Wholy Bagel in Wellington.
@@jacktui6690 Yes he was. And this is one of the big challenges with the civil service: the people who know these problems intimately and have been working hard to solve them for years are routinely forbidden from speaking their minds frankly to the media. If you want to work in those central government roles, you pay a price of silence. I guess in some ways we're "lucky" that Seymour has freed him from that burden, because those words need to be heard now.
Private debt - the outcome of the stupidity of wasting $500bn bidding up land prices and having a tax system that encourages it. Public debt - plenty of other OECD countries run higher govt debt/ tax revenue ratios Unsustainable immigration through no population strategy. Demand for housing and infrastructure beyond our ability to pay for it (except through issuing very long term inter generational govt debt) Superannuation - age of eligibility needs to rise with life expectancy. Keep at 65 if medically unable to work. Productivity- We wasted $500bm bidding up land prices instead of having a tax system that funnels capital into productive businesses
yeh and high land prices is entirely relevant to this "structural deficit" More and more Kiwis depend on government assistance precisely, because housing is so unaffordable.
100% People are encouraged to buy property no matter what. Why? There’s no land tax, no CGT; you just wait a couple of years and sell it for pure profit-100% yours. And if, and only if, the spending on superannuation were rational, out of 23 billion, they could surely fund our health and science sectors with ease. It's fundamentally broken, and it doesn't look like any parties are interested in fixing it. Can't wait to move to Australia with: - A similar or higher salary and more take-home pay due to different tax rates, plus unbeatable Australian Super contributions - Depending on the state, most still offer first home grants and first home partnerships (where you need as little as a 5% deposit; the state lends part, and the rest comes from the bank) - I hate standalone houses or the generally poor-quality homes in NZ; apartments in Australia seem outstanding based on recent experience and are far more affordable - In the inner CBD, everything is within walking distance, and the higher number of people made me feel much safer"
Yes just juice the GDP number in the short term with immigration rather than do the hard long term work and invest in education, infrastructure via the existing population.
Compulsory supervision like Norman Kirk had in place ,Australia's compulsory super. Plenty of money saved to invest in infrastructure. The Cullen fund and Kiwisaver should be combined then compulsory savings. The tax take off the investment profits will help balance govt finances also using the money invested to build infrastructure would lower overseas borrowing.
Most of the "private debt" is mortgage debt, thanks to decades of policy encouraging inflated house prices, such as tax on most capital gains except housing, and negative gearing.
theres more than enough wealth in this country to have the things we need to function as a society. These aren't tough choices, they are bleedingly obvious. Stop giving tax cuts to landlords, tobacco companies, privatisation of our core infrastructure. He mentions our personal debt to overseas companies (banks). But yet this current govt wants to privatise kiwibank. What about the $10b in profits gentailer power companies have paid to investors since John Key sold them off... Thats $10b that could have been used to re-invest. We do not want to emulate UK or US with privatisation of schools like Seymour wants. Why do people keep voting for this? Its bonkers
@@ThuderDragon2408 But there's a housing shortage... If you don't want more homes built how will NZ shelter everyone??? Less homes means higher prices, which increases rental prices for the homes available. Supply n Demand Accounting 101 Google "Capital Flight" If you stop encouraging investors to build homes, they will put their money into other easier financial investments. I should know... I've owned several investment properties and never lived in any of my own properties... Thats called "Rentvesting" Education is the key... I could (if I was an AFA) show people how to become financially independent with less than $10k...To many people living with their heads in the sand.
@@SarahHarris-hx6ec Interest deductibility allows landlords to pay less tax by including mortgage payments as a business expense. Call it want you want, but that is essentially a tax cut
@@WeraroaWizardthat's the same as any business though, interest on loans is always a cost of business that gets counted against income. The real problem is banks only lend against property. They create money out of thin air as a mortgage, then charge interest on that loan. Just regulate banks to lend 50% on business
National's 'Get NZ back on track' campagin is about austerity. NZ's version of the UK is on its way with neoliberal short term, cheap, quick fix think and planning without thinking of the future to please their supporters so they can be reelected in 2026.
@@SarahHarris-hx6ec Brexit added to the problems in the UK, the decline in productivity was already in evidence. The fundamental issue is that the neoliberal economic system doesn't work, no matter how often its attempted. It becomes a religious belief.
In the year 1960 there were only 20 people on social welfare, and today there are over 400,000 people receiving unemployment benefits and over 1.5 million New Zealanders receiving some form of direct government support or subsidy (not including government contributions to KiwiSaver). This all costs money, money that could be going into healthcare, schools, policing, infrastructure, building low-income state houses.
One of the first things this govt did was to give landlords a $2.9 billion tax break but when it comes to an update a hospital in Dunedin it was “too expensive” and couldn’t be afforded. The govt priorities are out of whack. Its govt doesn’t seem to think things through, it all looks rushed and not thought out.
@@sweetybnz7482 The one art these parties constantly have up their sleave is social divide. While the ordinary are distracted arguing with each other, their mates are influencing how and what we will defend.
Labour set the budget, now it's nationals problem to figure out a solution. I'd like to know exactly what is blowing out as we are past the covid peak of construction Inflation. Contracts include some extra for inflation or other contingencies when over long time periods.
@@Michael-lg4wz in case you missed it National are in government and set the latest budget. Everyone said before the election Nicola Willis had no clue and her budget was out by billions.
@@ozbot1546 Too true… once had the wealth landlord.. 7 properties.., complaining to me her then tenant.., that running her properties cost so much.. and they did provide the spare cash.. for her to fulfil her agreed & legally mandated requirements to maintain them… ffs
Didn't catch his name, but want to hear more from him. Spot on thinking. And Jack, you did well, didn't speak over the top of him, great stuff. Get him on again please.
So what Ganesh is saying confirms what so many of us have been saying for many years now, that the "penny wise pound foolish" policies of successive governments has got us where we are today.
My rates went up 25%, energy is ridiculously high and expected to go up again shortly, insurance went up 18%, food goes up everyday, tax goes up, interest rates went down and mortgage rates went up, but my council members got a pay rise. Not everyone is tightening their belt.
Your rates went up because local bodies have to build extra infrastructure (roads, pipes, libraries etc) to cater for increased population. Government does not fund this but are happy to take the increased GST and income tax from more people. Labour and Nats guilty of this unfortunately - but Nats are crashing the economy to boot.
Make it clearer! NZers are buying way too much from overseas and not exporting enough. Tourism, heavy industry and agriculutre is not being supported, instead new and faster ways of importing is being prioritised. We are being lulled into becoming a consumer society run off foreign debt.
this is exactly what I was thinking - when people get money to spend, they often send the money back overseas to Apple, manufactured goods from cheap labour countries, take overseas holidays, etc.....if that money went to NZ businesses it would stay in NZ a bit longer and do more work here, more taxes, etc. Like he said, there is an external deficit. He just referenced debt, but any money we spend in NZ does work for NZ instead of somewhere else. Not sure what policy would be needed for this to happen
@@jemma_19988 and we can't afford to start our own businesses here with all the regulations put in place to stop competition and protect institutions when they were still here like ficher and paykel
Dr Ganesh is SPOT ON....get this guy on more shows. Clear, expertise and this easily understandable and relatable. NZ is in a bad place re it's economy.....debt levels are unsustainable and aspirational Kiwis will simply leave NZ if their future is bleak...which it is sadly.
The government won't tax the rich, that is the problem. This government is doing austerity, all public services will massively deteriorate under this government.
I agree with you. Not National nor Labour want to tax the rich and make it a more balanced NZ because our tax system isn't working. The rich are getting richer and the poor unfortunately stay poor. We need really good Tax Specialists or Finance Minister who have the foresight
@arnedomi I think you need to define "the rich". Are you talking about those with assets over $10m... $2m? ..$1m? Those with incomes over $500k? Households with incomes over $300k? The term rich is thrown around a lot and NO ONE ever defines who they are actually talking about, perhaps you could start.
Massive private sector debt in NZ is caused by Rogernomics. After the great depression NZ governments tightly controlled the expansion of credit. Roger Douglas opened the flood gates of credit, resulting in a massive explosion in house prices and associated debt.
@@raywheeler3135 Rubbish. We don't have enough NZD liquidity in NZ to buy all NZG bonds, therefore it has to come from overseas markets, intermediated through USD. There is little structural difference between NZ and Argentina.
@@mxvega1097 don't debate with him... clearly he thinks money comes from trees and international lending rates via the SWIFT banking system is all to do about nothing... I'm starting to think the education has a lot to answer for.
tautoko, Dr. Ganesh Nana's comments..the focus should be on private debt, which is much higher than public debt, is critical..we have spent decades inflating property prices, driven by a tax system that favors speculation over productive investment..as a result we have a housing crisis that is contributing to the structural deficit, with more Kiwis needing government assistance just to get by.. rethink our approach to debt, housing, and tax policies..the current focus on short-term gains is hurting long-term stability.. Ganesh is right-our real concern should be how we tackle private debt and redirect capital towards productive sectors..we need smart policy changes, not austerity, to fix these structural issues and bad thinking..
He was very good yes. I enjoyed the interview. But it's like the guy at work with all the bright ideas, who gets all the kudos. When the hero is the implementer of the ideas. Talk is cheap. As he said we're economists, we should have solved it by now. But he hasn't.
@@dossnone4554 He also pointed out what we can all see.., that our government debt is not the problem.. and the ships , hospital etc are not ott, they are required.. esp for the nations long term productive growth and stability & that cancelling them is badly short sighted thinking.. She’s looking in the wrong direction.. based solely on ideological/ political beliefs
@@dossnone4554 Just looked her up… from what I can see.., she has no education or expertise/ experience in economics or money.. apart from being born into it & sitting on dad’s knee.. now she taking a broad sword to our nation…
@tigertiger1699 It gets back to my answer to your suggestion that we appoint him as God. Pointing out that identifying the problem does not mean you know how to solve them. A bit like you and I blah blah at each other. It doesn't solve anything. The online talking community feels good, but we achieve nothing. Nor does our very impressive economist, as he rightly admits, he's been unable to change anything along with the rest of his tribe. At best, this online intercourse might give you and I something to think about outside of our own limited belief system.
They won't mention the infratrstructure debt because its in the 100s of billions. and that is more concerning to people. fisical debt doesnt include the infrastructure deficit. NZ is a first world country with a third world battery. water system and public transport is an example of how far we are behind.
Exactly! Focus on external debt; a good govt is one in debt. It MUST SPEND SPEND SPEND in order to keep the country's economy stable or growing, which means people have money in their pockets to support businesses. Any govt must pay for infrastructure, govt services and initiate employment schemes, raise minimum wage.
Jack - it’s obvious that our understanding of the issues at hand from Ganesh’s POV. He made some really good points - economic sovereignty, expectations of government, strategies to improve our plight …. An educational series/format and/breakdown from this man would be great. Highly regard your content and style. Keep up the good work
Isn't it smarter to reign in private debt by constraining runaway house prices? And allow government to make investments in public infrastructure which will make NZ more productive and resilient in the long run. The obsession with public debt is very misguided.
As a small business manufacturing company, I go overseas to promote and sell our robots. every time I go out, I have to pay for flights and accommodation, however I also have to pay for a bond to take my robots overseas. Its very expensive and I have to pay a lot of money for the paperwork and red tape. It will be great for the government for small business to go into Australia and sell our products without any hassles.
GDay Kiwis - As historical experience has shown again & again, Economic Austerity is very dangerous and counter-productive government policy...Mark Blyth (Eastman Professor of Political Economy & Professor of Political Science and International and Public Affairs at Brown University) wrote a whole book dedicated to this topic (Austerity - The History of a Dangerous Idea) ...
I'm kiwi from the earliest ships from Europe but i will leave this country and never come back if we lose our healthcare system. We should have abandoned neoliberalism decades ago!
Brilliant guest great interview informative and educational ( I had to rewatch parts coz I'm not the sharpest tool haha). Er, Ganesh what are up to in a couple of year? Nicola Willis' job should be open... please?
Jack seems to have forgotten the conversation on macroeconomics he had with Prof Stephan Hail a couple of weeks ago. Tax for revenue is a fallacy, not only that the perpetuation of this myth is actively harmful (ref the Dunedin Hospital debacle). Ganesh Nana doesn't seem to understand this and Jack has challenged neither Ganesh nor the Treasury on this fundamental point. The govt does not need tax or borrowing to pay for things. An apple farmer doesn't need to borrow apples in order to grow apples. As a country with currency sovereignty the govt does not need to borrow money that it has unlimited capacity to create with keystrokes on a computer. All a govt surplus does is create a private sector deficit. Why does the govt want the private sector to be in deficit? Where's the benefit in that?
I've given up on responding to the politicians, economists and the various commentators in NZ. None of them understand macroeconomics which is the most significant reason NZ does not and will not prosper. Building a hospital, a bridge, whatever is vital infrastructure that is the Government's responsibility and what they are voted in to sort out. To not spend on infrastructure is only a political choice, not a fiscal one as an understanding of MMT will show. Their mandate is to serve the public they represent. However, our democracy has been shafted to serve the wealthy donor class. We're just the USA in a microcosm.
@@DavidPeez Sadly it's only politicians, [prominent] economists and the RBNZ / Treasury egg heads that can transform macroeconomic policy to take full advantage of the MMT fundamentals. So we can't give up, or nothing will ever change and prosperity for all will forever remain out of reach. The tax pay for myth has done immeasurable harm to every part of society, but most of all the poor.
Cutting health services is very short sighted as early interventions prevent far more expensive treatments down the line. People will die on waiting lists will be a reality. I witnessed in the 1980s for heart surgery. Where has the focus on preventive healthcare gone in the past 40 years? No money allocated. Seems to be money for roading aka the Woodend bypass which hardly is a priority. Should be less reliance on cars and more public transport options available. Election promises seem to get the money and big business. Why drill for oil and gas when the money is needed for research to design more efficient and alternative energy sources. NZers are innovators and world leaders but ignored now. NZ relies on tourism for income yet this govt gives very little to the very things visitors come to see. Pristine forests and species that are not found any where else in the world. The flora and fauna are fast disappearing and this govt does not care and is undoing decades of hard work. A National conservative govt has always slashed govt spending, benefits etc and assisted the wealthy. A fairer tax system where those on lower incomes get a fairer deal-tax free income up to say $15-20k. Tax the companies equally. What about all the profit that goes overseas like the Banks. ? that benefit NZers.
Bang on, if we want to see change we need to demand our government to incentivise investment in productive industry as much as possible… we’re not going to export milk powder to achieve prosperity, that ship has been and gone. Let’s get wealth moving in NZ, instead of sinking it into the pit of property and lining Australian banks pockets.
@@williepete6843 those banks and RBNZ governor are owned by Blackrock which owns 80% of the market along with 2 other hedge funds. Capitalism is dead. Corrupt financial fas cism is well alive to control people.
If you want a thriving economy, you need to attract innovation. If you want to attract innovation you need to LOWER taxes not raise them. It's counter intuitive but the death spiral is to keep squeezing harder to get exponentially less, people/business will just keep moving overseas
That's something I totally agree with this guy (on minute 10:00). Progress of a country or business should not be measured by the amount of production. New Zealand doesn't need to export more milk, dairy products, kiwi fruit, meat, wool, etc... the key point is the so called "Added value". NZ needs to add value to its products and make them better, more competitive, and more desirable in the market than our competitors make. This is a good start.
Yup....not even a year for this govt to virtually destroy wellington.......running govt on Skeleton crew....services going further down the pan....bang up job guys!
There should be enough for everyone. But politicians, big business, they take all they want. Without any care for consequences. Nz. A once beautiful country, divided by greed.
Finally someone with real life knowledge of what's really going on in our current economic and financial situation. Government spends over the last couple of decades (more so from the previous government) was careless and unsustainable. Now it's about making necessary and unpopular financial decisions that makes sense of our finances and economics for the betterment and prosperity of our future generations to come.
Private debt is not a problem as long as the government performs as it should. If they continue along the line of delivering more profit to the rich so that they can buy mansions overseas and even bigger yachts we're buggered. Labour has to. come out and say they favour capital gains tax and wealth tax. They need to do that while continually banging the drum about the rich getting richer and the poor getting poorer. Forget renaming every government department, every public building and every school with a Maori name. Get the tax thing right and it will help the Maoris to look after themselves.
Arghh... finally a realist!! Stark truth and no politicking . Jack Tame needs to go off script in context to this thought provoking discussion but I have really enjoyed this honest reveal of our dire situation in New Zealand. From how I interpret this is that we as individuals need to take more accountability of our actions and this adjustment in our attitude needs urgent action.
@@DaveRave13579If truth & honesty are important,then ask Nicola No Boats why there hasn't been a decision on Ferry Replacement,but just make sure Uncle Winston is standing next to her when the question is asked
My late grandparents were born in Auckland around 1900. Had children very late in life. It’s given me a unique window into how New Zealand was through the past century. From their perspective. They lived long lives. Lived through hard times. 2 World Wars. Influenza. Limited access to what people today take for granted. Or none at all. They grew their own vegetables. Washed their clothes by hand. Baked their own bread. My grandfather had to lead a 100 cows into the milking shed before running to school barefoot. To get his education. Leaving school @ 14. They survived. Their generation was born tough. They worked hard. I can’t help think. That they would be saddened about the state of the country today. That they strived to build yesteryear. The economist is correct. How can a country rich in food and produce. Not afford to feed the vulnerable & general population of New Zealand? During the great depression my grandmother said. Horse & carts with soup and bread would go through streets of Ponsonby. & help feed people. I trust New Zealand will weather this crisis. It has before.
Demographic pressures has been predictable for the last 50 years. So the people who knew it was coming didn't plan over the last 20 years need to look in the mirror.
Excellent explanations about money both indidual expectations and govt Response to demands. Older has more health needs. Older prefer spend on travel jack tame learning also b 8:21
10:12 - This point really hits hard with me and i dont get it. What i also dont get is when i bring up this issue online, i get told that moneybis the reason and that i should shut up and take it. Make it make sense.
You’re confused on this point… when you are extremely poor you don’t have access to proper food. So you might not be hungry but you are nutritionally starved because all you can afford is white bread, margarine and luncheon meat. Obesity is so common in poor communities.
Money is man made. With growing populations and productivity more money is required. There are two forms of money creation - fiat money (Govt) and bank created credit. For the last 40 years the economic mantra has been reduced Govt spend and increased bank created credit. Hence growing private debt. This bank created credit has largely been directed towards housing resulting in house price inflation with a PONZI housing market and consumerism. So while populations have grown our infrastructure has aged. What we should learn from this is that money creation and allocation matters. In a world where we are consuming at a rate that exceeds the planets carrying capacity, growth rates are reducing, and the geopolitical fight for resources is ramping up we have to be smarter. Directing resources through money allocation to thing that will make us a more resilient country - energy security, food production, health care. The Govt has to play a large part in that and it should absolutely be creating money for long term infrastructure projects.
@@pathflight9803We have Inflation in the housing market because of too much bank created money. Rising unemployment and business closures are a sign that the government is not spending enough money. What is the point of having idle resources? Putting them to work won't create inflation.
With the Fed cutting interest rates by 50 bps, what do you think will happen to the stock market? My portfolio has performed exceptionally well this year, but I am concerned about the possibility of a market crash and losing my gains though it's all on a brighter and splurging side for Gold, should I look that way?
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments. Nevertheless, seeking guidance from an investment planner might be necessary if you desire a more assertive return.
Investing in gold is a reliable choice, and I plan to keep buying more to make up for my losses. While silver is also a good investment, my collectibles are not as similar. It's important to have clear investment goals and educate yourself on the type of investment that interests you. I work with a financial consultant regulated by the SEC, and started small, but eventually accumulated over $800,000.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Best interview I've seen in ages. OMG if we can't sort our s**T out we are in some serious trouble. Politicians want votes, but what we need is longer term thinking.
The government doesn't need to pay for anything. They just need to print more money. It's time we got over the incorrect assumption that printing money is bad. Other countries do it, we should do it as well. The sooner the better
Printing money causes inflation. Extremely high inflation wreaks havoc on society. Because we are borrowing from overseas banks- unfortunately we sold all of ours, too much debt means a lot of our earning are spent on interest. Also we become a riskier lending option which means a higher interest rate. (This is a crude simple statement but in general how I understand it)
@@dangerrayy All government spending involves creating new currency and this is why we have taxation to delete it again. The government is only constrained by the resources which are available to it. Also out banks create new money when they lend, they do not lend out existing money. The Reserve Bank explains all of this in its article ' Money Creation In New Zealand'.
@@dangerrayy no, printing money doesn't create inflation. That's a common misconception Uncontrolled spending creates inflation if demand exceeds productive capacity. The key to avoiding inflation, is to increase spending at a controlled rate that allows supply (labour, materials etc) to grow at the same or similar rate, or to increase government spending when the general economy is contracting (like now)
Very happy with the direction of the coalition. Might not be perfect but sure beats the hell out of the demolition mess the labour party left them with. Go Winston and Seymour.
NZ needs to have an honest conversation about what public services it can afford. It also needs to prioritise the future of their children over the future of their elderly.
I agree with Dr Ganesh Nana comments. New Zealand cannot continue with the current average wage, high service, consumption, import, property buying/selling low financial return raw product export economy that uses short term, cheap, quick fix solutional thinking and planning to get NZ back on track with economic growth and productivity. This inept, flip flopping, all talk government are dilutional if they think they can do it with increasing global geopolitical, trade, economic, manufacturing, supply chain chains uncertainties and the effects of a warming planet head winds looming. The recent global health crises was a wake up call.
![Seungmin "그렇게, 천천히, 우리(As we are)" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/kAzmhLHePqU/mqdefault.jpg)
More of this guy please. Someone who actually thinks past the surface
What is this show mate? Is it paid for by gov finding or adds?
@@johney3734 both
Our lecturer from 20years ago back at school of Archutecture Victoria Uni, passionate and full of clarity and understanding. Still teaching us to this day.
"I am extremely sad that Treasury continue to focus on internal debt of only 2.4% instead of private debt of 40-50%."
"We have a lot of short term thinking..."
2.4% per year! It's currently running at 40% total govt debt.
@@Joel-y6m How much of that private debt is a result of insanely high housing prices? (Money printing from the central bank has accumulated into assets).
@weightednormal3682 mortgages are about 60% of private NZ debt. Not sure what "money printing" has to do with it. It's true a reasonable amount of the Covid stimulus went into rich people's savings tho.
@@Joel-y6mand?
Yes he made it sound like govt debt was 2.4% 😂 wish it was.
I wish they had interviews like this in Australia. Host was excellent with his understanding and questions, but the guest was absolutely brilliant.
This was one of the best conversations on TVNZ for a long time. It's so refreshing to listen to.
TOTALLY AGREE - SO WHY IS THIS GOVERNMENT NOT LISTENING TO THE ADVICE OF EXPERPERT ECONOMIST?? Is it because this current government is absolutely not looking at a long term economic plan??
Fisheries profit 5.2 billion. Resource was free.
There is no shortage of money. Just equitable vision is lacking.
Fuck it let's nationalise the entire fishing industry in the same manner Qatar nationalised natural gas! Now they have all the public services they want and zero income tax!
@@thestigdownunderthar would be great idea solve so much issues but I can see the absolute political outrage it would cause 😅 be some very upset kiwis arguing tsking away their company
?
A good portion of what you’re talking about is owned by Māori
We need to listen to this more. All our private debt is stuck in useless housing assets, instead of investing in productive NZ businesses. We can't rely on agricultural exports, as Dr Nana says, and I think politicians need to take a step further and encourage investment in more diverse productive industry. Without disruptive change, we're going to get further and further behind the rest of the developed world. We're far too risk averse, and we're paying the price today, and politicians in Wellington refuse to call it what it is. It's only going to get worse.
This government are doing nothing more than lobbying and making good on all the big investors they took money from. Its payback time. This is why they are ignoring actual advice on everything from education to housing.
Private debt takes hard-earned NZers $$$$ and throws it at foreign banks in interest payments. We are all slaves to this cycle, but social conditioning makes us think it's normal because everyone else around us is in the same boat. It's disgusting that no government has the guts to institute capital gains tax for investors- might slow down the house price rises and save first home buyers from having to compete so much with investors for the most basic housing.
@@angelap3572the point is our private debt is only “bad” because it’s unproductive. There’s plenty of countries around the world in which investment in something that isn’t speculation on houses is a norm, we just need to stop trying to either reinvent the wheel or pulling our wool over our own eyes. I agree that capital gains tax may help, but it’s a drop in the bucket of a wider cultural problem here. Things like blaming power companies for foreign owned mills closing is mighty rich when all these companies have done is extract the value, squeeze the blood out of NZ industrial output, and leave us holding the bag of underinvested, barely good enough infrastructure. We can do better, but it’s going to take a lot more people demanding fundamental change.
If you do digging into the issues, our ministries aren’t even willing to take the risk of pointing this out either. Look at MBIE reports, look at MFAT. All publicly available, and no recommendation for making change for the better. They barely give lip service to productive industry (advanced manufacturing includes craft beer), and instead bang the forlorn drum of agricultural exports (uh oh) and crossing our fingers that we will attract high value immigrants (how?).
It’s not all doom and gloom, we just need to stop skirting around the issues and pinning blame on whoever. If you’re on the left you’re blaming rich people and landlords, if you’re on the right, you’re benefit bashing and probably blaming Māori for the problems. It’s none of the above, and without working to improve our country over the next 10-15-20-30 years we’re going to be in the exact situation these people are doomsaying.
@@angelap3572incentivising productive investment vs lining the pockets of Aussie banks should be our number one priority as a country. We’re not going to see economic growth by jacking up our housing market more and continually banging on the tired drum of relying on milk powder exports. Let’s stop blaming Labour/National/landlords/Māori/poor people/immigrants etc etc and let’s encourage positive growth and change to enable a productive economy. We all want to see our country flourish, and yet we’re too scared to demand the drastic change required. It’s not a partisan issue, it’s a question of do we want to improve our society or do we want to continue to flounder in mediocrity.
This man is spot on.We need more productivity. Cutting healthcare, infrastructure and living standards is short term nonsense that will look good on the books short term but will only drive away talent. Immigration? Who would want to come here with our high taxes on foreign investment funds, high cost of living, expensive housing and shit health/police/education. We're only getting in the most desperate people who drive uber etc who will take more from NZ than they give.
Solution: If you're so short on money tax landlords a bit of capital gain tax like every other country does... then build the infrastructure we need to build productivity. Stop flip flopping on cancelling projects. It costs money to make money.
@@jermunitz3020 "who would want to come here" you ask. Are you mad? We live like kings compared to the majority of the world. We don't even know how good we have it in NZ, that's a big problem!
No one in NZ is moving to the country where the immigrants are coming from, for a good reason.....
@@scarrollnz those immigrants from the third world are Uber drivers. We need doctors and engineers and to keep educated kiwis here rather than moving overseas
I haven’t worked hard all my life to provide for people who won’t provide for themselves.
@@scarrollnz Problem is, it's a bit of a grifter economy at the moment. Sacrificing and overtaxing the working classes and their health to prop up freeloading property speculators, tobacco industry et al.
Sacrificing the healthcare system is going to backfire for older Kiwis though, as it pushes private health insurance up further and further to the point it's completely unaffordable for them even while the public health system is being eroded.
@@scarrollnzlike kings where most people cannot afford housing or a $3000 emergency? Get real
Ganesh had some sage advice. Interesting and passionate guy.
He's a moron.
Great farseeing economist for decades. We all loved his Mum and Dad too in Petone. Nothing gives perspective like being close to ordinary New Zealanders eh.
Sensible comments from Ganesh. His parents had a corner grocery store near Wallaceville Railway Station and he went to Heretaunga College in Upper Hutt.
Great interview Jack. Very much enjoyed the "common sense" approach of Ganesh Nana.
What happens in UK takes time to happen in NZ but it is now starting to happen. Rising house prices, fewer state houses, mass immigration and austerity. Look at the UK if you want to see the future of NZ. It's not pretty.
It’s already here mate and it’s worse
I'm starting to see the tidal wave of health challenges this country will face in the coming years and decades. My father is a middle baby boomer (68 years) and just had knee surgery. He has hand surgery scheduled for the new year, and now been told he will likely need his hip done soon. Otherwise he is "healthy"- eats well, no heart problems or diabetes, brain heath all seems good. He is just ONE person. Meanwhile his parents both in their early 90s are in and out of hospital, surgery after surgery. How on earth do we plan to pay for all of this treatment across the ballooning population of people in their 60s- 90s. And that's nothing to say for the health challenges of the younger population. I was in an Auckland hospital waiting room a few months back- good grief the state of people. Waiting room after waiting room full to the brim of morbidly obese people, and all I could think was we are screwed.
You have to tax the bad food. Food companies have responsibilities but they are let off in that health requirement .Too much food in New Zealand is of simple carbs and simpler sugars. Everything is sweet. It's over the top. It is known and documented that the right mix of fat, sugar and salt, is addictive.
of course this sudden increase of baby boomers is completely unexpected. Policies were advanced in the 70s that would have provided funding fr this and large infrastructure....but no lets put that on the back burner for now......
My beef is hospital rest home clients already signed of as chronically medically sick taking up beds in acute medical wards and and e depts in their 90s when young workers can’t get help needed get to work again . Put jnr drs into these resthomes for experience and keep on top of issues also better pslliative support . Get if lucky 2 go a week for up to 80 residents for about 2 hrs achieves nothing
Food is too expensive eat healthy only winners medical supply companies creating bariatric equipment etc who shareholders go back to big finance . And this body positivity rubbish if your 150 kg as long as your happy ha ha utter nonsense serves no one but people like black rock etc rest just waiting for diabetes cardiac disease etc dialysis
Yes , you are right. We are becoming an overweight , inactive population with all the attendant health problems, type 2 diabetes for example
Brilliant! Children are starving and we produce over enough that they shouldn't go hungry. What an indictment on our country. !
@@harmonyadams7577 the government doesn't produce food. Farmers do. The government doesn't "starve" children. Bad parents do. It's a nice idea to say that we should take food and give it to poor people. The government isn't the solution to everyone's problems, we need to teach more self reliance and responsibility. You can do better if you really want to. But most don't or won't.
@scarrollnz Then why are we paying more for our produce than overseas countries do? Easy to blame the parents when personal greed is involved
@@harmonyadams7577 I think for some things we are paying more. I think NZ asva whole is not big enough. We are are too small for big systems and too big for the manual way of doing things. More supermarket chains would lower food costs. But they go to Aussie, not here because we're too small for the effort. Sydney had more population than NZ.
Don't immediately discount that some parents make bad choices with their money and their kids suffer. We don't teach people about money, why would they be good with it?
@scarrollnz Yes I agree. But not all struggling parents make bad choices. Most parents want the best for their kids. The fact that some kids need to work and go to school at the same time breaks my heart. As a grandmother, when I have my 4 grandchildren over, I have to compromise quantity over quality so I can feed them. It's tough out there at the moment. My daughter and her husband work. They're hard workers. They're growing old before their time, before my very eyes.
I'm far from being an economist but surely some of the monies the prev govt spent over totally ridiculous and destructive reasons tells me that the govt HAS a fair bit to answer for
Invest judiciously, keep a stop loss figure. Shuffle between debt and equity wherever the ratio goes too off your target. As for the target, I recommend a Ratio like this Debt % should be equal to your age in years. If you are 20, debt is 20%, reset in equity. If the market falls or rises drastically, your debt % will change, which you should rebalance to 20% and bring back equity to 80%. Thus you would have bought low or booked profit depending on if it was a crash or a bull run.
Starting early is simply the best way of getting ahead to build wealth , investing remains a priority . I learnt from my last year's experience , I am able to build a suitable life because I invested early ahead this time .
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over $350K.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumours and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of an advisor, before I started seeing any significant results happens in my portfolio, been using the same advisor and I’ve scaled up $450k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?
Annette Marie Holt is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Damn. First time I heard him talk. Where has he been all this time? Make him prime minister or finance minister 😂
Good grief...the last thing NZ is an academic economist anywhere near government
@@WahChingUbetter an economist as finance minister than the English literature major whose only job remotely as a finance person was a cashier at Wholy Bagel in Wellington.
I understand he was the head of the Productivity Commission until Seymour disbanded it.
@WahChingU
He might be honist about incentives. A purely fiscal audit.😂😂😂😂
@@jacktui6690 Yes he was. And this is one of the big challenges with the civil service: the people who know these problems intimately and have been working hard to solve them for years are routinely forbidden from speaking their minds frankly to the media. If you want to work in those central government roles, you pay a price of silence.
I guess in some ways we're "lucky" that Seymour has freed him from that burden, because those words need to be heard now.
Private debt - the outcome of the stupidity of wasting $500bn bidding up land prices and having a tax system that encourages it.
Public debt - plenty of other OECD countries run higher govt debt/ tax revenue ratios
Unsustainable immigration through no population strategy. Demand for housing and infrastructure beyond our ability to pay for it (except through issuing very long term inter generational govt debt)
Superannuation - age of eligibility needs to rise with life expectancy. Keep at 65 if medically unable to work.
Productivity- We wasted $500bm bidding up land prices instead of having a tax system that funnels capital into productive businesses
yeh and high land prices is entirely relevant to this "structural deficit" More and more Kiwis depend on government assistance precisely, because housing is so unaffordable.
100%
People are encouraged to buy property no matter what. Why? There’s no land tax, no CGT; you just wait a couple of years and sell it for pure profit-100% yours.
And if, and only if, the spending on superannuation were rational, out of 23 billion, they could surely fund our health and science sectors with ease.
It's fundamentally broken, and it doesn't look like any parties are interested in fixing it.
Can't wait to move to Australia with:
- A similar or higher salary and more take-home pay due to different tax rates, plus unbeatable Australian Super contributions
- Depending on the state, most still offer first home grants and first home partnerships (where you need as little as a 5% deposit; the state lends part, and the rest comes from the bank)
- I hate standalone houses or the generally poor-quality homes in NZ; apartments in Australia seem outstanding based on recent experience and are far more affordable
- In the inner CBD, everything is within walking distance, and the higher number of people made me feel much safer"
Preach brother
Yes just juice the GDP number in the short term with immigration rather than do the hard long term work and invest in education, infrastructure via the existing population.
Compulsory supervision like Norman Kirk had in place ,Australia's compulsory super.
Plenty of money saved to invest in infrastructure.
The Cullen fund and Kiwisaver should be combined then compulsory savings.
The tax take off the investment profits will help balance govt finances also using the money invested to build infrastructure would lower overseas borrowing.
I like this guy. Ganesh is on the money. Would like to hear his views on co- governance.
Keep dreaming. The referendum is coming.
He is signalling it with his choice of neckwear
We don’t want co governance. It’s a money grab
@@camerondoig3460don’t forget the badge as well
He's an anti white you can tell by his greenstone insignia,hows about taxing the maori economy more?
Most of the "private debt" is mortgage debt, thanks to decades of policy encouraging inflated house prices, such as tax on most capital gains except housing, and negative gearing.
theres more than enough wealth in this country to have the things we need to function as a society. These aren't tough choices, they are bleedingly obvious. Stop giving tax cuts to landlords, tobacco companies, privatisation of our core infrastructure. He mentions our personal debt to overseas companies (banks). But yet this current govt wants to privatise kiwibank. What about the $10b in profits gentailer power companies have paid to investors since John Key sold them off... Thats $10b that could have been used to re-invest.
We do not want to emulate UK or US with privatisation of schools like Seymour wants. Why do people keep voting for this? Its bonkers
landlords do not get tax cuts. They pay tax on their income.
@@SarahHarris-hx6ectax cut is when the government lowers their taxes, not cuts them altogether. In March landlords received and $800 million tax cut
@@ThuderDragon2408 But there's a housing shortage... If you don't want more homes built how will NZ shelter everyone??? Less homes means higher prices, which increases rental prices for the homes available. Supply n Demand Accounting 101
Google "Capital Flight" If you stop encouraging investors to build homes, they will put their money into other easier financial investments. I should know... I've owned several investment properties and never lived in any of my own properties... Thats called "Rentvesting"
Education is the key... I could (if I was an AFA) show people how to become financially independent with less than $10k...To many people living with their heads in the sand.
@@SarahHarris-hx6ec Interest deductibility allows landlords to pay less tax by including mortgage payments as a business expense. Call it want you want, but that is essentially a tax cut
@@WeraroaWizardthat's the same as any business though, interest on loans is always a cost of business that gets counted against income. The real problem is banks only lend against property. They create money out of thin air as a mortgage, then charge interest on that loan. Just regulate banks to lend 50% on business
Dr Ganesh makes sense with an excellent way of conveying his analysis in laymans terms.
I can understand this man and he makes good sense! He should be lecturing the government!
No Austerity, we can't go down Britain's route
We are going down Britain's route by following their high levels of immigration. They have already lost their country. How long before we lose ours?
National's 'Get NZ back on track' campagin is about austerity. NZ's version of the UK is on its way with neoliberal short term, cheap, quick fix think and planning without thinking of the future to please their supporters so they can be reelected in 2026.
Britain has Brexit in its mix. That radically changed its economic state.
@@SarahHarris-hx6ec Brexit added to the problems in the UK, the decline in productivity was already in evidence. The fundamental issue is that the neoliberal economic system doesn't work, no matter how often its attempted. It becomes a religious belief.
@@SarahHarris-hx6ec austerity was pre the Brexit discussion and vote and implementation
In the year 1960 there were only 20 people on social welfare, and today there are over 400,000 people receiving unemployment benefits and over 1.5 million New Zealanders receiving some form of direct government support or subsidy (not including government contributions to KiwiSaver). This all costs money, money that could be going into healthcare, schools, policing, infrastructure, building low-income state houses.
To prove your point even more.. why not go back another few days when only 1 person was on social welfare..?
we need a capital gains tax
@@markreynolds7890To do what? give more benefits to unproductive people and government wastage?
to fund infrastructure, thght evn u wuld be able to fill in the blank on thth 1
@markreynolds7890
And pride in wealth, creativity, and independence.
Rich or poor.
Brains and education.
Honisty about the inert and the dynamic.
One of the first things this govt did was to give landlords a $2.9 billion tax break but when it comes to an update a hospital in Dunedin it was “too expensive” and couldn’t be afforded. The govt priorities are out of whack. Its govt doesn’t seem to think things through, it all looks rushed and not thought out.
It's priorities are set by its donors...landlords, tobacco and oil industry etc.
@@sweetybnz7482 The one art these parties constantly have up their sleave is social divide. While the ordinary are distracted arguing with each other, their mates are influencing how and what we will defend.
Labour set the budget, now it's nationals problem to figure out a solution. I'd like to know exactly what is blowing out as we are past the covid peak of construction Inflation. Contracts include some extra for inflation or other contingencies when over long time periods.
@@Michael-lg4wz in case you missed it National are in government and set the latest budget. Everyone said before the election Nicola Willis had no clue and her budget was out by billions.
The reason for the landlord reward because the prime Minister and his Minister are landlord themselves.
About bloody time some grown-up spoke the truth.
Thanks, Ganesh, priced out Kiwi from across the ditch.
Great! Thank you Jack for getting him on!
We need to be thinking and planning long term…, we need the ferry’s, the hospitals
Are you telling me the landlords are not planning for retirement? Surely that constitutes long term planning 🤔
@@ozbot1546
Too true… once had the wealth landlord.. 7 properties.., complaining to me her then tenant.., that running her properties cost so much.. and they did provide the spare cash.. for her to fulfil her agreed & legally mandated requirements to maintain them… ffs
If you need money to improve services as a country you have to make it....
@@andreatodd3095
We do
@@ozbot1546 you clearly didnt understand what he was saying in this ,try again
Didn't catch his name, but want to hear more from him. Spot on thinking. And Jack, you did well, didn't speak over the top of him, great stuff. Get him on again please.
Dr Ganesh Nana - has been chair of Productivity Commission and was at BERL.
So what Ganesh is saying confirms what so many of us have been saying for many years now, that the "penny wise pound foolish" policies of successive governments has got us where we are today.
Wow…this guy is next level…and he is so transparent in his explanation’s he’s so passionate
My rates went up 25%, energy is ridiculously high and expected to go up again shortly, insurance went up 18%, food goes up everyday, tax goes up, interest rates went down and mortgage rates went up, but my council members got a pay rise. Not everyone is tightening their belt.
Soon rents will increase too….
Our so called elected leaders know what’s best. LOL
RBNZ governor is a traitor. And media helps I M F and Blackrock puppets while shifting the blame to people.
Just a normal day in a banana republic
Gotta love the crown and government 😂 doing the country real well I see 😂
Your rates went up because local bodies have to build extra infrastructure (roads, pipes, libraries etc) to cater for increased population. Government does not fund this but are happy to take the increased GST and income tax from more people. Labour and Nats guilty of this unfortunately - but Nats are crashing the economy to boot.
Make it clearer! NZers are buying way too much from overseas and not exporting enough. Tourism, heavy industry and agriculutre is not being supported, instead new and faster ways of importing is being prioritised. We are being lulled into becoming a consumer society run off foreign debt.
this is exactly what I was thinking - when people get money to spend, they often send the money back overseas to Apple, manufactured goods from cheap labour countries, take overseas holidays, etc.....if that money went to NZ businesses it would stay in NZ a bit longer and do more work here, more taxes, etc. Like he said, there is an external deficit. He just referenced debt, but any money we spend in NZ does work for NZ instead of somewhere else. Not sure what policy would be needed for this to happen
This is because we have become addicted to low skill/low wage migrants .
@@jemma_19988 and we can't afford to start our own businesses here with all the regulations put in place to stop competition and protect institutions when they were still here like ficher and paykel
Dr Ganesh is SPOT ON....get this guy on more shows. Clear, expertise and this easily understandable and relatable.
NZ is in a bad place re it's economy.....debt levels are unsustainable and aspirational Kiwis will simply leave NZ if their future is bleak...which it is sadly.
The government won't tax the rich, that is the problem. This government is doing austerity, all public services will massively deteriorate under this government.
Doubled in size and got worse under the last government
@@johnnygoggles6427source required for that nonsense.
@@sweetybnz7482 Johnny Goggles was wearing his beer goggles when he came up with that manufactured nonsense.
I agree with you. Not National nor Labour want to tax the rich and make it a more balanced NZ because our tax system isn't working. The rich are getting richer and the poor unfortunately stay poor. We need really good Tax Specialists or Finance Minister who have the foresight
@arnedomi I think you need to define "the rich". Are you talking about those with assets over $10m... $2m? ..$1m? Those with incomes over $500k? Households with incomes over $300k? The term rich is thrown around a lot and NO ONE ever defines who they are actually talking about, perhaps you could start.
Massive private sector debt in NZ is caused by Rogernomics. After the great depression NZ governments tightly controlled the expansion of credit. Roger Douglas opened the flood gates of credit, resulting in a massive explosion in house prices and associated debt.
NZ was almost bankrupt... Roger had to do something otherwise, we'd have been taken to the cleaners... Damned if ya do, damned if ya don't...
@@peterlattimore6013 You can't bankrupt a soverign nation that has the ability to create and circulate their own currency.
@@raywheeler3135 Rubbish. We don't have enough NZD liquidity in NZ to buy all NZG bonds, therefore it has to come from overseas markets, intermediated through USD. There is little structural difference between NZ and Argentina.
@@mxvega1097 don't debate with him... clearly he thinks money comes from trees and international lending rates via the SWIFT banking system is all to do about nothing... I'm starting to think the education has a lot to answer for.
@@peterlattimore6013 He's probably into MMT, which is basically a scam.
Who is this man! Why do I not know who he is! Yes! Yes! Yes! This is true sense.
Great explanation by this economist
tautoko, Dr. Ganesh Nana's comments..the focus should be on private debt, which is much higher than public debt, is critical..we have spent decades inflating property prices, driven by a tax system that favors speculation over productive investment..as a result we have a housing crisis that is contributing to the structural deficit, with more Kiwis needing government assistance just to get by..
rethink our approach to debt, housing, and tax policies..the current focus on short-term gains is hurting long-term stability.. Ganesh is right-our real concern should be how we tackle private debt and redirect capital towards productive sectors..we need smart policy changes, not austerity, to fix these structural issues and bad thinking..
that's what it looks like when you don't audit politicians, tis is what the mess looks like
Loved this one. Very interesting things to consider. I do want better not more
Let’s replace her with this guy
He was very good yes. I enjoyed the interview. But it's like the guy at work with all the bright ideas, who gets all the kudos. When the hero is the implementer of the ideas. Talk is cheap. As he said we're economists, we should have solved it by now. But he hasn't.
@@dossnone4554
He also pointed out what we can all see.., that our government debt is not the problem.. and the ships , hospital etc are not ott, they are required.. esp for the nations long term productive growth and stability & that cancelling them is badly short sighted thinking..
She’s looking in the wrong direction.. based solely on ideological/ political beliefs
@@dossnone4554
Replace her with him… we’ll all be better off long term
@@dossnone4554
Just looked her up… from what I can see.., she has no education or expertise/ experience in economics or money.. apart from being born into it & sitting on dad’s knee.. now she taking a broad sword to our nation…
@tigertiger1699 It gets back to my answer to your suggestion that we appoint him as God. Pointing out that identifying the problem does not mean you know how to solve them. A bit like you and I blah blah at each other. It doesn't solve anything. The online talking community feels good, but we achieve nothing. Nor does our very impressive economist, as he rightly admits, he's been unable to change anything along with the rest of his tribe. At best, this online intercourse might give you and I something to think about outside of our own limited belief system.
Opening statement from Dr Ganesh Nana was a good one, the man
Notice how Jack hardly talked over or interrupted this guest? He only does that when the guest is not reinforcing his own world view.
He answered the question, unlike politicians
They won't mention the infratrstructure debt because its in the 100s of billions. and that is more concerning to people. fisical debt doesnt include the infrastructure deficit. NZ is a first world country with a third world battery. water system and public transport is an example of how far we are behind.
Exactly! Focus on external debt; a good govt is one in debt. It MUST SPEND SPEND SPEND in order to keep the country's economy stable or growing, which means people have money in their pockets to support businesses. Any govt must pay for infrastructure, govt services and initiate employment schemes, raise minimum wage.
Jack - it’s obvious that our understanding of the issues at hand from Ganesh’s POV. He made some really good points - economic sovereignty, expectations of government, strategies to improve our plight …. An educational series/format and/breakdown from this man would be great. Highly regard your content and style. Keep up the good work
OMG, thank you Ganesh, you nailed it!
Excellent interviewing skills and excellent economic information. This is such a relevant and timely interview for NZers
Very high levels of private debt and proneness to natural disasters means that govts have to run public debt lean. They are totally interconnected.
Isn't it smarter to reign in private debt by constraining runaway house prices? And allow government to make investments in public infrastructure which will make NZ more productive and resilient in the long run. The obsession with public debt is very misguided.
@@budawang77%100.
As a small business manufacturing company, I go overseas to promote and sell our robots. every time I go out, I have to pay for flights and accommodation, however I also have to pay for a bond to take my robots overseas. Its very expensive and I have to pay a lot of money for the paperwork and red tape. It will be great for the government for small business to go into Australia and sell our products without any hassles.
GDay Kiwis - As historical experience has shown again & again, Economic Austerity is very dangerous and counter-productive government policy...Mark Blyth (Eastman Professor of Political Economy & Professor of Political Science and International and Public Affairs at Brown University) wrote a whole book dedicated to this topic (Austerity - The History of a Dangerous Idea) ...
Where can we hear more of Dr Ganesh Nana?!
Interesting perspective. Particularly the vision for 'growth' in the context of 'better' and not more. National should think about this
Excellent, informative interview with Ganesh Nana
I'm kiwi from the earliest ships from Europe but i will leave this country and never come back if we lose our healthcare system. We should have abandoned neoliberalism decades ago!
Replace neolib with what.
Brilliant guest great interview informative and educational ( I had to rewatch parts coz I'm not the sharpest tool haha). Er, Ganesh what are up to in a couple of year? Nicola Willis' job should be open... please?
Jack seems to have forgotten the conversation on macroeconomics he had with Prof Stephan Hail a couple of weeks ago. Tax for revenue is a fallacy, not only that the perpetuation of this myth is actively harmful (ref the Dunedin Hospital debacle). Ganesh Nana doesn't seem to understand this and Jack has challenged neither Ganesh nor the Treasury on this fundamental point. The govt does not need tax or borrowing to pay for things.
An apple farmer doesn't need to borrow apples in order to grow apples. As a country with currency sovereignty the govt does not need to borrow money that it has unlimited capacity to create with keystrokes on a computer.
All a govt surplus does is create a private sector deficit. Why does the govt want the private sector to be in deficit? Where's the benefit in that?
I've given up on responding to the politicians, economists and the various commentators in NZ. None of them understand macroeconomics which is the most significant reason NZ does not and will not prosper. Building a hospital, a bridge, whatever is vital infrastructure that is the Government's responsibility and what they are voted in to sort out. To not spend on infrastructure is only a political choice, not a fiscal one as an understanding of MMT will show. Their mandate is to serve the public they represent. However, our democracy has been shafted to serve the wealthy donor class. We're just the USA in a microcosm.
@@DavidPeez Sadly it's only politicians, [prominent] economists and the RBNZ / Treasury egg heads that can transform macroeconomic policy to take full advantage of the MMT fundamentals. So we can't give up, or nothing will ever change and prosperity for all will forever remain out of reach. The tax pay for myth has done immeasurable harm to every part of society, but most of all the poor.
Outside investors dont want to be mired in a pulp nz dollar enviro , which happens with your currency sovrinty. Good luck .
@@geertstroy except it doesn't unless the government carries out bad policies.
I would have loved for Tame to give Nana more time to talk about solutions. Smart guy!
Cutting health services is very short sighted as early interventions prevent far more expensive treatments down the line. People will die on waiting lists will be a reality. I witnessed in the 1980s for heart surgery.
Where has the focus on preventive healthcare gone in the past 40 years? No money allocated.
Seems to be money for roading aka the Woodend bypass which hardly is a priority. Should be less reliance on cars and more public transport options available. Election promises seem to get the money and big business. Why drill for oil and gas when the money is needed for research to design more efficient and alternative energy sources. NZers are innovators and world leaders but ignored now.
NZ relies on tourism for income yet this govt gives very little to the very things visitors come to see. Pristine forests and species that are not found any where else in the world. The flora and fauna are fast disappearing and this govt does not care and is undoing decades of hard work.
A National conservative govt has always slashed govt spending, benefits etc and assisted the wealthy.
A fairer tax system where those on lower incomes get a fairer deal-tax free income up to say $15-20k. Tax the companies equally. What about all the profit that goes overseas like the Banks. ? that benefit NZers.
It has always been New Zealanders mindset to invest in short term - if an investor can't foresee profit in 5 years they're too scared to be involved.
Bang on, if we want to see change we need to demand our government to incentivise investment in productive industry as much as possible… we’re not going to export milk powder to achieve prosperity, that ship has been and gone. Let’s get wealth moving in NZ, instead of sinking it into the pit of property and lining Australian banks pockets.
@@williepete6843 those banks and RBNZ governor are owned by Blackrock which owns 80% of the market along with 2 other hedge funds. Capitalism is dead. Corrupt financial fas cism is well alive to control people.
Especially local banks which are in fact, not nz banks...
If you want a thriving economy, you need to attract innovation. If you want to attract innovation you need to LOWER taxes not raise them. It's counter intuitive but the death spiral is to keep squeezing harder to get exponentially less, people/business will just keep moving overseas
New Zealand is a low tech, low education country. It can be summed up in one sentence. New Zealand; first world aspirations on a third world budget.
You need to attract high skilled migrants .Most of our migrants are low skilled
Get rid of councils, they are half the problem. 😊
That's something I totally agree with this guy (on minute 10:00). Progress of a country or business should not be measured by the amount of production. New Zealand doesn't need to export more milk, dairy products, kiwi fruit, meat, wool, etc... the key point is the so called "Added value".
NZ needs to add value to its products and make them better, more competitive, and more desirable in the market than our competitors make. This is a good start.
Yup....not even a year for this govt to virtually destroy wellington.......running govt on Skeleton crew....services going further down the pan....bang up job guys!
Thank you for making sense
His brother Etaba Nana is also very wise.
There should be enough for everyone. But politicians, big business, they take all they want. Without any care for consequences. Nz. A once beautiful country, divided by greed.
Almost 65 years old. Truth is so vibrant.
Finally someone with real life knowledge of what's really going on in our current economic and financial situation. Government spends over the last couple of decades (more so from the previous government) was careless and unsustainable. Now it's about making necessary and unpopular financial decisions that makes sense of our finances and economics for the betterment and prosperity of our future generations to come.
Private debt is not a problem as long as the government performs as it should. If they continue along the line of delivering more profit to the rich so that they can buy mansions overseas and even bigger yachts we're buggered. Labour has to. come out and say they favour capital gains tax and wealth tax. They need to do that while continually banging the drum about the rich getting richer and the poor getting poorer. Forget renaming every government department, every public building and every school with a Maori name. Get the tax thing right and it will help the Maoris to look after themselves.
Great interview 👍🏿
Great interview Ganesh nailed it.
Ethical economics. Well Done!
A great insight into the situation...
Arghh... finally a realist!! Stark truth and no politicking . Jack Tame needs to go off script in context to this thought provoking discussion but I have really enjoyed this honest reveal of our dire situation in New Zealand. From how I interpret this is that we as individuals need to take more accountability of our actions and this adjustment in our attitude needs urgent action.
About time we got someone who knows what he’s talking about
A real expert.
Omg a nz news show with comments on????? Well thanks nz good no ya
Normal Tane BS: The disclosure shld be made: Nana worked closely advising Grant Robinson and recent Labour - he bears blame for the mess NZ is in.
Why watch then? Go watch Sean Plunket if that's your thing.
Truth and honesty is my thing!😂
@@DaveRave13579If truth & honesty are important,then ask Nicola No Boats why there hasn't been a decision on Ferry Replacement,but just make sure Uncle Winston is standing next to her when the question is asked
Probably NZ doesnt need roll on roll of option when there is a fantastic coastal shipping option that doesnt require several billions investment.
My late grandparents were born in Auckland around 1900.
Had children very late in life.
It’s given me a unique window into how New Zealand was through the past century.
From their perspective.
They lived long lives. Lived through hard times. 2
World Wars. Influenza. Limited access to what people today take for granted. Or none at all.
They grew their own vegetables. Washed their clothes by hand.
Baked their own bread.
My grandfather had to lead a 100 cows into the milking shed before running to school barefoot.
To get his education. Leaving school @ 14.
They survived. Their generation was born tough.
They worked hard.
I can’t help think. That they would be saddened about the state of the country today.
That they strived to build yesteryear.
The economist is correct.
How can a country rich in food and produce.
Not afford to feed the vulnerable & general population of New Zealand?
During the great depression my grandmother said.
Horse & carts with soup and bread would go through streets of Ponsonby. & help feed people.
I trust New Zealand will weather this crisis.
It has before.
A man to head the finances of this country.
Demographic pressures has been predictable for the last 50 years. So the people who knew it was coming didn't plan over the last 20 years need to look in the mirror.
Nz and russia are the only nations that produce more food than the people need and yet our food is ridiculously expensive
same in Australia too
The Russian economy is booming in spite of sanctions and funding a war. NZ is a slave to Western Banks and Neo conservative political thinking.
Australia produces more food than the people need, too.
Excellent explanations about money both indidual expectations and govt Response to demands. Older has more health needs. Older prefer spend on travel jack tame learning also b
8:21
Concerning how asleep at the wheel the govt is when it comes to long term improvement to New Zealand.
There you go Maori Party a potential Minister of Finance for Party
Is he extreme enough, and does he have superior DNA.
He's not Maori
@@Mikaere87 he got the green stone and the pin,that's maori enough for the radical racist maori party.
Correct … left bias I with some Māori party wannabe
National - Labour - National - Labour . This 3-6 year yoyo has destroyed long term planning and created inefficiencies
First time I’ve heard a NZ economist recognise the drivers for post growth .. there is hope
10:12 - This point really hits hard with me and i dont get it. What i also dont get is when i bring up this issue online, i get told that moneybis the reason and that i should shut up and take it. Make it make sense.
Few (if any) in NZ are going hungry, we have an obesity problem NOT other way around.
We have one of highest rates of child poverty in the OECD.
You’re confused on this point… when you are extremely poor you don’t have access to proper food. So you might not be hungry but you are nutritionally starved because all you can afford is white bread, margarine and luncheon meat. Obesity is so common in poor communities.
Money is man made. With growing populations and productivity more money is required. There are two forms of money creation - fiat money (Govt) and bank created credit. For the last 40 years the economic mantra has been reduced Govt spend and increased bank created credit. Hence growing private debt. This bank created credit has largely been directed towards housing resulting in house price inflation with a PONZI housing market and consumerism. So while populations have grown our infrastructure has aged. What we should learn from this is that money creation and allocation matters. In a world where we are consuming at a rate that exceeds the planets carrying capacity, growth rates are reducing, and the geopolitical fight for resources is ramping up we have to be smarter. Directing resources through money allocation to thing that will make us a more resilient country - energy security, food production, health care. The Govt has to play a large part in that and it should absolutely be creating money for long term infrastructure projects.
Learn how inflation works
@@pathflight9803We have Inflation in the housing market because of too much bank created money. Rising unemployment and business closures are a sign that the government is not spending enough money. What is the point of having idle resources? Putting them to work won't create inflation.
Yet there is no way to borrow money for any project, but housing ponzi scheme only...
With the Fed cutting interest rates by 50 bps, what do you think will happen to the stock market? My portfolio has performed exceptionally well this year, but I am concerned about the possibility of a market crash and losing my gains though it's all on a brighter and splurging side for Gold, should I look that way?
In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments. Nevertheless, seeking guidance from an investment planner might be necessary if you desire a more assertive return.
Investing in gold is a reliable choice, and I plan to keep buying more to make up for my losses. While silver is also a good investment, my collectibles are not as similar. It's important to have clear investment goals and educate yourself on the type of investment that interests you. I work with a financial consultant regulated by the SEC, and started small, but eventually accumulated over $800,000.
Impressive can you share more info?
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Aileen Gertrude Tippy” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
Best interview I've seen in ages. OMG if we can't sort our s**T out we are in some serious trouble. Politicians want votes, but what we need is longer term thinking.
The government doesn't need to pay for anything. They just need to print more money. It's time we got over the incorrect assumption that printing money is bad. Other countries do it, we should do it as well. The sooner the better
Printing money causes inflation. Extremely high inflation wreaks havoc on society. Because we are borrowing from overseas banks- unfortunately we sold all of ours, too much debt means a lot of our earning are spent on interest. Also we become a riskier lending option which means a higher interest rate. (This is a crude simple statement but in general how I understand it)
@@dangerrayy All government spending involves creating new currency and this is why we have taxation to delete it again. The government is only constrained by the resources which are available to it. Also out banks create new money when they lend, they do not lend out existing money. The Reserve Bank explains all of this in its article ' Money Creation In New Zealand'.
@@truthseeker5911 Not so. You're confusing credit creation and fiscal policy.
Retail Banks don’t create Money mate. Your thinking of the reserve bank- which is wholly owned by the government.
@@dangerrayy no, printing money doesn't create inflation. That's a common misconception
Uncontrolled spending creates inflation if demand exceeds productive capacity. The key to avoiding inflation, is to increase spending at a controlled rate that allows supply (labour, materials etc) to grow at the same or similar rate, or to increase government spending when the general economy is contracting (like now)
A 10 minute masterclass in modern macro economics.
Very happy with the direction of the coalition. Might not be perfect but sure beats the hell out of the demolition mess the labour party left them with. Go Winston and Seymour.
@@danieljessop7140 I agree!
Great guy, thinks of the people in amongst the economics.
NZ needs to have an honest conversation about what public services it can afford. It also needs to prioritise the future of their children over the future of their elderly.
I agree with Dr Ganesh Nana comments. New Zealand cannot continue with the current average wage, high service, consumption, import, property buying/selling low financial return raw product export economy that uses short term, cheap, quick fix solutional thinking and planning to get NZ back on track with economic growth and productivity. This inept, flip flopping, all talk government are dilutional if they think they can do it with increasing global geopolitical, trade, economic, manufacturing, supply chain chains uncertainties and the effects of a warming planet head winds looming. The recent global health crises was a wake up call.
Get this guy back.