Economics 101
The National party assures us that their proposed tax cuts are funded in a way that is not inflationary. But according to a number of economists, the income streams they are counting on to fund the tax cuts do not exist. National will have to cut core services.
Tax cuts are inherently inflationary. Once the tax cuts are realized, National has no control over how the money is spent. As the money supply increases, that is the amount of money in circulation, inflationary pressures arise. Not only do National not have the money to fund their proposed tax cuts, any gains to the taxpayer will be quickly given back by rising inflation. And cuts to core services may mean that things like access to health care are adversely affected. Whether the tax cuts are funded in a non-inflationary way or not is irrelevant. The real inflationary pressure occurs when the money is spent. National has no control over that.
Poor old Adrienne Orr must be tearing his hair out listening to Christopher Luxon and Nicola Willis. For all their right wing think tank expertise, they appear to have a scant understanding of monetary policy. As one former Secretary to the Treasury once commented to me;
"If only politicians understood the basics of Economics 101, we would be a lot better off". These tax cuts would not make the country better off.
Chicken nuggets recall
A popular Pam's frozen food has been recalled.
What you need to know:
- Pams brand Tempura Coated Chicken Nuggets (1kg) have been recalled by Foodstuffs.
- The product may contain foreign matter (blue rubber).
- This product is sold at Four Square, Gilmours, New World, Pak’nSave and Social Supermarket stores throughout New Zealand.
- The affected batch has the marking of Best Before: 16 Oct 2025
- The issue was raised following a customer complaint.
- Customers should return the product to their retailer for a full refund.
For other recent food/product recalls, check our list here.
Mid February: very warm, very dry, & very sunny
I’m sure that comes as no surprise to anyone with only the slightest interest in the weather, but will it continue, I wonder?
February has been similar to January which was also dry and sunny, but was slightly cooler than average. However, February with a daily average temperature of just under 25ºC is running a degree warmer than the forecasts, and the second warmest in 15 years, with only 2016 being slightly warmer.
With no rain at all it’s as dry as 2019 and there has been 11 sunny days with only one with no sun at all.
For some, summer is over at the end of the month (two weeks away), but March with an average temperature of around 22.5 ºC it's still summer in Kapiti.
Photo: will it rain - it didn't
🧩 Crack the Code: Today’s Riddle Challenge! 🤔
I’m a three-digit number; my tens digit is five more than my ones, and my hundreds digit is eight less than my tens—what am I?
Do you think you know the answer to our riddle? Don't spoil it for your neighbours! Simply 'Like' this post if you know the answer and the big reveal will be posted in the comments at 2pm.
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