The visible hand in economics

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Buy low, sell high

Posted by: goonix on: December 1, 2008

With the official cash rate set to fall even further later this week, shares become relatively appealing when compared with other financial instruments, such as bonds and term deposits. The old adage of ‘buy low, sell high’ seems fitting, given the battering shares the world over have taken in the past while. The NZX and [...]

Metering and the market for water

Posted by: goonix on: November 28, 2008

The DomPost contained an article on the potential for metering Wellington’s water supply. The question is asked: should Wellingtonians pay for their water? This issue is a hot topic, having been discussed at Kiwiblog, Infometrics and TVHE earlier this year. Historically, water has been provided for by the various Wellington councils out of rates. Water is [...]

SKY TV and the market for live sport

Posted by: goonix on: November 25, 2008

The previous Labour government bestowed a legacy upon NZ that included the first ever review of broadcasting regulations. Essentially the question being asked in this review is: does the current market situation warrant government intervention?

Today National released their corrections policy, which would allow the private sector to tender for the management of prisons. Although not a completely ‘new’ concept for New Zealand (Auckland Central Remand Prison was privately run under the last National Government) it nonetheless raises the issue of when is it appropriate for such services to be [...]

Optimal tax theory and ACT’s taxation policy

Posted by: goonix on: October 17, 2008

Yesterday, the ACT party released their tax policy (further discussion also over at Kiwiblog) Some key points from ACT’s taxation policy include: restricting future increases in Government expenditure to inflation and population growth eventual personal tax rates of 12.5% up to $20,000 and 15% above $20,000 eventual company tax rate of 15% eventual GST rate [...]

Putting your money where your mouth is

Posted by: goonix on: September 9, 2008

ISCR have just launched New Zealand’s first prediction market. From iPredict: Who’s going to be the next Prime Minister – Helen or John? Will the price of petrol be $3 a litre by Christmas? Will Winston be sacked before election day? These are some of the questions Kiwis may find themselves backing their opinions on [...]

$onny Bill Williams and the salary cap

Posted by: goonix on: August 16, 2008

The recent Sonny Bill Williams saga has brought into light the issue of salary caps in competitive sport. After fleeing the Australian NRL for French Rugby Union, SBW made the claim, among many other bizarre excuses, that the NRL’s salary cap was anti-competitive, in that it prevented players from earning their full-potential. Does SBW have [...]

The curse of human capital

Posted by: goonix on: April 10, 2008

Consider the ‘traditional’ capitalist (envisage the Monopoly™ man). This capitalist owns the means of production, such as a factory, or piece of machinery, a building, or piece of land. The capitalist uses their means of production to extract economic profit. Times are changing. As we move towards a service based economy, like all other developed [...]

Working for Families, or Nazi medals?

Posted by: goonix on: February 13, 2008

In Nazi Germany, women were rewarded for having children. An estimated three million women ‘won’ a medal for having four or more children in 1939. Other incentives provided to women to encourage mass reproduction included marriage loans, tax allowances and health services. In Labour-led New Zealand, women are rewarded for having children. The Working for [...]


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