“GMO’s are Dangerous!” – Not
28 May 2016 Leave a comment
in economics of regulation, environmental economics, health economics, politics - New Zealand, politics - USA Tags: Anti-Science left, GMOs
What is freighted by road? @TransportBlog @JulieAnneGenter
26 May 2016 Leave a comment
in environmental economics, industrial organisation, politics - New Zealand, survivor principle, transport economics Tags: celebrity technologies, New Zealand Greens
What is freighted by rail? @TransportBlog @JulieAnneGenter
25 May 2016 Leave a comment
in politics - New Zealand, transport economics Tags: celebrity technologies, New Zealand Greens
The Greens want to expand rail freight but stop mining coal which is 1/5 of rail tonnage.
Source: Ministry of Transport (2014). National Freight Demand Study 2014.
@jamespeshaw what do coastal ships ship when they ship 4.2 million tonnes per year?
24 May 2016 Leave a comment
in politics - New Zealand, transport economics Tags: celebrity technologies
If coastal shipping is going to double its freight capacity, and certainly going to need some new ships because the existing ships are unsuited to taking over the current business of road freight.
Source: Ministry of Transport (2014). National Freight Demand Study 2014.
@JulieAnneGenter only 21% of freight is contestable by rail
24 May 2016 Leave a comment
in environmental economics, industrial organisation, politics - New Zealand, survivor principle, transport economics Tags: celebrity technologies, New Zealand Greens
Source: International freight transport services | Productivity Commission of New Zealand.
Source: International freight transport services | Productivity Commission of New Zealand.

@jamespeshaw only 8% of freight is contestable by coastal shipping
24 May 2016 Leave a comment
in industrial organisation, politics - New Zealand, survivor principle, transport economics Tags: celebrity technologies, New Zealand Greens
Shipping offers only a tiny bit of competition the rail freight but barely any with road freight
Source: International freight transport services | Productivity Commission of New Zealand.
@JulieAnneGenter road, rail & ships are not substitute modes
24 May 2016 Leave a comment
in politics - New Zealand, transport economics Tags: celebrity technologies, New Zealand Greens
@jamespeshaw how many domestic shipping services in NZ? 16!
24 May 2016 Leave a comment
in energy economics, environmental economics, global warming, politics - New Zealand, transport economics Tags: celebrity technologies, coastal shipping, New Zealand Greens
Of the 4.2 billion million tons of annual coastal shipping in New Zealand, 2.32 million tons of that is petroleum products. The majority of coastal shipping is petroleum products redistributed from the one refinery in New Zealand to the rest of the country. You can’t double that which the Greens wanted to because it is already at its upper limit.
Source: Coastal shipping and modal freight choice | NZ Transport Agency.
@JulieAnneGenter doesn’t know what is shipped through ports
24 May 2016 Leave a comment
in environmental economics, global warming, politics - New Zealand, transport economics, urban economics Tags: celebrity technologies, New Zealand Greens
The Greens today announced a policy to double the amounts of cargo moved by train and shipping. It seems to have forgotten that most cargo moved by ship is bulk cargoes such as cars. Nothing can change the fact that once the ship is unloaded, the cars have to go by truck to the car yard.
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Source: New Zealand Institute of Economic Research. Port study 2 Final report NZIER report to Auckland Council (3 February 2015).
Tax bracket creep in Australia
24 May 2016 Leave a comment
in politics - Australia, politics - New Zealand, public economics Tags: bracket creep, growth of government, size of government, taxation and inflation
Bryan Bruce’s boy’s own memories of pre-neoliberal #NewZealand @Child_PovertyNZ
23 May 2016 Leave a comment
in applied welfare economics, comparative institutional analysis, economic history, economics of regulation, income redistribution, industrial organisation, politics - New Zealand, poverty and inequality, Public Choice, rentseeking Tags: child poverty, conspiracy theories, expressive voting, family poverty, Leftover Left, living standards, neoliberalism, Old Left, pessimism bias, rational irrationality, reactionary left, top 1%
New work by Chris Ball and John Creedy shows substantial *declines* in NZ inequality.
initiativeblog.com/2015/06/24/ine… http://t.co/f94fw4Bhae—
Eric Crampton (@EricCrampton) June 24, 2015
You really are still fighting the 1990 New Zealand general election if Max Rashbrooke makes more sense than you on the good old days before the virus of neoliberalism beset New Zealand from 1984 onwards.

Source: Mind the Gap: Why most of us are poor | Stuff.co.nz.
Bryan Bruce in the caption looks upon the New Zealand of the 1960s and 70s as “broadly egalitarian”. Even Max Rashbrooke had to admit that was not so if you were Maori or female.
The present rate of technology adoption is nearly a vertical line —@blackrock https://t.co/3oS3YAI4ld—
Vala Afshar (@ValaAfshar) January 22, 2016
Maybe 65% of the population of those good old days before the virus of neoliberalism. were missing out on that broadly egalitarian society championed by Bryan Bruce.
As is typical for the embittered left, the reactionary left, gender analysis and the sociology of race is not for their memories of their good old days. New Zealand has the smallest gender wage gap of any of the industrialised countries.
The 20 years of wage stagnation that proceeded the passage of the Employment Contracts Act and the wages boom also goes down the reactionary left memory hole.
That wage stagnation in New Zealand in the 1970s and early 80s coincided with a decline in the incomes of the top 10%. When their income share started growing again, so did the wages of everybody after 20 years of stagnation. The top 10% in New Zealand managed to restore their income share of the early 1970s and indeed the 1960s. That it is hardly the rich getting richer.
@TheAusInstitute has not heard of Ireland’s 12.5% company tax and European tax harmonisation
19 May 2016 Leave a comment
in politics - Australia, politics - New Zealand, politics - USA, public economics Tags: company tax rate, Ireland, race to the bottom, tax competition, tax harmonisation, taxation and investment
The Australia Institute has been running the line that cutting the Australian company tax rate just means more tax revenue for offshore tax departments. They will tax the larger after-tax Australian dividends in the home country of the foreign investor if Australia were to cut its company tax rate.
Source: David Richardson, Company tax cuts: An Australian gift to the US Internal Revenue Service How a cut to the Australian company tax rate would result in a windfall for the United States Treasury. Australia Institute (May 2015).
The Australia Institute obviously has not picked up on the relentless bullying that Ireland was subject to by the rest of the European Union over its 12.5% company tax.
The Irish company tax rate of 12.5% was initially on export profits. To finesse European Union member state complaints about that 12.5% company tax rate on discrimination grounds, the Irish government extended that low rate to all companies in 1995.
I am yet to see a minister of finance welcoming a company tax cut in a competing jurisdiction, rubbing his hands in anticipation of greater tax revenues on the foreign profits of companies headquartered in his country.
If there is no race to the bottom in company tax rates, you must wonder why there is substantial efforts within the European Union on tax harmonisation regarding company tax?
France and Germany are pushing plans to introduce a minimum corporation tax rate across the continent, it was reported today, in a move that could result in higher taxes on British companies.
European officials will debate plans to set a EU-wide floor on corporation tax in order to crack down on tax havens such as Ireland and Luxembourg, it emerged.
If there is an ounce of sense in what the Australia Institute said about foreign taxmen benefiting from low company taxes in Australia, high corporate tax rate countries such as Germany, France and the USA should welcome low company tax rates in destination countries for foreign investment originating in those countries but they do not. Rather than seek tax harmonisation, high tax country should welcome low company taxes in competing investment destinations but they do not.
About $2 trillion in profits is held offshore by American businesses because they do not pay company tax in the USA until they actually repatriate the profits to the USA. This is common. You wonder what the purpose of tax havens is if a company tax rate cut in Australia is so easily captured by the IRS?
Studies of the company tax in the USA suggest that a cut in that company tax would lead to large inflows of foreign investment into the USA boosting wages significantly.
Privatizing local bus services could save $5.7 billion
19 May 2016 Leave a comment
in industrial organisation, politics - New Zealand, politics - USA, privatisation, survivor principle, theory of the firm, transport economics, urban economics Tags: privatisation, state owned enterprises
How big are @JohnKeyPM’s $3 billion in tax cuts & threshold changes in 2017 going to be?
17 May 2016 Leave a comment
in politics - New Zealand, public economics Tags: 2017 New Zealand election
On morning radio on Monday, Prime Minister John Key said "We are not ruling that out for 2017 or campaigning on it for a fourth term in 2017, but having a bigger one, to be blunt, than $1 billion." Asked how much was needed to deliver meaningful tax cuts, he said: "$3 billion, I reckon."
The table below uses the Treasury scoring of how much tax cuts can be delivered through $3 billion if they include changes in the income tax thresholds as well. That scoring is static. That is, no behavioural changes are assumed as the result of the tax cuts on labour supply, investment or entrepreneurship.
Source: computed from Revenue Effect of Changes to Key Tax Rates, Bases & Thresholds for 2015/16 — The Treasury – New Zealand.
@350nz fossil fuel protesters admit plan was to intimidate ANZ, not peaceful protest
16 May 2016 Leave a comment
in comparative institutional analysis, constitutional political economy, economics of crime, energy economics, environmental economics, global warming, law and economics, politics - New Zealand, Public Choice, Rawls and Nozick, rentseeking Tags: climate activists, climate alarmism, law and order, non-violent direct action, peaceful protest, reactionary left
In a letter to the editor today in the Dominion Post defending a climate change protest that closed a branch of the ANZ bank, one of the participants Jimmy Green said
Of course our intention wasn’t to intimidate individuals – our intention was to intimidate ANZ into shifting its investments after the bank ignored us asking.
This honesty about the willingness to intimidate to advance a political agenda shows that climate protesters are engaging in plain thuggery. Peaceful protest has its role in any democracy.
What these thuggish protesters forgot about is how we resolve our differences in a democracy. That is by trying to persuade each other and elections. Let the people decide.
These protesters are keen to pass laws to save the environment but they’re more than happy to break laws they disagree with. I wonder if they extend that same courtesy to others they regard as less enlightened than them? They expect others to obey the laws for which they successfully lobbied.
Why do these climate action protesters think they can break laws that others secured through lawful, peaceful democratic action? Is some direct action more equal than others? Why do these climate action protesters think their vote counts more than mine?
John Rawls makes the point that the purpose of civil disobedience is not to impose your will upon others but through your protest to implore others to reconsider their position and change the law or policy you are disputing.
Rawls argues that civil disobedience is never covert or secretive; it is only ever committed in public, openly, and with fair notice to legal authorities. Openness and publicity, even at the cost of having one’s protest frustrated, offers ways for the protesters to show their willingness to deal fairly with authorities.
Rawls argues: for a public, non-violent, conscientious yet political act contrary to law being done (usually) with the aim of bringing about a change in the law or policies of the government; that appeals to the sense of justice of the majority; which may be direct or indirect; within the bounds of fidelity to the law; whose protesters are willing to accept punishment; and although civil disobedience involves breaking the law, it is for moral rather than selfish reasons, and the willingness to accept arrest is proof of the integrity of the act of peaceful protest.
Rawls argues, and too many forget, that civil disobedience and dissent more generally contribute to the democratic exchange of ideas by forcing the dominant opinion to defend their views.
The civil disobedient is attempting to appeal to the “sense of justice” of the majority and their willingness to accept arrest is proof of the integrity of the act as a contribution to democratic persuasion not intimidation says Rawls:
…any interference with the civil liberties of others tends to obscure the civilly disobedient quality of one’s act.
Rawls argues that the use or threat of violence is incompatible with a reasoned appeal to fellow citizens to move them to change a law. The protest actions are not a means of coercing or frightening others into conforming to one’s wishes.
The intimidation by the protesters at the ANZ bank and their promise to do it again as shown in the adjacent tweet is a breach of the principles of a just society. These climate change protesters blockading an ANZ bank branch were attempting to coerce and frighten others into conforming with their political views. That ‘might does not make right’ is fundamental to democracy and the rule of law. As United States Supreme Court Justice Antonin Scalia said
The virtue of a democratic system [with a constitutionally guaranteed right to free speech] is that it readily enables the people, over time, to be persuaded that what they took for granted is not so and to change their laws accordingly.
When the climate protesters lose at the ballot box, they always claim it is rigged by the corporate interests. This is just sore losers.
How the left-wing and liberal visions of democracy are different nymag.com/daily/intellig… http://t.co/Qk5vS9SaV4—
Jonathan Chait (@jonathanchait) August 13, 2015
The great strength of democracy is a small group of concerned and thoughtful citizens can band together and change things by mounting single issue campaigns or joining a political party and running for office and winning elections or influencing who wins.
Yesterday’s majority of the vote sooner or later and often sooner than they expect will break off into different minorities on the next big issue of the day. These newly formed minorities will use that same ability to band together as a minority to block vote to protect what they think is important and advance agendas they think are to be wider benefit despite the opinion of the current majority to the contrary. All reforms start as a minority viewpoint.
Indeed, it is a strength of democracy – small groups of concerned citizens banding together – is what is holding up legislating in many areas. It is not that minorities are powerless and individuals are voiceless. It is exactly the opposite.
Parliaments elected by proportional representation such as in New Zealand, and in Australian upper houses reinforces the ability of small groups of citizens to band together to win a seat.
Nothing stirs up the impassioned (and most other people as well) more than depriving them of their right to support or oppose what is important to them through political campaigns and at an election. The losing side, we all end up on the losing side at one time or another, are much more likely to accept an outcome if they had their say and simply lost the vote at the election or in Parliament. Scalia warned of, for example, the risks of the courts moving in advance of the popular will, and thereby poisoning the democratic process
We might have let the People decide. But that the majority will not do. Some will rejoice in today’s decision, and some will despair at it; that is the nature of a controversy that matters so much to so many. But the Court has cheated both sides, robbing the winners of an honest victory, and the losers of the peace that comes from a fair defeat. We owed both of them better. I dissent.
These climate change protesters want to rob the winners of their honest democratic victory over the balance between oil and coal exploration and other energy options. They are also robbing themselves of a fair defeat.
A fair defeat flows from laws and policies secured through normal democratic means knowing that one day you may be in a majority. Only by respecting the will of the majority when you are in the minority do you have any right to expect future minorities to respect your honest democratic victories as the majority of some future day. Democratic majorities of patched together through give-and-take and the reality that even the most important policies may be reversed in the future.

Climate change protesters should respect the political process because democracy alone can produce compromises satisfying a sufficient mass of the electorate on deeply felt issues so as to not poison the remainder of the democratic process. The losing side, we all end up on the losing side at one time or another, are much more likely to accept an outcome if they had their say and simply lost the vote at the election or in Parliament.
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