Economics

Here in New Zealand we are shaping up for an election and so there will be lots of talk about the current government's economic performance and how the depressed world economy has such a huge impact here.

I have no economic background, but I know how to balance my own books and understand that living on credit is not sustainable. And this global economy thing seems to me to be a flawed theory.

You don't need to be politic to see that things are just plain nuts!

The wheel on my wheelbarrow fell to bits - it simply had rusted out! Well it is over 25 years old and has been outside all the time.
So, I need a new wheel together with axle, tyre and tube. So went into Oamaru to make the purchase.
To my surprise I could not find a wheel/tyre/tube for under $99.00. I could however buy a totally new wheelbarrow for $124.00 - so the rest of the wheelbarrow equated to be worth $25.00. I don't think so!
There was even a wheelbarrow for $45.00 and I could have bought it and robbed the wheel, but thought that to be a total waste of resources, but financially to me that would have been best.
So I bought the new wheelbarrow @ $124.00.

I would think this is not an unusual thing but it is nuts!

While no my Soap Box about the economy; why is it that unproductive people are paid the most?
Among the highest paid are sports people and some of those are hugely paid! They provide entertainment, but what is their tangible contribution?
Then take market gardeners who work long hours but struggle to make ends meet. These folk supply the nutrients to keep the population healthy/well-fed.
Then take the CEO of Telecom - $7 million? Really, how much does one person need? We are told that you have to pay for 'top people' - I'm sure someone could be found to do an adequate job for less than one million.

I just want to throw that into the pot!

Network Waitaki

There has been a followup to my fight against having the power-lines across my property [Meridian]. It is actually Network Waitaki who have responsibility for the lines/poles.

Network Waitaki want to upgrade the line and therefore require access through our property. And because I had written to the Pirme Minister and his Minister of Energy they decided it best to meet with me - that is Network Waitaki.

Well three of them turned up vs me by myself - they like the odds. Now they are prepared to move the line to outside our property, against the fence 'but will have to remove all the trees'.
'Ok.' Says I, as the trees outside our fence were actually planted by the NZFS in the good old days.
'But we require a contribution from you.' they said.
'Oh yes, and how much would that be?' I asked.
'Ten thousand dollars.' said they.
I knew they were trying to frighten me off.
'That won't be happening.' I told them.
Then they need to cut my fence to gain access with their larger equipment and I implied that the cost of that might be ten thousand dollars, knowing they had legal right to gain entry - but I added that bit of humor.

They are leaving the line where it is, and are paying for a guy to fell trees that are close to the line - then I will have to tidy up.

You see, I wrote on my other blog about 'the stroke of a pen'. In 1993 the then government passed a law that made things easy for line companies so the lines could be sold off.
If power/line companies want to access property, in these days of user pays, they should pay in some way to compensate the landholder.

Challenges in the Economy

The world economy is showing to be more fragile than once was thought and solutions will have to be found that go some way to mitigating the likely outcomes.

I haven't any better ideas than anybody else but at least here I have an opportunity to say something about it - and some, I have already said.

Every economist will have an opinion as to why we are at where we are at but I have a bob's worth to add.

We hear about this thing 'productivity' and how workers will have to up their productivity to be competitive. Well that may be so but the very highest paid on this earth produce nothing - or nothing tangible.
I'm talking about the entertainment industry (mainly). I include the lot - movie and tv stars, sports stars, music stars. These people do entertain and that has a value but much of their wreath comes from sponsorship - by wearing a label for whatever. And the product they wear is made cheaply in some third world country and sold at huge profits throughout the world. To me this is not real economy.
Unfortunately too many of these stars are big on ego and image and weak in the cranium department yet the impressionable [in hordes] try to emulate them. Generalizing is a bad thing and there are exceptions but a good example are the socialites that strut like looney chickens with miniature puppies in their handbags and wear high heels to PD!

The overprices people in CEO position is also a mystery to me - that Telecom guy on 7m? Tut. So who cares if we can't buy the best in the world? this could develop into a rant.

The world is a big place and the trend is for a global economy end I know economics overlaps diplomacy, but I question if we really need to involve NZ heavily into the global economy.
At the local Shell service station I bought two pies for lunch - well that's not healthy I know, but it was early and there were no sandwiches. Anyway these pies were made in Australia. I have nothing against that country but why was there a need to put these pies in a container and ship them here when we have an industry that makes the best pies in the world? Pies!

Why is all our nation's packaging made of plastic when paper could utilize our long suffering forest industry - even those wildling pines? Natural vs Synthetic and renewable resource vs nonrenewable. Is that too simplistic?

There are rules here in good old NZ for almost everything, but how come you can buy a cardboard box with a few packets inside of four cracker biscuits and a piece of cheese sealed into plastic and foil. The packaging is worth more than the product. You cart the box home then you have to pay to dispose of the packaging - makes no sense to me.