Tuesday, January 22, 2008

Adolf Told Them So, Months Ago

The Herald belatedly recognises the the other real driver behind housing unaffordability. The know alls laughed when Adolf pointed this out many months ago. It is the same driver, by the way, which has pushed up farm prices to levels which bear no relationship whatever to economic worth.

Adolf is close to two people who are still waiting to receive their interest arrears from BlueChip. When you talk to them you find that they bought their properties primarily to (a) avoid paying tax NOW by offsetting paper losses from the investment against their current tax liabilities and (b) to reap a tax free windfall upon retirement.

'The other real driver?' I hear you ask? Yes, the first one is Helen Clark's low wage, high tax economy.


Barnsley Bill said...

my pick is that your friends will not get their interest arrears from blue chip

Anonymous said...

adolf arguing for higher wages for workers..?

you'll be 'cashiered' fromnational..

they don't want to hear any of that nonsense..


Anonymous said...

a 'blue chip'..indeed..!


Sean said...

"adolf arguing for higher wages for workers..?"

Yep, it's called a tax cut. Better to get the extra cash from the wasteful govt than greedy unions forcing it from the growth-and-value-adding businesses.

Psycho Milt said...

...greedy unions forcing it from the growth-and-value-adding businesses.

You might want to check out this thread on Kiwiblog Sean, in which Roger Nome's been mopping the floor up with right-wingers peddling the same line. It's hard to get around the fact that Aus's high-wage economy is largely down to the much more intensive unionisation of its workforce - 80% vs NZ's 20% according to Nome.

Adolf Fiinkensein said...

PM, you and the economivally naive forty year banned nome should wash out your ears and eyes and realise (a)that Australia's economic performance is based on productivity which allows higher wages to be afforded by business and (b) that it is the higher 'take home' pay which is more important than wage levels.

Unionism has its place but I well remember Sydney in the seventies where there was a 'dial a stike' service. There were so many strikes on you had to ring up each day to keep up with which services were available and which were not.