Why?

Why is New Zealand still in a rut - we have been for the last decade - in the UN Human Development Index. (The index is based on a range of data including wage rates, life expectancy, adult literacy, government spending and gross domestic product). Spain, at 13th, has leapfrogged ahead of us as 19th while Ireland has roared past us at 5th.It seems quite odd when we have tremendous natural resources such as agriculture and are fortunate enough to...

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Finance and Investment

I have been thinking a lot about tax lately and about what is fair to all. Our present system is not properly integrated and certainly doesn't look after the poorer members of society.I really liked the idea of a flat tax rate but one Dr Adolf Stroombergen the chief economist at Infometrics takes that idea one step further. What about, he says, a flat rate of personal income tax combined with a universal guaranteed minimum income (GMI). What about...

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Musings

I don't think there is a diet I haven't tried - unsuccessfully - I even went to Weight Watchers way back in those ignorant non PC days where the biggest loser was given a plastic pig.But now there is light on the horizon - an economist (yes you read right) has a fail proof weight loss plan. Contract with a friend to pay her $500 if you have not lost 5 kilos in 10 weeks. You and a witness sign a contract. Your friend similarly affirms her solemn pledge...

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Womenomics

I am counting and it makes me angry. The earning disparity which exists between men and women is exactly the same as that which existed centuries ago - ancient parish records show that men earned a third more than women. The rationale behind this (and I did not make this up) was that women needed less food and didn't support families. A social constant which I am positive is the reason for the differential - earnings. "Feminised" jobs are valued...

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Everyday Money

I don't seem to be able to leave housing (as a topic) alone. This time it is good news for first home buyers. A recent Westpac report predicts flat prices for around 5 years. (This news is not so good for second home investors).The number of house sales has declined by a third back to 2003 levels - an early warning sign. Westpac claims that monthly house price inflation has screeched to a halt. Rental yields are currently at around 4% and mortgages...

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Who's Counting?

We are all counting - is this a bear market or not? To refresh your memory a bear market occurs when the share markets go down and stay down. Currently markets are down about 15-17% - depending on who's counting. The jury is still out over whether the drop will be sustained for much longer. In practice bear markets and lull markets are difficult to predict and call; often they are identifiable only with hindsight.So, should you be worried? A bear...

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