And some more …
Other ideas include:
* $10,000 interest free loans to new house buyers;
* Government-funded crisis managers to help companies in strife;
* A fund from the sale of government bonds to add liquidity to the consumer finance market;
* Tax holidays for struggling businesses; and
* The Government offering loan guarantees to small and medium sized businesses.
Why give home buyers money? What is the social benefit from someone buying a house!
Are we actually facing a liquidity constraint in the consumer finance market? I didn’t think we were? Households have decide they WANT to cut back spending given uncertainty.
Guaranteeing loans?? Sure, that is a great way to make sure we get productive investment going 😛
Crisis help and tax holidays are potential goers – although, there would need to be more detail before I could say I agree with it.
Update: At 2.15 Bill English said NZer’s will decide whether this is a “talk-fest” or a “do-fest”. What he means is that NZer’s need to be adaptable because this is a permanent shift. This is true.
However, if the whole adjustment needs to be done by NZer’s, what is the point of this “talk-fest”? Note I call it a talk fest because he is practically saying that the adjustment needs to be done by people outside the meeting, and that policy can’t really help.
Update 2: From here:
Those in the building industry have asked for subsidies for wood frame homes arguing it will boost both the construction and forestry sectors
The lobbyists are having a FIELD DAY!!!