Morgan Edwards
@morganedwards.bsky.social
A PhD candidate researching the mechanics of government expenditure in New Zealand at the University of Otago.
Reposted by Morgan Edwards
2. Countries that run deficits with the world (like NZ for 50+ yrs) can only do so if Govt deficit spends and / or the private sector goes into more debt. The Clark years budget surpluses were ONLY possible because businesses and households were sending private debt levels to the moon. [10/n]
November 3, 2025 at 9:10 AM
2. Countries that run deficits with the world (like NZ for 50+ yrs) can only do so if Govt deficit spends and / or the private sector goes into more debt. The Clark years budget surpluses were ONLY possible because businesses and households were sending private debt levels to the moon. [10/n]
Reposted by Morgan Edwards
The NZ Govt spent $183bn into the economy in the year ending June 2025 and took back about $170bn in taxes, charges and dividends etc. This left the private sector $13bn better off. If more people understood this basic reality, we could have sensible Govt spending discussions.
October 29, 2025 at 12:06 PM
The NZ Govt spent $183bn into the economy in the year ending June 2025 and took back about $170bn in taxes, charges and dividends etc. This left the private sector $13bn better off. If more people understood this basic reality, we could have sensible Govt spending discussions.
Preach
There's no point playing with a few hundred million dollars of govt taxation / spending while we are shovelling $20bn+ of our income to offshore investors and rentiers (offshore savings below). We need a Govt that thinks and talks about the whole economy.
October 28, 2025 at 4:58 AM
Preach
Reposted by Morgan Edwards
I am admittedly rage-posting now, but come the fuck on! Can we have an actual conversation about what we are doing as a country?
October 3, 2025 at 6:07 AM
I am admittedly rage-posting now, but come the fuck on! Can we have an actual conversation about what we are doing as a country?
Reposted by Morgan Edwards
Now, about the famed Clark budget surplus of 2007 (pink). How did we do that and run a chunky deficit as a country with the rest of the world (yellow)? Easy, the banks were pumping in billions of new $ as households (grey) & businesses (blue) piled into debt cos the good times would never end. [7/n]
September 26, 2025 at 10:29 PM
Now, about the famed Clark budget surplus of 2007 (pink). How did we do that and run a chunky deficit as a country with the rest of the world (yellow)? Easy, the banks were pumping in billions of new $ as households (grey) & businesses (blue) piled into debt cos the good times would never end. [7/n]
Reposted by Morgan Edwards
... fat cat rentiers will say they're the 'big contributors' to NZ life - they pay the most taxes and 'lend' the Govt money to buy nice things. That's *horseshit*. Govt spend the $, rentiers gather it up, and then play the fking hero when they give some back (or buy interest-earning bonds!) [5/n]
September 16, 2025 at 7:18 AM
... fat cat rentiers will say they're the 'big contributors' to NZ life - they pay the most taxes and 'lend' the Govt money to buy nice things. That's *horseshit*. Govt spend the $, rentiers gather it up, and then play the fking hero when they give some back (or buy interest-earning bonds!) [5/n]
Reposted by Morgan Edwards
In reality the Govt votes on how much to spend, and then spends brand new $ into the economy - paying nurses, builders, teachers etc. As those $ get spent, and then spent again, taxes get paid on every transaction. Govt also sells bonds - draining the economy of any 'residual' Govt cash $. [2/n]
September 16, 2025 at 7:18 AM
In reality the Govt votes on how much to spend, and then spends brand new $ into the economy - paying nurses, builders, teachers etc. As those $ get spent, and then spent again, taxes get paid on every transaction. Govt also sells bonds - draining the economy of any 'residual' Govt cash $. [2/n]
Reposted by Morgan Edwards
I wonder how this ends…
U.S. Stock Market hits its most expensive valuation in history, surpassing the Dot Com Bubble and the run-up to the Great Depression 🤯
September 2, 2025 at 1:37 AM
I wonder how this ends…
Reposted by Morgan Edwards
Behold, the great moderation. We freed enterprise, deregulated, privatised, shrunk the cumbersome state and we got juicy growth! The genius move here was focusing the public on govt debt while we paid for growth on the private sector credit card (aided and abetted by the housing ponzi).
August 31, 2025 at 7:58 PM
Behold, the great moderation. We freed enterprise, deregulated, privatised, shrunk the cumbersome state and we got juicy growth! The genius move here was focusing the public on govt debt while we paid for growth on the private sector credit card (aided and abetted by the housing ponzi).
Reposted by Morgan Edwards
Now, let's look at retail sales vs jobs vs private debt growth. See how in 2010 we got job growth without going nuts for more debt? That was Govt fiscal and cheaper imports doing the heavy lifting - boosting domestic demand. Compare to the current *longer* slump... [4/n]
August 26, 2025 at 8:24 AM
Now, let's look at retail sales vs jobs vs private debt growth. See how in 2010 we got job growth without going nuts for more debt? That was Govt fiscal and cheaper imports doing the heavy lifting - boosting domestic demand. Compare to the current *longer* slump... [4/n]
Reposted by Morgan Edwards
Quick 🤓 update on Govt/RBNZ money magic. Reminder first:
1. Govt spending adds brand new $ into the economy. Taxation destroys used $.
2. Govt debt goes up when Govt spends new $ into the economy. Govt debt goes down when Govt collects tax.
3. Bond sales destroy $. Govt debt does not change. [1/n]
1. Govt spending adds brand new $ into the economy. Taxation destroys used $.
2. Govt debt goes up when Govt spends new $ into the economy. Govt debt goes down when Govt collects tax.
3. Bond sales destroy $. Govt debt does not change. [1/n]
August 2, 2025 at 10:15 AM
Quick 🤓 update on Govt/RBNZ money magic. Reminder first:
1. Govt spending adds brand new $ into the economy. Taxation destroys used $.
2. Govt debt goes up when Govt spends new $ into the economy. Govt debt goes down when Govt collects tax.
3. Bond sales destroy $. Govt debt does not change. [1/n]
1. Govt spending adds brand new $ into the economy. Taxation destroys used $.
2. Govt debt goes up when Govt spends new $ into the economy. Govt debt goes down when Govt collects tax.
3. Bond sales destroy $. Govt debt does not change. [1/n]
Reposted by Morgan Edwards
Govt net spending picked up strongly at the end of the financial year. We won't get the annual accounts for a while, but it will be interesting to see what's going on here.
August 23, 2025 at 1:21 AM
Govt net spending picked up strongly at the end of the financial year. We won't get the annual accounts for a while, but it will be interesting to see what's going on here.
Reposted by Morgan Edwards
For the avoidance of doubt, any politician trying to answer the 'how much interest is govt paying on its debt' gotcha question should simply answer 'gross or net?' They should then ask who receives the interest Govt pays, and, for good measure, point to the real issue (blue and pink lines below).
August 23, 2025 at 8:24 AM
For the avoidance of doubt, any politician trying to answer the 'how much interest is govt paying on its debt' gotcha question should simply answer 'gross or net?' They should then ask who receives the interest Govt pays, and, for good measure, point to the real issue (blue and pink lines below).
Reposted by Morgan Edwards
Our financial liabilities (debts, loans, bonds, shares etc) are perfectly balanced out by our financial assets (cash, bonds, shares, etc).
In fact, that's an accounting certainty.
Our financial wealth is the mirror of our financial debt. Let's have a look at some examples... [4/n]
In fact, that's an accounting certainty.
Our financial wealth is the mirror of our financial debt. Let's have a look at some examples... [4/n]
August 19, 2025 at 12:53 AM
Our financial liabilities (debts, loans, bonds, shares etc) are perfectly balanced out by our financial assets (cash, bonds, shares, etc).
In fact, that's an accounting certainty.
Our financial wealth is the mirror of our financial debt. Let's have a look at some examples... [4/n]
In fact, that's an accounting certainty.
Our financial wealth is the mirror of our financial debt. Let's have a look at some examples... [4/n]
My latest Substack post!
Feel free to share, comment, like - all that good stuff.
neweconomicmanagement.substack.com/p/the-infini...
Feel free to share, comment, like - all that good stuff.
neweconomicmanagement.substack.com/p/the-infini...
June 9, 2025 at 1:05 AM
My latest Substack post!
Feel free to share, comment, like - all that good stuff.
neweconomicmanagement.substack.com/p/the-infini...
Feel free to share, comment, like - all that good stuff.
neweconomicmanagement.substack.com/p/the-infini...
My latest post on Substack. Feel free to like, share and subscribe (if you want to of course).
neweconomicmanagement.substack.com/p/child-pove...
neweconomicmanagement.substack.com/p/child-pove...
February 25, 2025 at 10:29 PM
My latest post on Substack. Feel free to like, share and subscribe (if you want to of course).
neweconomicmanagement.substack.com/p/child-pove...
neweconomicmanagement.substack.com/p/child-pove...
A new Substack post! Feel free to like, share and subscribe - I'd really appreciate it.
neweconomicmanagement.substack.com/p/the-state-...
neweconomicmanagement.substack.com/p/the-state-...
February 13, 2025 at 10:22 PM
A new Substack post! Feel free to like, share and subscribe - I'd really appreciate it.
neweconomicmanagement.substack.com/p/the-state-...
neweconomicmanagement.substack.com/p/the-state-...
A new Substack post for your enjoyment.
This post will provide some ideas and frames of how to frame your own thoughts and conversations about how government spending actually works.
Like, share and subscribe for more (if you want)!
This post will provide some ideas and frames of how to frame your own thoughts and conversations about how government spending actually works.
Like, share and subscribe for more (if you want)!
February 10, 2025 at 8:48 PM
A new Substack post for your enjoyment.
This post will provide some ideas and frames of how to frame your own thoughts and conversations about how government spending actually works.
Like, share and subscribe for more (if you want)!
This post will provide some ideas and frames of how to frame your own thoughts and conversations about how government spending actually works.
Like, share and subscribe for more (if you want)!
Reposted by Morgan Edwards
This is the core of a different and better way to understand how our economy actually works, and what to do about it.
Another bumper data day. Here's my favourite NZ econ graph - updated to 2024.Q3. The graph shows which sector is running a surplus / deficit.
Critically, sector deficits / surpluses have to balance. One sector's liability is always another sector's assets.
Descriptive commentary in image ALT text.
Critically, sector deficits / surpluses have to balance. One sector's liability is always another sector's assets.
Descriptive commentary in image ALT text.
January 16, 2025 at 3:55 AM
This is the core of a different and better way to understand how our economy actually works, and what to do about it.
January 17, 2025 at 2:52 AM