Mike's Minute: We need to understand debt better

There is a growing idea in economic circles in America that young people might never own anything.

It's based on the recent news that a new car average price cracked $50,000 for the first time.

It was added to by Trump's idea that we have 50-year mortgages.

Centrist: Record Boxing Day sales amid mounting financial pressure

Boxing Day sales were up by 13% this year, with New Zealanders spending nearly $68m. This is in contrast to subdued pre-Christmas activity, which dropped nearly 1% compared to 2023. Shoppers hit up bookshops, clothing stores, and hardware outlets, according to payment processor Worldline.

Ross Meurant: Message to Santa - All I want for Christmas is …Happiness.

In this Odessey we call life; what path; which road do we take?

Success is not final; failure is not fatal: it’s the courage to continue that counts,’ extolled Sir Winston Churchill.

Euripides said: ‘I would rather die on my feet than live on my knees.’

My family coat of arms embraces the Machiavelli dictum: “Virtu et Fortuna”.

Yet, for they who strive, be it from helot to bourgeois, or those born to the Manor (where bequeathments from they who before them strived, are often squandered), debt is a companion for life – an albatross around one’s neck.

David Farrar: The difference six years makes

The latest Crown financial statements have just been published so let’s look at the annual crown financial statements for 2023/24 compared to 2017/18.

Heather du Plessis Allan: Roger Douglas is right - we have too much debt

Today is 40 years to the day since Rob Muldoon called the snap election.  

Which then, of course, led to his defeat. Which then, of course, led to the incoming Labour Government, realised we were nearly broke as a country. Which then led to them embarking on the most amazing set of reforms which they do not get enough credit for to this day - and get way too much grief for.  

It is a really interesting anniversary for us to mark right now - as we find ourselves in a recession that feels like the worst that many of us have ever experienced. As we watch old names in New Zealand, like Smith and Caughey give up. As we see projections that the country's debt will just keep growing. 

Stephen Agnew: Financial education needs to start in the home

Even as an economics student at university, I remember heading into town on a Friday night knowing what I needed to pay the bills before I could spend on socialising. But despite having the financial literacy to know better, Monday could still sometimes begin with a trip to the bank to ask for an overdraft extension.

So it was encouraging to hear that financial education has become a political talking point ahead of this year’s election. Both Labour and National are promising to deliver compulsory financial literacy classes as part of the school curriculum.

Point of Order: China is learning the price – and pitfalls – of global leadership

There must have been good feelings in extending $1 trillion of lending to the developing world through China’s global Belt and Road Initiative (BRI). A warm tide of rising influence and overdue recognition.

But perhaps there are fears now in Beijing that this lending spree coincided with the tail end of a long wave of global financial expansion.

Eric Crampton: Bad debt and a bad precedent

Among the problems leading to the Government’s proposed Three Waters reforms were councils loading up their balance sheets with dubious debt.

So it seems odd that the Government plans on loading up the balance sheets of amalgamated water service entities with dubious debt.

The Government provided a lot of sweeteners to councils to encourage them to sign on to the water reform agenda. The first tranche of that 'better off' funding came from central government and has been covering all manner of community projects, from swimming pool upgrades to walking trails.

The second tranche of funding will have no greater tie to water infrastructure but will turn into debt that has to be paid off by the new amalgamated water providers.

So part of what got us into the current mess is being imposed on the new water service providers. It seems a rather bad idea.

Let’s recap.

Bryce Wilkinson: First, get people deeper in debt, then hammer them

You load 16 tons and what do you get?

You get one day older and deeper in debt.

… I owe my soul to the company store

Those lyrics from a 1946 mining song lamented the plight of tough miners trapped by debt. Some householders today could be feeling similarly about their mortgage debt.