Bernanke offered job swap with NZ's English

Finance Minister English says US Fed chairman Ben Bernanke asked if he wanted to swap jobs; If they did, English would have to take a pay cut

4th Oct 11, 4:49pm by Alex Tarrant

He's currently Finance Minister of a tiny economy in the South Pacific, so how would Bill English handle running the US Federal Reserve, probably the world's most important financial institution?

Well, English admitted today, although partly jokingly, that he had been informally offered the job by Fed chairman Ben Bernanke, who would probably enjoy a holiday down under after a tough couple of years trying to keep the world economy afloat.

English made the statement today in Parliament today while under fire from the Opposition over the governmen't's credit rating downgrades from Fitch and Standard & Poor's last Friday.

The Opposition Labour Party's Annette King had asked English whether he agreed with a comment from the Prime Minister last week that most countries would trade their right arm to be in New Zealand's position. If so, which countries had offered a limb in exchange for New Zealand's almost 30% youth unemployment rate - one of the highest ratios of youth unemployment in the OECD,?" King asked.

"In reference to offers to swap positions, I can tell the member this: In discussions I had last week with the [chairman] of the Federal Reserve Bank, Mr Ben Bernanke, at one stage he did say, would you like to swap jobs," English replied.

But if they were to swap, it seems English would have to accept a pay cut.

Bernanke's salary is about US$200,000 or around NZ$263,160 at a NZ$ exchange rate of 0.76 US cents. As Deputy Prime Minister of New Zealand, English receives about NZ$276,000, and probably gets to relax a bit more than Helicopter Ben.

Nice work if you can get it eh.

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15 Comments

by Andrewj | 4th Oct 11, 5:24pm 1317702279

So we pay Bollard twice what Bernake gets, sounds reasonable to me.

by Stephen Hulme | 4th Oct 11, 5:41pm 1317703287

Bill English's Finance Minister emolument is not comparable to Bernanke's equivalent post held by Bollard in NZ.

The latest RBNZ Annual report declares one employee receiving NZD 590,000 to 599,999

Link: adobe page 39

by bleep | 4th Oct 11, 6:52pm 1317707529

Yeah but look, Bollard does a lot less. Clearly the correlation is: less pay = intervene more.

We get off easy...

by Justice | 4th Oct 11, 8:05pm 1317711911

So a country with nearly 400 million people only pays it Fed chairman less than NZ's ichessy grinning plonker of a finance minister?

Go figure NZ. Time to fire the entire Remunerations Authority but.............unfortunately you don't get to do that DO YOU?

Ever notice that when it comes to "inflation" added to MP's salaries the RA are right on the ball every year. Leave it up to poor old Bill and he wouldn't even add it in!

by Stray76 | 4th Oct 11, 10:12pm 1317719536

Except the fed is a privately owned institution, not a public office.

by LloydM1 | 4th Oct 11, 10:24pm 1317720258

Is that the old "Higer Salaries Commission", where the law written by the polys stated they are not able to refuse a pay raise? They can give it away , but they used to have to accept it. Of course the rules were written by politicians, and the commission full of cronies.

AWESOME - This will all come out sometime, as it is part of the corruption which people still can't see exists in NZ!

by Stray76 | 4th Oct 11, 10:13pm 1317719614

Again, as above, Bernanke is not a public servant, the Fed is privately owned and run for profit.

by LloydM1 | 4th Oct 11, 10:45pm 1317721544

Dude I think that is well accepted now, even amongst the lesser thinking folk in the ether

by Stray76 | 4th Oct 11, 11:24pm 1317723875

Obviously not for people posting here, who are comparing bernanke's salary with english's and talking about bernanke as if he's paid by the US Federal Government, which he isn't. And you could add the payments he gets from Goldman Sachs, J P Morgan, etc onto his 'official' salary which takes his annual income well into the millions.

by LloydM1 | 4th Oct 11, 11:32pm 1317724358

Yes there are no shortage of people who think they have answers to problems, not actually realising that until they accept some obvious thruths, they are wasting energy even trying to offer solutions. It's the human condition...

by steven | 4th Oct 11, 11:00pm 1317722407

Cutting public salaries hasnt helped Ireland......and austerity in general looks about to guarantee a depression....

Ive always considered it swings and roundabouts, in the good times private salaries were higher than public ones, in the bad it reversed.....so before jumping in lets see some data....say 15 years worth.....

However, secondly expanding the economy is all about consuming more resources....if there are not the resources to exploit you wont expand.......which is how its been since about 2006 and what it will be like for 20 to 30 years....so wages will drop....and as a result so will construction and demand for new houses IMHO. I think ChCh will simply be stil-reborn.....its now out of time.

regards

by Kate | 4th Oct 11, 11:11pm 1317723068

Gee, I hope this news makes the WSJ. Would be hilarious to see what their comments would be!

Fancy lil ol NZ making the statistical records where it counts - not (i.e. in the back pockets of our politicians and senior civil servants!).

No wonder we have an exodus of our young folk to Aussie.... but none of our aging politicians and bureaucrats :-).

by Andrewj | 5th Oct 11, 9:05am 1317758705

Just for the record kate,

In the USA 2009 the average civilian employee of the US government earned $81,258 in salary plus $41,791 in benefits totaling $123,049 .The average american employed in the private sector earned $50,462 in salary and $10,589 in benefits. Total $61,051. The incentive is obvious.

Source 'After America' by Mark Steyn

by Kakapo | 5th Oct 11, 9:41am 1317760917

That's misleading, because the public sector doesn't have any equivalent for the minimum wage, no-benefits retail, supermarket, fast food type jobs that make up such a large proportion of the private sector. Compare equivalent jobs in the private and public sectors, and it's a whole different picture. Take the across-the-board averages, and it's completely meaningless, because the sectors are so different that it's apples to oranges. What's the private sector equivalent of a police officer? What's the public sector equivalent of an investment banker or Walmart checkout operator?

by Stephen Hulme | 5th Oct 11, 12:53am 1317729182

@stray76

Dr Bernanke is the Chairman of the Board of Governors of the Federal Reserve System - a government appointed body. To the best of my knowledge Congress determines his salary.

That is not to say the 12 District Federal Reserve Banks are not privately owned.