Some initial ideas about the integrated policy package Labour must consider if it is to meet contemporary challenges posed by emerging populism and the narrowing of the Labour vision over the past five decades
The resurgence of the tax debate reflects impacts of neo-liberal economic policy and developments in the global economy over the last half century. As Labour considers further its approach to tax policy, this wider context should be considered
“We’re doomed” was Private Frazer’s inevitable response to any crisis in “Dad’s Army”. One might stray into such despondency when considering the external context in which New Zealand finds itself, then considering what we are doing as a nation to respond. Nigel Haworth looks at where we are at.
Throughout my time being active in politics, people have discussed the rise of Neo-Liberalism and the free market that occurred throughout much of the world from the late 1970s onwards. Yet few seem to really understand the reasons for this significant shift in economic policy at that time, which continues to shape our society today.
Yesterday Statistics New Zealand announced a dramatic drip in the unemployment rate as well as solid increases in wage rates and average weekly earnings for workers. While the Government celebrated Employers thought it was a crisis.
The Government’s finances are in remarkably good shape. Who would have predicted that dealing properly with a global pandemic would have had better results for the economy than timidly dealing with it and trying to ensure that economic activity continued? But by international levels our Government debt is already low and maybe now is the time to spend on vital areas such as poverty, climate change and the housing crisis.
This government must demonstrate that it has the ability to lead the New Zealand economy where it has stated it wants it to go. It does not want more headlines like the average house in Auckland now being priced at $1 million.
Just as most industries in New Zealand are firing thousands of people to cut costs, local government is getting ready to do the same.
After the lockdown, it is tempting to try and go back to what we had before. To the familiar and comfortable, especially for us that were comfortable. Forgetting that for so many, things were anything but, comfortable. That won’t be happening. “Before” no longer exists.
Universal Basic Income is on the Government’s Covid-19 survival agenda. NZ needs it now, and NZ will need it tomorrow too.
Grant Robertson has announced there will be a relaxing of the fiscal responsibility rules, although not until after the next election.
The polls are great. Top work. But I’m getting worried about the entropy of this government already. Matthew Hooten and Karl Marx agree with me.
Simon Bridges has committed the twin political sins of not only believing in trickle down but in publicly confirming his belief.
Amy Adams won’t commit to $11.7b, but she too has now become the third person to fall down the imaginary fiscal hole. How can National claim to have any soundness on finance if they won’t admit their criticisms on the economy are unreasonable and unfounded? And besides, aren’t National actually worse fiscal managers if ordinary people tend to get paid less under their regimes? We dive into some theory to thoroughly dispute even Steven Joyce’s/Amy Adam’s secondary criticism of “fiscal tightness,” although concede that two of the Budget Responsibility rules are probably stupid in order to do it.
London-based macro-economist Ann Pettifor will speak on this topic at Wesley Church, 75 Taranaki Street, Wellington, on Tuesday 20 September at 5:30pm. Ann is a member of the Green New Deal Group, whose proposition is designed to power a renewables revolution, create thousands of green-collar jobs and rein in the distorting power of the finance sector while making more low-cost capital available for pressing priorities. All welcome; more info inside.
It seems that “serious economists” are discussing something called “helicopter money”. Would it fly in NZ?
How many more lies will John Key tell today in his so-called State of the Nation address? Virtual chocolate fish to whomever guesses the closest number.
The social democracy of my youth has radically collapsed into our current culture of individualism, privatisation and personal greed.
One of Steven Joyce’s favourite refrains is that Labour is trying to take us back to the 1970s. You know, those dark days when unemployment was near non-existent, wages were high, growth was strong despite external shocks, we had nearly no foreign debt, profits stayed here, were we one of the richest and most egalitarian countries. He’s not far wrong.
Today, Fran O’Sullivan calls Key out on his complete failure on jobs: “If I have one New Year’s wish it is that John Key returns from his Hawaiian summer holiday brimming with enough determination to challenge the nation’s employers – and himself – to tackle youth unemployment.” In fact, she is the latest of the rightwing’s pundits to conclude neoliberalism has failed.
My regular Sunday piece of interesting, longer, deeper stories I found during the week. It’s also a chance for you to share what you found this week too. Those stimulating links you wanted to share, but just didn’t fit in anywhere (no linkwhoring). This week: hiding tax, growing up neo-liberal and Syria.
In response to tough economic times, Government austerity programmes do more harm than good. It’s a pretty simple equation based on the debt / GDP ratio. With an election coming up soon, NZ needs to look for economic competence and a willingness to try new ideas, rather than muddling along deeper into the austerity death trap.
BBC Radio 4 in the UK has a very interesting debate pitting followers of Keynes vs those of Hayek
Expansionary austerity is the idea that cutbacks in government spending can stimulate economic growth. Empirical evidence shows that it doesn’t work. Current experience shows that it’s not working in Britain, and it isn’t working here. Like “trickle down economics” this favourite of the political Right is not so much a theory as a deluded fantasy.
Facing a housing shortage in Auckland now and a massive rebuilding programme in Christchurch to come, the Government has announced the biggest public building initiative since World War 2. Thousands of unemployed young people will be paid to train as apprentices in building trades and contribute to their country’s future.
All those who think Keynes is dead (and those who merely wondered what happened to him) should check out the website of George Soros’s Institute for New Economic Thinking (INET). A remarkable range of economic luminaries are presented on video and powerpoint, most or all of them arguing for a radical Keynesian solution to the financial crisis.
I saw Labour’s press release yesterday about the latest Treasury monthly statements. Basically, Treasury says ‘the economy’s a whole lot worse than we expected but we stand by our growth forecasts in the Budget’. Odd, because the Budget forecast 1.6% growth so far this year and it has actually been 0.7%. How good is Treasury at forecasting?
The New Republic has a good article on Keynes that points out the tendency for governments (specifically in the US) to flock toward […]
