Posts on the economy, work, business, income, and labour
Darkhorse writes amazingly insightful economic pieces on his ‘How Daft’ blog (the title gives you a clue as to what he thinks of the current state of affairs). The neoliberal experiment has been an abject failure by any rational measure. And there are alternatives. Darkhorse has given us permission to syndicate his posts, the originals are here.
Old rich man, Don Brash, arch-advocate of private property rights, arguing against the property rights of iwi because they’re Maori. He says we shouldn’t have race-based ownership. No-one’s arguing for that. Iwi are arguing for the contract they signed with the Crown to be honoured. You would think a rightwinger would be the first to support that.
I’m going to try and put up a piece each Sunday 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: the bread & butter line, bankers, racism and the corporate speak of John Key.
I joined Mighty River Power today. They offered me $150 incentive payment, no contract and a cheap rate. But couldn’t help wondering – am I part of a push to up their user numbers in preparation for sale? So the numbers look good on the books, even if people (like me) might not stay? What will happen to the share price when lots of users leave after the Government’s flogged 49% off?
The Government has binned part of the Northern Wellington Corridor ‘Road of National Significance’ – the four-lane expressway between Otaki and Levin that would have cost $400m. The government’s not getting enough road tax revenue and they had already cut all other transport funding to the bone – so something had to give. But it’s just the start.
Social Development Minister Paula Bennett caused outrage when she suggested somehow banning child abusers from having children. The suspicion at the time was that this was a desperate and cynical attempt to distract the public from the deeply unpopular plans to increase class sizes.Now, thanks to FYI, the public OIA site, that interpretation looks to be the case.
John Key has been running round repeating that no one owns water. He’s just being cute with semantics. What is the effective difference between owning water, and owning water rights?
Today’s DomPost says David Parker’s recent speech “criticised National for failing to boost imports and control housing prices.” That didn’t sound like David Parker. Sure enough he had put his finger on the real problem, the government’s failure to boost exports. Key’s reported “putdown” was Labour is “a joke.” One thing is certain, New Zealand’s ever-receding “brighter future” is no joke. I’d like to see the DomPost put it right. Tell us all what Parker actually said, then let us decide which party is the joke.
A compelling summary of the mess that capitalism has got us in to. Reprinted with permission from Truthout.org. Read it!
Are you keen to buy shares in Mighty River Power with a dividend return of 4% pre-tax? You can beat that in the bank, and paying off debt is a far better use of money. But say you’re still keen. What about the threat of Mighty River losing water rights or having to pay for them – will you buy in with that unresolved? Only nutters would take Key’s offer with that up in the air.
As the Sir Graham Latimer and the Maori Council launch their bid to halt asset sales in the Waitangi Tribunal, the grassroots campaign is gathering steam too. This Saturday is to be a National Day of Action.
Darkhorse writes amazingly insightful economic pieces on his ‘How Daft’ blog (the title gives you a clue as to what he thinks of the current state of affairs). The neoliberal experiment has been an abject failure by any rational measure. And there are alternatives. Darkhorse has given us permission to syndicate his posts, the originals are here.
In our current system, we give men like Bob Diamond the immense power to create money. Need it be so? The Positive Money movement wishes to change that, and give that power back to Government. The first Labour Government used the power to create a better NZ – we could do that again.
The Nats have given up on catching up with Australia, and are content for us to become their low wage sweatshop instead. Their cheerleaders think it’s a great idea.
I beg to differ.
You know how the Government is so skint, and absolutely much get back into surplus by 2014/15, that it has cut education at every level, cut conservation, cut home insulation, cut Kiwisaver, cut Working for Families .. etc etc. They even created a new super-ministry to cut costs. And what’s the first action of Mobie Dick? $2.2 million sunk into Aussie V8s.
If “two-income families are increasingly worse off than single-income families were a generation ago”, then something is seriously wrong with our definition of “progress”.
The median household has $1700 in the bank – you couldn’t really term that savings, it’s operating cash. The Nats want us to fork out at least a grand a time to participate in each share float. That just doesn’t add up. Labour and the Greens are right, this isn’t an opportunity for ordinary people to invest, it’s a wealth transfer to the elite.
The Nats are going to terminate the benefits of those who fail or refuse drug tests. I have a question…
Yesterday National pollster David Farrar excitedly quoted from a George Monbiot article saying peak oil isn’t happening. Two problems: 1) Farrar omitted to quote the bits of the article saying that the flipside of no peak oil would be runaway climate change. 2) the report Monbiot’s article is based on is written by an oil executive who claims we’ll stumble on endless cheap oil and all live happily ever after.
High levels of unemployment in NZ are both a condemnation of the Nats’ bungling of the economy, and a reality check on their perpetual grandstanding beneficiary bashing.
$20 million. That’s how much Paul Reynolds pocketed during his disastrous 5 years as CEO of Telecom. You could have employed dozens of teachers and nurses over that period for that money. Instead, it all went to one man as the company he headed went down the toilet. What a broken system capitalism is. The kicker: the $1.75m goodbye gift, on which he got a $100,000 tax cut. Nice.
Tim Groser in the NBR: “Our enemies who are internal, will find one cow in one stream and feed it back to environmental activists in the developed world to be used to try to exclude New Zealand’s products and services in the ludicrous belief this will somehow help New Zealand.” Paranoid, much? And don’t you think the polluters are the problem, not the people who fail to hush it up?
The only remaining possible legal threat to the Nats’ plans to sell off our power companies is a Treaty based claim to water rights or riverbeds.
Compliance is not high on the agenda for interest-rate rigging banks, who are even now resisting any further regulation. Tapu Misa has the full story, and the right approach in today’s Herald. Alex also puts his finger on the problem in his Telegraph cartoon.
The Exxon Mobil CEO now acknowledges that the world is warming, but claims that there will be an “engineering solution”. This glib reassurance is simply the next phase of Exxon’s well funded and carefully planned denier tactics.
So – what kind of person does well out of asset sales?…
I/S at No Right Turn on Pita Sharples’ suggestion that Christchurch’s homeless squat in abandoned red-zone properties rather than sleeping in their cars.
SST Business Editor Rob O’Neill said today: “There is a great deal of lip-service paid to “innovation” in business. What is not often acknowledged is how embedded innovation can be in manufacturing. Making stuff, or being able to talk freely with the people who do, can be a source of inspiration and great ideas for companies.” I got a lot of inspiration from Swedish Academic Goran Roos on this topic in Auckland on Friday. South Australian Premier Jay Weatherill has asked him to head up their manufacturing strategy next year. We could do with someone like him too.
Another British bank scandal – interest rate-swapping on small business loans. Banks offered small businesses supposedly low hedging insurance on interest rate movements, knew they could get cheaper rates themselves because they had better market information, and pocketed the difference as guaranteed profit. It would be interesting to know if the same thing happens here.
I’m going to try and put up a piece each Sunday 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: Feminism, capitalism & resource depletion.
In a desperate effort to hang on to a few red-neck votes, National keeps on ramping up rhetoric against solo mums. There was talk of compulsory contraception or sterilisation. National played up those ideas, even though it hasn’t followed through. Is it any surprise, then, that poor mums, who don’t follow the news closely, just hear the rumours, are being scared into abortions?
Just before the parliamentary recess National released its latest set of Laura Naude targets. They will join all the others – catching up with Australia, jobs from the cycleway, government surplus by 2014, yadda yadda yadda. I can’t think of a single target National has actually met. These targets aren’t real; they are just there to provide fodder for uncritical media.
Banks engaged in market fixing. What a surprise. No doubt someone will be held to account…
So here is the story that will probably summarise this government in the history books. The whole cabinet delegated responsibility to John Key and Bill English to achieve their promised land of surplus in 2014/15. They defined themselves as the only party that could deliver this goal, they jettisoned all other goals in pursuit of a single number, and they can’t even achieve it…
Shanghai Pengxin’s bid to buy the Crafar Farms was accepted the 2nd time on promises it would invest in building the farms’ productivity in a way a New Zealand buyer couldn’t. Instead, they immediately turned around and tried to sell 3 of the farms at an outrageous profit. Pengxin has shown it has no intent of being bound to the commitments it has made.
