Posts on the economy, work, business, income, and labour
Most Kiwis won’t be able to afford to pay to buy what we already own when National sells our assets. When they sold Contact, only 5% of us got shares. You know who will buy the shares. Not your working families. Not Key’s new army of the unemployed. It’ll be the people who won big from National’s tax cuts. Now, to add insult to injury, Key is looking at making you and me pay a bonus to these people.
National rushed its Asset Sales Bill back into the House today. Stephen Joyce argued that it was to reduce debt, deepen capital markets, and invest in schools etc. One-off asset sales asset increase debt and if schools depend on flogging off more assets, we won’t get many more before the assets run out. The real reason for the sale is the middle one. Asset sales produce huge windfall capital gains for the buyers. They should be taxed.
Update: Bill went through 61-59 – 2 opposed from Maori Party. Cushion?
David Cunliffe went to the lion’s den yesterday with a speech telling a meeting of Kensington Swan’s receivership and liquidation lawyers that there would be a lot less work for them under Labour but saying “the Labour Party is not your enemy. Your enemy is inefficiency, corruption, and the wastage of both public and private wealth. Your enemy is a cosy corruption that helps a few friends of the government get very rich at the expense of the community.”
Five to fifteen years of economic turmoil. Peak oil. Climate change. For “Western” / OECD countries it’s time to start creating a world based on a different kind of growth.
The Asset Sales Bill will be back in Parliament for its second reading tomorrow.
It’s a further abrogation of due procress, as it comes back 5 weeks early, curtailing proper scrutiny.
Announced this morning before Question Time in Parliament that John Judge will be replaced as Chair of ACC on a temporary basis by Paula Rebstock. Judge is going to chair the ANZNational Bank; Rebstock has been chairing the advisory body to WINZ. It will be interesting to see which bits of the culture get changed and if there is any benefit to ACC claimants.
Times are tight, right? You’ve probably been told that when your boss says you can’t have a pay rise that keeps up with inflation. Yeah, well. It seems that doesn’t apply to managers. The largest jump in median weekly income has been for managers – twice the change across all workers. In hourly terms, no-one is keeping up with inflation. Welcome to the brighter future.
On Superannuation Key is in a very strange position indeed, where keeping his word is doing him more harm than breaking it. It’s a disaster for the country.
New Zealand has been enjoying a long period of uninterrupted sunlight, and this looks likely to continue until at least 2014. The abundance of light can be attributed to prudent and sensible economic management by government, and the implementation of sound fiscal and monetary policies.
When Righties say we can’t afford to support solo mums, what do they think we can afford instead?
You don’t usually see it stated as succinctly as this.
Austerity: another great idea brought to you by the same people who got us into this mess. But some economists are able to think outside the orthodoxy: There Are Real Alternatives. See you at The Voyage.
The Budget was released on May 24th and Treasury’s numbers are already proving to be wrong. It’s not just a laughing matter. When you’ve got a government making its decisions based on a arbitrary, binary bookkeeping target: surplus by 2014/15 – yes/no, then you’re going to get problems when your chief bookkeeping agency doesn’t have a clue what’s going on.
Last year John Key said that the poor and those on benefits had made lifestyle choices. If they budgeted properly, they’d be fine. Things aren’t fine, and they’re getting worse, which is why a 40-yr-old DPB Mum in Christchurch – facing an $80/week rent increase, because Key hasn’t done anything about Christchurch’s housing shortage – has had to resort to the lifestyle “choice” of prostitution.
Like the character, Nick Taylor, in the movie, ‘Thank You For Smoking’, self-styled “Oil lobbyist”, David Robinson is a highly paid apologist for the fossil fuel lobby. But even he says he wouldn’t want fracking in his neighbourhood.
The news out of Europe, China and Australia is looking worse by the day. What’s coming at us doesn’t look pretty. I was about to do a post saying I hoped someone in Labour was doing some scenario planning and was very pleased to see today that Parker’s eyes are open.
Hey John – where’s our “Brighter Future”? Hey National voters – was this what you voted for?
The “tradeable” sector is still shrinking. The property market is heating up again. We need a capital gains tax now.
Remember when John Key promised 4,000 new jobs from the cycleway and, in fact, a few hundred, short-term, part-time positions were created? Remember when John Key promised 170,000 new jobs and unemployment went up instead? Looks like Key’s being making it up on the pokies-for-convention centre deal too, which would create only a fraction of the jobs promised.
Last week I put up some Sunday reading – longer, thoughtful pieces I’d found. I liked that other people also put up their links, with some very interesting topics. So I thought I might make it a regular feature. I’d put up a couple of interesting things that I’d come across in the week, and other people could share their links.
The Nats have a thoroughly unhealthy obsession with the politics of reproduction. They’re talking about “stopping ‘unfit’ parents reproducing”, but Paula Bennet let slip the real agenda months ago.
There’s a lot of analogy between how a guerrilla movement succeeds against a superpower or a state in the era of mass communication and how protest movements can do the same. Unable to win head-on, losing becomes winning as long as the cameras are rolling. It’s about being seen as having a legitimate cause and just as importantly being seen as the victims of disproportionate force and abuse of power.
Labour are pushing for an enquiry into how Treasury oversight of the Retail Deposit Guarantee Scheme was so poor that it has cost us hundreds of millions of dollars. Bill English can’t be allowed to hide this under the plus Treasury carpet, so his lack of oversight of Treasury isn’t shown up.
Here’s a prediction for you – the Nats will ignore this report too. They’re not particularly interested in the issue of kids in poverty.
Budgets allocate money not just for 1 year, but for the next 4. When National says its putting $511m into education, that’s actually $128m a year over 4 years (less than inflation). So, it stands out like a sore thumb that National has promised to limit teacher loses at 2 per school for only 3 years. After that? Seems like Key doesn’t expect it’ll be his problem.
National blew the VIP entertainment budget for the Rugby World Cup by $5 million, despite none of the promised big names actually turning up. They got the extra dosh out of Mfat’s budget. In unrelated news, the government is cutting the Greens’ Warm Up New Zealand programme, which has returned four times its costs in benefits. There’s no money, you see.
So, half the Cabinet sends their kids to private schools. Those schools – which National has upped the taxpayers subsidies for – boast of small class sizes. Kings, where Key sends his kid, says: “Class sizes are limited and our policy of a low pupil-to-teacher ratio ensures students are given greater individual attention in the classroom”. Guess larger classes are only good for the peasants’ kids.
We’re told that these are tough times and we all have to share in the pain. Yeah, right. National dug this hole with $2 billion in ‘fiscally neutral’ tax cuts, billions in subsidies to polluters, and white elephant motorways that aren’t worth what they cost. And who’s being made to bear the cost? The rich are doing well, while the poor and middle class go backwards.
So tobacco is a ridiculously addictive drug that offers no accompanying high for the user. It has pretty dire health consequences and was promoted for years as harmless, chic and sophisticated and the government even gave it away to combatants during WWII by the carton load.
But now the government wants it gone.
National’s got this love affair with ‘outcomes, not outputs’. Means funding teachers and community groups on the achievements of their students or clients, not the number they have. You don’t have to have seen The Wire to know the results. Schools and community groups will pick winners, only those who can achieve easily, to protect their funding.
Just as a quick update on my pre-budget Spin v reality about a Government that has the worst growth record of any since before Michael Joseph Savage, and has a 52% increase in unemployment despite more than 1,000 NZers leaving for Australia each week.
A couple of good BBC articles: what have the Romans done for us? and can we have a society that doesn’t depend on us becoming ill with our fatness? And Kim Hill’s excellent interviewee Steve Keen.
