Asset sales: still bad
Adding to the canon of reasons and commentators on why you don’t sell your assets (particularly to pay for your maintenance) is an […]
Economy
Posts on the economy, work, business, income, and labour
Govt banks on winning lottery
National don’t have faith in Kiwis, or our skills and education, our Kiwi ingenuity. Nope, they think the only way to wealth is farming – which can’t be expanded, tourism – which provides low value jobs, and resource exploitation – of oil, gas and minerals unfound. They’re banking on us hitting the jackpot, because they can’t think of any real way of providing a future for our country.
Christchurch – economic hindrance?
The Government have been pushing a line that Christchurch is holding us back as an economy. The poor people of Christchurch are to blame for all our woes apparently, with their earthquake. We shouldn’t blame National, just Cantabrians.
But it’s not true.
Stockholm syndrome
With enough conditioning, our psyches will adapt to believe almost anything. Like that pain is good.
Go nowhere budget
As expected Bill English has served up a budget with no greater focus than reducing a government deficit that really doesn’t matter much at all.
Of course he’s doing this at the expense of a whole lot of things that do matter – our kids’ education, our families’ health, our retirements.
Fail Budget
Budget reaction here. Seems the Nats’ preferred budget tag line is ‘Investing in the future’. Should have called it ‘Waiting for Godot’. Here’s a quick summary: Zero = Fail.
Update: Nats planning to tax kids’ after school jobs. No, not joking.
Pre-budget reading
An excellent column from Bryan Gould, and a picture of working families in financial distress. Something to ponder, as we await the zero budget.
RWC Tickets
So Key is ‘surprised’ that David Shearer, the local member for Eden Park, accepted tickets to a local game, and doesn’t feel beholden to corporate interests? He can accept hospitality and still criticise a company is somehow shocking? I think this tells us more about John, than it surprises the rest of us about David…
Stealth taxes
Bill English has introduced a number of stealth taxes over his time in office, to partly balance the loss his tax cuts for […]
A living wage
The Service and Food Workers Union is launching a campaign for a living wage at 12 o’clock today.
[Update: Campaign site]
Half way there
It’s great that foreign fishing vessels in New Zealand waters will now be required to be flagged here and, in theory, will be subject to New Zealand law. But I reckon that abuses of those crews is only half the problem. The other problem is that we have Kiwi quota owners, in particular iwi, employing foreign fishers while quarter of a million of our people are jobless.
Failure to deliver
National has undershot every one of its growth promises. I bet that doesn’t stop them promising big tomorrow.
David Parker’s Greece-proof paper
Don’t blame Greece: if you change nothing, nothing changes. National’s problems are their own to solve, but they don’t have the guts to look at the big problems in New Zealand’s economy. 0.6% growth in total over the last 3 years – less than population. But National only tinkers and distracts, as our brightest and best head to Aussie.
A good move
The government has correctly bowed to pressure and banned foreign-flagged fishing boats from operating in our waters.
We don’t have too many posts praising this government, and to have 2 today may surprise some. But credit where it’s due.
McCarten: Waging war on working class
Matt McCarten’s latest column is a must read. There is something nasty going on…
Meatworkers win
News in that Talley’s/AFFCO and the Meatworkers reached an agreement at 5am this morning. The workers will keep their wage and job security provisions and still be covered by a collective. The workers have displayed incredible strength with support from up and down the country. Next time, bosses will think twice before attacking their workers.
Spin v reality
National have become a very adept PR machine. While not adept at running the country, they’ve become great at running statistics. John Key […]
Greens Budget Alternative
The Greens launched their Budget alternative this morning. Titled “Smart Green Economics” it lived up to the billing. Extra heft was provided by BERL economist Dr Ganesh Nana paper arguing that the Government’s asset sales programme leaves the government accounts permanently worse off. It was also good to hear about opportunities and their alternatives. We’ve had enough of TINA.
One more promise I couldn’t keep
Last Budget, National promised 36,000 jobs in the year to March 2012. We got 20,000. They promised 1.8% growth. We got 1.1%. They promised a $9.8 billion deficit. Now, it’s heading for over $12 billion. Ready for a repeat on Thursday?. English will say last year’s failures were all someone else’s fault. Key will grin and make some weak jokes, the beakbenches will hoot and holler. But will anyone outside National be smiling this time round?
Mr Key’s remarkable lack of ambition
Remember ‘ambitious for New Zealand’? Remember ‘brighter future’? National used to at least say they wanted to do something significant. At what point did all that get replaced with ‘surplus by 2014/15’? Key and National have $70 billion a year to play with to better this country, and the best thing they can come up with is making sure government operating revenue exceeds operating spending by about half a percent in three years time.
Polls and elections
Another poll to add to current mix. Not a big shift, but in the right direction, and getting the right kinds of headline. And here’s another headline that isn’t going to help the Nats – the wage gap with Australia is growing at the rate of $1 a month.
Austerity will increase inequality
Austerity is reducing the opportunities for social mobility, for reducing income inequality, for a fair society. The increased class sizes, the removal of Adult and Community Education, the removal of Training Allowances, and many more things National are doing in the name of “austerity” are undermining our society.
Minister pleased with anemic economy
You have to take your hat off to National’s spin doctors, coming up with the plausible-sounding nonsense line that low interest rates mean affordable housing isn’t needed. But it led to this- Phil Heatley: “we’re pleased that we’re managing the economy such that interest rates are so low”. Ten minutes earlier, Tony Alexander: “lower interest rates reflect the weakness of the economic outlook”.
Wage cuts for doing your job?
Sometimes during union bargaining that has hit a wall, workers will vote to ‘work to rule’ – ie not do extras beyond the terms of you contract. It’s perfectly legal. In fact, it should be what we all do every day. Working beyond rule is gifting time and effort to the boss for no compensation. But National wants employers to be able to cut your pay for doing your job.
Brighter future (still) just around the corner
Unemployment’s up, wages are flat, retail and export prices in freefall. Last budget National promised 4% this year – it’s 1%. But never fear, the brighter future is just around the corner – again. Key says growth will be strong in 2013/14 -2 years from now. Does anyone still believe him?
I’d love to see wages drop
Remember when John Key said he’d love to see wages drop? Yep? How about when Bill English claimed our low wages were our competitive advantage. Uh-huh.
Well the changes they’re bringing in to undermine working Kiwis’ bargaining power will do exactly that.
The only growth industry
I guess we should give credit to National, in this time of economic stagnation, for the one and only growth industry that they have accomplished.
True ‘cost’ of Mondayisation deliberately hidden
An interesting press release from David Clark, sponsor of the “Mondayisation” bill. It looks like the process of constructing the official advice on this matter was deliberately biased. Why?
Why are you leaving for Aussie?
1 in 80 New Zealanders left for Australia last 12 months. Emigration so far this year is 15% higher than the same months in 2011. 6,000 people attended the 3rd Aussie jobs expo in Auckland in 18 months this weekend. The question is becoming not ‘would you go to Aussie’ but ‘what was the final straw for you to decide to leave Aussie’. Here’s a few reasons.
$2 billion borrowed for tax cuts, so far
Remember National’s ‘fiscally neutral’ tax cuts? Turns out they’ve cost $2 billion in their first 18 months. Now, the Right’s story changes, of course. Without those reckless tax cuts, we wouldn’t be facing zero budgets. They were never meant to be fiscally neutral, they were stimulus spending – right, cause this economy is so stimulated.
The zero growth agenda
I chuckled to read Fran O’Shillivan on Sunday: “John Key has made a strategic decision to burn some political capital and front-foot major Government decisions” – yeah, all those major decisions: $1m for contraception, ‘tackling cyber-bullying’, a petty pokies for convention centre deal, even their centrepiece policy – asset sales – won’t benefit the economy a jot.
Compulsory vaccination for shareholders’ children
In a shock new announcement the Prime Minister has confirmed recipients of corporate welfare will be forced to vaccinate their children.
Compulsory vaccination
It is the Nats’ belief that those on a benefit have fewer human rights than the rest of us. They can simply be told what to do. So now we have a compulsory vaccination debate.
Saveloy Soup! Anyone?
Seems as though Dicken’s Oliver character was an ungrateful little ingrate who actually had it pretty good, all things considered. Gruel has to beat left over savaloy water, no?
AFFCO appeal
The CTU have launched an appeal for donations towards the food and essential bills of AFFCO workers.
Please Donate to NZCTU DISPUTES FUND, 38 9007 0894028 08. Money will go direct to workers.
Rock and a hard place
We’re in a second mini-recession/stall since the Great Recession began in 2008. As in 2010, oil prices ramped up and growth petered out. Now, oil prices have dropped back a little. But the moment the economy shows mild signs of life, they’ll be back up again. Short periods of weak growth, oil price shocks, recessions – sounds like the cycle peak oil economists have predicted for years.