Posts on the economy, work, business, income, and labour
In the last few days Key has refused to accept responsibility for NZ’s credit downgrades, stated that he is “not concerned in the slightest” about his possible breach of electoral law, and used an unfortunate incident in Parliament to launch an ugly attack on Labour. John Key is no leader.
Will double dipping double downgrade Bill English have the guts to heed his own warning?
The national icon suddenly announces that the future of the thing we pride ourselves is at stake. Some big mean foreigners are going to take if off us. Oh no, oh no! Fortunately, there’s a solution. It just requires a few tens of millions of taxpayer dollars. Sound familiar? As with the Hobbit, now with the All Blacks. We got suckered once. Will we again?
John Key’s relentless optimism is designed to make the country feel good, and to feel good about him – that nice man Mr Key. It doesn’t, however, solve our large economic problems.
Bill ‘Double Dipton’ (or should that be ‘Double Downgrade’?) English says people aren’t focused on politics, which is why National is so high in the polls. When they focus on the main election issue of economic management, DD says the gap will close. Not exactly a strong defence of his and Key’s performance as economic leaders.
The credit rating downgrades have been quite a political earthquake, and the aftershocks are going to continue for some time.
Prime Minister Moonbeam clearly broke the law on Friday on the radio show he chose to run instead of dealing with the downgrade crisis. The law is clear: Key wasn’t allowed to make political statements. He did. He made a promise on broadcasting policy and gave the Nats’ first cut spin-line on the downgrade.
The Occupation, now into its third week, seems to be growing. As is the Police response. In the latest development police have arrested more than 700 protesters on the Brooklyn Bridge.
The Nats have released no substantial policy since the Budget and look unlikely to do so. Their election strategy was clearly to keep attention away from a comparison of their policy vs Labour’s, and keep it on Brand Key. The exploding economic crisis has caught the Nats’ flat-footed. Now, they need economic ideas urgently but have none to offer.
As National muddles through, refusing to reexamine its economic plans after the shock double-downgrade on Friday, the job losses are starting to pile up again. It’s very reminiscent of the last recession, which we will haven’t recovered from thanks to 3 years of muddling. Can we afford 3 more years? Here’s a list of job losses in the past month.
The weeks of the RWC were supposed to be a politics-free zone. Bread and circuses. It hasn’t turned out that way, as both Armstrong and O’Sullivan point out in weekend opinion pieces. The credit downgrades have dropped a bomb in the middle of the political landscape. But I think that both are wrong in expecting any action from the Nats.
The Nats have indulged in a long series of boastful posturings and dire warnings about the risks of a credit downgrade, many of them as recently as August 10th. Now that they have suffered not one, but two separate credit downgrades, Mr Smile and Wave has some explaining to do.
Grateful citizens rejoiced this week at the passage of the VTM (Voluntary Taxation Mechanism) bill.
National has borrowed $37 billion in less than three years and delivered no growth for it. In fact, it has repeatedly failed to meet its growth projections and GDP per capita has fallen. That failure has now resulted in the credit rating agency Fitch downgrading our credit rating. Makes a lie of the Nats’ line that we’re in better shape than in 2008. Will Bill English resign?
Update: S&P downgrades us too. English’s resignation letter being drafted on 9th floor to stem political fall-out for Key.
It’s not often that ‘bald truths’ escape the filtration of the msm. The video below is an example of one of those rare moments.
Have you heard of Occupy Wall Street? If you are one of the 99%, you should have…
National did not cope well yesterday when their economic record was held up to the light. John Key was all at sea as he tried to dismiss new statistics showing 47,000 jobs have been lost under his watch. He cited instead another statistical series, which he has previously rejected when it showed 56,000 more people are unemployed under National.
If New Zealand’s economy could be powered by empty promises and pollyanna-ish optimism, then John Key would have the best economic record in the country’s history. Actually, he has one of the worst. Vernon Small today mocks Key’s unwillingness to put a downer on the RWC vibe by confronting the emerging global crisis.
Happiness surrounds us in our lives; our music tells us to be happy, our facebook profiles suggest we’re always happy, and most of us have a willingness to work for material happiness. Yet happiness is a subject often missing from political discourse in our country, suppressed by talk of dairy and the dollar which dominates the halls of Parliament.
One of the big stories last night was the anti-VSM protest at Auckland Uni. Was it the last one we will see in NZ? That would suit the Nats very nicely – sheep will be so much easier to fleece…
On Friday the government announced a law change that opens the door to a whole world of cheap contract labour now available to anyone producing short projects like advertisements, tv episodes or parts of movies in New Zealand.
Many of the industry locals who will be most hurt by this are the same ones who were banging the drum against actors and for international producers during the Hobbit dispute. Ironic, huh?
John Key explains how the economy is all just a business confidence trick. Apparently businesspeople just need to believe a bit more.
As most of the headlines this morning focus on the crumbling world economy, it was interesting to hear Bill English on RNZ. Among various inane comments there was one interesting gem, when English called for higher taxes…
So here we are then. “Roaring out of recession”. Or – not.
It’s a bit of a worry that the PM seems to be clueless about the complexity and interdependence of the world economy. Bill English needs to take him aside and paint him a picture.
Economist Paul Krugman argues that governments the world over need to wake up to the fact that they’ve been trying to solve the wrong problem.
Two news snippets yesterday seemed to me to capture the essence of John Key PM. First, his response to recommendations about super, and second his prognostications on the Christchurch insurance market.
We’re going to need a lot of innovation to survive the coming decades. Today’s innovation is a simple modification that at least doubles the energy output of a wind turbine. Brilliant.
The warnings on the economy are coming thick and fast now, both globally and nationally.
Denmark has ended the 10-year reign of the right supported by the anti-immigration Muslim-baiting Danish People’s party. The Social Democrats headed by their first woman PM Helle Thorning-Schmidt will move away from the right’s favoured austerity and spending cuts to more investment in education, welfare and infrastructure. Austerity isn’t working in Britain, and Denmark is worth watching for all kinds of reasons.
It turns out that the high price of milk is your fault. No – really.
The other day, Irish covered the odious comments from liquidator/columnist Damien Grant calling unskilled people ‘commodities’. That was in the context of a pretty flimsy attack on Gareth Morgan and Susan Guthrie’s ‘Big Kahuna’ tax plan. Yesterday, Morgan and Guthrie responded to Grant’s attacks. The Jackal says Morgan and Guthrie have it right.
The Child Poverty Action Group has released yet another shaming report on child poverty in NZ. The Nats’ cuts to Working for Families are making matters worse. If the election doesn’t return a Labour government, then we’re going to have three more years of inaction punctuated by brief ritual hand-wringing over each new report.
