Posts on the economy, work, business, income, and labour
Labour’s Chris Hipkins has the inside word: On Wednesday this week, Nick Smith is going to announce what amounts to the effective privatisation of a large part of ACC. You won’t hear the word privatisation uttered from his lips, he’ll use all sorts of other words like ‘competition’ and ‘market discipline’, but privatisation it will be.
No Right Turn on National’s spin about “Mum and Dad investors”.
A new organisation, the Coalition for Social Justice, is calling for a march in Auckland tomorrow.
This story didn’t get any big headlines. This story slipped by almost completely under the radar. But it’s a very important story. Much more important for New Zealand’s development than the smoke and mirrors of the do-nothing budget.
Remember when John Key was promising that he would seek a mandate from the people at the election before starting to sell public assets and cutting Kiwisaver. It was only a week ago. And he’s breaking his promises already: the Kiwisaver cuts actually kick in on July 1, and the privatisation process is underway.
Last week we had National’s budget and Labour’s conference. A chance for both parties to set out their ideas for the future. National’s do-nothing budget went down like a lead balloon, while Labour started setting out promising new policy. Looks like the 2011 election campaign will be a contest between ideas and schoolboy mockery.
*Key says that we will get to vote on his Kiwisaver cuts in the election. Truth is, they passed the law last week and the tax credits are cut from July 1. *What’s up with the dodgy Kiwibank numbers? Plans for sale? *The govt is importing World Cup workers while 270K are jobless. *Key’s jokes falling flat with pissed off voters.
The response to two recent posts here at The Standard have shown what a contentious topic the minimum wage is. So it’s timely that yesterday saw the release of the CTU’s summary of research on Minimum Wage and Jobs.
National are bleating about Labour’s Research & Development tax credit – largely because as they have no economic plan of their own, so they can only talk about other parties’. But Labour’s R&D tax credit is in fact part of what’s desperately needed to get our economy moving in the right direction.
Steven Joyce has been forced into a embarrassing back-down on giving a regulatory holiday to companies who won contracts for the Government’s Ultra Fast Broadband plan. But MrSmith wonders if leaving it up to Commerce Commission is going to be any better given its poor record under National.
Here’s a stunning headline from the Herald on the glamour of working at SkyCity casino:
Flea collars for SkyCity staff
Perhaps next they could introduce compulsory de-lousing baths at the end of each shift?
Prominent scientist Sir Paul Callaghan thinks Kiwis are choosing to be poor. I reckon he’s right too, but we probably disagree about the reasons.
I just love seeing fat, rich men who have received massive tax cuts paid for with borrowed money like John Key and Phil O’Reilly saying that a $15 an hour minimum wage is unaffordable (Key also says governments can’t raise wages, yet he claims to have done just that). Lets check out one large minimum wage employer’s ability to pay.
Cartoonist Guy Body in The Herald, with one of those pictures that is worth a thousand words…
John Key thinks he can smile and wave his way through the worst natural disaster this country has faced. He acts like all he has to do is cheer-lead and the city will rebuild itself. It’s a stunning dereliction of duty. The contrast with the vision and leadership the Left is showing is marked.
John Key reckons the unemployed need “a kick in the pants”. Paula Bennett reckons the Nats’ harsh reforms mean that “the dream is over” for beneficiaries. Meanwhile, back in the real world…
Labour’s pledge of a $15 hour minimum wage is worth more than any tax cut – $66 a week net to a full-time minimum wage worker. The right is crying it’ll hurt the economy and destroys jobs. That’s rubbish. In particular, the history of changes to the youth minimum wage shows no relation to youth unemployment. The Right are just making excuses for ripping-off workers.
No. Really, they’re wasting it on corporate tagging of no value to anyone whatsoever. You can make your own parody sign, like the one below here and join the 7K strong Facebook group.
John Armstrong is highly critical of the sub-zero budget: “The Budget has displayed a degree of cynicism one would expect from a Government in its third term, not its first”…
Despite some progress under the last Labour government, too many children have been allowed to slip through the gaps in this country. And now of course, under a National government, it’s getting worse. In her conference speech this evening Annette King renewed her promise that the next Labour government will put children at the centre of policy.
As I think you can tell from the budget speech, that Bill English is quite a funny guy…
I was listening to John Key on Parliament TV last night on the budget and he is bloody lazy when speaking. I had to watch his lips before I could figure out what he was saying. This morning there is a video of his remedial vocal work that illustrates this problem..
Poor accounting, bad forecasting, dodgy cuts and no vision whatsoever.
Yesterday’s budget was a fail on pretty much every front.
Unions and community groups don’t need to wait till after the Budget is read to know they’ve been screwed. They’re gathering today at […]
It’s only taken two and a half years of mismanagement and reckless tax cuts from to run the country into a mountain of debt. How bad have they let things get, who will they make pay for their mistakes, and how rosy will the forecasts their plans hang on be? Rolling coverage through the day.
Updates: Plans for privatisation are set out. Families hit harder than expected.
So, today is Budget day. The big stuff has all been pretty well signposted, tinkering with KiwiSaver, Working for Families, and student loan eligibility. The devil will be in the details of all the cuts that get made to try and limit the damage in health and education.
Speaking to Audrey Young in today’s Herald, Prime Minister John Key stated “the one thing I’ve come to learn is that the single biggest driving factor in Kiwisaver is inertia”. This confirms what many in the community have been thinking, and a few in the business world have been saying, that inertia is also the single biggest driving factor in the National/ACT/Maori Party government’s economic policy.
The dairy industry produced 16 billion litres of milk in 08/09. The 17,000 dairy farmers got an average half million payout. So how come they only paid $26 million in tax in total? Are we meant to believe that the average dairy farm makes a million litres of milk for $5,000 profit? Rubbish. They’re creaming it.
It has been great to see Labour’s statements on how they would approach Budget 2011. But, as is often the case at this stage of the electoral cycle, it is the Greens who are laying out their alternative budget ideas in the most detail.
John Key at a press conference yesterday made some claims about wages, inflation and Treasury predictions that really need looking at a bit more closely.
Apparently the budget will forecast strong growth in GDP and wages, and a return to surplus within a few years. Sounds good? Well yes, but it is all based on purely hypothetical “projected growth”. Wishful thinking from Treasury analysts with a three year record of being wrong wrong wrong.
As we wait to see just how bad the economy has got under National, and what cuts they will force on us to pay for their follies, Michael Bott’s reports on canvassing in Masterton: “I spent a weekend with a team of Labour volunteers listening to the concerns of the people. A repeated remark was, ‘‘ no matter how hard I try, I just can’t get ahead’’”
The run up to the budget has all been about cuts. How many? How deep? Like lemmings we’re accepting National’s framing, and marching even faster to our economic doom. But, there is an alternative. Instead of slashing spending, we can raise government income. Here’s how.
Paul Krugman on the real reasons for the economic carnage. Not social spending policies, but the daft economic policies of the right-wing “policy elites”. Our focus should not be on slashing spending, but on National’s stupid, unaffordable tax cuts.
