Posts on the economy, work, business, income, and labour
The disastrous experiment of competition for ACC from the 1990s is to be repeated. Businesses will be allowed to chose a private firm to cover their workplace injuries. Workers won’t get to choose their level of cover of course, they’re just the ones who get injured or killed – why should they have a say.
National still seem to be getting a lot of cover for their economic mismanagement from the Global Financial Crisis way back in 2007-2008. But New Zealand’s failure to be “roaring out of recession”, as John Key promised, is no longer tied to the GFC. It’s Bill English and National’s economic policies that mean that the government deficit is pushing the limits with no reward for average kiwis.
The Herald has used the OIA to get hold of emails Peter Jackson sent Gerry Brownlee during the Hobbit shakedown. They show that the Actors’ Equity blacklisting was not a threat to the film staying here – yet Jackson and Brownlee told us it was to justify handing Warners $34 million and rushing through an anti-worker law.
It’s surreal to see people who cried that not going into Iraq has cost us a trade deal with the US, now saying that the Reconstruction Team Labour sent was to get access for our milk exports. The claim’s based on a US Embassy cable but that doesn’t make it gospel. In reality, the Right wanted us to fight in Iraq to get an FTA with the US.
There’s an ad campaign at the moment about how DB Export was supposedly created in reaction to the Black Budget. It’s full of lies and a lot of people see it as a slur on Arnold Nordmeyer and Labour in general. In fact, this odd campaign under the slogan ‘how to lose an election’ isn’t about Labour. It’s a warning to National.
Liam Dann had a very good piece in the Herald the other day about rising commodity prices. Despite insipid growth, prices of food and oil, the fuels of our civilisation are through the roof. The underlying meaning of those high prices is we’re having to devote more of our resources to feeding and fueling ourselves, leaving less for anything else.
What to do if you’re a government with an ideological fixation on selling assets, which is hugely unpopular? The public will catch on if you put SOEs as full entities up for auction. So, you don’t sell off the companies. Instead, you sell off the things they own or, through bond issues, their profit streams. We’ve been warning this would happen. Now, it is.
Perhaps, like me, you have left your Christmas shopping to the last minute. Fear not – help is at hand! Here’s a roundup of some real gifts that you might give this Christmas.
Over at No Right Turn, I/S has picked up on some Aussie research that shows Free Trade Agreements aren’t the huge money spinners they’re sold as. Because FTAs create different rules for different trading partners, exporters have to meet complicated ‘rules of origin’ to prove they quality for the lower tariffs. The cost can eat up the supposed benefits.
Brownlee ignored warnings that his reforms would increase power prices, not lower them as intended. Wholesale power prices have spiked from $50 to $300 per MWH. Exporters have cut production. Residential users are next. With power up and petrol breaking $2 a litre, energy is a handbrake on this supposed economic recovery.
We don’t have to care so much about beneficiaries any more. Or those single parents. Or the trials and tribulations of anyone else at all really. We have to be grown up. And we are more mean and lean than we used to be. Hell, even those pesky parliamentary lefties have abandoned the beneficiaries and the single parents. Yup. Nothing to see there. Life is good. We’re getting ahead. And we sure know what’s what. Don’t we?
Three government investment decisions in the last couple of weeks have shown the deficiencies in the neoliberal way of doing things. SOE Solid Energy’s lignite-to-liquids obsession, Kiwirail buying trains in China rather than making them itself and Steven Joyce decision to re-create Telecom’s monopoly by giving it 70-84% of the broadband contracts.
It’s a tough Christmas for far too many Kiwis. Poverty is up, wages are down. 350,000 Kiwis are jobless or underemployed. The job losses are still coming. The rich got tax cuts, 70% got nothing. Drought is spreading. Thousands of Cantabrians face an uncertain future. Meanwhile, the Nats cynically exploit disaster to advance their agenda.
Isn’t it great we’ve got that nice man John Key running the country?
He can’t sing, but he does entertain his fans so. Last year he sang Snoopy’s Christmas for his fans, this year Santa Claus is Coming to Town. He sure does know what it takes to be popular. And he always does his best.
The Right always advocates for less government spending as a percentage of GDP. Those with ideological blinkers cannot see the high correlation between being a free and stable country and paying for it. The most successful nations are willing to invest in quality public services. Government spending is low in poor, unequal, and unstable countries.
Tax cuts don’t cause growth, and even some of the right wing commentators are starting to admit it. The Nats’ tax cuts aren’t “broadly neutral” either, and that is why the deficit is blowing out. National’s one and only economic policy is busted. Now what?
Annette Sykes recently delivered the annual Bruce Jesson Lecture concerning ‘The Politics of the Brown Table’. Much of her address is a harsh critique of the so called ‘iwi elite’ and their neo liberal agenda. In my opinion her assessments are true and justified. Without doubt neo liberalism undermines Maori efforts for self determination
3 under the radar stories yesterday. All linked by ideology. Kiwirail to buy 300 wagons from China because its cheaper than building them here. Not allowed to consider wider economic gains. Collins outsources her new prison to a multi-national with a history of prisoner abuse. English wants more ‘value’ from public assets. Value for whom? The likes of Serco?
Child poverty is on the rise again. My question to the National government is simple. What are you going to do to reverse this trend and lift children out of poverty? It’s your watch. What are you going to do?
Let’s face it. A government doesn’t accidentally spend $15 billion more than its revenue while cutting billions in taxes. The unsustainably high deficit is intentional policy, not happenstance. In good times and bad, National’s answer is always to cut taxes. The objective is to make huge deficits that then need to be ‘fixed’ with spending cuts.
So Pansy’s gone. That should mean we can breeze over the fact that thanks to National’s economic policies (or lack thereof) the economy’s […]
Do you feel better off after the great tax swindle? Two recent surveys have shown that the significant majority of us do not. John Key has expressed his surprise at our ingratitude. But the numbers tell the story. Most of us don’t feel better off because we aren’t better off. The only surprise is that John Key is so completely out of touch as to fail to understand this.
National are consistently attacking the vulnerable in society – those who cannot fight back and complain. This is where a lot of their cuts are aimed at – those who need it most. Be it in health, education or welfare.
And in several recent health and education National cuts have hurt the most vulnerable – our children. Not just the massive ECE cuts of Tolley, but cuts hurting those at the bottom even more.
Two years ago we had one of the best government balance sheets in the world. Key said we didn’t have a debt problem. Two years of him as PM, and we sure have one now. When we learn exactly how dire things are later today, remember that National brought this on us by borrowing $3 billion a year for tax cuts that no-one noticed.
Interesting piece by Sue Bradford over at Pundit. If the quote attributed to John Key is for real, it’s a shocker: “If we cancelled welfare to 330,000 people currently on welfare, how many would starve to death? Bugger all.”
I was in Christchurch this weekend for the second time since the quake. It felt like things are gradually getting worse. Compared to the pre-Christmas bustle in other cities, Christchurch CBD was a ghost-town. The public service’s emergency preparedness got us through the initial disaster – has enough been done since? What are your impressions?
Deborah Coddington, trying to justify leaving solo mums and their kids with no state support, says: “I’m nearly 60 and my generation were at it like rabbits when we were teenagers but there weren’t masses of teenage pregnancies because there was no DPB. You couldn’t raise a child on your own, therefore few women got pregnant.” A quick fact check.
OIA papers show how the Nats prostrated themselves for Warners. $6K was spent treating the movie execs like foreign dignitaries – ministerial cars, customs ‘facilitation’. Nats wanted to “present an image of an effective government that is worth working with“. All they showed was they had fallen for Warners’ hollow threats. Cost us $33 million.
I’m in favour of lifting the retirement age. Life expectancy continues to rise and is now 80.4 years. A man aged 65 can expect to live on average another 18 years, a woman 20. That’s a hell of a long time to be getting the pension and an enormous cost. Rising the age to 67 would free up $1.5 billion a year to go into education and preventative health.
Democracy can be very bad at dealing with hard problems. Case in point, the Nats’ appalling handling of the issue of our ageing population. The Nats are stuck, so the country is stuck, rabbit in the headlights, while the size of the problem continues to grow…
The Nats like to talk tough about “benefit fraud”. But ONE News reports that simple incompetence in the Ministry of Social Development costs three times as much. Perhaps cutting more public sector jobs, and putting the remaining workers under even more stress, will help fix the problem, do you think?
The other week we talked about what a new economic order should look like, following the neoliberal experiment’s resoundingly failure. Sustainability and fairness need to be at the heart of the system. Government acts on the economy through law, taxation and income redistribution, and as market player. Let’s start with tax and redistribution.
In a surprise to no-one, John Key has appointed 3 time election loser Hekia Parata to replace the latest of his corrupt ministers to walk the plank – Pansy Wong. I’m hoping Parata will be less of a disgrace than Wong. It wouldn’t be hard, she would just have to actually try to answer questions in the House and actually do something about the wage gaps.
The modern urge to label leaders who perform adequately during an emergency as ‘heroes’ astounds me. Particularly in the case of Pike River. Peter Whitall is a boss who just had 29 workers die on his work-site. While reserving judgment on his blame for that, I’m not going to call him a hero for doing a decent job for the cameras.
