Posts on the economy, work, business, income, and labour
The International Energy Agency’s annual World Energy Outlook forecasts that by 2035 oil will cost $200 a barrel in today’s dollars. That’s not $200 during a price spike, that’s $200 as the new normal. The world entered recession when the price went over $100 in a spike during 2008. A permanent price of $200 a barrel is simply unaffordable.
The dark side of the current much-heralded free trade talks is that New Zealand could end up letting foreign firms dictate how the country is run, from quarantine rules to local content laws, unless it learns the lessons of previous trade deals. A new book edited by Auckland academic Jane Kelsey, No Ordinary Deal, points out that free trade deals are now about far more than just tariffs.
We should treat the economy as a tool to serve our collective needs within the environment’s limits. Instead, we elevated it to the status of a god. Now, environmental degradation and resource exhaustion will leave us with no choice but to live within those limits. To do that, we need to build a system with two goals: fairness and sustainability.
What’s so great about free trade negotiations with Russia? We export only $180 million a year to them, most of it butter. That’s 2% of our exports to the US and Japan and Key’s made no progress on their trade barriers. Rising oil costs will soon make our butter uncompetitive vs Russian dairy farmers. Key got his photo op – but not with Obama.
The next series of Fabian Seminars will feature financial journalist Bernard Hickey of interest.co.nz and Selwyn Pellett of the Productive Economy Council discussing […]
Economist Jeff Rubin explains that the peak oil crisis is the underlying cause of the global economic crisis and why the economy isn’t shaking itself out of recession as in the past. In the age of peak oil, trade advantages will be overwhelmed by transport costs. The winners will be self-sufficient countries with their own agricultural and manufacturing bases.
Climate change and a shoals of dirty little red herrings would seem to go together like salt and pepper or cheese and pickle.
House prices are a good indication of how the economy is going. They rose rapidly in the 2000s, stalled in 2007, plummeted in 2008, and made a slight recovery in 2009. Now they’re heading down again. The median house price is over 16% below the peak in late 2007 and I reckon they’ve got a long down way to go yet.
The Nats are determined to push through more attacks on the rights of working New Zealanders. The latest stories of abuse of the Fire at Will law to emerge involve a chef who ‘who used too much sauce’ and a dairy worker who stood up for an abused immigrant worker. The Nats want all of us to be subject to Fire at Will. Our job is to fight back.
The US Government has begun creating new money out of thin air, to inflate away the value of its debt and lower its currency to make its industries more competitive. It’s not the only country. Nearly all the major currencies are engaged in the ‘Currency Wars’, trying to force down their exchanger rates. We’re in the cross-fire doing nothing.
While the unemployment rate continues to jump around like mad, the dole numbers are telling a consistent story. And it’s not a good one. Every month this year has been worse than normal. In October, the number of Kiwis on the dole fell by 0.1%, that’s compared to a 1.1% fall last October and an average 3.1% drop each October under Labour. This October there were 4,800 more people on the dole than last October. Didn’t you say we were coming out of the recession strongly, Mr Key?
The Budget 2010 tax cuts for the rich were supposed to be paid for by magical extra growth. But the growth isn’t happening and the government now has a $2.2 billion shortfall in income. So the tax cuts aren’t “broadly neutral” at all. We’re paying for them with borrowing. Is that “Ambitious for New Zealand”?
Wages rose for the rich and fell for the poor this year, according to a Employers and Manufacturer’s Association survey. Managing Directors got a 3.7% rise from $190k to $197k, whilst the unskilled production workers beneath them saw their wages drop 6.5% or $2000 to $29.5k.
The recession, combined with this government, hurts the poor the hardest.
The gender pay gap is increasing by about 1 percentage point each year under Pansy Wong’s watch – it’s now 13%. And a new report out shows women’s level of participation in key leadership areas is static or falling. Female unemployment had passed 7 percent for the first time in 12 years. National’s policies equate to an attack on women.
I’ve never really understood the logic of paying CEOs multi-million dollar salaries. Can Telecom’s $7m man, Paul Reynolds, for example, really be worth 100 skilled technicians? Is there no-one who is basically as good who would work for a million or two less? Now, research shows high pay gaps for CEOs actually makes them worse bosses.
Tax take is down due to reduced spending and the government’s response is to urge “restraint” and keep cutting. These cuts will, of […]
We’ve been critical of this do nothing government’s economic record, but now I/S at No Right Turn has received documents that lay out the Nats’ economic plan. They rejected the notion of government, business, and workers pulling together to create a better economy and went with: 1) find lots of oil 2) lots of GM cows.
The Government is planning to reduce ACC cover and portray it as a cost saving for levy-payers. You would get less income coverage when injured and have to endure a longer wait time of three weeks until your coverage would begin. Levies would be personalised on the private model. This is privatising ACC on bite at a time with no actual cost savings.
This NAct government is so anti-worker that they have managed to re-arrange the calendar so that we get 5 fewer holidays in this government’s term than the last Labour one. And that’s before they sell off our 4th week.
We’ve had numerous prescriptions claiming to tackle ever growing numbers of social ills, but the elephant in the room; the underlying cause for our problems as a society is always, assiduously ignored. And that means that many of our resources are being wasted (perhaps deliberately) on illusory problems.
The title of Don Brash’s latest exercise in making John Key appear moderate second 2025 Taskforce report is “Focusing on Growth”. Why should we be myopically focused on growth? Neoliberalism treats growth as an end in itself. That reduces us to mere cogs in the machine of ‘New Zealand Inc’. A healthy society is more than its GDP growth rate.
According to some, the very definition of madness is doing the same thing over and over and expecting a different result. In economic terms the world, and NZ, have been doing the same neoliberal economic agenda over and over for the last 30 years. It hasn’t worked. It’s time for a change…
At 6.4% unemployment appears to be falling, slowly. But it also looks to be above where it was at the start of the year, when it supposedly plunged to 6.0%. Economists are viewing the wildly fluctuating numbers sceptically. Whatever precisely is happening, with one in ten working age Kiwis unable to get work, it’s not time for dancing in the streets.
September Quarter unemployment numbers are out today. It will be an indictment on National if there is not a good sized drop. So how is this government doing on its flagship policy of closing the gap with Australia by 2025? No Right Turn has been trying to find out what work they’re doing to achieve that goal. Answer: Nothing.
Don Brash’s latest 2025 Taskforce report will be ignored like the last. Brash tries very hard to scare us into adopting his failed neoliberal agenda but we all know the point of the Taskforce is to make John Key look moderate. That said, Brash’s latest offering is a curate’s egg – nearly all of it foul and rotten but with one partially redeeming section:
As predicted, the US midterms have not gone well for the Democrats, as they have lost control of the House of Representatives. But […]
In a highly-charged debate like the Hobbit fiasco, it’s easy to lose sight of the real issue amongst the claims and counter-claims over petty details. In a second post that strips things back to what matters, Blue asks the big question: ‘how exactly did NZ taxpayers end up handing over tens of millions of dollars to Warner Brothers?’
I went to see Made in Dagenham last night. The parallels between the dispute, that began when female workers at a Ford plant in the UK struck for better pay, and then equal pay with men, and the Hobbit fiasco were striking. But it’s the dissimilarties in the outcomes that I was left pondering. Let’s take a look at the two events:
The UK entered the financial crisis over-committed and under-prepared. They spent billions of taxpayers’ money bailing out the bankers. Now the bills need to be paid, and the new government is embarking on a vicious austerity regime. As usual, the burden falls on the poor…
We know that poverty is the root of a good deal of society’s problems from crime, to poor educational outcomes, to poor health. Just the direct economic costs of these problems are in the billions per year, and we can’t forget the loss of human potential and happiness. The good news: we can easily afford to eliminate poverty.
I saw Labour’s press release yesterday about the latest Treasury monthly statements. Basically, Treasury says ‘the economy’s a whole lot worse than we expected but we stand by our growth forecasts in the Budget’. Odd, because the Budget forecast 1.6% growth so far this year and it has actually been 0.7%. How good is Treasury at forecasting?
Are Joyce’s plans for a regulatory holiday on the proposed ultra-fast fibre broadband network a violation of international legal commitments? InternetNZ says yes. Joyce says no. Labour’s Clare Curren accuses the Nats of “disregard for NZ law, legal trade obligations and public scrutiny”.
Liberals too cool to be caught standing for anything sit on the fence and make clever whithering comment while oligarchs who realise just how serious it really is wage war on the poor and the middle class.
No, it’s not the Hobbit fiasco, it’s Mark Ames’ take on the rally for vanity and what it really means for the US.
Eventually the dust was going to settle on the Hobbit fiasco and the truth was going to come out.
Fortunately the media has done a bloody good job of making sure that happened.
So what have they been saying?
From 1999 t0 2009, the economy grew by $8 billion a year. It’s so bad now the Prime Minister hands over $33 million and our sovereignty as soon as foreign capital says ‘boo’. Which international corporate will shake us down next? Maybe if the Nats had a plan for the economy. Then we could stand on our own feet. But they’re asleep at the wheel.
After the Hobbit debacle, no-one can fail to understand the power that those who control capital exercise in a capitalist economy. The system is set up for them, hence the name, and their power is never stronger than during recessions. While capital is unaccountable, we cannot have true democracy and freedom. How can we democratise capital?
