The Standard

Economy

Posts on the economy, work, business, income, and labour

Categories under Economy

Off to Oz

Written By: - Date published: 3:40 pm, February 14th, 2011 - 34 comments

The Oz Job Expo was in Auckland this weekend, and 6000 people turned up and were willing to pay $15 to look for the job they couldn’t find in New Zealand. With much lower unemployment in Australia, job adverts way up since 2008 instead of way down here, and wages on average 30% higher, who could blame them?

Actors’ Inequity

Written By: - Date published: 10:43 am, February 14th, 2011 - 31 comments

Another piece of union-bashing has been quietly implemented. Before, when bringing in foreign actors, the burden of proof lay on the production company to prove the talent they were importing was truly required. Now, no proof is required. This undermines Kiwi actors and their unions. It’s all about punishing Actors’ Equity for the Hobbit fiasco.

Why are the “Right” terrified of equality?

Written By: - Date published: 7:21 am, February 14th, 2011 - 78 comments

Economic inequality is damaging to the fabric of society.  It’s a simple and compelling message, and it seems to have the political “Right” in a complete panic.  In fact if Deborah Coddington’s latest piece is anything to go by, the Right are terrified to the point of derangement.

Monetary Policy

Written By: - Date published: 7:14 am, February 14th, 2011 - 13 comments

John Key wants to take credit for Allan Bollard’s good work. The Reserve Bank is having to step outside its remit to save our economy from a National government and this is the thanks he gets…

The next million

Written By: - Date published: 12:35 pm, February 12th, 2011 - 20 comments

Once upon a time New Zealand was the most prosperous country in the world, living on the sheep’s back. But that was when its population was only two million. The fruits of a raw commodity export sector now have to be spread over more than four million. We could provide decent jobs and income for all by processing these commodities in New Zealand.

Tackling the big issues

Written By: - Date published: 9:53 am, February 12th, 2011 - 60 comments

Key: So, Gillard’s coming. Are we talking about a single economic zone?
Groser: Umm. No. Mobile roaming charges.
Key: Christ, Tim. We’re really racking up wins for Kiwi exporters here, aren’t we?
Captain Panicpants: Your numbers with women are down over Hurley. They say you sounded disloyal and they empathise with Bronagh.
Key: Shit now that’s serious. Call the missus. We’ll do something cutsie and distracting.

Power: saving money too expensive

Written By: - Date published: 8:08 am, February 12th, 2011 - 7 comments

The government is pleading poverty thanks to the tax cuts for the rich (and even though government debt is under control). This is their excuse for welfare and spending cuts and asset sales. This is shown to be pure spin by the fact that they’re passing over the opportunity to save the economy $75 million because they won’t spend $28 million.

Govt is not there to make your life better – Bennett

Written By: - Date published: 12:14 pm, February 11th, 2011 - 56 comments

The nice thing about David Bennett is he says what other Nats are smart enough to keep quiet. Remember his rant against the minimum wage? But he out did himself with his speech defending the appalling record of the National government. It turns out the brighter future Key promised was a lie – the National government “is not there to make your life better”.

Fight the TPP, protect our sovereignty

Written By: - Date published: 7:24 am, February 11th, 2011 - 16 comments

The Government, desperate for some kind of tangible achievement on the trade front, is pushing us into the Trans-Pacific Partnership. We cannot allow the TPP to go ahead. It would sacrifice our sovereignty to the wishes of multi-nationals, allowing them to sue New Zealand if we put restrictions on foreign investment.

Key: out of touch on tax cuts

Written By: - Date published: 10:45 am, February 10th, 2011 - 65 comments

Key proved he’s bereft of ideas in his speech on Tuesday. On Wednesday, he showed he’s out of touch. As you know, Key has voted himself $23,000 of tax cuts on his PM salary alone. Labour estimates another $24,000 on his investments – over $1000 a week. Key argues his tax cut is ‘only’ $15,000.

National fiddles as NZ burns

Written By: - Date published: 9:30 am, February 10th, 2011 - 8 comments

8,000 more unemployed in Q4 2010, and 1,000 more on the dole in January; New Zealand headed to a douple-dip recession after a year of anaemic growth; an average wage rise in 2010 of 1.9% with inflation of 4%. And a government focussed on manipulating statistics instead of coming up with an economic plan.

News round-up

Written By: - Date published: 8:46 am, February 10th, 2011 - 6 comments

*English vs English on assets sales, as business commentators come out against the flawed business case for privatisation. *Will Hide honour his word and resign over Supercity debacle? *Foreshore Bill to join CERRA as a constitutional outrage. *Economic woe keeps coming. *Is the ‘brighter future’ on its way or just more Key stunts?

English lashes out

Written By: - Date published: 7:07 am, February 10th, 2011 - 66 comments

By every significant measure our economy is a mess.  Bill English is finance minister for what is looking increasingly like the most useless do-nothing NZ government in living memory.  So is he working on a plan to put things right?  Is he rolling out the big ideas that will get New Zealand moving again?  No – he’s lashing out at public servants.  Pathetic.

Key’s long-term unemployment record

Written By: - Date published: 3:32 pm, February 9th, 2011 - 38 comments

John Key has taken a swing at Kiwi workers who have lost their jobs thanks to the bankers’ recession and his economic mis-management. Key claims people are choosing to be long-term beneficiaries “even though work is available to them”. But the jobs aren’t there and that has caused long-term unemployment to explode under his watch.

As much as possible for the underclass

Written By: - Date published: 10:30 am, February 9th, 2011 - 8 comments

The PM has obviously been stung by the surge of negative publicity generated by the TV3 piece on the residents of McGehan Close. The revival of this particular piece of exploitative hypocrisy risks tarnishing the sacred Key brand.  Can’t have that.  So Key is trying to convince us that the Nats have done “as much as possible” for the underclass…

Key tries bad stats to mask pathetic record

Written By: - Date published: 8:44 am, February 9th, 2011 - 39 comments

In his speech yesterday, John Key made the extraordinary claim that the real average wage has risen 10% under his rule. That figure is wrong and the measure is the wrong one to use. But there’s a more fundamental check: look around you, is the average family 10% better off than 2 years ago? Who are you going to believe? Key or your own eyes?

Cuts to our public services to pay for elite’s tax cuts

Written By: - Date published: 10:54 pm, February 8th, 2011 - 69 comments

John Key’s government is just two years old but it is already clearly bereft of ideas. His lacklustre speech showed no innovative thinking. There was just his usual bile directed at Labour and the same old failed National formula: asset sales, welfare cuts, and public service cuts masked by restructuring to fund tax cuts for the rich elite.

The productivity lie

Written By: - Date published: 10:29 am, February 8th, 2011 - 24 comments

The Nats have upped the minimum wage by 25 cents.  An increase of 1.9% that doesn’t even keep up with inflation of 4% and is thus a minimum wage cut.  On cue a tame economist opines that wage growth can only happen if we achieve productivity growth first.  The only problem with this excuse is that over the last several decades productivity has grown significantly, and wages haven’t followed…

25c slap in the face

Written By: - Date published: 6:38 am, February 8th, 2011 - 77 comments

So John Key thinks that a 1.9% increase in pay will cover 4% inflation, and that’s all minimum wage workers are going to get. That 25c/hour won’t add up to a litre of milk at the end of the day, let along a block of cheese at the end of the week. A person on minimum wage will now get $437.24/week after tax, whilst JK gave himself over $1000 extra per week in tax cut.

Kiwi dream RIP

Written By: - Date published: 1:36 pm, February 7th, 2011 - 34 comments

Owning your own home was the foundation of the “Kiwi dream”.  Now it seems that we’ve let that dream slip further out of reach than almost anywhere in the world.  Houses in Auckland are less affordable than in New York.  Demand in the rental market is far outstripping supply.  What should the government be doing?

No Aroha for Key

Written By: - Date published: 12:00 pm, February 7th, 2011 - 27 comments

Tomorrow is the first day of Parliament for the year, so I’m picking we’ll see John Key’s annual passing mention of the ‘underclass’. You remember Key’s promise to make lifting the underclass his priority, eh? Well, Key doesn’t. He has abandoned Aroha Nathan after using her for PR and now says he can’t do anything for the poor.

Key’s priorities laid-bare

Written By: - Date published: 9:00 am, February 7th, 2011 - 24 comments

When a millionaire director and a foreign corporate wanted millions in tax breaks, Key jumped to it. When SCF collapsed the investors got an average of $60K, no questions asked. But when it comes to helping the ordinary families of Christchurch and the West Coast, the Nats are nowhere to be seen once the cameras are gone.

Sunday Star’s top ten

Written By: - Date published: 4:42 pm, February 6th, 2011 - 23 comments

At a time when so much political journalism is focused on analysis of image management it’s nice to see a major Sunday paper throwing its weight behind a push for some real world issues.

Anthony Hubbard’s piece in the Sunday Star Times today looks at 10 real issues the election should focus on:

Hickey on the tax bludgers

Written By: - Date published: 9:00 am, February 6th, 2011 - 62 comments

Bernard Hickey looks at the tax bludgers. Labour’s plans to introduce a higher new top tax rate would raise needed tax from those who can most afford it. But it would also foster more tax bludging by the rich. Rather than throw the baby out with the bathwater by abolishing the top rate, we need to eliminate the avenues for bludging.

Bloody Klowns

Written By: - Date published: 9:13 am, February 5th, 2011 - 80 comments

Ever been in a job where you thought you were underpayed and overworked? Ever voiced those feelings to your workmates? Either on the job, or during ‘smoko’, over the telephone or through some other electronic medium?

A Burger King employee in Dunedin has. And now, astonishingly,  faces the possibility of being fired for serious misconduct.

The too big to fail myth

Written By: - Date published: 8:17 am, February 5th, 2011 - 33 comments

All over the globe we the tax payer recently got stuck with a bill for trillions of dollars to bail out banks that were “too big to fail”.  Or were they?  One country, Iceland, went against the trend, and let its banks go under.  What happened next?

Key tries ‘come hither’ eyes to attract jobs

Written By: - Date published: 1:37 pm, February 4th, 2011 - 98 comments

PM Key says we shouldn’t lose confidence despite rising unemployment. Pledging to go ‘on the pull for jobs’, Key said he will prostitute NZ to any multi-national corporation and Kiwis should be willing to work for free. The PM was last seen smiling at himself in a mirror, muttering ‘Hey baby, wanna come back to my place and clean it for $12.75 an hour?’

Competent economic management

Written By: - Date published: 9:18 am, February 4th, 2011 - 20 comments

John Key Oct 2010: “I don’t think we should argue we are in a recession … now that summer has come, economic activity is starting to pick up.”
Building consents lowest on record * unemployment hits 6.8% * retail spending falls * We’ve had double dip recession

Is the 90 day trial “working”?

Written By: - Date published: 7:00 am, February 4th, 2011 - 66 comments

The NZIER recently popped up with a study  purporting to show that the “90-day trial period” (the fire at will bill) is “working”.  The study and its conclusions have since been widely quoted.  Unfortunately the conclusions are a load of nonsense.  NZIER have committed the amateur hour mistake of seeing the cause that they want to see.

Mind the Wealth Gap

Written By: - Date published: 2:41 pm, February 3rd, 2011 - 2 comments

The Onion, PARIS—At a press conference Tuesday, the World Heritage Committee officially recognized the Gap Between Rich and Poor as the “Eighth Wonder of the World,” describing the global wealth divide as the “most colossal and enduring of mankind’s creations.”

Unemployment Up

Written By: - Date published: 12:08 pm, February 3rd, 2011 - 23 comments

The December quarter employment statistics are out.  And there’s a big jump up to 6.8% unemployment.  11,000 people lost their jobs, 8,000 became “unemployed” and 3,000 others left the workforce altogether.  The labour force participation rate (the number of people of working age, working) is down to 67.9%.