The Standard

Economy

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

Categories under Economy

Blood for milk? Pull the other one

Written By: - Date published: 8:44 pm, December 20th, 2010 - 29 comments

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.

The real target of DB Export campaign

Written By: - Date published: 11:30 am, December 20th, 2010 - 61 comments

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.

2011: year of the next mega-shock

Written By: - Date published: 8:40 am, December 20th, 2010 - 47 comments

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.

Electricity privatisation begins

Written By: - Date published: 1:58 pm, December 19th, 2010 - 39 comments

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.

Christmas gifts

Written By: - Date published: 2:23 pm, December 18th, 2010 - 5 comments

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.

Is free trade worth it?

Written By: - Date published: 12:00 pm, December 18th, 2010 - 24 comments

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.

Ideology causes power price spike

Written By: - Date published: 7:16 am, December 18th, 2010 - 30 comments

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.

Human Nature and Propaganda

Written By: - Date published: 12:30 pm, December 17th, 2010 - 63 comments

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?

The new economy: Govt as an economic actor

Written By: - Date published: 11:00 am, December 17th, 2010 - 42 comments

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.

Merry Christmas from NZ

Written By: - Date published: 8:18 am, December 17th, 2010 - 15 comments

A headline on Newsroom at time of writing: Christmas Aid Shock  –  A week before Christmas, thousands of the world’s poor receiving community development aid from Kiwi aid agencies are being told they will get no more money from the New Zealand Government.

Exploiting disaster

Written By: - Date published: 11:47 pm, December 16th, 2010 - 33 comments

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.

John Key: Celebrity

Written By: - Date published: 3:59 pm, December 16th, 2010 - 27 comments

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.

Government Spending Ideology

Written By: - Date published: 7:45 am, December 16th, 2010 - 29 comments

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 busted

Written By: - Date published: 7:13 am, December 16th, 2010 - 67 comments

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?

Sykes on neoliberalism & the iwi elite

Written By: - Date published: 12:10 pm, December 15th, 2010 - 18 comments

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

Nats’ ideology: outsourcing NZ

Written By: - Date published: 9:54 am, December 15th, 2010 - 29 comments

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?

Children in poverty

Written By: - Date published: 7:15 am, December 15th, 2010 - 207 comments

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?

Starve the beast

Written By: - Date published: 12:39 pm, December 14th, 2010 - 50 comments

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.

Good Day to Bury News

Written By: - Date published: 11:18 am, December 14th, 2010 - 25 comments

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 gone to custard.  And thanks to National’s tax cuts for the rich, the government’s books are in the poo. We certainly won’t get to hear anything about the fact that our first […]

Key out of touch on taxes

Written By: - Date published: 9:30 am, December 14th, 2010 - 37 comments

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 Attacks Vulnerable Children

Written By: - Date published: 7:25 am, December 14th, 2010 - 22 comments

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.

Tax cuts for rich at heart of debt problem

Written By: - Date published: 6:19 am, December 14th, 2010 - 52 comments

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.

Key on welfare

Written By: - Date published: 7:45 pm, December 13th, 2010 - 68 comments

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.”

Is enough being done for Canterbury?

Written By: - Date published: 10:30 am, December 13th, 2010 - 54 comments

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?

If you remember the 60s you weren’t there

Written By: - Date published: 8:42 am, December 12th, 2010 - 92 comments

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.

$6K bill for Key’s kowtowing to Warners

Written By: - Date published: 12:00 pm, December 10th, 2010 - 18 comments

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.

Ten ways to beat our snowballing debt

Written By: - Date published: 7:22 am, December 9th, 2010 - 70 comments

Even Fran O’ Sullivan has been moved to admit that debt is getting out of control and our current Emperor has no economic clothes.  She sets out a top ten action list, the usual regressive right wing stuff.  What would a leftie action list look like?  What would be on your top ten list for reducing debt?

When I’m 67

Written By: - Date published: 12:16 pm, December 8th, 2010 - 55 comments

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 is bad at hard problems

Written By: - Date published: 7:15 am, December 8th, 2010 - 72 comments

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…

Fraud vs incompetence

Written By: - Date published: 7:10 pm, December 7th, 2010 - 28 comments

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 new economy: tax & redistribution

Written By: - Date published: 11:13 am, December 7th, 2010 - 135 comments

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.