The Standard

Economy

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

Categories under Economy

NZ media asleep at the wheel

Written By: - Date published: 1:37 pm, November 18th, 2010 - 31 comments

Democracy is quietly dying in NZ but you’d never know it by the media’s response.  The government is rushing through a slew* of legislation under urgency and it doesn’t even rate a mention in either the Herald or the DomPost (the DP devotes half a page to Harry and Kate’s engagement for god’s sake). National Radio […]

OMG! ING! WTF?

Written By: - Date published: 1:33 pm, November 18th, 2010 - 60 comments

Last year, over 13,000 New Zealanders got some measure of satisfaction from ANZ’s part-owned ING in New Zealand. For over a year, half a billion dollars in investors’ funds had been locked up, during a nasty dispute between ING/ANZ and their investors. How has ANZ made things right for everyone who was hurt? They’ve renamed ING as ‘One Path’

Framing the argument

Written By: - Date published: 12:00 pm, November 18th, 2010 - 16 comments

Bill English and brother Conner, CEO of Federated Farmers, share a vision for the world. It’s one where the environment and workers are exploited to the hilt in the name of ‘growth’ and the fruits of that ‘growth’ flow to a privileged elite (like the Englishes). Yesterday rich-boy Conner chided the rest of us with a speech titled “There is no free lunch”

Maori & Pacific Island incomes plummet

Written By: - Date published: 6:58 am, November 18th, 2010 - 93 comments

Here’s a little something that Kris Fa’afoi and his team might like to being to the attention of Mana voters as they prepare to go to the polls. On National’s watch, the median Maori income has fallen 11.5%. For Pacific Islanders the fall’s 19%. Pakeha are down 2.6%. No tax cut for the rich can cover the gaping holes in those family budgets.

Hone and the holidays act

Written By: - Date published: 9:57 pm, November 17th, 2010 - 23 comments

Who would have thought that while Hone was talking up Matt McCarten in Mana the other day he was getting ready to vote with National and Act to undermine Kiwi workers’ annual leave and sick leave rights?

US says no to fox guarding NZ meat

Written By: - Date published: 2:28 pm, November 17th, 2010 - 11 comments

I know it’s in National’s DNA to fight regulation where ever they find it but it looks like the meat industry and government ‘watch dog’ MAF’s Food Safety Authority may have bitten off more than they can chew with their proposal to do away with independent  meat inspectors in the country’s freezing works. Seems a 6 month trial to […]

Neo-liberalism at work

Written By: - Date published: 5:16 pm, November 16th, 2010 - 15 comments

So people get sick and become less productive. I would have thought that that was pretty much stating the obvious.

Spending tax payers money trying to quantify how much imaginary wealth these sick people could have created for their employers if they had been perfectly well, seems to me to be bordering on lunacy.

Too expensive to pump

Written By: - Date published: 10:30 am, November 16th, 2010 - 49 comments

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.

Trading away our rights

Written By: - Date published: 3:38 pm, November 15th, 2010 - 34 comments

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.

The new economy: what do we want?

Written By: - Date published: 12:30 pm, November 15th, 2010 - 48 comments

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.

Buttering up Russia

Written By: - Date published: 11:00 am, November 15th, 2010 - 30 comments

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.

Fabian Seminars – New Zealand’s economy needs a rethink

Written By: - Date published: 6:00 am, November 15th, 2010 - 12 comments

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 the need for a complete rethink of our approach to economic policy. Bernard Hickey wrote recently in a post titled “The free market god doesn’t exist”: “I think New Zealand needs to […]

Jeff Rubin on oil & the end of globalisation

Written By: - Date published: 4:29 pm, November 14th, 2010 - 29 comments

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.

As Nero Fiddles…

Written By: - Date published: 2:00 pm, November 13th, 2010 - 74 comments

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 show double-dip

Written By: - Date published: 12:00 pm, November 12th, 2010 - 14 comments

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.

Fired for using too much sauce

Written By: - Date published: 10:22 am, November 12th, 2010 - 47 comments

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.

‘Playing fair’ makes us losers in currency wars

Written By: - Date published: 6:29 am, November 12th, 2010 - 51 comments

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.

Dole numbers still rising

Written By: - Date published: 10:30 am, November 10th, 2010 - 10 comments

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 other great tax lie

Written By: - Date published: 8:47 am, November 10th, 2010 - 11 comments

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”?

Inequality Rises

Written By: - Date published: 7:00 am, November 10th, 2010 - 53 comments

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.

National – No Friend to Women

Written By: - Date published: 2:44 pm, November 9th, 2010 - 45 comments

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.

High pay makes elitists view us as serfs

Written By: - Date published: 12:31 pm, November 9th, 2010 - 41 comments

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.

In the hole and still digging

Written By: - Date published: 8:03 am, November 9th, 2010 - 65 comments

Tax take is down due to reduced spending and the government’s response is to urge “restraint” and keep cutting. These cuts will, of course, help fuel higher unemployment and further reduced spending, which will probably result in calls for further cuts. We’ll also see asset sales if the Nats win a second term, which will […]

Nats’ economic plan: more oil, more cows

Written By: - Date published: 12:14 pm, November 8th, 2010 - 70 comments

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.

Nats push ahead with ACC privatisation agenda

Written By: - Date published: 10:30 am, November 8th, 2010 - 22 comments

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.

Nasty Nats Steal Holidays

Written By: - Date published: 5:05 pm, November 7th, 2010 - 38 comments

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.

Managing Addiction

Written By: - Date published: 2:16 pm, November 6th, 2010 - 32 comments

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.

Why ‘focusing on growth’?

Written By: - Date published: 1:00 pm, November 6th, 2010 - 21 comments

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.

Neoliberal dominoes

Written By: - Date published: 9:55 am, November 6th, 2010 - 51 comments

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…

One in ten Kiwis jobless or underemployed

Written By: - Date published: 11:45 am, November 5th, 2010 - 11 comments

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.

Doing nothin’: The gap with Australia

Written By: - Date published: 12:00 pm, November 4th, 2010 - 24 comments

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.