The Standard

Economy

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

Categories under Economy

Brash’s curate’s egg

Written By: - Date published: 10:28 am, November 4th, 2010 - 24 comments

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:

US midterms – deflation the risk so be afraid

Written By: - Date published: 8:59 pm, November 3rd, 2010 - 23 comments

As predicted, the US midterms have not gone well for the Democrats, as they have lost control of the House of Representatives. But they retain a majority in the Senate, so some are predicting that the most likely outcome is a repeat of the gridlock of 1994, after a similar conservative revolt led by Rush […]

Q&A on The Hobbit – Part 2

Written By: - Date published: 1:30 pm, November 3rd, 2010 - 52 comments

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?’

Made in Wellington

Written By: - Date published: 8:35 am, November 3rd, 2010 - 33 comments

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:

Austerity in the UK

Written By: - Date published: 5:16 pm, November 2nd, 2010 - 63 comments

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…

Can we afford poverty?

Written By: - Date published: 11:30 am, November 2nd, 2010 - 215 comments

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.

Treasury: peering into the dark with a broken torch

Written By: - Date published: 12:09 am, November 2nd, 2010 - 55 comments

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?

Broadband deal illegal?

Written By: - Date published: 7:08 pm, November 1st, 2010 - 10 comments

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”.

Mark Ames on the rally to restore sanity

Written By: - Date published: 7:03 pm, October 31st, 2010 - 28 comments

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.

The dust settles on the Hobbit fiasco

Written By: - Date published: 9:54 am, October 31st, 2010 - 37 comments

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?

NZ gets a shake-down

Written By: - Date published: 8:37 am, October 31st, 2010 - 15 comments

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.

Democratising capital

Written By: - Date published: 10:18 am, October 30th, 2010 - 85 comments

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?

A rushed law, a bad law

Written By: - Date published: 5:11 pm, October 29th, 2010 - 56 comments

The Hobbit Enabling Act is meant to do is say ‘you’re an employee if you are called an employee in your contract, if not, you’re a contractor’. But it doesn’t say that and it doesn’t override the Bryson case that caused the ‘uncertainty’ Warners supposedly feared. Now, nobody knows what the law actually is. Well-founded disagreements will mean court cases.

Meanwhile, elsewhere.

Written By: - Date published: 1:10 pm, October 29th, 2010 - 22 comments

28% of the population raised out of poverty.

50% growth over a five and a half year period

8.2% growth per annum

Unemployment down from 21.5% to 8.5%

Inflation adjusted wages up by more than 40%

Going backwards with National

Written By: - Date published: 11:59 am, October 29th, 2010 - 34 comments

It takes a lot to screw up a great country like New Zealand. It can’t be done overnight. But if you’re really negligent, anti-worker, and focused on hand outs to the rich, you can start to make things worse pretty quickly. Let’s look at the key measures of National’s performance, according to their own criteria:

Tourism: revenue flat, employment down

Written By: - Date published: 10:00 am, October 29th, 2010 - 41 comments

I’m confused by the up beat coverage of the tourism figures released on Wednesday. Have people actually read the numbers? Tourism is in decline. Employment and revenue are still going down, and the next time oil prices go through the roof, the situation will get worse. No cycleway will change that.

Death threats and dud deals

Written By: - Date published: 9:10 am, October 29th, 2010 - 78 comments

Today we learn just how extreme some of the anti-union nutters in our country are, with news of death threats to unionists and actors involved in The Hobbit fiasco.  I hope we hear soon of a sustained police effort to track down the perpetrators.  Or are we as a country going to effectively condone these actions by ignoring them?

At least Barbara Castle had some guts

Written By: - Date published: 9:07 pm, October 28th, 2010 - 11 comments

Wellington’s Embassy theatre hosted the New Zealand premiere of the Ring movies a few years ago. There’s another good movie showing there now. It comes from the producer of “Calendar Girls” and is called “Made in Dagenham”. It tells the story of women sewing machinists who went on strike for equal pay at England’s largest […]

The changes to employment law

Written By: - Date published: 7:36 pm, October 28th, 2010 - 44 comments

The government is currently rushing through changes to employment law.

But the change won’t make any difference to the kind of action Actors Equity took.

So what’s the point?

Campbell on Key’s sell out

Written By: - Date published: 3:39 pm, October 28th, 2010 - 21 comments

Scoop’s Gordon Campbell has written a long piece on the Hobbit settlement and its implications.  Key said that we couldn’t match the tax deals offered by other countries, but according to Campbell’s calculations that’s exactly what we have done. Campbell also has harsh words to say about Key’s “skill” as a negotiator, and advice about strengthening the film industry in NZ.

20 hours free to go?

Written By: - Date published: 1:57 pm, October 28th, 2010 - 33 comments

The last Labour government introduced 20 hours free early childhood education.  It’s a resource that many parents have since come to rely on, taking some pressure off household budgets as every other cost seems to keep on going up and up.  But now we have the latest in a series of indications that the Nats are going to cut the programme…

The best country money can buy

Written By: - Date published: 12:35 pm, October 28th, 2010 - 97 comments

Today, the Hobbit Enabling Act will be slammed through Parliament by National removing the right of employees working in the film industry to get employment rights if their contract calls them a contractor. It’s the latest in a series of anti-democratic laws that show National is the party of big business, not democracy and ordinary Kiwis.

Q&A on The Hobbit

Written By: - Date published: 11:30 am, October 28th, 2010 - 84 comments

The Right argues that an already settled labour dispute involving a small union somehow scared a multi-billion film company enough to make them consider abandoning the $100 million already invested in NZ. Blue has gone beyond the slogans and done some excellent research to answers our questions on what really happened.

Caption Contest

Written By: - Date published: 7:39 am, October 28th, 2010 - 25 comments

  There was some expenditure that didn’t qualify under the old scheme…We’ve looked to broaden that out. John Key on Warner Brothers, 27 Oct 2010

The price of our hysteria

Written By: - Date published: 8:30 pm, October 27th, 2010 - 180 comments

The Government will give the Hobbit producers an extra $33 million to stay in New Zealand and it’s going to use this ‘crisis’ as an excuse to slam through more anti-worker laws. New Zealand has been played like naive hicks. The Hobbit was never leaving. We let Jackson and his Hollywood mates whip us into a frenzy of fear – now we’re paying the cost.

Key’s announcement

Written By: - Date published: 7:15 pm, October 27th, 2010 - 179 comments

John Key will be making an announcement on The Hobbit this evening, with a press conference due to be held at 7.20pm. Will update this post after the announcement.

Update: Predictably, the movies are staying in NZ, with a sell out of our employment law, and further tax sweeteners for the studios.

An invitation to Warner Brothers to be up front

Written By: - Date published: 10:30 am, October 27th, 2010 - 10 comments

Wallace Chapman has a thoughtful Open Letter to the visiting Warner Brothers executives on his blog, inviting them to front up to the New Zealand public: We have a small segment called “Soapbox” and we’d just love you to come over and join us and speak your mind to camera for 60 seconds. We know […]

Tax Cuts or High Wages?

Written By: - Date published: 9:00 am, October 27th, 2010 - 17 comments

At the last election we chose tax cuts and unemployment instead of stimulus and stability – which was the more ambitious, high wage way to go?

National are not fulfilling their government’s core reason for existence: closing the wage gap with Australia.  No, we’re fast going backwards on that score, and it’s predictable: high unemployment causes low wages.

Lord of the tax breaks: A history of capital flight threats

Written By: - Date published: 7:53 am, October 27th, 2010 - 90 comments

The Hobbit ‘crisis’ is just the latest in a series of capital flight threats from Jackson and Hollywood. We’ll end up paying more to stave off the threat of capital flight because the wider economic benefit makes it worthwhile. Key is trying to talk down how much we can pay but he bears responsibility for talking up the ‘crisis’ to put the boot into unions.

Tax breaks and the Hobbit

Written By: - Date published: 7:06 pm, October 26th, 2010 - 96 comments

From Stuff: A meeting between Warner Brothers and senior government ministers has ended, with studio executives asking for larger incentives to keep The Hobbit movies in NZ. The two-hour meeting, which included New Line Cinema boss Toby Emmerich, ended with no resolution to the Hobbit standoff…

Universal Income & the Minimum Wage

Written By: - Date published: 12:50 pm, October 26th, 2010 - 101 comments

There is no need to tolerate the existence of poverty. It is an economic and social drag on our country that wastes human potential. The minimum wage, super, and benefits help, yet 15% of Kiwis, and 20% of kids, live in households with incomes below 60% of the average income. A universal income is the best way to eliminate the blight of poverty.