Posts on the economy, work, business, income, and labour
In Question Time today. John Key has rejected evidence such census statistics, as reported on RNZ, that the inequality gap in Auckland is growing. He crowed about his government’s record & launched diversionary attacks on the opposition. Update: Question One video; Transcript links – Transcripts & other links updated. #realbudgetnumbers
The Green Party will do a pre-budget economic policy launch: livestream here 11am 11.30am-12.30pm.They are pretty adept at interacting with Kiwis via social media, and on TV. They are grounded in grassroots activities, that link to their policies aimed at making life better for low-to-middle income Kiwis. [Updated#1: got start time wrong: #2 policy here – Green Investment Bank; news reports]
Labour looks at increasing jobs, wage growth, and having the government run surpluses. National looks at a 1% wage growth after inflation after years of falling real wages and no drop in real unemployment as being a sign of a healthy economy? Yeah right. Most of the growth in the economy is simply passing wage-earners by. It is going elsewhere. That is National’s legacy: strong growth for the fortunate few, lagging and insipid growth for everyone else
No Right Turn shows that John Key has no real understanding of the economic and political history of this country. Probably because the last time another economic illiterate from National said that the prospect of reducing unemployment in NZ to below 6% was “a hoax”, John Key wasn’t here. He probably heard it from that illiterate, who once again is our minister of finance. Unemployment under Labour was as low as 3.3%
John Key’s government is cutting back on state housing, uprooting families from their homes. Large numbers of state houses are empty, while many are left to move from caravan park to sleeping in cars or outdoors. Weasel words from Paula Bennett and Nick Smith.
Whether it’s Judith Collins, Michael Woodhouse or the Cabinet Club/s, National Party fundraisers, target the wealthy base they represent. In the process, boundaries are blurred between mainstream politics, exclusive private spaces & personal relationships.
Yesterday the global dairy trade auction was held. Prices are still going down as they have since Feburary. The rate of decrease was less than previous drops. Only 1.1% rather than the colossal drop on April 1st. Also yesterday Graeme Wheeler, the governor of the Reserve Bank did a speech about dairy which has provided some useful reading this morning.
No Right Turn points out that depressing fact that “Still 42,000 (more) out of work under National”. Tories don’t really care until they have to pay taxes for the debt. But hey they voted themselves a tax cut in 2008 – so they’re still happy as the government debt levels keep blowing out to Muldoon levels. National economic management = stupid debt.
We still don’t know why Joyce is pushing on with the move to shut Invermay, Dunedin’s impressive AgResearch centre, but it’s still not […]
Rob Salmond at Polity just saved me from having to write something like this post explaining economic basics to Steven Joyce. Joyce demonstrated again why his tenure at MoBIE has been a failure for the overall economy. He fixates on one thing like the business selling milk powder to the exclusion of the overall picture. In part that is why we have neither expanding innovation or employment in our economy at present. He is a good tactical politician. But he is a fool on strategy.
An NZ Herald article about Mai Chen’s book on Auckland Council, supports big power, big money, big competition, and economic activities focused on anything but the production of material needs and wants. It ignores the struggling precariat living with housing, income, transport and energy poverty.
The response to Labour’s Monetary Policy upgrade has been overall very good and it has dominated the policy debate at the same time as a series of scandals start to circle around the National Party.
Too many MPs in the NAct government, & some journalists, fail to understand that the negative impacts of the infiltration into politics of the worst ethos of big business & big money: croynism, networks of power & influence, self-serving, buddy-supporting actions, & deceptive manipulations of public relations.
Distribution – who pays, who gets what – is one of (or perhaps the) key question in politics. It is the big problem with Labour’s new monetary policy. We’ve all seen how the theoretical ability to compensate the losers of policies which produce net gains tends to be forgotten in practice. Which means that the acceptability of the policy is going to depend crucially on whether Labour follows through on this promise.
Manufacturing exports dropped by 3.3% over the last year. Manufacturing businesses and their jobs disappeared with them. Meanwhile the National MP’s with dairy farms and interests will today be proclaiming a buoyant economy based on them selling barely processed milk-powder to China. It is good for them but as they gut the manufacturing jobs few other kiwis will reap any benefits.
Largely overlooked yesterday, the Green Party launched their “Conservation in Our Backyards” policy. Focusing on protecting New Zealand’s socially and environmentally rich biodiversity, it provides a means to act locally in countering the current track towards global social, environmental and economic destruction.
There is a major new economics tome out this year that’s sending waves through the economics community like none since Friedman in the 70s. It’s Thomas Piketty’s Capital in the Twenty-First Century.
It points out that under capitalism, we’re doomed to inequality.
The head of the reanimated corpse of Brash should now be spinning furiously along with those fools from ACT who are into simplicity (because they can’t handle the real world). However having the Reserve Bank looking the balance of payments is pretty good. It includes the exchange rate and the export economy. They’re effectively now concerned with the exterior economy with a enforced savings tool as well as the interest rates. The government becomes largely responsible for the structural rigidities we have built up in the internal economy. That is a pretty good mix. Might have to train the MPs a bit though.
Out of sight-out of mind seems to be the logic of Auckland City’s bylaw to come into effect next month, to outlaw begging on the streets. The clear message from Native Affairs report, ‘Walk on By‘, last night, is that the bylaw is the result of pressure from the comfortable middle classes. [Update: bylaw only says it’s an offence where begging causes a nuisance]
David Parker’s speech notes announcing Labour’s proposed changes to the Reserve Bank.
The deaths of forestry workers are outrageous & sad. Helen Kelly has campaigned extremely well for change. An international day of remembrance yesterday, a procession on parliament today – a belated govt Bill that is an improvement, but does not go far enough.
The strength of the left: working together…. from the flaxroots. I agree with the parts of David Cunliffe’s speech to Young Labour where he talks of the importance of working together and mobilising the grass roots left in order to win the election. He is speaking about the Labour Party, but his words are equally true for the wider left
Karol has already mentioned this in her post from this morning. But in the interests of splitting milk from alcohol…
As interest rates crank up in debt-laden NZ, we’re about to reap the consequences of 5 years of do-nothing, anti-worker, National government.
Phil Twyford has exposed the government’s asset-stripping approach to running down state housing, while favouring of private & overseas entities. The Greens & Mana have strong policies for increasing the amount of state housing. Still waiting for a commitment from Labour.
Labour has swung positively behind the change from Jones to Kelvin Davis. In his interview on TV3’s First Line this morning, Davis was confident, down-to-earth, & energetic. Hone Harawira & Davis are strong candidates for Te Tai Tokerau and those struggling on low incomes. Both would be assets for a Labour-led government.
A NZer in Britain and a Briton in NZ – 2 CEOs complaining they get paid too much. And science shows the US is ruled by a bunch of oligs.
Greed used to be regarded as a major sin. Now it is often seen as either trivial, or, in Gordon Gekko’s words, “Greed is good”. Greed has become a religion, focused on the sacred “economy” and its “market” of (allegedly) “invisible hands”. Greed fuels inequality and undermines democracy. Democracy needs a more critical public sphere and media.
On Al Jazeera NewsHour this morning, there were two reports on environmental issues in different parts of the planet: stories of the tension between pursuit of economic “growth” and the destruction of the environment. In both countries, there are attempts to develop renewables, without changing the whole system.
This is very good stuff. Having a tax break for R&D work has always been a no-brainer, and it is great to see it reconfirmed. Adding an accelerated depreciation scheme for new plant is a helpful addition. And partnering with more local firms for more locally-sourced government procurement makes perfect sense, too. Another no brainer for parties – like Labour – that actually care about local employment.
That’s how much National gave away today, by setting the price too low on Genesis. They were scared that they couldn’t attract enough […]
Genesis Energy’s shares have been sold at a price well below their value. And despite considerable demand from local mum and dad investors one in four of the shares has been sold to overseas institutions.
This article in the Herald gave me a giggle today. It refers to a cash payment being made to Parliamentary Services staff who […]
There’s a lot of media attention on the negotiations between Mana & The Internet Party (TIP). Mana aims to link with some other parties. Some high profile people are scheduled to speak to Mana. Is Dotcom’s focus on his poor childhood genuine or a PR strategy? [Update#2: Sunday, NZ Herald – green light for negotiations]
All inequality measures are not equal. The GINI Coefficient is widely used but it doesn’t show the impact of vast increases in inequality between the richest and poorest Kiwis; it doesn’t show increasing experiences of hardship: it can mask vast inequalities in wealth & asset ownership.
The levels of hypocrisy of John Key and National are astounding. Nanny State, borrowing’s bad, too many public servants… all while doing far more of their supposed “crimes” than any government previously.
