History Lesson – Toru – Jobs
Another look back into our recent history. Just to remind ourselves, that what is past, is prologue…
Firstly, too many of our simple-minded fellow New Zealanders still cling to the bigotted fantasy that those on welfare benefits are there “by choice”. Currently, our unemployment stands at 150,000 – or 6.3% of the workforce.
But was it always so…?
New Zealand’s growth rate in the early to mid 2000s was between 4% and 6%, and the skilled labour shortage reflected an economy that was doing well,
Tony Alexander, the BNZ’s chief economist, was reported to have said that “businesses are also going to have to consider helping with basic education. They are going to have to take on less skilled people and train them up in reading, writing, and arithmetic“,
Unemployment dropped to a record low of 3.8% by December 2007. Interestingly, as the recession impacted on our economy, unemployment soared. It is no secret that unemployment and recessionary periods are closely intertwined,
Our GDP (per capita, adjusted by purchasing power parity) rose steadily in the 2000s, levelling of post-2008, as the global banking crisis hit New Zealand, creating into a full-blown recession,
The result of leaving everything up to the free market – a skills shortage. It became readily apparent that businesses demanded well-educated, trained, experienced workers – but were not prepared to pay for that upskilling. That was the role of the State. So much for the State staying out of the Market – when the Market could not/would not, invest in skills training as required,
As the economy boomed, the government post surplus after surplus. (So much for the mischief-making from certain National/ACT agitprops who scurrilously spread the lie that the previous Labour Government mis-managed the economy.) The actual data is on record for all to see,
Which, in turn, allowed Labour’s finance minister, Michael Cullen to pay down our sovereign debt,
As always, the building industry was affected. Which is in marked contrast to builders who, in the last couple of years were finding work hard to come by. But in 2002, it was a completely different world,
Even though the economy was growing and unemployment was dropping, it was evident that people’s skills (or lack of) did not match the demands of employers for their businesses. This failure of the Market to upskill workers, to meet the needs of business, is yet more clear evidence that without State assistance and intervention, economic growth is stifled.
If the self-regulating “Invisible Hand” of the Marketplace acted as per theory, then unskilled unemployed should be upskilled by businesses as required. This did not happen,
The point of this history lesson is that a poorly performing economy will not maximise the use of available human labour. Or to put it more plainly, if the economy is in recession – expect high unemployment.
That is fairly simple to understand.
Those politicians, and their groupies, who talk about a “welfare lifestyle” or “welfare dependancy” are being deliberately disingenuous. These politicians are well-educated, sophisticated men and women who have a clear understanding of economic forces and their consequences.
Politicians understand that very few people are on welfare as a “lifestyle”. And “dependancy” should actually mean being dependant on state assistance – or the alternative being to starve. Those who are unemployed are as “welfare dependent” as an astronaut in space is “spacesuit dependent”.
In truth, when the likes of John Key, Paula Bennett, et al, talk of “welfare lifestyle” and/or “welfare dependancy” – they are using ‘code’ to paint welfare recipients as being the architects of their misfortune.
Because, dear fellow New Zealanders, as we all know, the unemployed here in New Zealand were sitting in the Boardrooms of Goldman Sachs, AIG, Bank of Scotland, General Motors, Lehmann Bros, etc, etc, etc, and were responsible for the chaos and misery of the 2008 Recession.
When a politician attempts to paint a welfare beneficiary as “welfare lifestyle” and/or “welfare dependancy” – they are shifting responsibility from themselves – the people with power – onto welfare reciepients – the most powerless in society- for the pitiful state of the economy here in New Zealand, and throughout the world.
I wonder if welfare beneficiaries know that they crippled the revered demi-god of Western Capitalism, and brought Wall St and City of London, to it’s knees?
Damn crafty, these benes, eh?
= fs =
For a better New Zealand…
~ Cleaner rivers
~ No deep-sea oil drilling
~ Less on Roads - more on Rail
~ A Living wage at $18.40/hr
~ Marriage equality - Yay! Got that one!
~ Strong, effective Unions
~ No secret free-trade deals
~ Breakfast/lunches in our schools
~ Introducing Civics into our school curriculum
~ Cut back on the liquor industry
~ A fairer, progressive tax system
~ Fully funded, free healthcare
~ Ditto for education, including Tertiary
~ Fund Pharmac for Pompe's Disease medication & other 'orphan' drugs
~ No state asset sales!
~ Rebuild public TV broadcasting!
~ Keeping farms in local ownership
~ Reduce poverty, like we reduced the toll for road-fatalities
~ Jobs, Jobs, Jobs!
~ Being nice to each other
- Letter to the editor – National squanders our super fund!
- OIA Request points to beneficiary beat-up by Minister Chester Borrows
- Census, Surveys, and Cellphones (Part rua)
- Radio NZ: Politics with Matthew Hooton and Mike Williams – 9 December 2013
- Letter to the Editor: Should Key attend Mandela’s funeral?
- Farewell, Nelson Mandela…
- I’ve voted – have you?
- John on John…
- A letter to the editor…
- Bring in the clowns…
- Radio NZ: Politics with Matthew Hooton and Mike Williams – 2 December 2013
- The ChCh by-election – a letter to the editor…
- Another “satisfied” WINZ client…
- Full access for everyone!
- Geoff Robinson – an era ends.
- Radio NZ: Politics with Matthew Hooton and Mike Williams – 25 November 2013
- Radio NZ: Focus on Politics for 22 November 2013
- 2013 – Ongoing jobless talley
- One Dunedinite’s response to the passing of the GCSB Bill…
- Random Thoughts on Random Things #5…
- Random Thoughts on Random Things #4…
- Random Thoughts on Random Things #3…
- Random Thoughts on Random Things #2…
- Random Thoughts on Random Things #1…
- Another good poll for a LabourGreen government
- December 2013
- November 2013
- October 2013
- September 2013
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- December 2012
- November 2012
- October 2012
- September 2012
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- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011