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Posts Tagged ‘Qualityarns’

From 2011 back to 1991?

1 December 2011 23 comments

Even without a Tardis, John Key’s National government is set to return New Zealand to 1991, as it plans to cut spending and make more state sector workers redundant,

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Full Story

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Yet, the NZIER is warning of dire consequences  should National proceed with more cuts to state sector spending,

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Source

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Many will recall that it was precisely brecause of severe cuts to state spending in 1991 that made New Zealand’s recession so much worse at the time. Ruth Richardson even boasted that her budget was the “Mother of All Budgets”.

Economic data is presented here, in graph form, and shows the immediate conseqences that impacted on New Zealand soon after Richardson’s Budgetary cuts were implemented. Unemployment skyrocketed to approximately 11% – the highest since Depression days in the 1930s.

It is generally considered that Richardson’s harsh cuts unnecessarily deepened New Zealand’s recessionary effects. It caused considerable misery throughout the country as businesses collapsed; GDP fell; the prison population increased; and credit ratings agencies downgraded the country.

As John Key’s government lays plans for implementing more state sector cuts, it is clearly apparent that New Zealand’s economy is still struggling,

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And just to really drive home the fact that matters are becoming dire,  ratings agency Standard & Poor’s today downgraded the credit ratings of our major banks;  ANZ New Zealand, ASB, BNZ, and Westpac New Zealand,along with their Australian parents.

Things are not looking terribly flash,

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Whilst it is abundantly obvious that we cannot influence events on the other side of the globe, and that the slow disintergration of the Eurozone; the economic downturn in China; and America’s mind-numbingly huge deficit – that our government can still play a role in what happens locally.

First and foremost, now is not the time to be cutting back on state sector spending and government workers. Adding to unemployment will not help matters and will simply,

  • reduce overall consumption spending by unemployed civil servants
  • make it harder for 154,000 currently unemployed to find jobs
  • reduce overall economic activity

John Key needs to read up on our recent history and learn from the mistakes of his predecessors, Jim Bolger and Ruth Richardson.

He needs to understand that government cutbacks during a recession will not help – and will actually make matters much worse.

Instead, the incoming government should be considering the following;

  • Shelve all plans for further cutbacks
  • Abandon further cutbacks of state sector employees
  • Implement a crash training programme for those currently unemployed, removing barriers such as fees
  • Raise the minimum wage to $15 an hour
  • Compensate the increase in  minimum wage with a correlating tax write-off/reduction, for companies affected for one year
  • Increase the top tax rate for income earners over $100,000
  • Review Working for Famlies for those earning over $100,000

Some high income earners, businesspeople, and free marketeers may squeal at the above suggestions – but we either pay to keep our economy afloat and maintain high employment – or we’ll pay for  welfare, increased crime, social dislocation and other problems, as well more skilled Kiwis fleeing to Australia.

Why not pay to achieve positive outcomes instead of the proverbial ambulance at the bottom of the cliff?

Because either way, we will pay.

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Additional

Wellington hit with leap in mortgagee sales

Wellington furniture company in liquidation

Fourth National Government of New Zealand

The 1991 Budget and Tertiary Education: Promises, Promises…

Reserve Bank – Employment-Unemployment

Dept of Corrections: Prison sentenced snapshot trend since 1980

Annual figures for Bankruptcies and Liquidations since 1988

Chris Ford: National/ACT Coalition aiming to complete New Right revolution

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Election Eleven – Wednesday

23 November 2011 4 comments

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Election Eleven – Wednesday

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Another stirling free-market “success” story,

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So another 28 workers lose their jobs; go on the unemployment benefit; and get labelled as “dole bludgers” by right wing imbeciles.

This is New Zealand in 2011AD:  Neo-liberal Nirvana.

Tell me, my fellow New Zealanders – you who pride yourself as being fair-minded and always willing to give others a fair go – does the closure of this yarn factory and job losses strike a chord with you? There are hundreds – thousands – of similar businesses like Qualityarns that’ve gone bust since Roger Douglas put his hand up in Parliament and said, “Ive got a great idea!”.

Isn’t it ironic… 28 men and women had a job yesterday. Tomorrow they will be on the dole and suffering bene-bashing.

Along with 154,000 other men and women.

Is this it?

Is this what we have to look forward to? Unemployment for some; low wages for others; mass-migration to Australia; and cheap goods from China, India, etc?

Hullo? Is anyone awake in this country?!?!

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This is frankly a form of economic vandalism. What are we mounting here? An economic development strategy for China?” – David Cull, Mayor of Dunedin

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The latest in John Key’s hard-sell* of our assets,

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Listen to John Key speaking to reporters on asset sale plans

Listen to full interview

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Now let me get this straight…

Key reckons that “National would legislate to create a cap on the shares held in any state assets”?  He adds that,

National would pass a law stating that no individual or company could own more than a 10% share. There’s historical precedent there – Telecom had a cap – it’s just a matter of passing legislation. We’d pass it.” Source

Really?

A couple of points here.

National’s definition of the word “cap” appears to be somewhat different to that expressed in, oh, say, just about every English dictionary in the Known Universe. This government has “capped” the civil service by actively cutting government workers, and making them redundant.

So does the word “cap” mean the same for National as it does for ordinary citizens? Recent events suggest not.

Secondly. I’m not a financial whizz-kid in John Key’s league. I’ve never speculated on a zillion dollars; made a bajillion dollars profit; and banked a squillion dollars commision. My work is somewhat more mundane.

However. Even I know that passing a law to “cap” (definition?) share-ownership at 10% can be easily rorted. I can spot an immediate loophole:

  1. Company A sets up five shelf companies; A1, A2, A3, A4, and A5.
  2. Each Shelf company buys 9%.
  3. Result; parent company A now owns 45%.
  4. And John Key smiles and points to his “success” at preventing any one company from gobbling up the whole lot.
  5. And by registering each shelf company in special company/tax havens, such as Ian Wishart described in “The Paradise Conspiracy” – we’ll never know that Company A has bought up the lion’s share of available shares.
  6. Easy peasy.

I suspect John Key – being somewhat more knowlegeable in such arcane matters – is already aware of such a possibilty.

But I guess he doesn’t want to spoil the nice fairy tale he’s been spinning us…

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(* Hard-sell – as in selling to us what we already own)

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Perhaps the most sober, insightful, and plain-speaking look at where we have arrived as a society, after 27 years of radical, free market, “reforms” and the rise of the “Me” Generation,

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Full Story & On-demand Replay

Facebook: Inside Child Poverty New Zealand

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Every politician; aspiring political candidate; community leader; businessperson; and follower of the “free” market should be made to sit and watch this film. This is how we have made New Zealand.

This is a portrait of a society that has lost it’s soul, in pursuit of money and the illusion of “free choice”.

Watch… and maybe learn.

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Well, well, well… I wonder what other bad news Dear Leader is keeping from us,

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When Goff sprung that on Key, he looked decidedly uncomfortable.

Which is silly, really. Trying to keep political secrets in this country is like trying to carry water in a butterfly net. The question is not if a secret will be made public – but will it make it in time for the 6PM News on TV1 or TV3.

I suspect there will be a few more unpleasant surprises in store for us next year, if National wins the election. Their last three years have indicated to us that, as usual, right wing governments and secret agendas go hand-in-hand.

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Firstly, since when is cutting the same as capping?! National has been actively cutting government jobs – whilst at the same time hiring some very expensive “advisors”. These jobs are men and women who have given many loyal years of service to the country. They are the ones who do the work in the back-room offices, to ensure that phones are answered when we have a query about tax or traffic lights are out, and that essential  services are carried out.

Loading front-line services with more paperwork and other administrative duties seems counter-productive. And people are beginning to resent it, and resist these cost-cutting follies.

So much for our esteemed leader, John Key,  assuring New Zealanders that “there’s no way one in five New Zealanders will lose their jobs“.

Making people unemployed is not helping our economy.

For National to be persisting with this false economy of job cuts is not just hurting the economy and hurting ordinary New Zealanders – it signifies a depressing lack of imagination from the National Party,

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This is National’s “action plan”, if re-elected,

National’s action plan includes:

– Have the budget deficit next year, and be back in surplus in 2014/2015
– Establish the Crown Water Investment Company to invest up to $400 million from the Future Investment Fund in irrigation and water storage to make farm land more productive
– Amend the Resource Management Act to have six-month time limits on consenting medium-sized projects
– Immediately implement the new lower public service staffing cap
– Slow the phasing-in of the Emissions Trading Scheme and allow off-setting for pre-1990 forest owners
– Amend the Social Security Act to comprehensively reform benefits
– Introduce changes to sanctions for beneficiaries whose recreational use of drugs affects their ability to apply for and secure a job
– Change bail laws to make it harder for those accused of the most serious offences to get bail
– Introduce screening of parole applications to allow the Parole Board to reduce the number of unnecessary parole hearings
– Pass the Search and Surveillance Bill
– Make secondary school performance information available to parents
– Immediately begin work to develop more effective teacher and principal appraisal
– Increase the number of elective operations by at last 4000 a year
– Work with district health boards to ensure patients needing a specialist appointment are seen within no more than four months by 2014
– Begin work with local primary care networks to provide free after-hours GP visits to children under six
– Start building 17,000 seat temporary stadium at Addington
– Receive and assess the CBD recovery plan

Source

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No mention of jobs.

But plenty of threats of State  punitive actions,

– Immediately implement the new lower public service staffing cap
– Amend the Social Security Act to comprehensively reform benefits
– Introduce changes to sanctions for beneficiaries whose recreational use of drugs affects their ability to apply for and secure a job
– Change bail laws to make it harder for those accused of the most serious offences to get bail
– Introduce screening of parole applications to allow the Parole Board to reduce the number of unnecessary parole hearings
– Pass the Search and Surveillance Bill

The National Party shows a strong inclination toward  “Daddy Statism”. Lots of punishments. Increases in state police powers (they’ll need them).  And blaming those of welfare for the lack of job-growth in this country.

There is nothing positive in any of this.

And this is what New Zealanders are supporting as a possible government?

Perhaps, collectively, we feel we don’t deserve any better.

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2008

That was then…

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2011

This is now…

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I have the strongest impression that New Zealanders are not just leaving because of higher wages in Australia. There has  be more to it than that.

Could it be that those leaving are seeking a better quality of life? Could it be that the free market reforms have created a “Me Society” where New Zealanders feel disconnected from our own country?

Bryan Bruce’s sobering and thoughtful documentary “Inside NZ: Inside Child Poverty” suggests to me that twentyseven years of free market, user-pays, growing gaps between wealthy and Middle Classes and Poor, and growing underclass has created a sense of alienation and frustration.

The irony is that John Key saying that – “I believe we’ve made some progress in so much that we have been closing that after-tax wage gap, we are building an economy that is now growing at a faster rate than Australia but it will take us some time to turn that around” –  is not just unhelpful, but totally ignoring the root-cause of what has fractured our society.

Here’s a clue: Money buys goods and serevices. It does not buy a sense of community.

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Quote of the week.

M@TT   #29   2:12pm

John Key, get your stinking paws off Our SOE’s, you damned dirty ape

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Dominion Post Comments

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