NRT: The effects of NeoLiberalism

Written By: - Date published: 10:47 am, September 6th, 2011 - 15 comments
Categories: class war, equality, wages - Tags: ,

NoRightTurn: The effects of NeoLiberalism

The New York Times has a graphic comparing the outcomes of economic policy in the US, specifically comparing the broadly social democratic policies prevalent between [1947] and 1979, and the NeoLiberal policies since 1980. The differences are astounding. Between 1947 and 1979, growth benefited everyone; wages rose with productivity, and everyone’s income rose by roughly the same proportion. Since 1980, productivity has continued to increase, but wages have stagnated, with the result that only the wealthy have benefited. As for the top 1%, they’ve made out like bandits, with their share of the wealth returning to Gilded Age levels. As for everyone else, they’ve been pushed into working harder and borrowing more just to make ends meet.

Its an appalling visual indictment of NeoLiberalism. But what I’d love to see is a similar graphic for New Zealand, so we can see whether its had the same effect here.

————————————————————-

It’s interesting to note that we’re back at Depression-level inequality and, again, stuck in a demand-led recessionary spiral. Coincidence?

Btw, don’t be fooled by the uptick in average wages in the last couple of years. It’s just a result of millions of low wage workers losing their jobs. – Eddie

15 comments on “NRT: The effects of NeoLiberalism ”

  1. Lanthanide 1

    I do have to wonder if this massive increase in capital going to the top classes has sped up technological progress.

    For example, the chip fabrication plants that Intel builds cost literally billions and it’s the same in other industry. Perhaps if the wealth weren’t as concentrated, technological progress may have been slower?

    • queenstfarmer 1.1

      I would say it has both sped up, and been sped up by, technological progress and the market for the same. Discover an oil well, become a billionaire. Invent Facebook, become a billionaire.

      And it’s not just technological. Money begats money. The opportunities for leveraging money to create more are vastly greater now than ever before. Deriviative markets barely existed a handful of decades ago, now they are one of the biggest sources of “money generation” around.

      Whether this is good or bad, right or wrong, optimal or sub-optimal…

      • Puddleglum 1.1.1

        Yes, technology understood in its broadest sense to include technical systems (e.g., in the financial markets) allows the increased leveraging of wealth as you point out. Modern economies are, in effect, technical systems/machines constantly being re-designed to generate more and more wealth.

        But that has been the case for a while. Gladwell (in his book ‘Outliers’) reported a list of the 100 most wealthy people ever. Today’s billionaires barely get a look in at the top – which is dominated by emperors and, interestingly, a handful of American men in the 19th century (oil, rail, steel from memory which was connected to the – one off – ‘opening up’ of a vast continent filled with natural resources).

        Irrespective of how good an economy is at leveraging wealth at greater and greater ratios, there is still the question of distribution of that wealth. That’s what has ‘broken down’ over the past decades, by the look of it.

        If that isn’t rectified then most of the Intel chips will be in security systems.

      • mik e 1.1.2

        QSF You’ve made some pretty broad statements nothing of any meaning and no facts sounds like john key to me blame some invisible forces.What has happened is the laissez fair approach has failed unions have been broken the wealth has trickled up so only the capital rich have benefited in recent times the working class have all but disappeared now the middle classes are getting squeezed. so the only ones benefiting from this policy are the top 5%.

  2. prism 2

    Very good clear chart. Good spotting thanks.

  3. VoteFairness 3

    Here’s a part of the above represented graphically for NZ – shows that productivity has risen 48% from 1990 – 2010, but the average wage (after inflation) grew only 18%. … hmmm. shows an unfair wages system for sure. http://union.org.nz/vote-fairness/wages-vs-labour-productivity

  4. Afewknowthetruth 4

    US oil extraction peaked in 1970, i.e. that was the year that money coming out of the ground for little effort peaked.

    Deindustrialisation commenced in the 1980s. It is now pretty much over for America.

    The US still grows grain, fruit and few other things but most of the \US economy is a phantom economy centred of fabricated wealth and financial fraud, with a few people still employed to make weapons the government can only pay for by increasing the debt level at a spectacular rate..

    There is only one way for the US to go from here.

    NZ is in a marginally better position but is on the same track downwards at at ever increasing speed.

    Under such circumstances the elites will do whatever they can to loot the till while there is still something left to loot, and will do whatever they deem nececassary to hang on to their ill-gotten gains.

    History doesn’t repeat but it does rhyme.

    The difference from previous collapses is that we have gross population overshoot and a severely degraded planet this time round.

    • aerobubble 4.1

      I disagree. The US is temperate climate heaven. Its still not full up. NZ is so
      empty and empying faster as the elite here gouges generation after generation.
      NZ is a hollowed out economy with little going for it although huge potential to
      walk away from most crisis if only it retain its intellectual heart, which it
      hasn’t. TV is even more deadheaded. There is no culture of education
      say like the OU TV programs where a young person can pick up the
      lnaguage culture and education for free. In fact NZ is a place where
      any thing that is too cheap or easy someone pretty much gets
      parliament to apply a rent to them for it; pushing up the price.

      You cannt turn around that form of brain dead small minded culture.

      I mean 29 miners die and also immediately the economic party
      demands that they will not introduce the industrial standard for
      mines, work selected inspectors. No discussion, no debate, no
      compromise, classic small minded bigotry.

      Earthquake lays bay poor planning in ChCh, so what does
      Brash do? Claim resource consent process should be removed.
      Doesn’t he understand that it was the poor oversight that
      saw new buildings go up on sandy soils without proper
      building and resource codes. Leaking brain symdrone or what!

      That does not happen in the US, sure they have problems but
      they also have many avenues to change their situations (sue). Our
      parliament doesn’t have the depth or core understanding of
      what makes a function economy work. They still hung up
      on the complexity of income inequality, a four year old US
      or EU kids knows that business is easier when people are
      more alike, even NZ kids know this before they leave our
      shores for bright futures aboard.

      Mate, your kidding yourself. The US, EU, only got so
      reckless because they had somewhere to high to fall from.
      NZ is reckless but it just can’t do the damage to itself
      and the damage is usually invisible, i.e. pushing the
      brightest and have a go types to the airport to leave
      these shores forever, along with our soils, our resources,
      ownership of our land.

      rant rant rant

  5. randal 5

    well according to them [the neo libs] there is no point in being a winner unless there are losers.
    hey thats me!

  6. johnm 6

    The Spirit Level: Societies are happier and more productive with the minimum of equality.

    Take the UK Where inequality is the most extreme in Western Europe? Why the poor are rioting and fighting back in the class struggle created by the filthy rich!

    “What do the repressive measures imposed in the UK portend?”

    “The riots have shown that Britain is a tinderbox, in which major social upheavals can be sparked by a myriad of class tensions. Britain is already the most unequal society in Western Europe. Over the past two decades, it has witnessed a historically unprecedented shift in social wealth from the poorest layers in society to the richest. As a result of the 2008 bailout of the British banks, more than £1 trillion pounds in taxpayer money was looted by the Labour government and handed over to the major financial institutions. The chasm between the rich and the rest of society is widening yet further as a result of the £100 billion cuts programme being imposed by the government”

    problem the poorer classes when they revolt can’t be transported for life any more ! Australia is full up!

    Refer link: http://www.wsws.org/articles/2011/sep2011/pers-s06.shtml

  7. prism 8

    The US still grows grain, fruit and few other things but most of the \US economy is a phantom economy centred of fabricated wealth and financial fraud, with a few people still employed to make weapons the government can only pay for by increasing the debt level at a spectacular rate.

    Afktt thinks this. Is he right? Or is it unreasonably bleak prognosis? It is true that armaments form a major manufacturing sector, cars have been bailed out by the government so virtually part of government debt, the financial sector is cannibalising itself, selling Green Tomato stew to each other, and there is growing unemployment.

  8. ecozit 9

    Great post – but its not sufficient to highlight the data and not explain it.
    Might I suggest that the reason has been the shifting offshore of jobs that has seen wages go sideways. It strikes me as a little precious and unjust to argue that you should have wage increases and the Chinese or Indonesians should go without.
    My greater concern is the lack of critical thinking. The idea that you can post these charts without much in the way of objectivity or explanation. Reactionaries make revolutions, but just like right-wing zealism, they do not lead to prosperity. That is where you’re going right?

Recent Comments

Recent Posts

  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2024-03-29T13:25:04+00:00