Author Archive

The new economy: what do we want?

Written By: - Date published: 12:30 pm, November 15th, 2010 - 48 comments

We should treat the economy as a tool to serve our collective needs within the environment’s limits. Instead, we elevated it to the status of a god. Now, environmental degradation and resource exhaustion will leave us with no choice but to live within those limits. To do that, we need to build a system with two goals: fairness and sustainability.

Buttering up Russia

Written By: - Date published: 11:00 am, November 15th, 2010 - 30 comments

What’s so great about free trade negotiations with Russia? We export only $180 million a year to them, most of it butter. That’s 2% of our exports to the US and Japan and Key’s made no progress on their trade barriers. Rising  oil costs will soon make our butter uncompetitive vs Russian dairy farmers. Key got his photo op – but not with Obama.

Jeff Rubin on oil & the end of globalisation

Written By: - Date published: 4:29 pm, November 14th, 2010 - 29 comments

Economist Jeff Rubin explains that the peak oil crisis is the underlying cause of the global economic crisis and why the economy isn’t shaking itself out of recession as in the past. In the age of peak oil, trade advantages will be overwhelmed by transport costs. The winners will be self-sufficient countries with their own agricultural and manufacturing bases.

House prices show double-dip

Written By: - Date published: 12:00 pm, November 12th, 2010 - 14 comments

House prices are a good indication of how the economy is going. They rose rapidly in the 2000s, stalled in 2007, plummeted in 2008, and made a slight recovery in 2009. Now they’re heading down again. The median house price is over 16% below the peak in late 2007 and I reckon they’ve got a long down way to go yet.

‘Playing fair’ makes us losers in currency wars

Written By: - Date published: 6:29 am, November 12th, 2010 - 51 comments

The US Government has begun creating new money out of thin air, to inflate away the value of its debt and lower its currency to make its industries more competitive. It’s not the only country. Nearly all the major currencies are engaged in the ‘Currency Wars’, trying to force down their exchanger rates. We’re in the cross-fire doing nothing.

Confidence in govt falls on Hobbit debacle

Written By: - Date published: 11:38 am, November 10th, 2010 - 47 comments

The latest Roy Morgan poll shows confidence in government plummeted during the Hobbit debacle. It shows confidence in government falling to a new low for Key’s administration. At the beginning of the year, nearly three-quarters of the population agreed the country was heading in the right direction. Barely 50% do now.

Dole numbers still rising

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

While the unemployment rate continues to jump around like mad, the dole numbers are telling a consistent story. And it’s not a good one. Every month this year has been worse than normal. In October, the number of Kiwis on the dole fell by 0.1%, that’s compared to a 1.1% fall last October and an average 3.1% drop each October under Labour. This October there were 4,800 more people on the dole than last October. Didn’t you say we were coming out of the recession strongly, Mr Key?

High pay makes elitists view us as serfs

Written By: - Date published: 12:31 pm, November 9th, 2010 - 41 comments

I’ve never really understood the logic of paying CEOs multi-million dollar salaries. Can Telecom’s $7m man, Paul Reynolds, for example, really be worth 100 skilled technicians? Is there no-one who is basically as good who would work for a million or two less? Now, research shows high pay gaps for CEOs actually makes them worse bosses.

Nats’ economic plan: more oil, more cows

Written By: - Date published: 12:14 pm, November 8th, 2010 - 70 comments

We’ve been critical of this do nothing government’s economic record, but now I/S at No Right Turn has received documents that lay out the Nats’ economic plan. They rejected the notion of government, business, and workers pulling together to create a better economy and went with: 1) find lots of oil 2) lots of GM cows.

Nats push ahead with ACC privatisation agenda

Written By: - Date published: 10:30 am, November 8th, 2010 - 22 comments

The Government is planning to reduce ACC cover and portray it as a cost saving for levy-payers. You would get less income coverage when injured and have to endure a longer wait time of three weeks until your coverage would begin. Levies would be personalised on the private model. This is privatising ACC on bite at a time with no actual cost savings.

Why ‘focusing on growth’?

Written By: - Date published: 1:00 pm, November 6th, 2010 - 21 comments

The title of Don Brash’s latest exercise in making John Key appear moderate second 2025 Taskforce report is “Focusing on Growth”. Why should we be myopically focused on growth? Neoliberalism treats growth as an end in itself. That reduces us to mere cogs in the machine of ‘New Zealand Inc’. A healthy society is more than its GDP growth rate.

One in ten Kiwis jobless or underemployed

Written By: - Date published: 11:45 am, November 5th, 2010 - 11 comments

At 6.4% unemployment appears to be falling, slowly. But it also looks to be above where it was at the start of the year, when it supposedly plunged to 6.0%. Economists are viewing the wildly fluctuating numbers sceptically. Whatever precisely is happening, with one in ten working age Kiwis unable to get work, it’s not time for dancing in the streets.

Doing nothin’: The gap with Australia

Written By: - Date published: 12:00 pm, November 4th, 2010 - 24 comments

September Quarter unemployment numbers are out today. It will be an indictment on National if there is not a good sized drop. So how is this government doing on its flagship policy of closing the gap with Australia by 2025? No Right Turn has been trying to find out what work they’re doing to achieve that goal. Answer: Nothing.

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:

Ministers’ housing claims up 17% as rorts continue

Written By: - Date published: 12:22 am, November 4th, 2010 - 48 comments

Weren’t Bill ‘Double Dipton’ English and other  ministers caught rorting the housing allowance system last year? Didn’t the Government revamp the system by giving ministers capped allowances, supposedly to save money and stop rorts? Why then are we, as I predicted, paying more than ever while ministers blatantly rip us off?

A smoke-free NZ by 2025

Written By: - Date published: 12:52 pm, November 3rd, 2010 - 130 comments

The Maori Affairs select committee has released its report on smoking. It’s great to see politicians setting a really ambitious goal coupled with policies to achieve it. Labour and the Greens are on board, what about National? Well our Do Nothing PM, John ‘ambitious for New Zealand’ Key says it’s too hard. Guess we need a government with some balls.

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?

Do nothin’: drink-driving

Written By: - Date published: 10:37 am, November 1st, 2010 - 60 comments

The latest drink-drive crash has reignited the debate over the legal blood/alcohol level. It’s clear from John Key’s excuse-making on Breakfast this morning that the Nats have no intention of reducing the limit from 0.8 to 0.5. The argument that most drink-drivers have accidents when they are well over 0.8 misses the point.

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?

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.

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.

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.

Key the real target of Hobbit producers’ game

Written By: - Date published: 2:01 pm, October 24th, 2010 - 75 comments

The Hobbit ‘crisis’ is all about money. It’s about the producers of this long-troubled production, who are in financial difficulty, wanting to minimise their up-front costs. The mark in the con is the only one with cash to offer on the scale they need – the Prime Minister. He’s the one with the most to lose and the most ability to pay.

Nats’ golden handshake to disgraced judge

Written By: - Date published: 11:30 am, October 22nd, 2010 - 32 comments

When Justice Bill Wilson was accused of serious misconduct, Attorney-General Chris Finlayson didn’t want to investigate telling fellow National MP Colin King “Justice Wilson is a mate of mine and there’s no way I am pursuing this any further”. Now, Wilson’s got a $885,000 golden handshake from the government to make the issue go away.

Who are you going to believe, me or your lying eyes?

Written By: - Date published: 12:00 am, October 22nd, 2010 - 30 comments

Things are quickly turning to custard for National. The economy is going south fast and Key’s Teflon-coating is so damaged the mainstream media is openly saying we deserve better than a ‘smile and wave’ PM. The Nats’ strategy – try to convince us nothing is wrong – is really bad. It makes them look either duplicitous or out of touch.

Why the Right is worried 4: Polls

Written By: - Date published: 11:57 am, October 21st, 2010 - 41 comments

The trend is quite clear now. The Right’s support peaked and the Left’s support reached is nadir last year. The gap has been gradually closing ever since. From a 24.5% gap between National and ACT a year ago, the gap in the latest Roy Morgan has fallen to 5.5%.  About quarter of a million Kiwis have switched their support to the Left in a single year.

Selling assets to finance current account deficit = good?

Written By: - Date published: 2:00 pm, October 20th, 2010 - 58 comments

I’m generally a fan of Gareth Morgan, but boy his facts are wrong in yesterday’s Herald, leading  him to really bad conclusions. Basically, Morgan argues that we have to let foreigners buy our assets because we use that money to buy more imports than we export, which we won’t be able to do if we block asset sales. Why is that a bad thing?

Why the Right is worried 3: Policy

Written By: - Date published: 11:59 am, October 20th, 2010 - 8 comments

In contrast to National’s policy vacuum on the economy, Labour has been focusing its policy work on a major change in direction. It’s obvious that the hands-off approach introduced in the 1980s has failed, leading to mal-investment in housing with an economy stripped of its manufacturing capability and geared for import-dependent consumerism.

Nats’ ideology costing us millions

Written By: - Date published: 11:24 pm, October 19th, 2010 - 40 comments

This post isn’t about National cutting education at every level, which will damage our country for decades to come. Nor is it about how they’re cutting cost-efficient preventative medicine to fund ‘sexy’ elective surgery. It’s not even about how they’re pouring billions into holiday highways in the era of peak oil. This is about the Cullen Fund.

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