The EPMU have released a short film on youtube explaining the recession and their response to it. It features Brian Easton, Gareth Morgan, Pete Conway and EPMU Secretary Andrew Little.
[lprent: The biggest nut around is yourself – please read the policy and the about. It is funded by me, and not by some pathetic wingnut pretending to be a wharfie ]
Gimme a break. This is just propaganda from a right wing union to talk workers into accepting they’ll be paying for this crisis. The union bureaucracy featured in this video are no friend of the workers. Why should workers pay for a crisis they didnt make.
Good point Ray. If Little and Conway believed their own propaganda that capitalism is sweet and its just the financiers that ran amok, they would be saying let the financial speculators pay for the crisis, we are not paying for any of it.
They would condemn the Labour government for signing up to a deposit guarantee that bails out shonky finance ripoff merchants.
That would be tough for Little who is now Labour Party Pres.
They would attack Key as a financier whose former failed employer Merryl Lynch has been bought up by BOA which itself has to bailed out. Instead of guaranteeing the toxic assets (greedy bets) of the financiers they would nationalise their good assets and use them to create jobs for all who get sacked.
But of course if they were to do that the financiers would be revealed to be the same people that own all the big corporations and run the state that is busy taking our taxes and future labour as bailout packages. To upset the financiers would be to rock the whole capitalist shebang.
The EPMU half-assed apologies for the system and not an explanation of the crisis but a joke cover up of its real causes in declining profitability that is built into the system. It proves that they are up the system and their only use to the bosses is to keep workers quiet.
Time to wake up.
Rave, I disagree with pretty much every point you’ve made in that comment, but I congratulate you for making your argument without resorting to tribal partisanship.
I think I follow the feeling in your comment, Rave, but I’d have to say it is a little loose re assets and their merits/values etc..
As I’ve said here before just as labor produces goods & services then the role of capitalism is to produce capital.
What has happened is that capitalism and capitalistic resources have not (in the main) produced capital—they have created credit and taken fees/charges from its very high leverage. Repeat: credit is NOT capital.
Correct, those “toxic assets” are problematic. And because they do not value out in ‘mark-to-market’ — hey I didna invent this market makeover stuff 😉 — or accepted modern business means. Hence, putting the show back on the road requires either they are bought up (independently by govt..?) – that is to say another funding source, or they are ‘bought’ over time by perpetrators.
We both know which choice has been made. And yes, for better or for worse.
You might care too ponder what kind of banking minds aligned themselves to ‘off-balance sheet’ accounting. Does it make them incompetent or criminal. Or both.
And, praise be, how would punishment of offenders with nationalization make our world better..?
The trouble with blogs is that the nutters can move in and make comments that can kill good discussions. Wharfie and Ray are obviously trying to do this. Are they the same person?
These films are really good. It would help us all if we could concentrate on the messages. For me the messages are:
1. These are extraordinary times.
2. Workers are not to blame. Wall Street and the Bankers who leveraged to the extreme equity in ordinary homes should be blamed.
3. Consumption is going down. It is not a bad thing. Climate change and global warming and environmental devastation ought to require us to consume less. One less plasma TV will mean less transportation and money but will also mean that the current economic system will suffer.
4. Why should workers suffer? They do not share in the profits earned by their employers when times are good but they are expected to suffer when times are bad through no fault of theirs.
5. A 9 day working fortnight sounds great. Most workers cannot and should not suffer a 10% wage cut, some employers may fold if they have to pay for the extra day. The logical solution is for the proposed tax cuts to be cancelled and for central government to pay for the 10th day. I am holding my breath. It will hurt the wealthy but they are the most able to handle these current circumstances.
Maybe Karl Marx was right?
[lprent: Wharfie is d4j. Ray prefers to not use his usual psuedonym.]
You can believe all the Andrew Little rhetoric/garbage/tokenism all you like, but where was the EMPU when Air New Zealand was shafting its engineers, oh thats right it was helping Rob Fyfe force them to take a pay cut. Or where was the EMPU when Fisher & Paykel shut up shop? The EMPU/Andrew Little/Labour are no friend of workers.
You’re right mickey, workers should not pay for this crisis.
You appear to be under the misapprehension that a union’s national secretary is like a superhero who can ‘save’ workers from any calamity. Anyone who’s actually organised knows that’s not true. You can only take workers as far as they’re willing to go and to the extent that is possible under the current system where bosses own the means of production and have ultimate managerial prerogative.
You sound like another of those ‘glorious defeat’ idiots Irishbill wrote about the other day.
Mr little says “a lot of employers are getting workers to panic”???. Wake up idiot – now is not time to come across all militant and thuggish, companies do not have the usual fat to accomodate unions demands. This guy is the new Labour president – I think you were better off with the fat snoop.
What a great video. The collective message is that we are all in for tough times. And Andrew Little was a small part of this. Gareth Morgan is certainly not a Left winger and I understood
his message straight and clear. It should not be assumed that the “workers” should be the first to pay. (Although the USA tends to use the poor and disadvantaged as canon fodder.)
It would be interesting to get a critque from Rod Oram.
Wake up Mike the world has moved on. The market has failed.
Employers who can’t keep workers in jobs and pay them decently should go broke. Instead workers are expected to cut their pay and mortgage their future pay and taxes to bail out corrupt banks and failing icons like F&P.
The market has failed. Its not the best way to allocate scarce resources, unless its into the pockets of the rich. Obama is stuck in the old way of propping up the market in the name of a ‘new deal
see http://www.globalresearch.ca/index.php?context=va&aid=12517
According to Chossudovsky he’s shifting public spending from the poor to the rich even more than Bush. A massive con job.
The market has failed and needs to be replaced by social ownership to meet the needs of the people, for the people by the people.
If workers are expected to take pay cuts and bail out bosses, then they should demand to decide who gets bailed out and that it will only happen if this public investment becomes public ownership.
This means that scarce resources would become publicly owned and democratically planned.
The CTU should be saying that to defend jobs we have to take the most important industries and services into public ownership and put them under the control of working people not corrupt banksters raking in multimillion bonuses sitting on boards who are only interested in maximising profits.
Socialists say “We WON’T pay for their crisis”. We didn’t cause it, and where workers are threatened with redundancies, we point to the examples of factory occupations in Chicago, Waterford and Buenos Aires as an alternative to capitalist greed and mass unemployment.
The new film from the EPMU differs in tone. Whilst it puts forward some valuable economic information and gives rank and file workers a voice to raise their fears, it also sees the Union’s role as softening the effects of the Depression in partnership with employers, rather than fighting them militantly for every job. SA presents the film and welcomes readers to post their take on the EPMU’s line.
Crunch Time. For workers, for bosses and for union bureaucrats.
Is this the same Andrew Little, card-carrying member of the Labour Party and supreme double dipper, who was praised….not! by Chris Trotter in his most recent column?
Cracks in the ricketty walls of the socialist mud house appear to be widening. All under the eagle eye of the supreme leader Fill Goff.
Ah, the joys of being opposition.
[lprent: You are a obnoxious little illiterate. The presidential position is either unpaid or pays bugger all. Now what about that National MP in Mangakiekie who is double dipping on both my taxes and my rates. From what I’ve heard he doesn’t do much around the council these days.]
You call that opposition?
[lprent: I seem to remember the Nats getting 22% in an actual poll (election) in 2002 – do you call that being an opposition?. Why don’t you jerk-off elsewhere if all you can raise are troll lines.
This appears to be a troll campaign. I’m going to delete comments of this form that have no other content]
“I seem to remember the Nats getting 22% in an actual poll (election) in 2002”
Oh give Phil Goff time. I’m sure 22% is achievable.
Gee the mood round here needs lifting
[lprent: it was 20.9% for National in the 2002 election. After that they dropped. It wasn’t until Brash stirred up the racial bigots in the Owera I screech (a proud moment for the right) that they started to rise in the polls.
We tend to get annoyed when troll wankers start jerking off their poorer qualities around here. If you cannot argue a point then don’t come here. Seeing your ‘point’ mindlessly scattered by multiple people around multiple posts without actual brainwork being involved gets me seriously pissed off, and I act accordingly. ]
excellent work, well done whoever’s responsible for it.
if only our msm could be trusted to produce such informative and honest commentary.
come to think of it – if only NZers were encouraged to understand this before the election. if only our msm weren’t so keen to downplay the gravity of the situation during the election, so as not to discourage voters from speculating on sketchy long-shot promises.
Iprent: There are some “opposing views” which are thought provoking. The abusive ones like from Tawa (gives Tawa a bad name) are useless. I support your reactions! Rid us of the buggers.
This is NOT a recession. It is a major debt-deflationary crisis caused by grossly irresponsible or fraudulent lending by the global finance system. Until the massive excess debt bubble is unwound or reset, credit will remain hard to find, and the economy will continue to unravel. No matter how sound your business or financial history, banks find it almost impossible to lend when assets are still FALLING in value, which in turn causes the assets to fall further in value.
Unemployment will peak around 20-30% and will remain stubbornly high for very long time, maybe 10 -20 years (the Japanese have remain mired in this same trap almost 20 years so I can point to precendent). Many of the rest of us will be underemployed, and our take home pays will fall. The two reasons why this crisis has yet to hit us hard here in New Zealand are simple.
One until very recently our employment capacity was so highly extended that in the last few months much of the fall has been masked by cuts in overtime, 4 day weeks, dropping secondary jobs and using up accumulated annual leave. But as the crisis deepens in the next few weeks, the job loss snowball (665 in the last week alone) will become obvious to all.
The second reason is of course, that our banks are still solvent and thanks to Michael Cullen our public sector debt is extremely low, which will give us a little breathing space and a temporary reprieve … but this National govt has no ideas and no ability to respond.
“thanks to Michael Cullen our public sector debt is extremely low, which will give us a little breathing space and a temporary reprieve but this National govt has no ideas and no ability to respond.”
Yes he did well to retire as much debt as he did – this good work should however be balanced against the poor decisions (in hindsight) in relation to NZ rail, AIA and Air NZ.
The social democratics of various hues, pink, green, beige, etc need to study their Marx so they understand what is happening to them before it is too late.
For the cruisers hung up on the evils of neoliberalism there is David Harvey’s brief history of neo-liberalism
For the stayers who always worried that globalisation might be more than meets the eye there is his lecture series on globalisation
For months I couldn’t make up my mind if we were going to get deflation due to unwinding excess debt, or inflation due to Central Banks printing money in response to the crisis. Turns out that the credit grinch bubble popper will trump the RB printing pump everytime. It’s like trying to keep a hot-air balloon aloft by turning up the gas heater, when the top of the canopy has been ripped in half.
I highly, highly recommend this article. Steven Keen predicted all this on sound theoretical grounds years ago.
The article even starts with a quote from Charlie (and has his picture)… so there must be something in it for you to like.
Redlogix
Keen’s paper is quite readable and explains the neo-Keynesian position well. Yet what’s missing is the other quote from Marx which you didnt see along the lines of how come capitalism allows a bunch of parasites to expand credit many times beyond the money supply, the capacity of the state to print money, and the underlying sum of the value of commodities produced by a given country, so while the Chinese and Japanese buy a large chunk of the debt, it is only official debt (fiat credit), not the crazy bank credit Keen talks about, and cannot prevent the crunch happening.
Sure Marx hated the finance parasites, but he explained why they existed. Not as aberrations to the normal equilibrium of capitalism but the product of the internal contradictions of capitalism. Credit is expanded (and not regulated because the state is run by those with an interest in credit expansion) because the productive circuit is incapable of taking up the surplus capital since it cannot realise a profit on money invested in production.
This, when the rate of exploitation (roughly the ratio of profits to wages) despite neo-liberalism, globalisation, privatisation of state assets, increasing productivity (rate of exploitation), cannot be increased fast enough to return a profit over total investment. The result is a crisis of overproduction of money capital and commodities. Solution is to devalue all commodities including labour-power until investment in the productive circuit does produce a profit.
Therefore according to this logic, the finance sector becomes detached from the productive sector at a specific point when profits fall to a certain level, so that the surplus capital then spins off into excessive credit creation to attempt to realise profits in the sphere of exchange rather than production. The credit bubble then produces the credit crunch as the fictitious value of those assets collapses back towards their actual price of production. So its not a monetary crisis or even a credit crisis in reality but a capitalist crisis because the credit crunch is a symptom of the failure to extract enough value to valorise the capital invested in the productive circuit.
Such a crisis is always deflationary because the values of wages and other commodities, along with all the fictitious capital speculating in asset value, collapse downwards to reach that point where the surviving big banks (guess which) buy up the surviving corporations (guess which) and start re-investing in cheap labour and cut price productive assets, new technology comes on line, and away we go on another merry go round.
And this leaves out the whole impact of crisis and restructuring on those who pay for it – the working class. That’s why a third quote from Marx is useful. Somewhere he said that capitalism never falls down by itself. It can suffer massive crises, prove that the market fails, but if it has the capacity to fool most workers or repress them then it will stagger on. Only the activity of a politically conscious working class can end capitalism. Capital is not self-equilibrating, or ultimately self-destructive, but it does produce its own gravediggers.
I’ve read Keen why don’t you have a look at Brendan Cooney’s youtube vids I cite above, they are great fun. Take a look at the political economy of Superman, and the Matrix.
Interesting..As to the following:— So its not a monetary crisis or even a credit crisis in reality but a capitalist crisis because the credit crunch is a symptom of the failure to extract enough value to valorise the capital invested in the productive circuit.
I am not sure what you mean with that term “valorise”, but I have a question pertaining to constructive solutions.. That is, to what extent would the suggested undervaluing of capitalism’s productive sector be capable of implementing revaluation/s in taking up part or all of the so-called credit surpluses.
What tools – financial, wage, salary, compensation – would be appropriate in so doing. Given how clearly the worker/laborer be no worse off..
Armchair radicals like Trotter and “Ray” can attack the EPMU and Andrew Little all they like, they don’t have to make decisions in the real world. It’s easy to criticise from a position of ignorance and irrelevance.
The fact is the EPMU gets the highest pay rises of any union and takes the lead in the whole movement’s campaigns to defend workers’ rights. If you want to accuse them of selling out to the boss class then you should at least get some facts to support your argument rather than trotting out cliches from two decades ago.
Redlogix and Rave: I am always impressed from an Economically uneducated point of view at the competence with which you put your thinkings.
Does the point about capital outstipping production, (“so that the surplus capital then spins off into excessive credit creation to attempt to realise profits in the sphere of exchange rather than production.”) lead to those who blame the workers for not being productive enough? Hence the old arguments about how we/they have to be more productive in order to increase the wages in order to match Australia. All the workers/employers fault of course.
Easton and Morgan, two of the leading econmists/commentators in New Zealand offering constructive advice on the way forward. This is pro-worker without being anti-employer and yet another example of the positive approach adopted by Little/EMPU. As awkward as this video is, it’s an important insight into the strategy the EPMU are considering for the next few years: one that’ll ensure growth on the otherside is sustainable.
Redlogix, thanks for your email – I’m sorry I’ve not replied, I’ve been a bit distracted. I apreciate your response however.
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So, Boris Johnson has been footering about in hospitals again. We should be grateful, perhaps, that on this occasion the Clown-in-Chief is only (probably) getting in the way and causing distractions, rather than taking up a bed, vital equipment and resources and adding more strain and danger to exhausted staff.Look at ...
Story of the Week... Toon of the Week... SkS in the News... Coming Soon on SkS... Poster of the Week... SkS Week in Review... Story of the Week... Many Scientists Now Say Global Warming Could Stop Relatively Quickly After Emissions Go to ZeroThat’s one of several recent ...
The situation in the UK is looking catastrophic.Cases: over *70,000* people who were tested in England on 29th December tested positive. This is *not* because there were more tests on that day. It *is* 4 days after Christmas though, around when people who caught Covid on Christmas Day might start ...
by Don Franks For five days over New Year weekend, sixteen prisoners in the archaic pre WW1 block of Waikeria Prison defied authorities by setting fires and occupying the building’s roof. They eventually agreed to surrender after intervention from Maori party co-leader Rawiri Waititi. A message from the protesting men had stated: ...
As we welcome in the new year, our focus is on continuing to keep New Zealanders safe and moving forward with our economic recovery. There’s a lot to get on with, but before we say a final goodbye to 2020, here’s a quick look back at some of the milestones ...
Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
$36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
Babies born with tongue-tie will be assessed and treated consistently under new guidelines released by the Ministry of Health, Associate Minister of Health Dr Ayesha Verrall announced today. Around 5% to 10% of babies are born with a tongue-tie, or ankyloglossia, in New Zealand each year. At least half can ...
The prisoner disorder event at Waikeria Prison is over, with all remaining prisoners now safely and securely detained, Corrections Minister Kelvin Davis says. The majority of those involved in the event are members of the Mongols and Comancheros. Five of the men are deportees from Australia, with three subject to ...
Travellers from the United Kingdom or the United States bound for New Zealand will be required to get a negative test result for COVID-19 before departing, and work is underway to extend the requirement to other long haul flights to New Zealand, COVID-19 Response Minister Chris Hipkins confirmed today. “The new PCR test requirement, foreshadowed last ...
Prime Minister Jacinda Ardern has added her warm congratulations to the New Zealanders recognised for their contributions to their communities and the country in the New Year 2021 Honours List. “The past year has been one that few of us could have imagined. In spite of all the things that ...
Attorney-General and Minister for the Environment David Parker has congratulated two retired judges who have had their contributions to the country and their communities recognised in the New Year 2021 Honours list. The Hon Tony Randerson QC has been appointed a Companion of the New Zealand Order of Merit for ...
Minister for Pacific Peoples Aupito William Sio says the New Year’s Honours List 2021 highlights again the outstanding contribution made by Pacific people across Aotearoa. “We are acknowledging the work of 13 Pacific leaders in the New Year’s Honours, representing a number of sectors including health, education, community, sports, the ...
The Government’s investment in digital literacy training for seniors has led to more than 250 people participating so far, helping them stay connected. “COVID-19 has meant older New Zealanders are showing more interest in learning how to use technology like Zoom and Skype so they can to keep in touch ...
Are the continent’s coronavirus statistics as good as they appear? Felix Geiringer looks at the numbers, and why whether they reflect the reality matters. Living in Africa during Covid times, one of the questions I am asked most often is this: how has Africa done so well?At the start of September, ...
With new strains of Covid-19 bearing down on our shores, Pattrick Smellie of BusinessDesk looks at the challenges 2021 has in store, and what can be done to prepare.In the three weeks that New Zealanders have been at the beach and ignoring Covid tracer app sign-ins, the threat of Covid-19 ...
Pacific Media Watch newsdesk Human Rights Watch (HRW) has criticised the Indonesian government of President Joko “Jokowi” Widodo for its weak health response to covid-19 which has brought Indonesia to its knees since March 2020, reports CNN Indonesia. The assessment is based on Indonesia’s poor rates of testing and tracing ...
By The National in Port Moresby An expatriate who tested positive for the covid-19 coronavirus last week has been admitted to a private hospital in the Papua New Guinea capital of Port Moresby, an official has confirmed. Pacific International Hospital (PIH) chief executive officer Colonel Sandeep Shaligram toldThe National the ...
Source: The Conversation (Au and NZ) – By Nathan Bartlett, Associate Professor, School of Biomedical Sciences and Pharmacy, University of Newcastle Reports of about 30 deaths among elderly nursing home residents who received the Pfizer vaccine have made international headlines. With Australia’s Therapeutic Goods Administration (TGA) expected to approve the ...
Source: The Conversation (Au and NZ) – By Culum Brown, Professor, Macquarie University How do gills work? Tully, aged 7 Great question, Tully! Animals on land breathe air, which is made up of different gasses. Oxygen is one of these gases, and is made by plants (hug ...
Dairy prices increased by 3.9% across the board at the latest Fonterra global auction. The lift followed rises of 1.3% and 4.3% in the December auctions which took dairy prices to their highest level in 11 months, defying those analysts who believed Covid-19 had disrupted dairy markets. In the latest ...
America's Cup team American Magic has spoken publicly after their boat Patriot capsized when on its way to their first win of the Challenger Selection Series yesterday. Patriot dramatically capsized yesterday, becoming temporarily airborne before crashing back into the water and tipping. The boat, helmed by New Zealander Dean Barker, could not be ...
It’s a seemingly age old question: why do Auckland’s beaches become unswimmable after every single downpour? Stewart Sowman-Lund investigates.Ah, the beach. A staple of the New Zealand summer. Unless, of course, you’re based in Auckland and it’s raining. The start of 2021 has been a lot like every other New ...
We have opened a book, among members of the Point of Order team, on how long it will be before the PM offers to sort out the land dispute at Wellington’s Shelly Bay and (to win the double) how much the settlement will cost taxpayers. Just a few weeks ago ...
Breakfast TV news is back for 2021, and Tara Ward got up early to watch. “Thank god it’s almost Christmas,” John Campbell said during the opening minutes of Breakfast’s premiere episode of the year. “2021’s been rough so far. I’m buggered”. We’re all buggered, to be fair, but I’m worried that ...
Source: The Conversation (Au and NZ) – By Mark Pearson, Professor of Journalism and Social Media, Griffith Centre for Social and Cultural Research, Griffith University, Griffith University The blame for the recent assault on the US Capitol and President Donald Trump’s broader dismantling of democratic institutions and norms can be ...
Despite a popular and unifying leader of the governing party, divisions both in policy and culture will test the progressive movement, writes Peter McKenzie.‘I think we’re confused.” Marlon Drake is an organiser for the Living Wage Movement. His job takes him all over Wellington, trying to convince businesses to increase ...
Covid-19 Recovery Minister Chris Hipkins says vaccinations should be available to the public by the middle of the year, but other countries are prioritised. ...
It’s as true now as it ever has been: nowhere else offers an education experience like that of Dunedin. But rather than resting on their laurels, the University of Otago and Otago Polytechnic have plans to make the city an even more inspiring place for students.From high in the summit ...
Haggis, neeps and tatties and whisky may not be a traditional spread for a summer gathering in NZ, but trust Auckland city councillor and Kiwi-Scot Cathy Casey on this one. Gie it laldy! Rule one: Hold it on (or near) January 25Robert Burns was born on January 25, 1759. Since the ...
Source: The Conversation (Au and NZ) – By David Tuffley, Senior Lecturer in Applied Ethics & CyberSecurity, Griffith University It could be argued artificial intelligence (AI) is already the indispensable tool of the 21st century. From helping doctors diagnose and treat patients to rapidly advancing new drug discoveries, it’s our ...
Source: The Conversation (Au and NZ) – By Mark Kenny, Professor, Australian Studies Institute, Australian National University Through recent natural disasters, global upheavals and a pandemic, Australia’s political centre has largely held. Australians may have disagreed at times, but they have also kept faith with governmental norms, eschewing the false ...
Source: The Conversation (Au and NZ) – By Holly Seale, Associate professor, UNSW Health workers are at higher risk of COVID infection and illness. They can also act as extremely efficient transmitters of viruses to others in medical and aged care facilities. That’s why health workers have been prioritised to ...
Source: The Conversation (Au and NZ) – By Jim Orchard, Adjunct Lecturer, Monash University Last week, somewhat overshadowed by the events in Washington, the Democrats took control of the US Senate. The Democrats now hold a small majority in both the House and the Senate until 2022, giving President-elect Joe ...
Source: The Conversation (Au and NZ) – By Mittul Vahanvati, Lecturer, School of Global, Urban and Social Studies, RMIT University Heatwaves, floods, bushfires: disaster season is upon us again. We can’t prevent hazards or climate change-related extreme weather events but we can prepare for them — not just as individuals ...
Source: The Conversation (Au and NZ) – By Mandie Shean, Lecturer, School of Education, Edith Cowan University Starting school is an important event for children and a positive experience can set the tone for the rest of their school experience. Some children are excited to attend school for the first ...
Some families in emergency housing are reporting their children are becoming emotionally distressed because of their living conditions. Demand for emergency accommodation has escalated this past year with the number of emergency housing grants increasing by half. Data showed nearly 10,000 people were given an Emergency Housing Special Needs Grant between ...
Summer reissue: Michèle A’Court, Alex Casey and Leonie Hayden are back for a second season of On the Rag, and where better to start than with the mysterious, exhausting world of wellness?First published June 23, 2020.Independent journalism depends on you. Help us stay curious in 2021. The Spinoff’s journalism is ...
With few Covid-19 infections and negiligible natural immunity, New Zealand faces being a victim of its own success when it is left till last to get the vaccines, argues Dr Parmjeet Parmar. ...
Steve Braunias reports on a literary cancelling. The Corrections department has refused to allow Jared Savage's best-selling book Gangland inside prison on the grounds that it "promotes violence and drug use". An inmate at Otago Corrections Facility in Dunedin was sent a copy of the book – but it was ...
New data from the CTU’s annual work life survey shows a snapshot of working people’s experiences and outlook heading out of 2020 and into the new year. Concerningly 42% of respondents cite workplace bullying as an issue in their workplace - a number ...
An international player, selector and self-confessed cricket stats nerd, Penny Kinsella has now played a hand in recording the rich history of the women's game in New Zealand. Penny Kinsella’s cricketing career was perched on the cusp of change for the White Ferns. “My first tour to Australia, we ...
The dramatic capsize of American Magic brought out the best in the America's Cup sailing fraternity. But, Suzanne McFadden asks, what does it mean to the crippled New York Yacht Club campaign and to the Prada Cup? It was a scene as unreal as it was calamitous. Right at the moment the ...
The current number of members of parliament is starting to get too low for the job we expect them to do, argues Alex Braae. As a general rule, with the possible exception of their families, nobody likes backbench MPs. But it’s nevertheless time we accepted that parliament should have more of ...
The experience in the Brazilian city of Manaus reveals how mistaken, and dangerous, the herd-immunity-by-infection theory really is. As families around the world mourn more than two million people dead from Covid-19, the Plan B academics and their PR industry collaborator continue to argue that the New Zealand government should stop ...
As New Zealand gears up to fight climate change, experts warn that we need to actually reduce emissions, not just plant trees to offset our greenhouse gases. ...
A nationwide poll has found majority support for the government to continue to closely monitor abortions in New Zealand and the reasons for it, despite the Ministry of Health recently suggesting that there is not a use for collecting much of this information. ...
The out-of-control growth in gangs, gun crime, and violent gang activity is exposing our communities to dangerous levels of violence that will inevitably end in tragedy, says Sensible Sentencing Trust. “The recent incidents of people being shot and ...
Successive governments have paid lip service to our productivity challenge but have failed to deliver. It's time to establish a Productivity Council charged with prioritising efforts. ...
Understanding the connection between chronic fatigue syndrome and ‘long Covid’ might be helpful in treating symptoms that doctors will find all too easy to dismiss.When people began to report signs of “long Covid”, characterised by a lack of full recovery from the virus and debilitating fatigue, I recognised their stories. ...
Nadine Anne Hura, who never considered herself an artist, reflects on what art and making has taught her.I couldn’t clean or cook or wash the clothes, but I could sew. That’s a lie, I’m a terrible sewer, but I left work early to fossick around in the $1 bin of ...
Summer reissue: In the final episode of this season of Bad News, Alice is joined by Billy T award winner Kura Forrester to look at how well we’re honouring Te Tiriti o Waitangi in 2020.First published September 3, 2020.Independent journalism depends on you. Help us stay curious in 2021. The ...
Lucy Revill’s The Residents is a blog about daily life in Wellington that has morphed into a stylish, low-key coffee-table book featuring interviews and photographic portraits of 38 Wellingtonians. In this extract, Revill profiles Eboni Waitere, owner and executive director of Huia Publishers. The Residents features names like Monique Fiso ...
Pacific Media Watch correspondent The pro-independence conflict in West Papua with a missionary plane reportedly being shot down at Intan Jaya has stirred contrasting responses from the TNI/POLRI state sources, church leaders and an independence leader. A shooting caused a plane to catch fire on 6 January 2021 in the ...
“Last year ACT warned that rewarding protestors at Ihumātao with taxpayer money would promote further squatting. We just didn’t think it would happen as quickly as it is in Shelly Bay” says ACT Leader David Seymour. “The prosperity of all ...
Our kindly PM registered her return to work as leader of the nation with yet another statement on the Beehive website, the second in two days (following her appointment of Anna Curzon to the APEC Business Advisory Council on Wednesday). It’s great to know we don’t have to check with ...
A Pūhoi pub is refusing to remove a piece of memorabilia bearing the n-word from its walls. Dr Lachy Paterson looks at the history of the word here, and New Zealand’s complicity in Britain’s shameful slave trading past.Content warning: This article contains racist language and images.On a pub wall in ...
Supermarket shoppers looking for citrus are seeing a sour trend at the moment – some stores are entirely tapped out of lemons. But why? Batches of homemade lemonade will be taking a hit this summer, with life not giving New Zealand shoppers lemons. Prices are high at supermarkets and grocers that ...
You’re born either a cheery soul or a gloomy one, reckons Linda Burgess – but what happens when gene pools from opposite ends of the spectrum collide?In our shoeboxes of photos that we have to sort out before we die or get demented – because who IS that kid on ...
Summer reissue: Prisoner voting rights are something that few in government seem particularly motivated to do anything about. Could a catchy charity single help draw attention to the issue?First published September 1, 2020.Independent journalism depends on you. Help us stay curious in 2021. The Spinoff’s journalism is funded by its ...
Hundreds more Cook Islanders are expected to begin criss-crossing the Pacific, Air NZ will triple the number of flights to Rarotonga next week, and about 300 managed isolation places will be freed up for Kiwis returning from other parts of the world. When Thomas Tarurongo Wynne took a job in Wellington at ...
SPECIAL REPORT:By Ena Manuireva in Auckland It seems a long time ago – some 124 days – since Mā’ohi Nui deplored its first covid-19 related deaths of an elderly woman on 11 September 2020 followed by her husband just hours later, both over the age of 80. The local ...
Source: The Conversation (Au and NZ) – By John Turnbull, Postdoctoral research associate, UNSW A global coalition of more than 50 countries have this week pledged to protect over 30% of the planet’s lands and seas by the end of this decade. Their reasoning is clear: we need greater protection ...
The Reserve Bank Governor’s apology and claim he will ‘own the issue’ is laughable given the lack of answers and timing of its release. Jordan Williams, a spokesman for the Taxpayers’ Union said: “It’s been five days since they came clean, ...
Source: The Conversation (Au and NZ) – By Olga Kokshagina, Researcher – Innovation & Entrepreneurship, RMIT University Are too many online meetings and notifications getting you down? Online communication tools – from email to virtual chat and video-conferencing – have transformed the way we work. In many respects they’ve made ...
The Reserve Bank acknowledges information about some of its stakeholders may have been breached in a malicious data hack. The Governor of the Reserve Bank of New Zealand has commissioned an independent inquiry into how stakeholders' information was compromised when hackers breached a file sharing service used by the bank. “We ...
Source: The Conversation (Au and NZ) – By Caitlin Syme, PhD in Vertebrate Palaeontology, The University of Queensland This story contains spoilers for Ammonite Palaeontologist Mary Anning is known for discovering a multitude of Jurassic fossils from Lyme Regis on England’s Dorset Coast from the age of ten in 1809. ...
A tribute to the sitcoms of old? In the Marvel Cinematic Universe? Yup. Sam Brooks reviews the audacious WandaVision.Nothing sends a chill up my spine like the phrase “Marvel Cinematic Universe”. Since launching in 2008 with Iron Man, the MCU has become a shambling behemoth, with over 23 films (not ...
Source: The Conversation (Au and NZ) – By Clare Corbould, Associate Professor, Contemporary Histories Research Group, Deakin University The alt-right, QAnon, paramilitary and Donald Trump-supporting mob that stormed the US Capitol on January 6 claimed they were only doing what the so-called “founding fathers” of the US had done in ...
The Point of Order Ministerial Workload Watchdog and our ever-vigilant Trough Monitor were both triggered yesterday by an item of news from the office of Conservation Minister Kititapu Allan. The minister was drawing attention to new opportunities to dip into the Jobs for Nature programme (and her statement was the ...
Source: The Conversation (Au and NZ) – By Andreas Kupz, Senior Research Fellow, James Cook University In July 1921, a French infant became the first person to receive an experimental vaccine against tuberculosis (TB), after the mother had died from the disease. The vaccine, known as Bacille Calmette-Guérin (BCG), is ...
The first Friday Poem for 2021 is by Wellington poet Rebecca Hawkes.While you were partying I studied the bladeI your ever-loving edgelord God-emperorof the bot army & bitcoin mine subsistingon an IV drip of gamer girl bathwaterfinally my lonelinessis your responsibility………. you seeI need a girlfriend assigned to me by the ...
The arming of police officers in Canterbury was inevitable with the growing numbers and brazenness of the gangs across the country – this should be a permanent step, says Sensible Sentencing Trust. “It is unfortunate that we have come to the point ...
Celebrations in Aotearoa New Zealand to mark the entry into force of the Treaty on the Prohibition of Nuclear Weapons (TPNW) will begin on Thursday 21 January with ICAN Aotearoa New Zealand’s Wellington and online event, and continue on Friday ...
Hardly anyone is using their Covid Tracer app. Something needs to change.As the mercury approaches 30°C in Aotearoa, there is a good deal of slipping and slopping, but, let’s face it, piss-all scanning. As few as around 500,000 QR codes are being scanned by users of the NZ Covid Tracer ...
On the East Coast, a group of Māori-owned enterprises is innovating to create new revenue streams while doing what they love.New Zealand’s remote and sparsely populated regions are typically not the best places to create thriving brick-and-mortar businesses. In small communities miles away from any major centres, there are so ...
As we reach the height of summer, it’s not too late to do a safety check on your gas bottle. The Environmental Protection Authority’s Safer Homes programme has some tips and tricks to keep in mind before you fire up the grill. "If you’ve ...
The only published and available best-selling indie book chart in New Zealand is the top 10 sales list recorded every week at Unity Books’ stores in High St, Auckland, and Willis St, Wellington.AUCKLAND1Troy: The Siege of Troy Retold by Stephen Fry (Michael Joseph, $37)If you’re in any way unsure about ...
“We may as well knock on the gang headquarters around this country and tell them we all give up," says Darroch Ball co-leader of Sensible Sentencing Trust. “It is simply outrageous that violent offender, James Tuwhangai, has been released from ...
Analysis by Keith Rankin. Ireland, Israel, and Lebanon. Chart by Keith Rankin. The countries with the most recent large outbreaks of Covid19 are those with large numbers of recent recorded cases, but yet to record the deaths that most likely will result. In this camp, this time, are Ireland, Israel ...
Excellent video. Obviously targeted at union delegates. Should be compulsory for some poorly educated employers as well.
As this place is a union funded blog [deleted]
[lprent: The biggest nut around is yourself – please read the policy and the about. It is funded by me, and not by some pathetic wingnut pretending to be a wharfie ]
A union funded blog? Will someone ban this crackpot?
You ban me then I call in my mates at the Teamsters Union to sort you out. Don’t piss me off boyo.
[lprent: ‘Teamsters’ ? Dad, have you been watching too many gangster movies? Besides aren’t you banned? ]
Gimme a break. This is just propaganda from a right wing union to talk workers into accepting they’ll be paying for this crisis. The union bureaucracy featured in this video are no friend of the workers. Why should workers pay for a crisis they didnt make.
I’ve got three questions for you Ray.
– What makes you say the EPMU is a right-wing union other than the talking points you’ve picked up from the sectarians in Unite?
– What possible motivation would the EPMU have in talking workers into accepting they’ll be paying for this crisis?
– With reference to the above, have you even watched this video?
I’d be interested in your responses, that is if you’re honest enough to back up your statements with facts.
Hey .. Ray and Wharfie,
have a look at this ..
http://jameshowardkunstler.typepad.com/clusterfuck_nation/2009/03/what-next.html
Good point Ray. If Little and Conway believed their own propaganda that capitalism is sweet and its just the financiers that ran amok, they would be saying let the financial speculators pay for the crisis, we are not paying for any of it.
They would condemn the Labour government for signing up to a deposit guarantee that bails out shonky finance ripoff merchants.
That would be tough for Little who is now Labour Party Pres.
They would attack Key as a financier whose former failed employer Merryl Lynch has been bought up by BOA which itself has to bailed out. Instead of guaranteeing the toxic assets (greedy bets) of the financiers they would nationalise their good assets and use them to create jobs for all who get sacked.
But of course if they were to do that the financiers would be revealed to be the same people that own all the big corporations and run the state that is busy taking our taxes and future labour as bailout packages. To upset the financiers would be to rock the whole capitalist shebang.
The EPMU half-assed apologies for the system and not an explanation of the crisis but a joke cover up of its real causes in declining profitability that is built into the system. It proves that they are up the system and their only use to the bosses is to keep workers quiet.
Time to wake up.
Rave, I disagree with pretty much every point you’ve made in that comment, but I congratulate you for making your argument without resorting to tribal partisanship.
I think I follow the feeling in your comment, Rave, but I’d have to say it is a little loose re assets and their merits/values etc..
As I’ve said here before just as labor produces goods & services then the role of capitalism is to produce capital.
What has happened is that capitalism and capitalistic resources have not (in the main) produced capital—they have created credit and taken fees/charges from its very high leverage. Repeat: credit is NOT capital.
Correct, those “toxic assets” are problematic. And because they do not value out in ‘mark-to-market’ — hey I didna invent this market makeover stuff 😉 — or accepted modern business means. Hence, putting the show back on the road requires either they are bought up (independently by govt..?) – that is to say another funding source, or they are ‘bought’ over time by perpetrators.
We both know which choice has been made. And yes, for better or for worse.
You might care too ponder what kind of banking minds aligned themselves to ‘off-balance sheet’ accounting. Does it make them incompetent or criminal. Or both.
And, praise be, how would punishment of offenders with nationalization make our world better..?
The trouble with blogs is that the nutters can move in and make comments that can kill good discussions. Wharfie and Ray are obviously trying to do this. Are they the same person?
These films are really good. It would help us all if we could concentrate on the messages. For me the messages are:
1. These are extraordinary times.
2. Workers are not to blame. Wall Street and the Bankers who leveraged to the extreme equity in ordinary homes should be blamed.
3. Consumption is going down. It is not a bad thing. Climate change and global warming and environmental devastation ought to require us to consume less. One less plasma TV will mean less transportation and money but will also mean that the current economic system will suffer.
4. Why should workers suffer? They do not share in the profits earned by their employers when times are good but they are expected to suffer when times are bad through no fault of theirs.
5. A 9 day working fortnight sounds great. Most workers cannot and should not suffer a 10% wage cut, some employers may fold if they have to pay for the extra day. The logical solution is for the proposed tax cuts to be cancelled and for central government to pay for the 10th day. I am holding my breath. It will hurt the wealthy but they are the most able to handle these current circumstances.
Maybe Karl Marx was right?
[lprent: Wharfie is d4j. Ray prefers to not use his usual psuedonym.]
You can believe all the Andrew Little rhetoric/garbage/tokenism all you like, but where was the EMPU when Air New Zealand was shafting its engineers, oh thats right it was helping Rob Fyfe force them to take a pay cut. Or where was the EMPU when Fisher & Paykel shut up shop? The EMPU/Andrew Little/Labour are no friend of workers.
You’re right mickey, workers should not pay for this crisis.
You appear to be under the misapprehension that a union’s national secretary is like a superhero who can ‘save’ workers from any calamity. Anyone who’s actually organised knows that’s not true. You can only take workers as far as they’re willing to go and to the extent that is possible under the current system where bosses own the means of production and have ultimate managerial prerogative.
You sound like another of those ‘glorious defeat’ idiots Irishbill wrote about the other day.
Mr little says “a lot of employers are getting workers to panic”???. Wake up idiot – now is not time to come across all militant and thuggish, companies do not have the usual fat to accomodate unions demands. This guy is the new Labour president – I think you were better off with the fat snoop.
Employers suddenly bleat during recessions and depressions. All of a sudden want the state to bail them out. Look at the US car companies.
I’m just waiting for the property developers to do it here..
What a great video. The collective message is that we are all in for tough times. And Andrew Little was a small part of this. Gareth Morgan is certainly not a Left winger and I understood
his message straight and clear. It should not be assumed that the “workers” should be the first to pay. (Although the USA tends to use the poor and disadvantaged as canon fodder.)
It would be interesting to get a critque from Rod Oram.
Wake up Mike the world has moved on. The market has failed.
Employers who can’t keep workers in jobs and pay them decently should go broke. Instead workers are expected to cut their pay and mortgage their future pay and taxes to bail out corrupt banks and failing icons like F&P.
The market has failed. Its not the best way to allocate scarce resources, unless its into the pockets of the rich. Obama is stuck in the old way of propping up the market in the name of a ‘new deal
see http://www.globalresearch.ca/index.php?context=va&aid=12517
According to Chossudovsky he’s shifting public spending from the poor to the rich even more than Bush. A massive con job.
The market has failed and needs to be replaced by social ownership to meet the needs of the people, for the people by the people.
If workers are expected to take pay cuts and bail out bosses, then they should demand to decide who gets bailed out and that it will only happen if this public investment becomes public ownership.
This means that scarce resources would become publicly owned and democratically planned.
The CTU should be saying that to defend jobs we have to take the most important industries and services into public ownership and put them under the control of working people not corrupt banksters raking in multimillion bonuses sitting on boards who are only interested in maximising profits.
Socialists say “We WON’T pay for their crisis”. We didn’t cause it, and where workers are threatened with redundancies, we point to the examples of factory occupations in Chicago, Waterford and Buenos Aires as an alternative to capitalist greed and mass unemployment.
The new film from the EPMU differs in tone. Whilst it puts forward some valuable economic information and gives rank and file workers a voice to raise their fears, it also sees the Union’s role as softening the effects of the Depression in partnership with employers, rather than fighting them militantly for every job. SA presents the film and welcomes readers to post their take on the EPMU’s line.
Crunch Time. For workers, for bosses and for union bureaucrats.
(an alternative film on how to fight redundancies here)
http://socialistaotearoa.blogspot.com/2009/03/crunch-time-film-on-crisis-by-epmu.html
Jesus that shite almost makes Al Gore’s efforts believable – back to china with you my friend
I have e-mailed Rod Oram and invited his comment on the video, as a man whose opinion/assessment is respected. We will see.
now is not time to come across all militant
Grow up Mike. We haven’t had militant for decades. It’s 123 years since Haymarket. Be careful what you wish for.
Is this the same Andrew Little, card-carrying member of the Labour Party and supreme double dipper, who was praised….not! by Chris Trotter in his most recent column?
Cracks in the ricketty walls of the socialist mud house appear to be widening. All under the eagle eye of the supreme leader Fill Goff.
Ah, the joys of being opposition.
[lprent: You are a obnoxious little illiterate. The presidential position is either unpaid or pays bugger all. Now what about that National MP in Mangakiekie who is double dipping on both my taxes and my rates. From what I’ve heard he doesn’t do much around the council these days.]
“Ah, the joys of being opposition.”
Latest Roy Morgan Poll: National 56% Labour 26%
You call that opposition?
[lprent: I seem to remember the Nats getting 22% in an actual poll (election) in 2002 – do you call that being an opposition?. Why don’t you jerk-off elsewhere if all you can raise are troll lines.
This appears to be a troll campaign. I’m going to delete comments of this form that have no other content]
“I seem to remember the Nats getting 22% in an actual poll (election) in 2002”
Oh give Phil Goff time. I’m sure 22% is achievable.
Gee the mood round here needs lifting
[lprent: it was 20.9% for National in the 2002 election. After that they dropped. It wasn’t until Brash stirred up the racial bigots in the Owera I screech (a proud moment for the right) that they started to rise in the polls.
We tend to get annoyed when troll wankers start jerking off their poorer qualities around here. If you cannot argue a point then don’t come here. Seeing your ‘point’ mindlessly scattered by multiple people around multiple posts without actual brainwork being involved gets me seriously pissed off, and I act accordingly. ]
excellent work, well done whoever’s responsible for it.
if only our msm could be trusted to produce such informative and honest commentary.
come to think of it – if only NZers were encouraged to understand this before the election. if only our msm weren’t so keen to downplay the gravity of the situation during the election, so as not to discourage voters from speculating on sketchy long-shot promises.
So it’s the MSM’s fault that Labour lost the election now is it ?
Iprent: There are some “opposing views” which are thought provoking. The abusive ones like from Tawa (gives Tawa a bad name) are useless. I support your reactions! Rid us of the buggers.
Excellent video’s.
This is NOT a recession. It is a major debt-deflationary crisis caused by grossly irresponsible or fraudulent lending by the global finance system. Until the massive excess debt bubble is unwound or reset, credit will remain hard to find, and the economy will continue to unravel. No matter how sound your business or financial history, banks find it almost impossible to lend when assets are still FALLING in value, which in turn causes the assets to fall further in value.
Unemployment will peak around 20-30% and will remain stubbornly high for very long time, maybe 10 -20 years (the Japanese have remain mired in this same trap almost 20 years so I can point to precendent). Many of the rest of us will be underemployed, and our take home pays will fall. The two reasons why this crisis has yet to hit us hard here in New Zealand are simple.
One until very recently our employment capacity was so highly extended that in the last few months much of the fall has been masked by cuts in overtime, 4 day weeks, dropping secondary jobs and using up accumulated annual leave. But as the crisis deepens in the next few weeks, the job loss snowball (665 in the last week alone) will become obvious to all.
The second reason is of course, that our banks are still solvent and thanks to Michael Cullen our public sector debt is extremely low, which will give us a little breathing space and a temporary reprieve … but this National govt has no ideas and no ability to respond.
“thanks to Michael Cullen our public sector debt is extremely low, which will give us a little breathing space and a temporary reprieve but this National govt has no ideas and no ability to respond.”
Yes he did well to retire as much debt as he did – this good work should however be balanced against the poor decisions (in hindsight) in relation to NZ rail, AIA and Air NZ.
In todays Herald John Roughan explains why he thinks there are no problems. Everything will be dandy. Funny how different are the assessments. For me the above video is chillingly credible as is Redlogix logic. Roughan’s:
http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10560366
F*&king H^ll, I’d really like to know what colour the sky is on his planet.
Explaining what exactly?
The social democratics of various hues, pink, green, beige, etc need to study their Marx so they understand what is happening to them before it is too late.
For the cruisers hung up on the evils of neoliberalism there is David Harvey’s brief history of neo-liberalism
For the stayers who always worried that globalisation might be more than meets the eye there is his lecture series on globalisation
For the high performance types who passed High School algebra there is the most recent series on Marx’s Capital starting here
http://davidharvey.org/2008/06/marxs-capital-class-01/
Or there is the Brendan Cooney’s cool low key webcam series starting with http://www.youtube.com/watch?v=yBciA1y-2mQ
Rave,
For months I couldn’t make up my mind if we were going to get deflation due to unwinding excess debt, or inflation due to Central Banks printing money in response to the crisis. Turns out that the credit grinch bubble popper will trump the RB printing pump everytime. It’s like trying to keep a hot-air balloon aloft by turning up the gas heater, when the top of the canopy has been ripped in half.
I highly, highly recommend this article. Steven Keen predicted all this on sound theoretical grounds years ago.
The article even starts with a quote from Charlie (and has his picture)… so there must be something in it for you to like.
Redlogix
Keen’s paper is quite readable and explains the neo-Keynesian position well. Yet what’s missing is the other quote from Marx which you didnt see along the lines of how come capitalism allows a bunch of parasites to expand credit many times beyond the money supply, the capacity of the state to print money, and the underlying sum of the value of commodities produced by a given country, so while the Chinese and Japanese buy a large chunk of the debt, it is only official debt (fiat credit), not the crazy bank credit Keen talks about, and cannot prevent the crunch happening.
Sure Marx hated the finance parasites, but he explained why they existed. Not as aberrations to the normal equilibrium of capitalism but the product of the internal contradictions of capitalism. Credit is expanded (and not regulated because the state is run by those with an interest in credit expansion) because the productive circuit is incapable of taking up the surplus capital since it cannot realise a profit on money invested in production.
This, when the rate of exploitation (roughly the ratio of profits to wages) despite neo-liberalism, globalisation, privatisation of state assets, increasing productivity (rate of exploitation), cannot be increased fast enough to return a profit over total investment. The result is a crisis of overproduction of money capital and commodities. Solution is to devalue all commodities including labour-power until investment in the productive circuit does produce a profit.
Therefore according to this logic, the finance sector becomes detached from the productive sector at a specific point when profits fall to a certain level, so that the surplus capital then spins off into excessive credit creation to attempt to realise profits in the sphere of exchange rather than production. The credit bubble then produces the credit crunch as the fictitious value of those assets collapses back towards their actual price of production. So its not a monetary crisis or even a credit crisis in reality but a capitalist crisis because the credit crunch is a symptom of the failure to extract enough value to valorise the capital invested in the productive circuit.
Such a crisis is always deflationary because the values of wages and other commodities, along with all the fictitious capital speculating in asset value, collapse downwards to reach that point where the surviving big banks (guess which) buy up the surviving corporations (guess which) and start re-investing in cheap labour and cut price productive assets, new technology comes on line, and away we go on another merry go round.
And this leaves out the whole impact of crisis and restructuring on those who pay for it – the working class. That’s why a third quote from Marx is useful. Somewhere he said that capitalism never falls down by itself. It can suffer massive crises, prove that the market fails, but if it has the capacity to fool most workers or repress them then it will stagger on. Only the activity of a politically conscious working class can end capitalism. Capital is not self-equilibrating, or ultimately self-destructive, but it does produce its own gravediggers.
I’ve read Keen why don’t you have a look at Brendan Cooney’s youtube vids I cite above, they are great fun. Take a look at the political economy of Superman, and the Matrix.
rave,
Given what is happening right before our eyes, your line of reasoning in your very good post above, is dammed hard to argue with.
I’ve read Keen why don’t you have a look at Brendan Cooney’s youtube vids I cite above, they are great fun.
Yes I intend to, but later when I’m using a proper ADSL connection, and not this oversold crap 3G Nodafone connection.
Interesting..As to the following:—
So its not a monetary crisis or even a credit crisis in reality but a capitalist crisis because the credit crunch is a symptom of the failure to extract enough value to valorise the capital invested in the productive circuit.
I am not sure what you mean with that term “valorise”, but I have a question pertaining to constructive solutions.. That is, to what extent would the suggested undervaluing of capitalism’s productive sector be capable of implementing revaluation/s in taking up part or all of the so-called credit surpluses.
What tools – financial, wage, salary, compensation – would be appropriate in so doing. Given how clearly the worker/laborer be no worse off..
Look forward to your views on this..
Armchair radicals like Trotter and “Ray” can attack the EPMU and Andrew Little all they like, they don’t have to make decisions in the real world. It’s easy to criticise from a position of ignorance and irrelevance.
The fact is the EPMU gets the highest pay rises of any union and takes the lead in the whole movement’s campaigns to defend workers’ rights. If you want to accuse them of selling out to the boss class then you should at least get some facts to support your argument rather than trotting out cliches from two decades ago.
Redlogix and Rave: I am always impressed from an Economically uneducated point of view at the competence with which you put your thinkings.
Does the point about capital outstipping production, (“so that the surplus capital then spins off into excessive credit creation to attempt to realise profits in the sphere of exchange rather than production.”) lead to those who blame the workers for not being productive enough? Hence the old arguments about how we/they have to be more productive in order to increase the wages in order to match Australia. All the workers/employers fault of course.
[deleted]
[lprent: GL – you are currently banned. Putting you into the anti-spam as you don’t offer anything and appear to ignore warnings]
Easton and Morgan, two of the leading econmists/commentators in New Zealand offering constructive advice on the way forward. This is pro-worker without being anti-employer and yet another example of the positive approach adopted by Little/EMPU. As awkward as this video is, it’s an important insight into the strategy the EPMU are considering for the next few years: one that’ll ensure growth on the otherside is sustainable.
Redlogix, thanks for your email – I’m sorry I’ve not replied, I’ve been a bit distracted. I apreciate your response however.