Government with a plan
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8:00 am, July 22nd, 2018 - 46 comments
Categories: benefits, capitalism, class war, Deep stuff, democracy under attack, economy, Economy, election 2017, Financial markets, grant robertson, infrastructure, jacinda ardern, jobs, Keynes, labour, Politics, poverty, socialism, welfare -
Tags: karl marx, matthew hooton
The polls are great. Top work. But I’m getting worried about the entropy of this government already. Matthew Hooten and Karl Marx agree with me.
Governments usually start with a whiz and a bang and gradually subside from there. We forgot to start.
Even Prime Minister Helen Clark, while democratizing New Public Management with bunches of partially-elected Boards, still launched the huge Growth and Innovation Framework, and other initiatives expanding the reach of public policy into investment capital through Kiwisaver and NZSuperfund.
But with this Ardern-led government, we started with lots of tax transfers, unguided and incoherent engagement with major capital, and yet even with major expansive engagements with real estate capitalism they are running out of steam.
Back in the day I could roll out my Adorno and my Habermas pretty easily. Now it’s getting a bit rusty, but in this moment we need to step back and get the big mental machinery rolling again.
In 2008 or ’98 or ’78, after every good crisis-scale economic throat-clearing, Marx gets rolled out to explain how the system will fuck itself up. Today our national pathologies are more chronic than thanatic.
Since the late 1970s, median household income in New Zealand, adjusted for inflation, has stagnated for the bottom 60 percent of the population, even as income for the richest New Zealanders has soared. Corporate profits are at their highest levels since the 1960s, yet corporations of any note are taking those profits offshore rather than reinvesting them locally. We remain one of the very, very few states left in which democracy is active and hasn’t been massively hollowed out and replaced with technocratic elites who plane across the globe unbounded much by time or border. We still vote.
Thanks for voting, but in New Zealand you can fill the Temuka Memorial Hall with the people who own 75% of the country and still have the back four rows of seats empty.
Karl Marx, of course, would not be surprised. He predicted that capitalism’s internal logic would over time lead to rising inequality, chronic unemployment and underemployment, stagnant wages, the dominance of large powerful firms, and the creation of an entrenched elite whose power would act as a barrier to social progress. Eventually, the combined weight of these problems would spark a general crisis. Yet somewhere between crisis and revolution, Karl Marx and Matthew Hooten diverge; revolution just ain’t happening.
Marx believed the revolution would come in the most advanced capitalist economies. Instead, it came right out of the energised proletariat in Russia and China. There, communism ushered in authoritarian government and economic stagnation. Social democrats like myself from developed economies treated our regular crises as a kind of necessary perpetual binge-purge cycle. But today, as developed economy incomes get skinnier and more malnourished, the winners instead are distended versions of militarized states freed from previous Marxist capture, namely: Russia and China.
Despite the genocidal disasters of the Soviet Union and the countries that followed its model, Marx’s theory remains one of the most perceptive critiques of capitalism ever offered. Better than most, Marx understood the mechanisms that produce capitalism’s downsides and the problems that develop when governments do not actively combat them, as they have not for the past 40 years. Marxism is still useful in part for making sense of New Zealand today.
What makes Marx acutely relevant today is his economic theory, which he intended, as he wrote in Capital, “to lay bare the economic law of motion of modern society.” And although Marx, like the economist David Ricardo, relied on the flawed labor theory of value for some of his economic thinking, his remarkable insights remain.
Marx believed that under capitalism the pressure on entrepreneurs to accumulate capital under conditions of market competition would lead to outcomes that are palpably familiar today. First, he argued that improvements in labour productivity created by technological innovation would largely be captured by the owners of capital. “Even when the real wages are rising,” he wrote, they “never rise proportionally to the productive power of labor.” Put simply, workers would always receive less than what they added to output, leading to inequality and relative immiseration.
Second, Marx predicted that competition among capitalists to reduce wages would compel them to introduce labor-saving technology. Over time, this technology would eliminate jobs, creating a permanently unemployed and underemployed portion of the population.
Third, Marx thought that competition would lead to greater concentration in and among industries, as larger, more profitable
firms drove smaller ones out of business. Since these larger firms would, by definition, be more competitive and technologically advanced, they would enjoy ever-increasing surpluses. Yet these surpluses would also be unequally distributed, compounding the first two dynamics.
Marx made plenty of mistakes. He had little idea how well the state would refine itself to enable politics to tame markets after crises, putting officials in power who pursued a range of social democratic policies without damaging the economy. He really had no idea how war-accelerated mechanization would expand the entire purpose of the state or enable multi-state mechanisms. The postwar rise of the social compact made it seem as if that Marx was wrong about the ability of capitalist economies to satisfy human needs, at least material ones.
Our postwar boom was uneven to start with, and lingers still in diminished form. It declined with the stagflationary crisis of the 1970s, when the preferred economic policy of Western social democracies — Keynesian state management of demand — seemed incapable of restoring full employment and profitability without provoking high levels of inflation. Sure, Muldoon comes to mind, but so does Holyoake and Holland, Clark and Key, the Todds and the Fletchers and the Goodmans; restoring profitability by curbing inflation, accepting state to large corporation codependence, not particularly strenghtening organized labor, and accommodating unemployment. Brian Easton has written several good tomes on this relationship.
While the rich made bank from the late 1980s, our little country has proved incapable of replicating the broad-based prosperity of the mid-twentieth century. It marked instead in New Zealand a long recovery since the late 1980s characterised by uneven real estate booms, sluggish commodity dependence, and inequality. This sharp divergence in fortunes has been driven by, among other things, the fact that increases in productivity no longer lead to increases in wages in most advanced economies. (What has saved us as we went through these ideological full-waxings was Australia simply absorbing our excess labour during the tough times, providing us with capital to accelerate our boom times, and providing us with customers and markets throughout. Australia is still our actual government).
If the postwar boom made Marx seem obsolete, recent decades have confirmed his prescience. Marx argued that the long-run (remember the long run?) tendency of capitalism was to form a system in which real wages did not keep up with increases in productivity. This insight mirrors the economist Thomas Piketty’s observation that the rate of return on capital is higher than the rate of economic growth, ensuring that the gap between those whose incomes derive from capital assets and those whose incomes derive from labor will grow over time.
What Marx failed to get is the purpose of the modern state; to stabilize society by forming policy around capitalism, to make it more comprehensible, more rational, providing new languages and legislative and frameworks and redistributive structures making it more generous in its ends than just reifying capitalism self. It is a constant task.
Competition and lawlessness has driven down labour’s share of compensation by creating segments of the labour force with an increasingly weak relationship to the productive parts of the economy—segments that Marx called “the reserve army of labour,” referring to the unemployed and underemployed. Here Marxian analysis stumbles in our current state, where headline unemployment is staying low and reduced to pockets among the completely disorganized and the young. Our system is calm because state redistributions are increasing again, and there are no threats or agitators of any note, anywhere.
Wages haven’t risen. Unionism hasn’t increased. The state has not increased the sophistication of its engagement with capital. With the Ardern government, nothing structural has changed at all. Other than through the willfully incoherent Shane Jones, its will to do so is palpably declining by the day.
Business was supposed to be working on the obsolescence of labour. On the high end, the consulting company McKinsey estimates that 30 percent of the hours worked globally could be automated. These losses are still expected to be concentrated among unskilled segments of the labor force. Prior to the election Grant Robertson worried about the same thing, but the economy remains fully ready to absorb them. Here, business worries that the state doesn’t want to engage and doesn’t have a plan for them.
Research by the economist David Autor and his colleagues suggests that the rise of superstar firms may help explain labour’s declining share of national income across advanced economies (do check him up). Through a New Zealand lens, that means a group of massive companies dominated prices and supply chains both to labour, and to their consumers, to near-oligopolistic scale, in nearly every industry. As our own (relative) superstar firms have become more important to our economy, workers have suffered across the board.
Marx’s overall worldview left little room for politics to mitigate the downsides of capitalism. As he and his collaborator Friedrich Engels famously stated in The Communist Manifesto, “The executive of the modern state is but a committee for managing the common affairs of the whole bourgeoisie.” He’s only right because our state appears nearly unwilling anymore to do so.
In the late 1990s, good thinkers like David Porter and David Skilling toiled hard on how to get New Zealand government to re-engage usefully with clusters of industry and with labour, and good hard-headed Ministers like Jim Anderton were up for it. Their legacy here is surprisingly small and uneven (Skilling moved to Singapore, where his thinking is fully simpatico with a really active and empowered state engaging with industry), but that’s mostly because the second term of the Clark government just starved it to death.
Today, the question of whether politics can re-engage local capitalism remains open. Especially in New Zealand, the Labour-led government is doing as little as possible to upset the New Public Management school of Board-dominated governance, with only occasional and limited reforms of existing Ministerial structures. Few boards have been refreshed. Few judges have been renewed. Almost no departments or structures are in train to be altered in any legislative sense (The only new Ministry formed under this government is a very, very small one designed to get the state to dig out men who died in a coal mine – a pretty dark Marxian joke by itself). Measured by the will to engage or tame it, capitalism appears to have overwhelmed our politics, democratic or otherwise. Perhaps the postwar decades of a near-perfect balance for the majority will be seen as fleeting.
Yet this is not the only narrative. An alternative one would start with the recognition that the politics of capitalism’s golden age, which combined strong unions, Keynesian demand management, loose monetary policy, and capital controls, delivered a lot for a long time but could not deliver an egalitarian form of capitalism forever.
Other narratives are possible. The normal state of capitalism is one in which, as Marx and Engels wrote in The Communist Manifesto, “all that is solid melts into air.” This dynamism means that achieving egalitarian goals will require new institutional configurations backed by new forms of politics.
Like all social democratic governments, that is the task this government has yet to set itself, taking all sectors of New Zealand society with it. There’s a strong sense that this government is neglecting capitals’ leaders, displacing the social sectors’ leaders with delayed ‘reviews’, leaving any environmental engagement solely to the leader of a very small support party, and otherwise using budget surpluses to keep the crowds happy by chucking the political equivalent of hot meat pies to the crowd.
National’s solution has been to buttress the welfare state’s redistribution of income with a redistribution of capital assets, so that capital worked for everyone. The Bolger and Key governments selloff of shares of key public assets into the local share market sought to help achieve that. The ‘stakeholder capitalism’ vision was not state ownership but a broad property-owning democracy in which wealth was more equally distributed because the distribution of productive capacity was more equal. The outcome of that set of sales did not achieve this. Nor had it achieved it under Prime Ministers David Lange or Jim Bolger. You can ask them at the Temuka Memorial Hall.
The one massive intervention this government has a chance to really tame is real estate capitalism inherited from Brownlee in Christchurch to Twyford in Auckland. Not the same as engaging across government no sirree, but a pretty damn big sector of our kind of capitalism. HLC is turning into a suburban juggernaut rolling over the bourgeoise niceties enshrined in the Unitary Plan. And yes, it will deliver at scale.
But if a Bernie Sanders or Jeremy Corbyn-type programme were ever to see the light of day in taming markets and revitalizing social democracy for the twenty-first century, it will not be with the politics of the past. As Marx recognized, under capitalism there is no going back.
Here instead under Prime Minister Ardern is a small managerial state with little inclination to become any stronger, no intellectual or ideological framework to decide how to shape and redirect our kinds of capitalism, and – housing excepted – a residual sense that its ambitions are slow and can only get slower.
Sure, we don’t need a vision. Maybe even a plan’s too much to ask. Just clear, hard engagement across government would be a start.
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If you’re going somewhere, do you maybe take a bit of an interest in the place? Read up a bit on the history, current events, places to see - that sort of thing? Presumably, if you’re taking a trip somewhere, it’s for a reason. But what if you’re going somewhere ...1 week ago - Home again
1 week ago - Dead even tie for hottest August ever
Long stories short, here’s the top six news items of note in climate news for Aotearoa-NZ this week, and a discussion above between Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer:The month of August was 1.49˚C warmer than pre-industrial levels, tying with 2023 for the warmest August ever, according ...1 week ago
- The Hoon around the week to Sept 7
The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts and talking about the week’s news with:The Kākā’s climate correspondent on the latest climate science on rising temperatures and the debate about how to responde to climate disinformation; and special guest ...1 week ago
- Have We an Infrastructure Deficit?
An Infrastructure New Zealand report says we are keeping up with infrastructure better than we might have thought from the grumbling. But the challenge of providing for the future remains.I was astonished to learn that the quantity of our infrastructure has been keeping up with economic growth. Your paper almost ...1 week ago - Councils reject racism
Last month, National passed a racist law requiring local councils to remove their Māori wards, or hold a referendum on them at the 2025 local body election. The final councils voted today, and the verdict is in: an overwhelming rejection. Only two councils out of 45 supported National's racist agenda ...1 week ago
- Homage to Simeon Brown
1 week ago
- Government of deceit
When National cut health spending and imposed a commissioner on Te Whatu Ora, they claimed that it was necessary because the organisation was bloated and inefficient, with "14 layers of management between the CEO and the patient". But it turns out they were simply lying: Health Minister Shane Reti’s ...1 week ago
- The professionals actually think and act like our Government has no fiscal crisis at all
Treasury staff at work: The demand for a new 12-year Government bond was so strong, Treasury decided to double the amount of bonds it sold. Photo: Lynn GrievesonMōrena. Long stories short; here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Friday, September ...1 week ago - Weekly Roundup 6-September-2024
Welcome to another Friday and another roundup of stories that caught our eye this week. As always, this and every post is brought to you by the Greater Auckland crew. If you like our work and you’d like to see more of it, we invite you to join our regular ...1 week ago
- Minister of Injustice seeks to Entrench largest land confiscation in History
The Waitangi Tribunal has released an Urgent Report on the Government’s proposed amendments to the Takutai Moana Act 2011. The report calls out Paul Goldsmith’s proposal for what it is: a “gross breach of the Treaty” and an “illegitimate exercise of kāwanatanga”. The Tribunal is recommending the Crown step down ...2 days ago
- Takutai Moana changes another assault on Te Tiriti
The Government must abandon its Marine and Coastal Area (Takutai Moana) Act interventions after the Waitangi Tribunal found it was committing gross breaches of the Treaty. ...2 days ago - Greens call on Govt to leave Te Reo in schools alone
As Te Wiki o te Reo Māori approaches, the Government is considering deprioritising teaching Te Reo Māori in our schools. ...2 days ago
- Govt cannot ignore racism
The Government’s directive to the public service to ignore race is nothing more than a dog whistle and distraction from the structural racism we need to address. ...2 days ago
- Release: Lemauga Lydia Sosene to take medical leave
Labour’s Mangere MP Lemauga Lydia Sosene has been diagnosed with breast cancer and will shortly take medical leave. ...2 days ago - Potential intelligence sharing with Israel must be investigated
Concerns have been raised that our spy arrangements may mean that intelligence is being shared between Aotearoa and Israel. An urgent inquiry must be launched in response to this. ...3 days ago
- Release: Charter schools undermine our education system
The Government is taking a wrecking ball to our public education system by reinstating charter schools. ...3 days ago
- Youngest MP to travel to Canada to accept Politician of the Year Award
Aotearoa’s Youngest Member of Parliament, and Te Pāti Māori MP, Hana-Rawhiti Maipi-Clarke, will travel to Montreal to accept the One Young World Politician of the Year Award next week. The One Young World Politician of the Year Award was created in 2018 to recognise the most promising young politicians between ...3 days ago
- Greens celebrate huge step forward for ADHD community
The Greens welcome today’s long-coming announcement by Pharmac of consultation to remove the special authority renewal criteria for methylphenidate, dexamfetamine and modafinil and to fund lisdexamfetamine. ...3 days ago
- Release: Millions to be spent dividing NZ for no reason
The National Party is wasting millions of dollars allowing David Seymour’s Treaty Principals Bill to be drafted and go to Select Committee. ...3 days ago
- Release: New Zealanders departing our shores at a record rate
The Migration figures released by Stats NZ today show National is continuing to drive Kiwis away from New Zealand in record numbers. ...3 days ago
- Te Tai Tokerau MP Slams Govt Overreach in Scrapping Māori Wards
Mema Paremata for Te Tai Tokerau, Mariameno Kapa-Kingi, has reflected on the decisions made by the councils of the North amidst the government’s push to remove Māori Wards and weaken mana whenua representation. “Actions taken by the Kaipara District Council to remove Māori Wards are the embodiment of the eradication ...4 days ago
- Govt already seeking advice on Treaty referendum
On one hand, the Prime Minister has assured Aotearoa that his party will not support the Treaty Principles Bill beyond first reading, but on the other, his Government has already sought advice on holding a referendum on our founding document. ...4 days ago
- Release: Aged care will be worse off if redesign rushed
New Zealanders needing aged care support and the people who care for them will be worse off if the Government pushes through a flawed and rushed redesign of dementia and aged care. ...4 days ago
- Release: Govt fails hundreds of workers as mills close
Labour is devastated at news hundreds of workers are set to lose their jobs following the closure of Winstone Pulp mills. ...4 days ago
- Job losses from mill closures consequence of Govt inaction
Hundreds of jobs lost as a result of pulp mill closures in the Ruapehu District are a consequence of government inaction in addressing the shortfalls of our electricity network. ...5 days ago
- Ngarewa-Packer devastated for Ruapehu following WPI closure
Te Pāti Māori Co-Leader and MP for Te Tai Hauāuru is devastated for the Ruapehu community following today’s decision to close two Winstone Pulp mills. “My heart goes out to all the workers, their whānau, and the wider Ruapehu community affected by the closure of Winstone Pulp International,” said Ngarewa-Packer. ...5 days ago
- Release: Cabinet should stop the Treaty Principles Bill
National Party Ministers have a majority in Cabinet and can stop David Seymour’s Treaty Principles Bill, which even the Prime Minister has described as “divisive and unhelpful.” ...6 days ago
- Release: Staff gagged to keep fast track list secret
The National Government is so determined to hide the list of potential projects that will avoid environmental scrutiny it has gagged Ministry for the Environment staff from talking about it. ...6 days ago
- Release: Labour challenges Te Whatu Ora gag orders
Labour has complained to the Te Kawa Mataaho Public Service Commission about the high number of non-disclosure agreements that have effectively gagged staff at Te Whatu Ora Health NZ from talking about anything relating to their work. ...6 days ago
- Greens call on Treaty Principles Bill to be abandoned after letter from Christian leaders
The Green Party is once again urging the Prime Minister to abandon the Treaty Principles Bill as a letter from more than 400 Christian leaders calls for the proposed legislation to be dropped. ...6 days ago
- Sign the petition: Keep military-style firearms off our streets
Help us tell the Government that reintroducing military-style firearms should not be up for debate. ...1 week ago
- Vast majority of councils support Māori wards
Councils across the country have now decided where they stand regarding Māori wards, with a resounding majority in favour of keeping them in what is a significant setback for the Government. ...1 week ago
- Release: Government on the wrong side of Māori wards
The National-led government has been given a clear message from the local government sector, as almost all councils reject the Government’s bid to treat Māori wards different to other wards. ...1 week ago
- Release: Labour congratulates Kuīni Ngā Wai hono i te po Paki
The Labour Party congratulates Kuīni Ngā Wai hono i te po Paki on being crowned as the eighth Te Ariki Nui – head of Te Kiingitanga. ...1 week ago
- Green Party welcomes new Maaori Kuiini
The Green Party welcomes the coronation of the new Maaori Kuiini, Te Arikinui Nga Wai Hono i te Po, today in Turangawaewae. ...1 week ago
- ECE teachers deserve better than this Government
The Green Party is unsurprised but disappointed by today’s announcement from the Government that will see our Early Childhood Centre teachers undermined and pay parity pushed further out of reach. ...2 weeks ago
- Urgent intervention needed on supermarkets
The Green Party is calling on the Government to intervene in the supermarket duopoly dominating our supply of groceries following today’s report from the Commerce Commission. ...2 weeks ago
- Release: Rainbow youth neglected in mental health funding
Labour backs the call from The Rainbow Support Collective members for mental health funding specifically earmarked for grassroots and peer led community organisations to be set up in a way that they are able to access. ...2 weeks ago
- Release: Transport in NZ has to be more than just roads
As expected, the National Land Transport Programme lacks ambition for our cities and our country’s rail network and puts the majority of investment into roads. ...2 weeks ago
- Speech: Barbara Edmonds Building Nations 2024
Tēnā koutou katoa, Thank you for your warm welcome and for having my colleagues and I here today. Earlier you heard from the Labour Leader, Chris Hipkins, on our vision for the future of infrastructure. I want to build on his comments and provide further detail on some key elements ...2 weeks ago
- Govt transport plan deepens fossil fuel fix
The Green Party says the Government’s new National Land Transport Programme marks another missed opportunity to take meaningful action to fight the climate crisis. ...2 weeks ago
- Greens call for public to back Wrybill in BOTY and beyond
The Green Party is calling on the public to support the Ngutu Pare Wrybill not just in this year’s Bird of the Year competition but also in pushing back against policies that could lead to the destruction of its habitat and accelerate its extinction. ...2 weeks ago
- Building consents data bad news for construction
News that the annual number of building consents granted for new homes fell by more than 20 percent for the year ended July 2024, is bad news for the construction industry. ...2 weeks ago
- Te Pāti Māori Pay Tribute to Kiingi Tūheitia Pōtatau Te Wherowhero VII
Papā te whatitiri, hikohiko te uira, i kanapu ki te rangi, i whētuki i raro rā, rū ana te whenua e. Uea te pou o tōku whare kia tū tangata he kapua whakairi nāku nā runga o Taupiri. Ko taku kiri ka tōkia ki te anu mātao. E te iwi ...2 weeks ago
- Release: Gaps still to be addressed in callouts response
The Government must guarantee New Zealanders will not be at risk after making changes to the way mental health callouts are handled. ...2 weeks ago
- Poroporoaki: Kiingi Tuheitia passing
Haere e te Kīngi o te kotahitangi Haere ki o nui, ki o rahi I te pō ...2 weeks ago
- Green Party pays respects to Kiingi Tuuheitia
The Green Party is paying tribute to the Māori King, Kiingi Tuuheitia Pootatau Te Wherowhero XVII, after he passed away earlier this morning. ...2 weeks ago
- Potaka Brings Whakaata Māori to its Knees
Today’s Whakaata Māori announcement is yet another colossal failure from Minister Potaka, who has turned his back on te reo Māori, forcing a channel offline, putting whānau out of jobs, and cutting Māori content, says Te Pāti Māori. “A Senior Māori Minister has turned his back on Te Reo Māori. ...2 weeks ago
- Release: National restricts access to disability care homes
With disability communities still reeling from the diminishing of Whaikaha, a leaked document now reveals another blow with National restricting access to residential care homes. ...2 weeks ago
- Government eliminates $190 million in trade barriers to boost the economy
The Government has successfully removed trade barriers affecting nearly $190 million worth of exports to help grow the economy, Minister for Trade and Agriculture Todd McClay today announced. “In the past year, we have resolved 14 Non Tariff Barriers (NTBs), returning significant value to kiwi exporters. These efforts directly boost our ...6 hours ago - Reo Māori the ‘beating heart’ of Aotearoa New Zealand
From private business to the Paris Olympics, reo Māori is growing with the success of New Zealanders, says Minister for Māori Development Tama Potaka. “I’m joining New Zealanders across the country in celebrating this year’s Te Wiki o te Reo Māori – Māori Language Week, which has a big range ...1 day ago
- Need and value at forefront of public service delivery
New Cabinet policy directives will ensure public agencies prioritise public services on the basis of need and award Government contracts on the basis of public value, Minister for the Public Service Nicola Willis says. “Cabinet Office has today issued a circular to central government organisations setting out the Government’s expectations ...2 days ago
- Minister to attend Police Ministers Council Meeting
Police Minister Mark Mitchell will join with Australian Police Ministers and Commissioners at the Police Ministers Council meeting (PMC) today in Melbourne. “The council is an opportunity to come together to discuss a range of issues, gain valuable insights on areas of common interest, and different approaches towards law enforcement ...2 days ago
- New Bill to crack down on youth vaping
The coalition Government has introduced legislation to tackle youth vaping, Associate Health Minister Casey Costello announced today. “The Smokefree Environments and Regulated Products Amendment Bill (No 2) is aimed at preventing youth vaping. “While vaping has contributed to a significant fall in our smoking rates, the rise in youth vaping ...3 days ago
- Interest in agricultural and horticultural products regulatory review welcomed
Regulation Minister David Seymour, Environment Minister Penny Simmonds, and Food Safety Minister Andrew Hoggard have welcomed interest in the agricultural and horticultural products regulatory review. The review by the Ministry for Regulation is looking at how to speed up the process to get farmers and growers access to the safe, ...3 days ago
- Bill to allow online charity lotteries passes first reading
Minister of Internal Affairs Brooke van Velden says the Government is moving at pace to ensure lotteries for charitable purposes are allowed to operate online permanently. Charities fundraising online, such as those run by the Heart Foundation, Coastguard NZ, Auckland Rescue Helicopter Trust and local hospices will continue to do ...3 days ago
- Tax exempt threshold changes to benefit startups
Technology companies are among the startups which will benefit from increases to current thresholds of exempt employee share schemes, Science, Innovation and Technology Minister Judith Collins and Revenue Minister Simon Watts say. Tax exempt thresholds for the schemes are increasing as part of the Taxation (Annual Rates for 2024-25, Emergency ...3 days ago
- Getting the healthcare you need, when you need it
The path to faster cancer treatment, an increase in immunisation rates, shorter stays in emergency departments and quick assessment and treatments when you are sick has been laid out today. Health Minister Dr Shane Reti has revealed details of how the ambitious health targets the Government has set will be ...3 days ago
- Targeted supports to accelerate reading
The coalition Government is delivering targeted and structured literacy supports to accelerate learning for struggling readers. From Term 1 2025, $33 million of funding for Reading Recovery and Early Literacy Support will be reprioritised to interventions which align with structured approaches to teaching. “Structured literacy will change the way children ...3 days ago
- Survivors invited to Abuse in Care national apology
With two months until the national apology to survivors of abuse in care, expressions of interest have opened for survivors wanting to attend. “The Prime Minister will deliver a national apology on Tuesday 12 November in Parliament. It will be a very significant day for survivors, their families, whānau and ...3 days ago
- Rangatahi inspire at Ngā Manu Kōrero final
Ehara taku toa i te toa takitahi, engari he toa takitini kē - My success is not mine alone but is the from the strength of the many. Aotearoa New Zealand’s top young speakers are an inspiration for all New Zealanders to learn more about the depth and beauty conveyed ...3 days ago
- Driving structured literacy in schools
The coalition Government is driving confidence in reading and writing in the first years of schooling. “From the first time children step into the classroom, we’re equipping them and teachers with the tools they need to be brilliant in literacy. “From 1 October, schools and kura with Years 0-3 will receive ...4 days ago
- Labour’s misleading information is disappointing
Labour’s misinformation about firearms law is dangerous and disappointing, Associate Justice Minister Nicole McKee says. “Labour and Ginny Andersen have repeatedly said over the past few days that the previous Labour Government completely banned semi-automatic firearms in 2019 and that the Coalition Government is planning to ‘reintroduce’ them. ...4 days ago
- Govt takes action on mpox response, widens access to vaccine
The Government is taking immediate action on a number of steps around New Zealand’s response to mpox, including improving access to vaccine availability so people who need it can do so more easily, Health Minister Dr Shane Reti and Associate Health Minister David Seymour announced today. “Mpox is obviously a ...4 days ago
- Next steps agreed for Treaty Principles Bill
Associate Justice Minister David Seymour says Cabinet has agreed to the next steps for the Treaty Principles Bill. “The Treaty Principles Bill provides an opportunity for Parliament, rather than the courts, to define the principles of the Treaty, including establishing that every person is equal before the law,” says Mr Seymour. “Parliament ...4 days ago
- Government unlocking potential of AI
Science, Innovation and Technology Minister Judith Collins today announced a programme to drive Artificial Intelligence (AI) uptake among New Zealand businesses. “The AI Activator will unlock the potential of AI for New Zealand businesses through a range of support, including access to AI research experts, technical assistance, AI tools and resources, ...4 days ago
- Government releases Wairoa flood review findings
The independent rapid review into the Wairoa flooding event on 26 June 2024 has been released, Environment Minister Penny Simmonds, Local Government Minister Simeon Brown and Emergency Management and Recovery Minister Mark Mitchell announced today. “We welcome the review’s findings and recommendations to strengthen Wairoa's resilience against future events,” Ms ...4 days ago
- Promoting faster payment times for government
The Government is sending a clear message to central government agencies that they must prioritise paying invoices in a timely manner, Small Business and Manufacturing Minister Andrew Bayly says. Data released today promotes transparency by publishing the payment times of each central government agency. This data will be published quarterly ...4 days ago
- Acknowledgement to Kīngi Tuheitia speech
E te māngai o te Whare Pāremata, kua riro māku te whakaputa i te waka ki waho moana. E te Pirimia tēnā koe.Mr Speaker, it is my privilege to take this adjournment kōrero forward. Prime Minister – thank you for your leadership. Taupiri te maunga Waikato te awa Te Wherowhero ...5 days ago
- Interim fix to GST adjustment rules to support businesses
Inland Revenue can begin processing GST returns for businesses affected by a historic legislative drafting error, Revenue Minister Simon Watts says. “Inland Revenue has become aware of a legislative drafting error in the GST adjustment rules after changes were made in 2023 which were meant to simplify the process. This ...5 days ago
- Strong uptake for cervical screening self-test
More than 80 per cent of New Zealand women being tested have opted for a world-leading self-test for cervical screening since it became available a year ago. Minister of Health Dr Shane Reti and Associate Minister Casey Costello, in her responsibility for Women’s Health, say it’s fantastic to have such ...5 days ago
- Ministry for Regulation’s first Strategic Intentions document sets ambitious direction
Regulation Minister David Seymour welcomes the Ministry for Regulation’s first Strategic Intentions document, which sets out how the Ministry will carry out its work and deliver on its purpose. “I have set up the Ministry for Regulation with three tasks. One, to cut existing red tape with sector reviews. Two, ...5 days ago
- Māori Education Advisory Group established
The Education Minister has established a Māori Education Ministerial Advisory Group made up of experienced practitioners to help improve outcomes for Māori learners. “This group will provide independent advice on all matters related to Māori education in both English medium and Māori medium settings. It will focus on the most impactful ways we can lift ...5 days ago
- Government welcomes findings of NZ Superannuation Fund review
The Government has welcomed the findings of the recent statutory review into the Guardians of New Zealand Superannuation and the New Zealand Superannuation Fund, Minister of Finance Nicola Willis says. The 5-yearly review, conducted on behalf of Treasury and tabled in Parliament today, found the Guardians of New Zealand Superannuation ...5 days ago
- First of five new Hercules aircraft takes flight
Defence Minister Judith Collins today welcomed the first of five new C-130J-30 Hercules to arrive in New Zealand at a ceremony at the Royal New Zealand Air Force’s Base Auckland, Whenuapai. “This is an historic day for our New Zealand Defence Force (NZDF) and our nation. The new Hercules fleet ...5 days ago
- Have your say on suicide prevention
Today, September 10 is World Suicide Prevention Day, a time to reflect on New Zealand’s confronting suicide statistics, Mental Health Minister Matt Doocey says. “Every death by suicide is a tragedy – a tragedy that affects far too many of our families and communities in New Zealand. We must do ...5 days ago
- Action to grow the rural health workforce
Scholarships awarded to 27 health care students is another positive step forward to boost the future rural health workforce, Associate Health Minister Matt Doocey says. “All New Zealanders deserve timely access to quality health care and this Government is committed to improving health outcomes, particularly for the one in five ...6 days ago
- Pharmac delivering more for Kiwis following major funding boost
Associate Health Minister with responsibility for Pharmac David Seymour has welcomed the increased availability of medicines for Kiwis resulting from the Government’s increased investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the Government,” says Mr Seymour. “When our Government assumed office, New ...6 days ago
- Sport Minister congratulates NZ’s Paralympians
Sport & Recreation Minister Chris Bishop has congratulated New Zealand's Paralympic Team at the conclusion of the Paralympic Games in Paris. “The NZ Paralympic Team's success in Paris included fantastic performances, personal best times, New Zealand records and Oceania records all being smashed - and of course, many Kiwis on ...6 days ago
- Government progresses response to Abuse in Care recommendations
A Crown Response Office is being established within the Public Service Commission to drive the Government’s response to the Royal Commission into Abuse in Care. “The creation of an Office within a central Government agency was a key recommendation by the Royal Commission’s final report. “It will have the mandate ...1 week ago
- Passport wait times back on-track
Minister of Internal Affairs Brooke van Velden says passport processing has returned to normal, and the Department of Internal Affairs [Department] is now advising customers to allow up to two weeks to receive their passport. “I am pleased that passport processing is back at target service levels and the Department ...1 week ago
- New appointments to the FMA board
Commerce and Consumer Affairs Minister has today announced three new appointments and one reappointment to the Financial Markets Authority (FMA) board. Tracey Berry, Nicholas Hegan and Mariette van Ryn have been appointed for a five-year term ending in August 2029, while Chris Swasbrook, who has served as a board member ...1 week ago
- District Court judges appointed
Attorney-General Hon Judith Collins today announced the appointment of two new District Court judges. The appointees, who will take up their roles at the Manukau Court and the Auckland Court in the Accident Compensation Appeal Jurisdiction, are: Jacqui Clark Judge Clark was admitted to the bar in 1988 after graduating ...1 week ago
- Government makes it faster and easier to invest in New Zealand
Associate Minister of Finance David Seymour is encouraged by significant improvements to overseas investment decision timeframes, and the enhanced interest from investors as the Government continues to reform overseas investment. “There were about as many foreign direct investment applications in July and August as there was across the six months ...1 week ago
- New Zealand to join Operation Olympic Defender
New Zealand has accepted an invitation to join US-led multi-national space initiative Operation Olympic Defender, Defence Minister Judith Collins announced today. Operation Olympic Defender is designed to coordinate the space capabilities of member nations, enhance the resilience of space-based systems, deter hostile actions in space and reduce the spread of ...1 week ago
- Government commits to ‘stamping out’ foot and mouth disease
Biosecurity Minister Andrew Hoggard says that a new economic impact analysis report reinforces this government’s commitment to ‘stamp out’ any New Zealand foot and mouth disease incursion. “The new analysis, produced by the New Zealand Institute of Economic Research, shows an incursion of the disease in New Zealand would have ...1 week ago
- Improving access to finance for Kiwis
5 September 2024 The Government is progressing further reforms to financial services to make it easier for Kiwis to access finance when they need it, Commerce and Consumer Affairs Minister Andrew Bayly says. “Financial services are foundational for economic success and are woven throughout our lives. Without access to finance our ...1 week ago
- Prime Minister pays tribute to Kiingi Tuheitia
As Kiingi Tuheitia Pootatau Te Wherowhero VII is laid to rest today, Prime Minister Christopher Luxon has paid tribute to a leader whose commitment to Kotahitanga will have a lasting impact on our country. “Kiingi Tuheitia was a humble leader who served his people with wisdom, mana and an unwavering ...1 week ago
- Resource Management reform to make forestry rules clearer
Forestry Minister Todd McClay today announced proposals to reform the resource management system that will provide greater certainty for the forestry sector and help them meet environmental obligations. “The Government has committed to restoring confidence and certainty across the sector by removing unworkable regulatory burden created by the previous ...1 week ago
- Police Minister Mark Mitchell to speak to media
Police Minister Mark Mitchell will speak to media on Sunday afternoon at the Auckland Central Police Station. Follow our live coverage here. ...14 mins ago - Australia can’t afford an AUKUS about-face: 5 things the critics are getting wrong
Source: The Conversation (Au and NZ) – By John Blaxland, Professor, Strategic and Defence Studies Centre, Australian National University Three years have passed since the United States, Australia and United Kingdom announced on September 15 2021 that they would enter into a security partnership called AUKUS. A major part of ...3 hours ago - Pope Francis – a message of peace and real change in Pacific political struggles
COMMENTARY: By Laurens Ikinia in Jakarta Pope Francis has completed his historic first visit to Southeast Asian and Pacific nations. The papal apostolic visit covered Indonesia, Papua New Guinea, Singapore and Timor-Leste. This visit is furst to the region after he was elected as the leader of the Catholic Church ...3 hours ago
- Aukus Pillar Two: Australia gets new quantum atomic clocks
Quantum technology is one of eight technologies the US, Australia and UK are sharing more of under the controversial defence pact. ...6 hours ago
- Columnist and political media expert John Bishop dies
He was father of National Party MP Chris Bishop, a former RNZ and TVNZ journalist and chairperson of the Taxpayers' Union. ...6 hours ago
- Transport minister pushed ahead with weaker tailpipe standards to meet car industry’s deadline
Environment officials tried to warn Cabinet the move risked blowing NZ's climate targets - but were told they were too late. ...8 hours ago
- The House: Leading in opposition and building an alternative government
One vestige of the pre-MMP era is the term 'leader of the opposition' - but why does the term still exist, and what does the leader do? ...9 hours ago
- RSF calls on UN to investigate Israeli attack killing photojournalist Issam Abdallah
Pacific Media Watch A month before the anniversary of the death of photojournalist Issam Abdallah — killed by an Israeli strike while reporting in southern Lebanon — Reporters Without Borders (RSF) and 10 organisations have sent a letter to the UN Commission of Inquiry on the Occupied Palestinian Territory, including ...13 hours ago
- New Rail Deviations Needed To Improve Productivity
In light of the governments shopping list of roading projects, TRAC would like to draw attention to the governments total wilfully neglectful attitude to rail, climate change, pollution, road congestion and road safety. ...14 hours ago - Watchdog Report On Places Of Detention Highlights Ongoing Harm
The 2022/23 annual report by the National Preventive Mechanism on the Optional Protocol to the United Nation’s Convention Against Torture (OPCAT) has been tabled in Parliament (Friday, 3pm) ...15 hours ago
- Local MP Opposes Greenwoods Car Park Removal
ACT Leader and MP for Epsom David Seymour has written to Auckland Transport and the Albert Eden Local Board in opposition to removing car parks from the West Side of Manukau Rd at Greenwoods Corner. ...15 hours ago
- NRC Pleased To See RONS And RORS Funding Allocation
National Road Carriers Association (NRC) is pleased to see the Government’s announcements today allocating funding to Roads of National Significance (RONS) and Roads of Regional Significance (RORS). ...15 hours ago
- New Zealand Catholic Church Suppresses Abuse Report
Catholic Church leaders in Aotearoa New Zealand have refused to fully disclose an independent report on how they have handled abuse complaints. ...15 hours ago
- Donations Available To Support Community Waitangi Day Celebrations
The 2025 Waitangi Day Celebration Fund (the Fund) is open until Monday, 7 October. ...15 hours ago
- Clubs Facing Extinction Should Be Empowered To Do Good
Kiwis shouldn’t have to sacrifice their membership of a rowing club or bridge club just because a piece of legislation loaded on costs in a cost-of-living crisis. The people running these clubs are busy parents, grandparents, and hobbyists building ...15 hours ago
- Striking Social Service And Support Workers To Rally For Decent Wages
Union members are calling for a 5% increase for all members to keep up with the cost of living. This is their second strike in three weeks, after eight months of negotiations led to Visionwest offering meagre pay increases ranging from 0% to 2.6%. ...15 hours ago
- Shane Jones Called Out For Seabed Mining Misinformation
The minister for mining and burning, Shane Jones, is trying to take New Zealanders for fools with inflated claims and misinformation about seabed mining off the coast of Taranaki, says Greenpeace. ...15 hours ago
- NZ Needs A Safe Rates System To Protect Transport Drivers And Other Road Users
Lance Gush, FIRST Union organiser, emphasised the importance of a Safe Rates system in Aotearoa for both drivers and other road users. ...15 hours ago
- Submissions Open On Amendment Paper No 84 To The Regulatory Systems (Economic Development) Amendment...
We have decided to extend the deadline for submissions on the Regulatory Systems (Economic Development) Amendment Bill to invite submissions on amendments proposed by the Minister for Economic Development, in Amendment Paper No 84. ...15 hours ago
- Fertiliser Pollution Set To Continue Under Ballance’s Call For More Fossil Gas
Greenpeace Aotearoa is denouncing Ballance Agri-nutrients’ call for more fossil gas production, maintaining that urea needs to be phased out altogether. ...15 hours ago
- Free Speech Union Submits In Opposition To Law Commission Consultation On Amendments To Human Rights...
The paper examines extending section 21 of the Human Rights Act prohibited grounds of discrimination to include people who are transgender, non-binary and with innate variations of sex characteristics. ...15 hours ago
- Taxpayer Victory: Health Research Council To Actually Research Health
Health research isn’t a game. Lives depend on medical advancements, and every cent spent on frivalous pet projects is money that can’t go towards improving outcomes for Kiwis. ...15 hours ago
- Government spend on emergency housing drops nearly a third in a month
The government is celebrating the decline, saying emergency housing is not safe for families to live long-term. ...15 hours ago
- Luxon office protesters say at least 15 Hector’s dolphins killed from fishing since he was PM
At least 15 Hector's dolphins have been killed from fishing activity since Christopher Luxon became Prime Minister almost a year ago, a protest group says. ...23 hours ago
- The Secret Diary of .. Sheriff Seymour
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It’s under whelming for sure. Seems to be no plan in many areas aside from let the existing BS of self regulation and ticket clipping carry on.
Not even a decent critique of the damage they inherited being banged on about ad nauseum to fill the void.
I wonder how aware they are of the totality in terms of crumbling infrastructure around NZ that national and it’s local govt cronies perpetrated over 3 terms of kicking many cans down potholed shoulderless roads.
That in itself is a massive issue for the short-medium term but I don’t see any rethink of that broken model of local/central govt.
Whist I agree with the sentiments of your comment, I would like to promote an alt view to “hat national and it’s local govt cronies perpetrated over 3 terms of kicking many cans down potholed shoulderless roads.”
Both the 99 and 08 govts. were similar in a few major aspects :
They had a highly competent, stable senior leadership (in that the direction they followed)
For 2 terms, both had laid the foundations to do something special, but both decided to continue in their 3rd term of “steady as she goes”, and in doing so missed the opportunity to place NZ in a position for the future. Be that future proofing our infrastructure, protect the environment, solve the then emerging housing issue (and the flow on effects that this has caused) and to use your phrase kicking cans …
NZ was worse off, due to both 3rd terms of the Labour 05-07 and Nats 14-17 govts. And the weakness resulting of what was left of both defeated parties following the election loss, and their inability to hold the govt to account.
Doing something special by your definition was flooding NZ with offshore tax haven and other funds which hoovering up the property it was causing to escalate and assets they were stripping.
Banking 101 playbook stuff which is what shonky and his cabal did in 08 all the while ignoring the infrastructure impacts and knock on effects of the ‘have money, come on down’ approach.
99 inherited the Shipley/Richardson beating NZ had taken whereas key/blinglish in 08 had net zero crown debt after Cullen/Clark laid foundations, righted the ship which they duly went about gutting, underfunding and selling off.
Not at all, read the comment !!!
THEY LAID THE FOUNDATIONS TO DO SOMETHING SPECIAL, is not the same as what you said I said !!!!!
TC 100% correct.
This Governmenrt need bold policies not setting up the ‘avisory group crap’ yet again as National did; – by using ‘private ‘consultant advisors’ through MBIE; – as that agency has inbreed idiots running it.
A couple of fundamental flaws with your precis.
Both Marx and Keynes imagined a world of limitless growth and even without that restriction Kalecki foretold of the reaction of capital to a reducing share of the output.
The abnormal growth enjoyed post WW2 until the mid seventies can be truly seen as the result of the exploitation of cheap mobile energy (oil) and production processes developed for industrialised warfare to enable an unprecedented manufacturing and consumption boom…that was the source of massive increases in productivity.
It ended when the price of that cheap energy doubled overnight. Manufacturing lends itself to productivity growth, services not so much…and advanced economies are largely service economies.
Interestingly NZs “stagflation” in that period under Muldoon occurred with a debt to GDP ratio akin to todays….and we havnt improved our balance of trade since.
Autors argument that we have and will create demand for unknown goods and services ignores the limitation of resources (much as Marx and Keynes) and in such a world we will have to choose where those resources (and their externalities) are best used, removing the luxury of creating demand for demands sake.
This NZ Government (and all governments) face a near impossible task….how do we design an economy (thats part of a whole) that provides for all demands, with diminishing resources and growing expectations?
We are going to have to choose carefully what are needs and what are wants……and that is going to cause one hell of a shit fight.
I thought the OP was excellent overall.
You wrote:
In the OP:
I disagree with the OP that there is no framework to ‘design’ an economy as you describe. The (our) current system wasn’t ‘designed’ either and it kind of grew ‘organically’ and has delivered many things.
Rather than tinkering with the current system, e.g. a little more focus on socio-economic outcomes such as inequality and a little more focus on the environment and so-called sustainability, we need to try something new, something that has not been done before.
This will require taking risks, trying out new things (prototypes), testing, failing & rejecting (!), and stepwise improvements. Nothing gets designed from scratch in one go and certainly not life in human society; it is an ongoing process of change & evolution that will take (many?) generations. It most definitely is not an academic, rational & logical, or intellectual exercise!
There are plenty of new and exciting progressive ideas to try out. Agreed, as such there is no cohesive framework and structured targeted approach. Such “intellectual and ideological framework” will be formulated later, when things are becoming clearer, by ‘prescient visionaries’ who are finely attuned to what’s going on and subsequently by intellectuals/academics and pundits in no particular order 😉
The current system (AKA the Devil we know, BAU, or status quo) cannot and will not last even though it has delivered much and is still functional, by and large, although its obvious flaws have also become evident. The time scale by which change will occur may be a lot longer/slower than some of us would like though but change is inevitable and happening as we speak …
our current system was by and large designed, and any move away from it will require design and goals. unless you subscribe to chaos….and as noted if we (NZ) decide such a step change we also need to consider compatibility with the rest of our trading partners, unless we intend isolationism, and unless it is to be imposed by an authoritarian regime it needs to be supportable by mandate….and that is likely the most difficult aspect. not so much the mechanism but the politics.
There are alternative paths but I wouldnt be advocating for them nor do I believe would the bulk of the electorate, and waiting for some ethereal organic solution at some indeterminate future date is as appealing as BAU..and neither will we be provided the time.
And isnt that the role of political parties in a democracy?
well habermass became a christian and marx said I am not a marxist so beware of words masquerading as reality. there is more at stake now as the world plunges head on into mass extinctions and global warming caused by political pandering to the gross desires of consumers. lets have new theories about that!
Meanwhile the National Party has used and NZ media is willing and inviting, to Australian right wing commenters to put their oar in to help in influencing voters against Labour. I think the Australian government has just enacted something intended to keep foreigners out of their politics.
We have seen an inter-country thing of interns working for the left or right in Australia, and I suppose vice versa as if they are the same breed. This can lead to a lot of supposedly informed antipathy and sour comment for years as they mature into their narrow area of self-satisfaction. We don’t want Oz jtypes joining in the haranguing of NZ with their hostile banshee caterwauling. This behaviour must have some negative affect on our polls when it is mischievous or damaging comment whether from NZ or Oz tyros.
Brigitte Morten is a Senior Consultant for Silvereye. Prior to that she was a senior ministerial adviser for the previous National-led government, and an adviser and campaign director for Australia’s Liberal Party.
http://www.radionz.co.nz/news/on-the-inside/361672/top-demise-shows-fate-of-vanity-parties
RNZ 8:08 am on 13 July 2018
TOP demise shows fate of vanity parties
…People generally join political parties because they want to be heard, want to have a say on policy and want to have a sense of ownership of making it better. A party built around a dominant central figure – like Gareth Morgan – fail to provide people in the long term with that ability.
You might be willing to be the one that sets out the morning tea for a while – but in the long term if you don’t have a sense of ownership over the clubrooms as ‘your club’ you are unlikely to continue to do so.t
Some of her points might be salient. But we don’t need cynical comment from Australia to tell us these. And calling TOPS a vanity party dismisses the earnest effort that Gareth Morgan made to introduce fresh practical workable ideas into the morass of failed policy dragging us down. Ultimately he messed his own nest and the left didn’t take to his ideas which seemed too narrow. But they were ideas and they put some mental fuel into some seized-up brains. It was a very useful exercise for NZ citizens which he primarily funded himself. So Australian commenter talk about your own Pauline Hanson ever present over the Ditch? Now there is Vanity!
Vanity working on a weak head, produces every sort of mischief.
Jane Austen
Read more at: https://www.brainyquote.com/quotes/jane_austen_399068?src=t_vanity
greywarshark,
yesyou are right, Labour need to take bback the public media now as National have ‘hijacked TVNZ and RNZ to spout National Party policy,
Then we need labour to do this instead; – and fire “clueless Clare Curran”who allowed this to happen, as minister of broadcasting she must be a national party plant..
A Govt. not based heavily on rorting ( in somewhat opposition to the prevailing neo-lib ruling class & it’s conventional wisdom) is something to be thankful for these days. There’s not much else to be said for otherwise it’s a rather big can of worms eh ? !
NZ1st!
One of the most thoughtful OP’s here for sometime Ad. I’d recommend everyone read it a second time and address the points.
Karl Marx, of course, would not be surprised. He predicted that capitalism’s internal logic would over time lead to rising inequality, chronic unemployment and underemployment, stagnant wages, the dominance of large powerful firms, and the creation of an entrenched elite whose power would act as a barrier to social progress.
Marx’s observations were nothing new; inequality has been a feature of all developed human societies for all of recorded, probably deeper, history. Capitalism merely amplified the problem, while playing a large role in solving the poverty problem, it exacerbated the inequality issue. In that Marx was right; but his cure has fallen catastrophically short. Or as the well known quote goes “right solution, wrong species”.
There are three broad ways we can address inequality, one is to address the obvious symptoms using tools such as legislation and education to maximise equal opportunities; progressive taxation and redistribution to flatten out the income gaps, and investing in social and physical infrastructure to widen access to the wealth and benefits of the economy. All these are classic left-wing responses at a state level.
Another approach is to counter the natural tendency for the power elites to corruptly entrench themselves, with broad-scale labour and social movements such as Unions. Again a classic left-wing response at a social level, but not immune to it’s own concentrations of power and corruption.
The idea that is percolating around in my head is that the element missing here is the idea of a left-wing response to inequality at an individual level. Now we cannot nor should not attempt to make all people equal in terms of outcome. We are all different for good reasons. Some people will always have more wealth, status and power than others. The crucial question is … what do they do with it?
Historically this response was mediated by a religious ethic, the core idea that indeed “I am my brother’s keeper”. It manifest as both philanthropy and charity, both of which have and still do contribute a great deal. In lefty-liberal circles both of these are typically sneered upon because both were associated with wealthy donors controlling and imposing an agenda on their generosity. The mere association with wealth tends to taint all charitable acts as self-serving in some form.
But we can look past this. There is the biblical ‘Parable of the Talents” telling how a master who gave three of his servants a sum of money before leaving on a journey. On his return he asked each what had been done with it. One had buried it safely and returned the sum intact to his master; the second had invested some cautiously and showed a modest return, while the third showed a handsome return.
https://en.wikipedia.org/wiki/Parable_of_the_talents_or_minas
It’s a story with many interpretations; but it has some key features. One is that the master gave the money with no conditions other than the expectation the servants would be wise stewards of it. It also makes it clear, we are all different and will respond differently to the same opportunity. But most crucially in my mind, it tells us we are expected to do something useful and responsible with the chances we are given. The two servants who took their opportunity and invested it with other people and in the community were rewarded. They were not just the recipients of the money, they in turn extended it to others and as a consequence not only improved total welfare but also reduced inequality.
Of course the money is also a metaphor for the whole of our lives; it asks the question …. what are we living for? In pure evolutionary terms we tend to seek wealth, status and power for reproductive purposes; it’s a strategy deeply embedded in our genetic hard-wiring. But we are also the first post-Darwinian species, our software may be constrained by the biological CPU it must run on (at least for the time being) … but we do get to socially construct new purposes for our lives.
And in my view at least, maybe for the first time in all of our deep evolution, we can realistically start to contemplate the idea that the purpose of our lives is to be responsible for ourselves and to be of service to those around us. This is how we can all attain to excellence as a legitimate expression of our own unique selves, and at the same time link to each other in a way that is both supportive, constructive and mitigates inequality across the whole of society.
OK so it’s a Sunday …. bite me 🙂
Having just come out of Mass a couple of hours ago, I still can’t always tell if the Parable of the Talents is from Supply Side Jesus or Demand Side Jesus.
Cheers RedL it’s good the stretch the legs sometimes with a longer piece.
Having just come out of Mass a couple of hours ago ..
If religion is the opium of the Masses ,is OPM( other peoples money) the religion of the few?
I hesitated on whether to use this parable or not. On one level it could be pointed to a justification for much despised idea of ‘trickle down economics’. In it’s defense you could argue the problem with that theory was that at each level people tended to hoard or ‘bury’ their wealth, rather than use it constructively.
Al Franken of course rightly caricatures this. (Incidentally ‘camel’ was crappy translation of the Greek word for ‘thick rope’, but the critter with humps is more visually entertaining.)
Still I’m unconvinced there is anything fundamentally wrong with the idea of ‘standing on your own two feet’. After all from a position of utter deprivation you really are of no use to yourself nor anyone else.
Hmmm, the way I read this it is strangely at odds with your outstanding comment @ 6 and I agree with Ad (@ 6.2) that that is worthy of a post in its own right.
We seem to forget that we haven’t and won’t always stand on ‘our own two feet’. Babies & infants, the sick, the elderly, the displaced (i.e. refugees or earthquake victims), for example, cannot stand on ‘their own two feet’.
A paraplegic (e.g. Christopher Reeve) or a long-term coma patient (‘brain-dead’, e.g. Terri Schiavo) also have something useful to offer us and provide an opportunity to bring the best out in us, to help and support and to care for one another. During the reign of neoliberalism the individual-collective duality has moved away from integration and transcendence but this inevitably will swing around.
In an economic-materialistic sense we, the 99%, can barely ‘stand on our own two feet’, most of the time. We try to keep our heads above water and try pulling others back up to surface; it’s an ongoing battle ‘for air’. Meanwhile, for the 1% the sun always shines bright and they make hay, lots of it.
Psycho-spiritually almost all 100% of us are hovering under/near the waterline and still crawling in the mud. The few ‘enlightened’ ones that get cast higher up onto ‘dry land’, by accident of ‘sheer luck’, find themselves in absolute awe of their new experiences yet unable to formulate these to the wriggling biomass still stuck in the mud; they wouldn’t listen and trust/believe them anyway (if this reminds you of Plato’s Cave Allegory you are correct; https://thestandard.org.nz/the-accidental-bodyguards-of-capitalism/).
In other words, it’ll take time …
I’ve no quibble with any of your excellent response above. Unquestionably the degree to which we can all take responsibility for our lives is a huge variable. You nail it here:
In an economic-materialistic sense we, the 99%, can barely ‘stand on our own two feet’, most of the time. We try to keep our heads above water and try pulling others back up to surface; it’s an ongoing battle ‘for air’.
Absolutely I get that; it’s why I keep returning to inequality as the core issue. And what you are saying here touches directly on why it is so very difficult to grapple with.
Ultimately we have to use strategies that work in the worst case scenarios; the kind of god awful hell that people who’ve hit rock bottom face on a daily basis. And at a bare minimum that means ‘standiing on your own two feet’ to the extent that you can. And then reaching out to help those nearest to you.
RedL your response is a post in itself – why not reframe it and offer it up?
My quandary with the “left-wing response to inequality at an individual level” is that it needs exceedingly empowered and anointed individuals to break out. Jesus regrettably didn’t have a good theory of the state either – and not that great a theory on collective action.
But.
What gives me hope for New Zealand most of all is that we are a relentlessly entrepreneurial people, and we adapt fast, and many of us do have an unsatisfied hunger for excelling ourselves to the limit that pushes us out of here overseas.
So far that’s not been knocked out of us by the enervating arms of our state.
So on that note I prefer the parable of the mustard seed as a metaphor of relentless self realization amidst tough constraints.
I’m afraid that government, in its zeal to obtain the desirable features of capitalism, has been too quick to accommodate the wishes of various corporate entities without considering the impact on those a left party is supposedly impelled to serve.
A recent example would be the Wellington bus drivers – the new government has been active in arranging to move people off the dole and into work – but this has been to some degree at the expense of existing drivers, and the overall effect is to at least temporarily depress wages in that sector. No wonder the corporates cooperated.
Likewise, Phil Twyford’s flagship housing program is hollowed out by the use of substantial amounts of cheap migrant labour instead of training locals. Looks like a short term fix eh. But it’s not. There’s a crisis of skilled labour in construction because successive governments let the industry deskill. You can get away with it for a while, while you have a supply of experienced foremen to keep the newcomers to standard. But when they retire you’d better have new ones coming through, and you don’t get them by driving down wages and conditions with cheap foreign labour.
Christchurch is a fucking mess from cowboy construction and the lies told at various levels to keep it in business. This is the future for NZ if the model continues, together with increasingly expensive inspection and permitting regimes that try to contain the damage. It’s about time NZ governments moved away from disastrous short term fixes and aimed at steady reliable systems. Like the ones they pissed away with Rogergnomics.
The polls are great? We are in second place with simon f-ing bridges led nation in first (i know its mmp but still nothing to bloody celebrate) and our bffs the greens have been polling at 5% and everyone knows they always get 2% less than what they poll.
I perform 4 times a week to crowds of over 100 and most of the crowd will be in their early to mid 20s. I also ask do we have any jacinda fans in the room i used to get massive cheers for her name now a couple unsure wooos.
Jacindas not the rock star she was among the youth because people know this government is full of shit and so do i. A government of change? HA! A government of tweaks at best.
The next election is an election based on tax reform and labour has never won a debate on tax. The only thing labour has going for it is nationals hopelessness.
Noone believes we will do anything meaningful on poverty, homelessness,mental illness or housing and what we have done is mere tweaks, empty promises and pretty speeches about change that isn’t coming, dont go roynd the country promising systemic change and then deliver national party budgets and tweaks.
I was so excited about this government and now i do t care if it gets reelected, like moat of my generation.
I’m inclined to agree, it seems there are real limits to what left-wing govts can achieve by fiddling with the macro settings at a state level. Govt is an important element of positive change, but manifestly insufficient by itself.
It’s like we have to do some work ourselves.
Agree with much of what you say, Cynical jester, but even a lost Labour are a hell of a lot better than an on task actively pillaging National party! It’s a bitter pill to swallow but after a decade of Natz, I’m still very relived they are finally gone for a bit.
And it’s those aged in their 20’s who will get the most effects from bad government policy so they need to vote the best available option, which used to be Green.
‘Not caring’ for millennial’s is not a wise option.
Cynical Jester, Your audience has a 7 minute concentration span…. 6 weeks is too long!!
You could be correct Jester. I wonder if Jacinda will be NZ’s Obama. A great communicator but no real change. As you say, mere tweaks. Keep NZ Inc happy. BAU.
+1 all this under Rogernomics… trickle down never occurred.
“Since the late 1970s, median household income in New Zealand, adjusted for inflation, has stagnated for the bottom 60 percent of the population, even as income for the richest New Zealanders has soared. Corporate profits are at their highest levels since the 1960s, yet corporations of any note are taking those profits offshore rather than reinvesting them locally.”
Yet still no adjustment to help keep corporate profits in NZ and to ‘shock horror’ put in policy to increase the bottom 60% of population… it’s getting worse with new ways to pay below even minimum wages aka ‘dependant contractors’ ahhh that should be an employee. Or the bin rates of fruit picking to be stuck in the 1980’s… while business tells everyone they can’t find people? These jobs used to be good for the unemployed and students!
Liam Dann in the NZHerald has just posted on New Zealand falling in global rankings as an innovation leader.
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12091676
I’m not prepared to go down the full path of targeted v untargeted industry assistance as a debate. It’s a whole post in itself.
But if ever there were a warning that good economic conditions and great polls are precisely the wrong time to not bother with a really strong set of country-wide engagement initiatives, the stats from Liam Dann are bracing.
Fine blaming the previous government, so long as your own plan is far better and more effective.
They better be.
We need to recognize the actual political seeds of our present day problems with income inequality and excessive housing costs, this is actually primarily caused by wages not keeping up with asset price inflation.
A couple of articles on where the left (in France) took its neo-liberal turn, and which policies it needs to actually rehabilitate to leave this course.
http://bilbo.economicoutlook.net/blog/?p=39842
“That political reality was too stark for the public to accept and necessitated a smokescreen being erected to disassociate the rising unemployment from macroeconomic policy choices.
The rising unemployment was reconstructed by the political and bureaucratic spin-doctors as a ‘structural’ problem reflecting a failure of individuals to be self-reliant and assiduous in job search and skill development.
A bevy of securely employed and highly paid economists pumped out a massive number of ‘research’ papers, which served to give authority and legitimacy to this ideologically tainted and empirically bereft view.”
http://bilbo.economicoutlook.net/blog/?p=39846
This criticism could probably have been leveled at the outcomes of the governments “future of work” initiatives,
“The major weakness of the White Paper is that it fails to recognise that the key problems at the present time are those of demand management and that the immediate questions in tackling unemployment are thus macroeconomic ones. Instead, the report concentrates on what it calls ‘rigidities in the labour market’, which seem to provide a pretext for attacking all forms of legislation or agreements to protect labour, combined with a general call to cut labour costs.”
Any suggestions from those papers for the current government of New Zealand?
When the author of those blog posts last spoke in NZ he suggested implementation of a fully state funded job guarantee scheme. This would probably require some changes in how the reserve bank operates as they presently target what they estimate to be an ideal unemployment rate (ideal was 4.5% unemployment at last report). A job guarantee is likely to cause the unemployment rate to fall substantially so the reserve bank should probably switch to targeting something else like the rate of job guarantee employment as a proportion of total employment.
Then there are some other suggestions like, just stop issuing government debt (and make all the budgeted spending happen internally at the reserve bank). This is to deal with the propaganda and miss-information around government spending.
I’m guessing that it’s an issue that needs further study funded.
“The owner, the employees, and the buying public are all one and the same, and unless an industry can so manage itself as to keep wages high and prices low it destroys itself, for otherwise it limits the number of its customers. One’s own employees ought to be one’s own best customers.”
Henry Ford 1926
http://www.saturdayeveningpost.com/2014/01/03/history/post-perspective/ford-doubles-minimum-wage.html
A fine quote, but he was one of the worst and most militant of the anti-union oligarchs. It took him until 1941 to sign his first contract with the Auto Workers Union.
But Ford was inclined, as the quote above suggests, to see his employees as an essential component of the business. He likely saw the concept of them belonging to an outside entity such as a Union, with competing interests, as potentially at odds with this. And the question could be asked, where his employees necessarily better off before or after they joined the Auto Workers Union?
I’m not positing an anti-union stance here, merely suggesting there are other paths to go down. For instance the German auto workers, while belonging to strong unions, are also closely represented within company management and regard the company interests as closely aligned with their own. And it’s no accident they are the highest paid workers in the industry.
Ford’s view of workers was in total capture, of the most patrician variety possible.
https://www.theguardian.com/cities/2016/aug/19/lost-cities-10-fordlandia-failure-henry-ford-amazon
Agree with your point about German workers.
Also the German history of guilds is so impressive.
I don’t recall any mention of Ford hiring private muscle to beat or kill Unionists.
Which was common for many of the employers in the USA, at that time.
Hardly in the ball park of the worst.
Are you aware of the Battle of the Overpass?
Ford’s goon squad could have given lessons to the Gestapo.
http://www.peoplesworld.org/article/battle-of-the-overpass-henry-ford-the-uaw-and-the-power-of-the-press/
I don’t recall any mention of planned murders, but Ford certainly had a fondness for anti-union violent thugs. Here’s just the first hit for a google search of Harry Bennett, Ford’s favourite goon.
http://www.autonews.com/article/20030616/SUB/306160746/harry-bennett:-henry-fords-chief-thug-targets-uaw-later-threatens
Ford hunger march. Five dead, 60 injured.
Battle of the overpass. At least three injured.
I stand corrected.
Marx never came up with a mechanism to predict the breaking strain of a capitalist society.
My suspicion and hope is that the current government are actually a different beast to the last thirty years, which followed the line that the government did as much as conceptually possible in the first term and then ran out of steam.
Whereas the current government seems to have set longer term goals and will be measured against their progression towards those goals.
Marx never came up with a mechanism to predict the breaking strain of a capitalist society.
Because it’s remarkably resilient; and brings some real benefits. If it was all bad we’d never tolerate it.
What impresses me much more than Marx are the more modern researchers, such as Picketty, who are far more accurately measuring the impacts of inequality. It’s from this work we are more likely to make convincing arguments for exactly where the constraints and boundaries need to be placed on the capitalist model.
I sort of view them as doing the same thing as Marx but without the philosophical baggage.
Much of Marx’s work was developing historical models and gathering contemporary data about the working people in society. The thesis/antithesis/synthesis prediction of communism was pretty dodgy, IMO. But his work on factory conditions and the inequalities of the time was almost the textbook for modern researchers. In that aspect Marx was the political equivalent of Snow, semmelweiss, or Takaki.
Good article,
When is labour goping to spend money for our new TV channel to restore the “TV 7” with ‘real investigative journalism public affairs programing’ that they set up ast time around?
A new quality TV public channel? This government has reneged on that. Minister(?) Clare Curran has been ‘educated’on the birds and bees, and has given up. It’s BAU folks. Labour is getting its instructions from business. Got to keep business happy, or else..
Not really knowing why, they stubbornly and blindly blundered on anyway.