Having starved the economy and created record unemployment the government is now preparing to stick the knife into the Kiwis it has failed – if they can’t find a job in this broken economy they’ll see their benefits reduced.
Of course like all welfare policies this is an employment policy in disguise. People will just take worse and worse work as the safety net shrinks and and increased labour market supply depresses the price of labour and the quality of jobs. The macro-economic effect will be to depress wages and conditions across the board.
Workers should take note of the whitcoulls workers who have been told to ditch their redundancy and overtime rates or land in the dole queue – that’s coming for each and everyone of you and just like in the 90’s the employers’ catch-cry will be “if you don’t like it there’s a hundred beneficiaries who’d do it for half the price.”
If it wasn’t for all the misery this is going to cause I’d be getting nostalgic – it’s starting to feel just like Ruth, Jim and Jenny are back.