Category: economy

I am so sick of this obvious lie, pt 2

Unemployment under Lab and NatAnother obvious lie too many National supporters believe is that Labour are bad for employment (because they raise the minimum wage too fast), and National have “solved unemployment” (because they’ve made it harder to maintain benefits):

National supposedly solved unemploymentkey labour anti jobs party

Now, it is true that Labour raise the minimum wage much faster, and that National cut welfare (in a recession!). But the unemployment rates have been more like the other way around,* and anyone suggesting National are better than Labour at keeping unemployment down is either believing or promoting a lie.

Actually, it’s a couple of lies… but they’re both obviously bollocks to anyone who’s spent five minutes looking into them:

LIE 1:

“Raisng the minimum wage reduces jobs”


Sydney Morning Herald

new york times

Business Insider






As usual, Gordon Campbell says it best:

If, as Key claims, Treasury has done research that shows major job losses would result from gradual increases in the minimum wage, then this amazing information would be world news – because the vast weight of academic research around the world ever since the groundbreaking David Card/Alan Krueger work in the US fast food industry 20 years ago, is that it would do no such thing.

LIE 2:

“National have solved unemployment by making it harder to get the benefit”


I’ve covered this before, and so have many others. Basically, kicking people off the dole (or DPB/invalid’s/sickness benefit) doesn’t magically put them into jobs; it just increases the number of people lacking either work or welfare (which has hit a record 110,000 since National’s bennie-bashing “reforms”). Creating a desperate unemployed person doesn’t create a job for them to go into.

This confusion arises from a basic failure to understand the difference between individual problems/solutions and socio-economic problems/solutions, as sociologist C. Wright Mills pointed out 55 years ago:

Mills quote

* It started to get bad under the Lange (& Douglas) Labour government, which was actually more like a Bolger/Key National government than a Labour one. Of course, just like with debt, things are more complicated than one graph could show.

PS: Graph and truncated y-axis from; annotations mine.

Voting National is not compatible with caring about climate change. Full-stop.

Generation Zero have just released an article suggesting “You can do Both … Vote Centre-Right [and] Care About Climate Change.”

They offer three ways this is supposedly possible… in reverse order:

3) Don’t Vote for ACT or the Conservatives (which is true, but kind of like saying if you care about people, don’t murder anyone)

2) Consider party voting United Future, Maori or New Zealand First (OK, those parties do/will prevent some of National’s most extreme policies, but you’re still actively blocking the possibility of a Prime Minister who’s actually sure he believes in climate change)

And worst of all:

1) Vote for National but make it clear that you care about climate change (Sorry, No.)

They seem to have forgotten their own previous release about how Bill English (deputy PM and the guy basically in charge of everything except selfies and smear campaigns) thinks climate change is “a non-issue at the moment, because there are more pressing concerns,” and wants to adapt to climate change after the effects are felt rather than mitigate against it now.

If you doubt their anecdotal account, English later confirmed in Parliament that he did say it, and does think it. Besides, it’s entirely consistent with National’s record. They provide little more than lip service to climate change – and often not even that: they don’t even answer questions about it, including Generation Zero’s!

The truth is: If you want to vote centre-right and care about climate change, vote Green. In global and historical context the Greens and Labour are centre-right. (National are hard right and ACT have no place being mentioned in a blog with the word “centre” in the title).

However, it’s doubtful whether a “climate voter” can vote for any party that supports sustaining the capitalist system, given that capitalism is based on an unavoidably anti-environmental premise: that we can have infinite growth in a finite world. Sorry, that’s not possible, and neither is prioritising both Creation and Mammon.


Steven Joyce ate all the universities


You might think tough economic times are a good time to do some study, but that hasn’t been true under this government. This week my union showed clearly and simply the damage Steven Joyce and National have done to tertiary education since 2009:

Step 1) They’ve made tertiary institutions “fund[] more people for less money while costs rise,” and there’s no sign of funding keeping up with inflation, let alone increasing student numbers, any time soon.

Step 2) Therefore, staff:student ratios have worsened at all our universities.

Step 3) All our universities have decreased their world ranking scores, and these drops are “closely related” to the worsening staff:student ratios.

Steven Joyce supposedly has a master plan for tertiary education – but it’s basically just funding cuts, along with shipping in more international students to make up the funding, more postgrads (but no more student allowance for postgrads), making governance corporate rather than democratic and making tertiary study less a critic and conscience of society, more a skills factory for the economy. The above stats clearly show it’s not working. Lincoln University has followed Joyce’s formula more closely than any other university in NZ. They’re not included in the above data because there’s not enough information available – but they’re in deep trouble economically at least.

The national students’ union, NZUSA, suggests a very different approach – funding full fee scholarships and support services for the first in any immediate family to get a degree. It would cost $50 million a year, surely a bargain in terms of the benefits it would bring: obviously it’d be great for the students and their families, and for building a fair and socially mobile society, but it’d also reap huge dividends for the economy by utilising people and talents that usually fall through the cracks. What Steven Joyce claims to want – tertiary education to benefit the economy – would be better achieved by this than by his exactly opposite approach.

PS: The obvious objection is “but money has to come from somewhere! If they didn’t cut tertiary education funding, something else would have lost out!” To which I say: correct… Perhaps anti-democratic irrigation schemes or anti-environmental motorways or anti-poor tax adjustments should have lost out.

PPS: I wrote the title of this blog before I found the above picture on Surely there’s something wrong with your tertiary education policy when it leads at least two people to independently describe you as chowing down on universities.

I am so sick of this obvious lie

Debt as percentage of GDP

Debt raw figures

I am so sick of hearing the blatantly untrue mantra that Labour are the party of debt and deficits, and the Wolf of Wall Street party are more responsible with money.

You only have to look at the figures to realise this is a lie. But it’s a very successful lie, because apparently hardly anyone actually looks at the figures.

Frank Macskasy does, and has been powerfully refuting this bollocks from National MPs and leaders for years now.

And yesterday, Mickysavage from The Standard responded to the latest idiot millionaire (good at making money, not so good at fact-checking National spin) to whom the corporate media has given uncritical voice to trumpet this propaganda. He says it better than I can:

Rod Drury: “What I’d like to see is the Government have another term because they’ve had two terms where they got the debt sorted …”

Mickysavage: “Such economic illiteracy coming from such a senior businessman is a worry.  It obviously needs to be repeated that in June 2008 Labour had paid off all crown debt and the crowns accounts showed a slight surplus.  By September 2013 net Crown debt had reached $60 billion and increases in debt are predicted for years to come.

Of course many will then trot out Key’s mantra that Labour had left the country with a decade of deficits but this statement is essentially a lie. The Global Financial Crisis was the cause of the sudden change in the country’s finances but instead of Helen Clark and Michael Cullen being blamed I can suggest many other names of those who should take responsibility.  Names such as Wall Street, Morgan Stanley, Bear Stern and my personal favourite Merryl Lynch.  Because it was a bunch of robber merchant bankers that brought the world’s economy to its knees.”


UPDATE 30/08/2014:

Here’s a couple more graphs and a couple more quotes, to help illustrate the various impacts of the GFC (for which Key was partly responsible), the 2010 tax changes (which made tax regressive for the majority of incomes), and the Canterbury earthquakes.

However, please note that the main point of this blog was never to say National have been irresponsible with their deficits and debt (I tend to think they have been, but it’s a complicated question). The main point was to show that the right-wing suggestion that Labour are irresponsible with deficits and debt is completely unfounded.

Nominal GDP

Herald 2013:

“The estimated cost of the Canterbury rebuild has been increased … Mr Key said the budget would also show the estimated net cost of the earthquakes to the Crown would rise from about $13 billion to about $15 billion.”


Treasury 2011:

“Tax as a proportion of GDP is slightly below OECD averages and has declined markedly over the last few years … New Zealand has, like other countries, faced a cyclical decline in tax revenue as a result of the global financial crisis but there were also important policy steps which reduced tax revenue between 2004–05 and 2009–10.”

P.S. 16/09/2014:

I’ve written a sequel blog on the equally pernicious lie that National are better for employment than Labour, because (it’s assumed) beating up beneficiaries and keeping wages low are good for unemployment.