Tagged: beneficiaries

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”

TRUTH 1:

Sydney Morning Herald

new york times

Business Insider

CEPR 1

CEPR 2

DOL 1

DOL 2

treasury

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”

TRUTH 2:

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 tradingeconomics.com; annotations mine.

Hone and Johnny

Harawira and Key

John Campbell has started a series of interviews with party leaders and their partners in their homes. The first two were with John and Bronagh Key and Hone Harawira and Hilda Halkyard-Harawira.

Both couples feed John a meal and talk about their lives and their political involvements – that’s about where the similarities end. Hone has photos on his wall from the Springbok tour protests. John famously can’t remember his stance on that issue, but he vividly remembers when he first wanted to be Prime Minister a few years earlier.

This is a good illustration of the main difference between Key’s and Harawira’s interviews, and indeed their overall political personas: Harawira’s interview is far more about politics and real issues, while Key’s is far more about superficiality, personality and content-free generalities like “making a difference” and “economic management” (Ha!).

Key does talk about “vulnerable people” and kids in poverty after Campbell observes the extreme wealth of their context. But for him these “vulnerable people” are an abstraction – they’re completely absent from his life.

Harawira’s concern for the marginalised is far more real. His biggest achievements are sacrifices he’s made for real live vulnerable people – be it Māori, the poor, South Africans suffering under apartheid, or his grumpy father-in-law. Mana’s policies are primarily motivated by real justice for those who most need it.

Moreover, Key’s claimed concern for kids growing up on welfare belies the fact that his government has kept benefit rates at 1991 levels. 1991, you may recall, was the year National deliberately set benefits to only cover 80% of minimum nutritional needs. This was an attempt to incentivise people into accepting the new low-wage jobs – or at least, those lucky enough to find jobs. They also encouraged a certain level of unemployment to drive wages down and again incentivise these poverty-wage jobs. This shows individual incentivisation may fill low-wage jobs, but it can’t cure unemployment: that requires broader socio-economic changes. These policies were and are sacrifices of the poor to support rich poverty-wage employers.

Two things have changed since then: One, poverty dropped slightly among working families (see p.47 here) since the last Labour government’s third-way policy, Working for Families. Key called WFF “communism by stealth” at the time, but he’s kept it, and praises it in the video for how it subsidises low wages. Two, National’s rhetoric is all anti-unemployment these days.

But three things still speak volumes: One, Key’s more willing to use taxpayer money to subsidise poverty-wage employers than make them pay living wages. Two, he sees no problem with WFF’s exclusion of beneficiary children from assistance, even though he notes they’re the majority of kids in poverty. Three, Key looks no further than individual solutions to the societal issue of unemployment.

Meanwhile, the real-life vulnerable people who miss out on the limited number of subsidised jobs offered by this “economic management” suffer now more than ever. Key thinks leftover Labour policies and welfare scapegoating is enough to help them. Harawira does not. I know which one I’d rather vote for.