Another 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):
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:
“Raisng the minimum wage reduces jobs”
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.
“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:
* 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.
1) Even if Key is telling the truth (which is pretty far-fetched and increasingly unlikely given Snowden’s testimony), they still:
– legalised what they’d already been doing – spying on NZers;
– while it was still illegal, made a “business case” and got a plan underway for mass surveillance; and
– worked on it for a year until John Key (claims he) “limited its scope.”
(Note how he’s changed his story within a day from “there is no ambiguity – no mass surveillance” to “there was a plan but I scrapped it” to “the plan got underway and then I ‘limited its scope’ a year later”).
Key claims to have offered proof with his self-interested declassification of information, but in fact this information pertains to a completely different programme – the release served no purpose but to divert and mislead. Occam’s razor, international experience and reliability records suggest he’s not telling the truth, and the implications of that are huge.
2) Kim Dotcom completely screwed up his big reveal of alleged proof Key knew about him before he said he did, and opened himself up to accusations it was faked. Failing to offer water-tight evidence did more harm than good. In fact, the theatrical way Kim’s gone about this whole event has been self-defeating.
Nonetheless it still seems likely Key also lied about his knowledge of Dotcom, and put “political pressure” on Immigration to grant him residency so they could more easily extradite him to the US. If this is NOT true, they need to somehow explain why procedure and official advice wasn’t followed, what the “political pressure” referred to in the immigration e-mail was, and David Cunliffe is certainly right that “if Mr Key wants to show the email is a fake, he needs to release meeting records and all documents with correspondence with Warner Brothers dating from 2010 which needs to be “immediate and full”.” Something tells me we won’t get to see those records.
Unfortunately these revelations probably won’t end this government. They would only do so in a society where truth and government accountability were valued.
Key’s usual pattern is to simply disagree with the experts, banking on the fact that the general public have more trust in his smiling face and apparent financial nous than some tall poppy experts with their high-falutin “statistics,” “evidence,” “research” etc. It works spectacularly well in post-modern New Zealand.
“He’s one academic, and like lawyers, I can provide you with another one that will give you a counterview.”
Unfortunately, NZers’ trust in the man is such that he can say something like that, and the worst people will think is “Well, the other side are probably just as dishonest, so I’m going to disregard this. He still seems like a good bloke, and he and Bill English seem to be good with money.” Which is of course exactly what their PR is designed to make us think.
Please prove me wrong, New Zealand!
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:
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.
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 critic.co.nz. 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.
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
allcrown 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.”
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.
“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.”
“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.”
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.