GUEST BLOG: Bryan Bruce – Gee some people get upset when I dare to examine the governance of Labour and Greens

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Gee some people get upset when I dare to examine the governance of Labour and Greens. They seem to think that by doing so I am somehow pushing the electorate towards a National led government. Nothing could be further from the truth .

Those of you who have been following my page since I made my documentary Inside Child Poverty in 2011 will know that I was even more critical of National’s neoliberal management than I am of the current government’s continuation of that same economic philosophy.

No. Our current Prime Minister has often said she is happy for her government to be held to account . That’s all I am doing .

As a candidate for Prime Minister Jacinda Ardern stated on RNZ that “neoliberalism has failed “ implying her government would be progressive and a “transformative” one.

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The trouble is… Labour and Greens had already signed what they called their “Fiscal Responsibility” Rules which basically said that if elected they would NOT fundamentally change the way the economy is run.

In other words we won’t produce progressive budgets, we and will continue to run a neoliberal self-imposed austerity economy which promotes the interests of the wealthy few at the expense of the many.

So even at the time of announcing the death of neoliberalism the Prime Minister knew her Party was going to keep the economic philosophy it had introduced in 1984 on life support

Now, those things are facts of history and shooting me as the messenger won’t change them.

Here, for example, are a couple of things that agreements says

“Under the Budget Responsibility Rules the Government will:

• Deliver a sustainable operating surplus across an economic cycle
• Reduce the level of Net Core Crown Debt to 20 per cent of GDP within five years of taking office”

Well those two things are pure neoliberalism.

The fact is we have one of the lowest public debt in the OECD but some of the highest private debt.

Why is that important ?

Because there was a time ( a progressive time) when the State used to borrow overseas at very, very low rates of interest and passed that benefit on to its citizens through low home mortgages for example.(Offered at a slightly higher rate than they had borrowed at in order to pay back the overseas loan) .

When Labour introduced their neoliberal economic policies in 1984 (which the “fiscal responsibility” rules demonstrate they still adhere to ) they pushed Public Debt onto Private Citizens . How? Well (in my home loan example) by handing the mortgage loan business to private banks who have used it as a licence to print money.

A progressive government would take control of the mortgage market again.

And ask yourself. Why is Finance Minister Grant Roberston so determined to salt $5 Billion away through self- imposed austerity when teachers , nurses and doctors for example are so desperate for help the have to strike for better pay and working conditions?

The answer is that he is a neoliberal not a progressive Minister.

Promising to lower our already low public debt (by international standards) is to act in the interests of Capitalism and the already wealthy few. It is not an economic policy that makes Capitalism work for the State and in the interests of the many.

Here’s another thing the Labour-Green “Fiscal Responsibility” document says:

“•Ensure a progressive taxation system that is fair, balanced, and promotes the long-term sustainability and productivity of the economy.”

Clearly our tax system neither “fair” nor “balanced”.
The Tax Working group said so but the current Labour-led coalition has not only rejected its key recommendation (which was to make the wealthy pay more of their fair share through a Capital Gains Tax ) the Prime Minister has stated it will “not happen while she is leader”.

Now that’s a neoliberal decision from someone who , prior to the election , stated that neoliberalism ” has failed.”

You can argue all you wish that Winston Peters and NZ First have blocked some Labour and Green progressive policies on some issues, but that is to ignore the contents of the self -imposed “fiscal responsibility” neoliberal rules Labour and Greens signed prior to the election .

They actually put in writing that they never intended to be progressive in their economic policy , so we should not be so surprised if they are behaving very much in the style of the previous National led governments albeit with a slightly softer face.

In my book those “fiscal responsibility rules” are actually “socially irresponsibility” rules.

They allow the 10% of us who own 60% of the wealth of our country to continue to get tax free perks while the 40% of us who own barely 3% of anything of value are required to pay an unfair tax on their food.

So, at the risk of repeating myself , it is my contention that the reason you are not seeing a signicant effort to reduce the yawning gap between the rich and the poor in our country is that the current Labour-led coalition government is philosophically at odds with itself …because you cannot promote the politics of well-being while practicing the economics of selfishness .

PS It also explains why I chose a picture of Big Bird from Sesame Street for today’s post – because that big yellow character always looks so puzzled when it discovers that  “One of these things is not like the other “

 

Bryan Bruce is one of NZs most respected documentary makers and public intellectuals who has tirelessly exposed NZs neoliberal economic settings as the main cause for social issues.

43 COMMENTS

  1. It’s not like New Zealand is cash poor. New Zealand companies have the strongest cash reserves and balance sheets between revenue and borrowing since the formation of the NZX. So we have cash it’s just in the form of productivity gains. The 10% of New Zealand’s wealthiest has taken all of the new income represented by a 10% productivity gain and I’ll come back to this.

    So another thing is that rebuilding a government budget isn’t as simple as raising one thing alone like benefit levels. Okay so you raise benefit levels and all that cash goes straight into subsidising landlords holiday Homes and lifestyle rather than directly improving the conditions for New Zealand most vulnerable. So you kind of have to raise the level of funding across every government department which is subject to the whites of who ever is in government at the time.

    So one way to avoid all of that political jargon and bullshit is to introduce a levy on employers by increasing employer contributions to kiwi saver by 1% or 2% and avoid all the calculus. All that money is future consumption that is being spent as we speak to improve access to health, entertainment and transport an so on. And every one will do it if they want a decent health system and education and so on.

  2. “As a candidate for Prime Minister Jacinda Ardern stated on RNZ that “neoliberalism has failed “ implying her government would be progressive and a “transformative” one.”

    Transformative my ass

    This govt has been a growing disappointment

    Walking back on CGT and implementing only 3 of 42 reccomendations from the Welfare working group is hardly transformative

    If this is the “high bar” set by Ardern’s govt then a child could step over it

    You just keep doing what youre doing Bryan .Hold this govt to account

    • Got it one hundred percent Mjolnir.

      If this is transformative government, I’d hate to see a timid Labour-led govt.

      “Stardust”, anyone?

    • Mjolnir: “Transformative my ass”

      Indeed. Very neatly put. Like others here, I completely agree with you.

  3. Well said Bryan.

    Labour and National have essentially run a “neo liberal consensus” between them since 1984, retaining the Reserve Bank Act, SOEs, free in and out flow of capital etc.

    I support the Govt. on the basis that they are delivering some needed reforms, but, the political priority for activists and academics etc. if the coalition are re elected, is surely to help advance the rolling back of neo liberalism at long last. The miserly fiscal cap must be raised, at the very least.

    Support for this can hopefully be developed from “generation rent” and “generation student loan”, too many boomers are part of the problem with unearned income from “renters” and untaxed capital gains.

  4. I am with you Bryan Bruce 100%

    I am a Labour/NZF voter now!!!

    So we are also criticising Labour for broken promises, yes we should and here is the reason.

    We were told by our leader Jacinda Ardern to “pull up Labour if they fail to honour all promises made pre/post election.”

    Jacinda said this on TV to the nation while saying her first speech on the first Waitangi day, while on the Marae.

    Jacinda. “Lets do this”

    • Cleangreen: “I am a Labour/NZF voter now!!!”

      I’m an old Lefty: I’ve always voted on that side of the spectrum (though not always for Labour).

      We should not vote for this lot again. If they’re returned to government, they’ll believe that what they’ve done (and signally failed to do) is ok with voters, and they’ll just carry on along the current path.

      In truth, I’d rather have the Natz back: at least they were honest about their intentions. The current administration is pusillanimous and – even worse, were that possible – mendacious.

      Away with them!

  5. When Labour can publicly put roger douglas and his mob who never stood for Labour’s values, well behind them and renounce the privatisation and breaking up of public assets and community services; then people may start to listen to policy with a new understanding.

    At the moment neoliberalism still controls the party and cracks the whip.

    The trickle down to employment for shrinking wages while trickle up to record Corporate profits is not the deal Kiwis want.

    Labour never stood for this until douglas and his henchmen under the egotist Lange, changed the shape of NZ for the worse. We have not recovered and the legacy seems to have spouted wings.

    Labour may pussy foot around making small adjustments while the fabric of the county continues to be privatised, local councils devolved to CCOs and private contractors, urban transport now run by private companies.

    Govt agencies like Ministry of Work, Railways with it comprehensive workshops and facilities, have been broken up and dealt a death blow by NACT and Labour since. The pool of expertise and skills have been lost.

    Many small towns and rural communities which had grown around Post Offices, died by the hand of roger douglas and have never recovered.

    The social fabric provided by Govt has been a vital element in rural and urban NZ, an element that cannot be replaced by privatisation for corporate profit.

    Labour need to show and about turn.

    Meanwhile climate urgency demand a stronger Govt hand in taking the reins from Business NZ and instituting a change of direction from BAU.

    Planning for a future is a Govt task, not one put out for tender.

    • Yes John said it all here.

      Climate change is our biggest tragedy facing us and also even your family Jacinda!

      So get going, and actually doing something concrete about the climate change.

      Refrain from just rubbing you shoulders with the UN ‘hob nobs’ about hate speech.

      Remember – Climate change, climate change, and make climate change your nuclear moment and stop diddly-dallying around.

      The clock is ticking fast towards the 2020 election.

      Tick tock tick tock tick tock!!!

    • … ‘ When Labour can publicly put roger douglas and his mob who never stood for Labour’s values, well behind them and renounce the privatisation and breaking up of public assets and community services; then people may start to listen to policy with a new understanding ‘…

      ——————————

      Great post . All of it.

  6. Great stuff – what we need is a TV debate with the PM and yourself. I have now let my membership of the Greens lapse after 16 years, sadly they are not the party they were when Jeanette and Rod were leading it.

    • Well said michal.

      Yes ‘Bomber and jacinda’ – I would really love to see the debate between them.

      My Green vote went back in 2005, way even before the Greens wanted to court National which was a savage desertion – disappointment to many then.

  7. “You cannot promote the politics of well-being while practicing the economics of selfishness”.

    Well said. There has been nothing transformative about this Labour-led coalition Government to date. There’s been some tinkering around the edges… otherwise it’s business as usual.

  8. Yes well they are half way through their term so bring it on.

    I know that members of Labour were furious that Minto called her our ‘women’s weekly’ prime minister.

    • 🙂

      Well,… as the Queen and her royal family , so also Jacinda Adern apparently… in a good way in many respects, however. I still must say ,… given the choice of the coalition and Adern ,.. I would vote for the coalition hands down. It is flawed, seems to not kick against neo liberalism,… a little like Aunty Helens ‘steady as she goes’, they have made blatant about faces, …but this is all we’ve got currently to work with.

      I suggest a a new political party kick started by the Trade Unions… they have the numbers and the will ( though some don’t obviously ) to do it.

      GUEST BLOG: Bryan Bruce – We need an escape plan « The Daily Blog
      https://thedailyblog.co.nz/2019/05/…/guest-blog-bryan-bruce-we-need-an-escape-plan…

      In particular… the comments made by JASE .

      THIS could work !!!

  10. Well I must say ,that before Adern became PM, and Robertson the Finance Minister, I really did not like them or trust them. At all. I always suspected Robertson as being a raving neo liberal and that was confirmed ages ago.

    I did not like the look on Adern and Robertson’s faces when David Cunliffe was chosen as leader of the Labour Opposition. It just confirmed my suspicions even more.

    But I guess I am / was just grateful that the odious, devious and corrupt National govt was finally overturned – along with the equally if not more, – odious, devious and corrupt John Key. Nine years of that corruption (tax havens and mass surveillance ) , that filthy , stench ridden ,lying Dirty Politicking betraying govt. ( think of the illegality that occurred to Kim Dotcom and his family for just ONE example).

    And all they ever did was blatantly sell off our state homes to private concerns ( or tried to) , our water, our land , our education system (think favoritism and pushing the private schools agenda ) tried to run down our health system to pave the way for private health , undermined our trade unions, – all they ever wanted to do was privatize, privatize , and privatize some more.

    They never gave a damn about us.

    Just their hoity toity ( many of them foreigners ) bullshit wealthy in crowd.

    The rest of us could die and rot in the gutter and go to hell for all they cared.

    We owe a lot to Andrew Little. He was bold and realistic . In a grand move, he humbly handed over leadership to Adern and Adern worked wonders. She has surpassed all the toxic far right wing criticisms. With flying colours. I am glad she is our PM. I’m glad NZ First and the Greens are in power along with Labour. Call it what you will , but they are currently the best pick of a bad crop.

    But I will never trust Robertson. I have warmed to Adern somewhat , and I guess I have allowed myself to be swept along with the tide , but I’m still glad she is there and not that devious Bill English, – let alone John Key. 100% glad, in fact. But Labour have made some very serious about turns, – which may come back to bite them midway through next term ( and they will be in for a second term , rest assured) , you cannot keep doing that to the public. And this is precisely the problem with trying to cover up a lie like neo liberalism.

    Its like putting out fires with gasoline or whacking moles at a fairground. It cannot be suppressed.

    The far right wing seems ( at least the more willfully blinkered and denialist of them ) , – to have this strange and peculiar ( almost ignorant) notion that there never was a time when there was anything BUT neo liberalism, or , – worse,- that conditions before that had us all living in caves , wearing leaves and eating straw.

    Hugh Price of Hugh Price Publishing would beg to differ,- so would I.

    New Right Fight – Who are the New Right?
    http://www.newrightfight.co.nz/pageA.html

    What he wrote about was a system that was known as Keynesianism. Named after John Maynard Keynes , a brilliant Professor of economics from Cambridge University , England. The west followed the Keynesian plan and EVERY country that adopted it came out of the red and into the black from the Great Depression within six months ! Even Japan followed it with the same results. America rejected it saying it ‘was too simple’… but then followed around a year later. And into the black they went.

    It was in effect from around the mid 1930’s to 1984. ( in NZ ). Similar to other country’s around the globe until Ronald Reagan and Maggie Thatcher. The World Bank and the IMF was created specifically for it until it was hijacked in the mid 1960’s by the neo liberals – most pertinently from the Mont Pelerin society by using such ‘ mouth pieces’ as Milton Friedman.

    It was a period of time globally that was the most prosperous of all time.

    NZ itself was the 6th wealthiest in the world in 1965, – just behind Denmark. It was a time when all the good things we enjoyed we took for granted and were covered by our taxes. Free education, free health, and relatively full employment. Our dams, our roads, our forestry’s , – all built up by our taxes and STILL ,- we were the envy of the world for our quality and standard of living.

    So yes, in theory we could still find our way back.

    Indeed we could. But it would take a power of overt , prolonged and incredibly vocal protest at every level to do so. It would take constant agitation in the media complete with embarrassing political interviews, charts, historic precedents to shift the privileged mountains we have allowed to build like a toxic , belching Vesuvius ready to blow.

    It could be done. And I would say it would have to start with the Unions.

    This is nothing to do with the petty identity politics of the Woke Left. They’ve had their day. They have been exposed for the anemic , nebulous frauds that they are. This is about the very things that impact daily on far too many peoples lives in an incredibly negative fashion.

    This is essentially a class war.

    And historically ?- it took a massive economic collapse to bring in changes the first time around . The Great Depression of 1929. That’s the sort of pressure needed to prise the wealthy elites from their ‘ born to rule’ mentality.

    The threat of loss of wealth by a global population that no longer has the consumer purchasing power to buy their products. The threat of riots, and civil collapse.

    Essentially , the very reason why John Maynard Keynes was called in to rectify global economics in the very first place. We could experience that destructive radical situation such as the Great Depression as a motive for change ,… or we could implement it by steady increment instead as an insurance against the coming massive meltdown. The latter would be far less disruptive, with ever increasing social benefits , via wealth once again in the community , more political stability , and , – for any party putting in motion these things , – would be sure to enjoy a very , very long, long time in office indeed.

    So the question to ask Jacinda Adern might be ; is political obstinacy , embarrassment over part of her chosen party’s negative history , – particularly the 4th Labour govt , – or risking the ire of a relative handful of vested interest elites that pull the strings in this country worth it to NOT make these necessary changes ?

    We shall see.

    I will leave you with this electrifying speech by David Cunliffe when he was elected leader of the Labour party by the members – NOT the neo liberal caucus. You will see why he was betrayed by them roundly.

    Shame in them.

    Campaign Launch 2014, speech from David Cunliffe – YouTube
    Video for david cunliffe election speech you tube▶ 30:31
    https://www.youtube.com/watch?v=5srcxBinZy

    • Hi W.K.

      I clicked on the link for the You Tube video of David Cunliffe’s speech that you supplied at the end of your comment, but it just came up “Video Unavailable”.

      • Hi mate… in order to see it, click and drag / highlight over the entirety ie :

        Campaign Launch 2014, speech from David Cunliffe – YouTube
        Video for david cunliffe election speech you tube▶ 30:31
        https://www.youtube.com/watch?v=5srcxBinZy

        ^^^

        Click and highlight the whole lot and paste on google or whichever server you use. I had the same thing when I had saved it and tried to open it was disappointed … but when I did what I explained to you , – it worked.

        Sorry about that,… anyhow’s, – click and drag and highlight the whole kaboodle then post on your server and it should work .

        🙂

  11. 100% Wild Katipo.

    Mammoth precise doco should be made on Public TV with your critique of the changing guard of the heart of the Labour Party Wild Katipo.

    A mammoth compendium of facts and tragedies of our time.

  12. “Because there was a time ( a progressive time) when the State used to borrow overseas at very, very low rates of interest and passed that benefit on to its citizens through low home mortgages for example.(Offered at a slightly higher rate than they had borrowed at in order to pay back the overseas loan) .”

    Yes bring back a State Advances Corporation. But of course this would require overseas borrowing, government debt.

    Or would it? There are alternative methods of financing.

    1. ‘Printing money or quantative easing’ and this can be done direct to the public via a State Advances Department/Corp mortgages rather than quantative easing where banks get to clip the ticket.

    2. Taxation finance. Institute a “Bank Profits Export Tax”. Currently banks export over $6 billion of profits per year. This profit leached from middle class home owners and renters. Thats $1000 for every man woman and child in the country per annum. A 50% “Bank Profits Export Tax” rate could see $3 billion per year available for a State Advances Corporation. (Oh the banks would whine and cry but they would not leave the country and leave behind the remaining $3billion in profits).

    And who in government would support this? An internventionist Winston. Labour if they grew a pair. The Greens when they are advised properly.

    Where is the downside? Issue half a million of these low cost mortgages over ten years and ‘reciprocity’ would suggest you will lock in a pretty sizeable left vote for at least a generation.

    • Brilliant.

      Both points 1 and 2.

      This is another bold set of initiatives that should have been tried, alas the neo liberals wouldn’t wear it. I would say that if the Unions seriously put their hand to the wheel and a political party was born out of it,… these would be the only activists with the sheer numbers and bold , unfettered countenance enough to do it.

      Winston Peters and NZ First I could definitely see supporting it. It would effectively be,… a massive tool to help destroy the neo liberal grip on the country. Something he’s always wanted to see. He was like Sir Robert Muldoon, ( like them or loathe them ) – an old time conservative, … not a neo liberal pirate like Douglas or Richardson. Hence why Peters has always opposed it but was forced to work with and around it despite himself.

      ——————————-

      … ” We don’t like extremists, – we believe in laws and policy’s that support the mass majority of New Zealanders , and not just a small elite ,… who may have gotten control of the political system and the financial funding of political party’s , … shows that in this campaign ” …

      – Winston Peters.

      23/9/2017.

      Peters said the sell off of New Zealand interests to overseas buyers was the “continuing story of this country’s decline since the 14th of July, 1984”.

      ——————————-

      I cannot recall the figures for how much profit goes offshore but Australian banks are creaming it at an obscene level. At OUR expense .

      This is profit that should be staying in New Zealand, – not be exported to Australia. Or any other bunch of offensive foreign grabastics. I have also said before about the printing of our own mint for these and other purposes . As have people like Draco T Bastard and others here and over at The Standard.., many have.

      ——————————-

      * GRABASTIC

      “You are the lowest form of life on Earth. You are not even human fucking beings. You are nothing but unorganized grabastic pieces of amphibian shit.” ( Gunnery Sergeant Hartman in the film , ‘Full Metal Jacket’. ) Brilliance in film. Encapsulates what I have thought about neo liberal exponents throughout the decades totally , in fact.

      I would also add another definition ,- grabbing as much as you can in a self centered , egotistical and narcissistic manner that is to the detriment of all others. ( Think characters such as Bernie Madoff ).

    • Nah. All you’ll succeed in doing is creating a branch from the original timeline so when you return back to the future (today), it’s an Alternative Timeline. The original timeline remains unchanged (and off-limits to you in your time machine).

      To us, in the Original Timeline, you’ve simply disappreared forever and Rogernomics took it’s course according to history.

      Enjoy your Alternative Timeline… 😉

      • Ha !… and we now see that it was Lange and his colleagues who had the ‘smell of radiation’ on their breathe… at least regards to what they did surreptitiously / overtly to the people of NZ …

        But to his credit and posterity , at least Lange saw the full evil of Douglas and his cabal in the end. His is a tragic story of being in control, yet not in control.

        I do not believe it was Lange who did this , it was Douglas.

        He is the man who should of been before our courts for treason… him and all the rest of those such as Richardson , Shipley et al…

  14. Well said BB. Labour is neo liberal lite, so far. They have to find a single, definitive project e.g free public transport,. Railway expansion and full electrification of The main trunk line, state trained apprenticeships building, with supervision, sufficient state houses, expanded Kiwibank and constrain overseas ( foreign ) Limit migration and growth.

    • Yes,… quiet , steady incrementalism that slips below the radar and is forgotten after a few months. Stealth. The exact antithesis of Douglas’s rip shit and bust ‘Blitzkrieg’.

      Very Sun Tzu.

      Yet the REAL Coup d’état , – without the violence , – should be the quiet planning and formation of a Trade Union based political party , – yet announced with such sudden ferocity as to catch Labour off guard once policy’s are established . That way it would force a dilemma and split among’st the neo liberal elements of the Labour neo liberals and make them realize that they are now about to lose a massive part of their voter base in one fell swoop unless demands are met.

      And even if they ARE met, – following through with the formation of the political party regardless and irrespective of any ‘negotiations’ the neo liberals may put forward.

      For that is how the neo liberals have treated the working people of this country, – with absolute disdain and contempt.

      The groundwork should be beginning now,… as the rumblings of discontent are starting to bubble up and surface…

      ——————————-

      “Let your plans be dark and impenetrable as night, and when you move, fall like a thunderbolt.”

      – Sun Tzu.

      ——————————-

  15. Well said BB. Labour is neo liberal lite, so far. They have to find a single, definitive project e.g free public transport,. Railway expansion and full electrification of The main trunk line, state trained apprenticeships building, with supervision, sufficient state houses, expanded Kiwibank and constrain overseas ( foreign ) Limit migration and growth.

  16. “….the current Labour-led coalition government is philosophically at odds with itself …because you cannot promote the politics of well-being while practicing the economics of selfishness.”

    As a family member has pointed out, Ardern is a neoliberal and therefore on the right wing of the Labour party.

    For that reason, we should expect nothing substantive regarding the rolling back of neoliberalism from this government.

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