Capitalism, coronavirus and cronyism

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Around the world governments are preparing huge bailout packages in response to the coronavirus pandemic.

It’s good to see Greenpeace taking a lead in encouraging people to feed in suggestions for a package based on human need, climate justice and long-term sustainability.

But don’t hold your breath – it’s not going to happen.

In New Zealand Ardern’s Labour-led government is working with Treasury, the Reserve Bank and the corporate sector to develop New Zealand’s big budget rescue passage. Human need, climate justice and long-term sustainability are not in their vocabulary.

Saving businesses is the first priority – workers losing their jobs are collateral damage and, after minimal help, will have to fend for themselves.

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The irony in all such bailouts is that those who grow the fattest in good times, at the expense of the rest of us, are the first to demand handouts when times are tough.

And so it will be. The big corporates who fund the election campaigns of National, Labour and New Zealand First will be first in line with buckets in hand. In all but name they have designed the package for themselves.

It’s also important to remember these corporate bludgers pay a pittance in tax at the best of times. They pay a far lower percentage of their income in tax than those who earn their incomes through wages or salaries. It is workers’ taxes which will bailout businesses.

And the government will oblige. After all, the government will need their big corporate donations for the election campaign later this year.

After all, the big corporates want the best political party that money can buy.

And the rest of us will pay for it.

7 COMMENTS

  1. I hope that the government is putting real pressure on the banks to do their bit in this crisis
    Year after year billions of dollars of profit have flowed from the big banks to Australia. Now is the time for pay back.
    I am hoping there will be a big announcement regarding substantial mortgage and business loan holidays for those affected by this pandemic.its a chance for the banks to show their colours

  2. Never was a truer word spoken. Privatise the profits socialise the losses.

    “Human need, climate justice and long-term sustainability are not in their vocabulary. Saving businesses is the first priority – workers losing their jobs are collateral damage and, after minimal help, will have to fend for themselves.”

    All those airlines around the world (I hear most of them will be bankrupt by the end of May) have no doubt handed out nice dividends over the years, and the idea that any of them will be bailed out is an anathema to me. Save some for a rainy day isn’t that we are all told even those on pathetic little benefits. Although the government buying more of our airline I am happy with at this point but no ‘loans’.

    • If all air travel dies then the planet and humanity will benefit
      Humans need to adjust to a simpler basic cleaners less wasteful lifestyle.

  3. Unions and workers representation are absent in the discussion with govt.
    The banks will do well with the mooted financial package as will international lenders the gutless governments of nz will call on.
    This coming crisis is a time that calls for the govt to supply its own money not borrow to add to the trough the pigs feed from.
    New money in NZ comes from the Reserve Bank and private banks. RBNZ 2.7% being replacement coins and notes, private banks 97+% from creation of fiat loans. All those business loans add a bonanza to the annual banksters haul of many billions making the $12.1Bn govt package look very small.
    Time for a change is well overdue.
    Rumble.

  4. I and my wife can’t go to India because of the Corona virus. We had intended to go to aizawl in north east India for my friend diana Pachuau s wedding. However the Indian government is not allow ing foreigners into mizoram where she lives.

  5. This ‘mini’ crisis is all good for the major one of climate change. Even Labour isn’t soldered to conservativism, more to ‘politics is the art of the possible’. They are, maybe, just as ready to do what is necessary for the people. You’d have to consult Helen about that. Certainly not ready to talk for truth, though Ardern is capable.

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