If only Labour’s NeoKindness could help beneficiaries, renters & cannabis users the way it helps property speculators

1. You are being far too kind to Labour here.

   This was a deliberate and cynical strategy to limit the fallout from any recession so as to a). win 2020 and; b). hold out till we can turn on the tourism/immigration pumps on and Grant’s legacy isn’t tarnished. This is the RealPolitik of the middle. Your vote is secure because at worst you vote Greens therefore are never against Labour. The strategy here is to ‘lock up’ the middle vote which has always been the key to electorale victory. So if Karen and Karen see their side-by-side Mangawhai batches increase by $100k and have the ability to buy a new X3 and some furniture for the lounge then you retain their vote by-and-large.

   The problem becoming evident is the speed that the market has moved and shows no sign of slowing down. Lower interest rates have meant that affordability of increased debt is minimised and please don’t rely on LVR restrictions as a silver bullet given by the time they are introduced the capital gains/increase in value across the market will make these nul in void largely. The banks know this and will be adjusting on this as we speak.

   The irony of course will be the people most affected will be the PM’s most vocal cheerleaders: the urban poor and young, university educated singles. For them, like in a number of Western Countries it’s a life of rental unless they want to move out of the big cities.

2. The meme that keeps on giving

3. Anyone who genuinely wondered what Labour would do if re-elected minus the “Winston Handbrake” now has their answer–Nothing! Many of us more experienced followers of politics knew this in our hearts, but just did not want to accept it ahead of the 2020 Election results.

   Labour has never apologised for Rogernomics, because the toxic legacy of “Roger’n’Ruth” has continued across each election due to the main party Parliamentary Neoliberal Consensus. This means essentially that which ever combination of parties forms an MMP Govt. the legislative and structural elements of monetarism do not change. The Reserve Bank Act etc. rollover whether it is a National or Labour led administration. It is a lesser evil proposition not a positive vote “for something”–unless you are a 1%er, a 9%er (managerial and entrepreneurial class) or multiple property owner–then you are voting for an increased bank balance.

   And frankly the current Labour Caucus sees no need for change so thoroughly indoctrinated and lacking class analysis they are. In 2019 the bottom 50% of New Zealanders owned a mere 6% of the wealth! So the top 50% can definitely afford to share!

   Direct Action is the only thing that will turn Jacinda and Robbo’s hearing aids on. The 60 NGOs, including NZCTU and Salvation Army, showed the way (mildly) with their joint approach to the PM over raising benefits before xmas. The working class and allies must take action throughout this majority Labour Government’s term–or people will become more passive and cynical. The task is to unite all who can be united to build a campaign to kick out the neo liberal consensus for good in 2023, and win reforms in the meantime.

   • Any idea that cannot begin to operate before 2023 is already to late to be worth considering. Global warming is now and its not on Labour’s bucket list.

4. The NZ Government has had an extremely busy year yet it’s never enough. The election campaign also seemed to go on forever. Despite that and the ink not yet having dried on new portfolios etc, the calls have been relentless lately how they should be doing this that, and the other, and how everything must be done yesterday. The fact it hasn’t occurred has given people in some circles carte blanche to restart the cycle of ridicule against Ardern. From my perspective, these attacks appear to be motivated by the writer’s need for copy one way or another now the brouhaha of the election is over and most people have retreated to their corner.

   I’m all in favour of giving beneficiaries a leg up but there must be a clear distinction between benefit levels and the minimum wage. We’ve been hearing plenty about NZ workers being lazy and unwilling to apply themselves to fruit picking etc which results in fruit rotting on the ground. Then there’s the other side that says fruit pickers are not paid enough. If you paid beneficiaries another $50 a week, what hope would you then have of giving them an incentive to rejoin the workforce? As for minimum wage workers. They have their own expenses associated with working which is one of the reasons the Government went into bat for them to incrementally lift the minimum wage. A situation that has attracted considerable negative feedback from the business sector. It’s not in NZ’s best interest to make it more appealing to be on a benefit than being in the workforce.

   Tenants have been given more assistance by this Government in the last 3 years than any other Government has for decades all the while being attacked and ridiculed every step of the way.

   I’ve been an occasional cannabis user for many years. I was deeply disappointed by the recent referendum and the result. The say nope to dope campaign was allowed to totally misrepresent cannabis with graphic advertisements. They got serious traction with their fearmongering all the while the yes brigade sat on their fucking hands. By the time they put their hand up, it was too little too late. Gentle and thoughtful perspectives were no match for what the nope crusade produced. One clearly understood the significance of Television advertising while the muesli munchers put all their eggs in the wrong basket and let down legions of cannabis users. Their limp noodle campaign snatched defeat from the jaws of victory.

   Imagine how the yes supporters would feel had they won the non-binding referendum only to then have the no supporters have their way. We’d be dirty and spitting tacks. Many kiwis despise the result but we are stuck with it for now. Blaming Ardern for the result and her Government respecting that result is fucking ridiculous. The finger of blame needs to be pointed elsewhere.

   The same applies to the farcical situation we have at present with investors raping the NZ housing market at the expense of a great many people. The first problem we had in March was with knob jockey economists predicting a 15% drop in house prices. Many adamantly claimed it would be even worse. I only witnessed one economist say there were too many variables to be confident one way or another. Shamubeel Eaqub. Every other expert got it 100% wrong. Very few if any allowed for the impact returning Kiwis etc would have. The Reserve bank panicked and lifted LVR restrictions for a guaranteed 12 months which was the perfect storm to feed the greed of investors at the expense of first home buyers etc. The prudent thing to do was go 6 months at a time and minimize potential carnage if God forbid the eggspurts were wrong. LVR should be reinstated immediately. Even the protocol of the Reserve Bank dictates this should occur if house prices were increasing too quickly which they very obviously are. The Reserve bank sitting on their hands now over LVR is all about covering their own arse than anything else.

   NZ desperately needed a capital gains tax to bring a level of fairness into our tax system. Winston Peters put a stop to that and threatened to bring the government down over it. His actions were worthy of contempt only. It had nothing whatsoever to do with putting NZ first. It was all about putting NZF, first. We are paying the price for that now. Ardern had to take all the heat out of it which is exactly why she not only ruled out the CGT but stated it wouldn’t occur as long as she was PM. It was a shithouse situation she was put in by Peters with a policy she knew NZ was in desperate need of.

   It’s time the finger of blame was pointed in the right direction for a change.

   • I partly agree about the Cannabis Referendum, of course the actual result must be respected, but not forever!
     NORML, Make it legal, Drug Foundation, etc., had a very complex catch all piece of proposed legislation to deal with, and they foolishly tried to address every aspect in a fractured, underfunded publicity campaign.

     Plus Andrew Little and the Govt. basically hung the Referendum out to dry, once they granted it to technically satisfy the Greens agreement, it was dropped like the proverbial. Little and the PM’s spring loaded response of “that’s it folks!” once the result was out, showed exactly how much enthusiasm they really had for the whole business.

     Winston’s behaviour, including the bloody letter to the Governor General, was reprehensible. That so many voters saw through him was one of the highlights of Election night for me, along with Chloe Swarbrick defying predictions in Auck. Central. But Winston is gone now, and the Labour Party could pass pretty much whatever legislation they like. But Jacinda and Robbo do not seem to like anything that challenges monetarist doctrine or the 36 year old Parliamentary neo liberal consensus.

     Housing–all they need to do is get the RB under control in the next few weeks and months, and build thousands of dwellings around the country to cut the legs off rentiers and speculators–use imported flatpacks if necessary. If they don’t, and even Dr Cullen and all sorts of right wingers say the should, then it is all going to be on as low paid workers and beneficiaries, and their families, hit the wall in some very unpleasant ways. Even Labour loyalists such as the NZCTU are getting a wake up call.

     No need to Bennie Bash or trot our the “deserving poor” trope JF, post COVID underemployment and unemployment will be a way of life for thousands more people, that is why there are so many advocates for a Basic Income administered by IRD. The stigma against the underclass–the children of Roger and Ruth–has to be ended. Labour has the first 12 months maximum to act, or they are setting NZ up for absolute chaos in the 2023 election.

     • Tiger Mountain,

       No beneficiary bashing here brother. As I said I’m all in favour of giving those on benefits a leg up. We must, however, be mindful of the gap between low-income wages and benefit levels. If the gap is not big enough the incentive to get out of bed in the morning and go to work gets flushed. Balance is important. I’m pro beneficiary and the low-income workforce.

       As for the 2023 election being chaos. It will need a few things to go badly wrong to compete with the election we’ve just had on that score.

       Hypothetical question. Imagine voters turned on Labour for not implementing enough generational change fast enough. Labour gets arseholed out. National are gifted the keys to the top floor by default. What changes would National implement? A red flag flying from the beehive to reward their backers? An enormous fuck you too young people, beneficiaries and those on the minimum wage? Cut essential services, enforce divisive policies etc etc and then farcically call it a rock star economy. People have very short memories. Judith Collins is budgeting on it.

       • Your posts are usually very fair and well put JF, and you have explained before where you come from on various issues. But on this occasion, I think you are being too defensive too soon of a majority NZ Labour.

         Re Chaos in 2023, yes it was rather delicious seeing Nats explode all over the latrine, Winston being called out, and Billy TK and Jami Lee have a bitchy falling out. My projection was about what might happen if Labour continues down this track of not being willing to change the longstanding (36 years) monetarist approach, in particular Welfare Reform and the relationship with the Reserve Bank. The working class, underclass, and parts of the middle class will be well ticked off with them, which might just allow the Conspiracists, Nats and Christians a potential path back.

         • Tiger Mountain,

           I’m very comfortable with you disagreeing with me. That in no way lessens my enjoyment of your input here which I often seek out.

           Cheers.

   • Your post is completely on the button. My personnal opinion is this will be a do nothing government lead by a PR dream who ticks all the boxes except for the one that is willing to take a chance and lead from the heart not with a eye to the next election.
     That said they have only just taken the reins of power and they may be NZs saviour and worthy of another term . To do that they need to be given a chance and not pushed to rush through changes without due diligence .
     This is often done due to the short 3 year term. There was concensus from Labour and National to extend the term so that should be in the mix of think to do.
     At a period where the government has to rebuild in a World shattered by this virus to say the only think that matters is to legalize a drug is pathetic .

   • Yes agree with some of what you have said but the incentive to get of the benefit requires MSD to offer upskilling and training that genuinely leads to decent work and monitoring of some sort. When people know they have some conditions/obligations they will try and make an effort as not everyone has good role models who promote the importance of having a work ethic. Also low income workers could be given more of their taxes back another incentive to make work more appealable. Your right about many of the economist being wrong they said house prices would drop and why would they drop when we don’t have enough, even M Hoskings said the housing shortage was nonsense. Trev S we had a nothing government for 9 years can you at least be fair and stop being bias and did you have a brighter future, nah! don’t think so.

   • Comrade JF

     You are an excellent commentator, and a fine defender of Labour.

     I enjoy your insight and many times agree with your points.

     So I respond with all due respect.

     The NZ Government has had an extremely busy year yet it’s never enough. The election campaign also seemed to go on forever. Despite that and the ink not yet having dried on new portfolios etc, the calls have been relentless lately how they should be doing this that, and the other, and how everything must be done yesterday. The fact it hasn’t occurred has given people in some circles carte blanche to restart the cycle of ridicule against Ardern. From my perspective, these attacks appear to be motivated by the writer’s need for copy one way or another now the brouhaha of the election is over and most people have retreated to their corner.

     I am criticising Jacinda’s first steps of her second term because to not criticise what are policy blunders and short sighted ill thought out positions is my obligation as a commentator.

     She has started appallingly, and should be criticised if you are Left wing and progressive because the justifications for her actions aren’t convincing.

     I’m all in favour of giving beneficiaries a leg up but there must be a clear distinction between benefit levels and the minimum wage. We’ve been hearing plenty about NZ workers being lazy and unwilling to apply themselves to fruit picking etc which results in fruit rotting on the ground. Then there’s the other side that says fruit pickers are not paid enough. If you paid beneficiaries another $50 a week, what hope would you then have of giving them an incentive to rejoin the workforce? As for minimum wage workers. They have their own expenses associated with working which is one of the reasons the Government went into bat for them to incrementally lift the minimum wage. A situation that has attracted considerable negative feedback from the business sector. It’s not in NZ’s best interest to make it more appealing to be on a benefit than being in the workforce.

     Bennie bashing to justify not lifting welfare seems regressive. The people claiming that Kiwis are too lazy are migrant worker exploiters trying to grind down a cost. You raise welfare payments WHILE raising minimum wage so that gap doesn’t become an issue and you make the first $10 000 tax free.

     The solutions to the problems you are holding up to justify inaction in light of the billions being printed to support property speculators are disingenuous Comrade.

     Tenants have been given more assistance by this Government in the last 3 years than any other Government has for decades all the while being attacked and ridiculed every step of the way.

     Again, the terrible mess National left meant any step was better, but it simply isn’t transformative and Labour have continually attempted to use free market solutions to a market that’s broken.

     I’ve been an occasional cannabis user for many years. I was deeply disappointed by the recent referendum and the result. The say nope to dope campaign was allowed to totally misrepresent cannabis with graphic advertisements. They got serious traction with their fearmongering all the while the yes brigade sat on their fucking hands. By the time they put their hand up, it was too little too late. Gentle and thoughtful perspectives were no match for what the nope crusade produced. One clearly understood the significance of Television advertising while the muesli munchers put all their eggs in the wrong basket and let down legions of cannabis users. Their limp noodle campaign snatched defeat from the jaws of victory.

     Imagine how the yes supporters would feel had they won the non-binding referendum only to then have the no supporters have their way. We’d be dirty and spitting tacks. Many kiwis despise the result but we are stuck with it for now. Blaming Ardern for the result and her Government respecting that result is fucking ridiculous. The finger of blame needs to be pointed elsewhere.

     Oh. Come. On!

     THIS WASN’T BINDING! So why pretend it is now it’s failed? How did the 65% who voted against asset sales feel? You are supporting majoritarianism, not Democracy! Democracy is more than 51%, it’s a nuanced application of power. You can’t ale 50.7% criminalise the other 49.3% and seeing as Jacinda didn’t even tell people how she voted, YES Labour have an obligation to change. YES it is a test of their values if they choose to NOT revoke a racist drug law.

     They CHOSE that JF, they CHOSE to support a racist drug law.

     That is worthy of intense and never ending criticism. ESPECIALLY because they have a majority.

     The same applies to the farcical situation we have at present with investors raping the NZ housing market at the expense of a great many people. The first problem we had in March was with knob jockey economists predicting a 15% drop in house prices. Many adamantly claimed it would be even worse. I only witnessed one economist say there were too many variables to be confident one way or another. Shamubeel Eaqub. Every other expert got it 100% wrong. Very few if any allowed for the impact returning Kiwis etc would have. The Reserve bank panicked and lifted LVR restrictions for a guaranteed 12 months which was the perfect storm to feed the greed of investors at the expense of first home buyers etc. The prudent thing to do was go 6 months at a time and minimize potential carnage if God forbid the eggspurts were wrong. LVR should be reinstated immediately. Even the protocol of the Reserve Bank dictates this should occur if house prices were increasing too quickly which they very obviously are. The Reserve bank sitting on their hands now over LVR is all about covering their own arse than anything else.

     No. Instead of using this money to fund the infrastructure and welfare upgrades we so urgently require, that money has been pumped out to banks for speculators in a grotesque exercise in trickle down theory economics.

     That’s worthy of intense criticism JF.

     It’s time the finger of blame was pointed in the right direction for a change.

     I am! And it’s at Labour. THEY are the ones in control. The only justifiable explanation to these terrible decisions is that they have been so focused on protecting NZ from Covid, they simply haven’t had the breathing space to truly consider these calls.

     The calls themselves are unjustifiable.

     • Comrade Bomber,

       To my eye, the ink is still wet on all the new appointments. Ardern has had one arm tied behind her back for the previous three years. Now the shackles have been broken but they are virtually still in the starting gates. If we were a year in and things were looking as you’ve described I would be cheerleading you and your perspective. At this time to say you’ve gone the early crow would be an understatement. I believe getting the Green’s on board when they didn’t need to reflects well on all concerned. It’s the first time any Party could Govern alone since MMP was introduced in 1993 yet Labour shows what their approach to Government will be. The fact Labour still did so despite the “discomfort” caused to them by the Green’s adamant claims pre-election about the Wealth Tax also reflected well. Can you imagine National being able to Govern alone yet still inviting in a minor party to the table? My only regret there is that the Maori Party wasn’t also invited to the table. Mind you, Rawiri Waititi stating that swearing an oath to the Queen made him sick to his stomach is hardly conducive to constructive and inclusive policymaking.

       Had the yes vote gained 50.1% in the cannabis referendum and the no vote 49.9%, we’d have a very different playing field to what we have now. Let the dust settle and the ignorant wankers that voted no have their moment in the sun. Like dinosaurs, their days are numbered and change is on the way. That change should have happened years ago but it’s coming. Not soon enough but it’s coming. We should at least take some comfort from the now widespread knowledge that cannabis laws are racist and put way too much power and discretion in the hands of the wrong people. Those “wrong” people are now more aware than ever that they must put their priorities elsewhere.

       Your suggestion of making the first x amount of salary tax-free assisting with the gap between benefits and low-income salaries is a sound one. At present, the tax rate for 0 to 14k is 10.5%. Making that first 14k tax free if you earn under 48k would have a lot of support. You’d appreciate that such policies would require time to go through the right channels prior to going on the books. Ardern is a clever cookie and is also compassionate and caring. There are however only 24 hours in a day and she’s been just a bit busy recently. Let’s not go charging and convicting her too quickly. National Party supporters are quick to condemn anyone who has the audacity to speak of the previous 9 long years of divisive carnage masquerading as a rock star economy but the fact is, there is an enormous “to-do” list for this Government. If they fail to address certain matters with the appropriate priority, they will deserve to be told to fuck off in 2023.

       It’s also well past time that GST is removed from your supermarket trolly contents.

       I’m also incredulous at the Reserve Bank gifting even more money available to speculators/investors. Helping tenants into their own home makes perfect sense. There is clearly a void of meaningful ideas in this important area at this time. Helping landlords increase their housing investment portfolios makes zero sense. These people already have enough gifts via our softcock tax system without giving them even more assistance especially when it’s at the expense of their tenants wanting to own their first home. How is Ardern to blame for this?

       Keep up the good work Martyn.

       Bomberfan and Jacindafan.

5. We love property developers in NZ. The left and right unite, even Chris Trotter is in their corner in today’s blog to get China to build NZ’s housing.

   We already have so many developers in NZ from China, tho! Government’s favourites!

   “Stonewood Group has launched a business arm dedicated to raising capital to fund property development.

   The group, co-founded by brothers Michael and John Chow, unveiled Stonewood Capital last night at an event attended by former Prime Minister Sir John Key.”

   https://www.nzherald.co.nz/business/chow-brothers-stonewood-group-launches-capital-raising-arm/6PTS6SJW6GDJB75S7MAIKDTFW4/

6. We love property developers in NZ. The left and right unite, even Chris Trotter is in their corner in today’s blog to get China to build NZ’s housing.

   We already have so many developers in NZ from China, tho! Government’s favourites!

   “Stonewood Group has launched a business arm dedicated to raising capital to fund property development.

   The group, co-founded by brothers Michael and John Chow, unveiled Stonewood Capital last night at an event attended by former Prime Minister Sir John Key.”

   https://www.nzherald.co.nz/business/chow-brothers-stonewood-group-launches-capital-raising-arm/6PTS6SJW6GDJB75S7MAIKDTFW4/

7. Labour go soft and they go late. Hands-off free market speculators. Trickle down is not a fallacy. A society of haves and have nots. No capital gains on my watch. Build back better. We are one.
   This government is a slogan, a slogan which gets magazine covers and inspiration awards. Some of their ministers, like Sepuloni, are comfortably stale and don’t deserve another term. They do nothing for community and do not heed the advice of experts (conversely New Zealanders have had ‘advice’ forced down their throats for the past seven months). Some of their policies are negligent bordering on criminal. Letting police dictate who to charge or not for cannabis offences is disgusting. Lawyer Khylee Quince pointed out on R&R recently that police are sworn to enforce the law, not create it. The equivalence in housing is that every property speculator and middle class landlord (including these government bureaucrats) is now the cop, able to completely manipulate the property and housing sector, free of law or interference or morality. And once you cede authority to those outside the law, there is no law, these capitalists will do anything to protect their investments.

8. My comment to a reply to a post of facebook re if people need help they can get it from Winz

   Only if they can get a benefit in the first place and meet winz rules and some winz case mangers are complete assholes .
   My young diabetic friend was refused a benefit because he was in a relationship.
   After 8 years he had to break up just to get one.
   Time you people who think winz is an absolute breeze to get help from, woke the hell up and what you can get if you even get help in the first place , has limitations and the $ amounts are not fit for purpose in 2020, they are more fit for life in 1964 when the 2nd updated Social welfare act was first written. Paula Bennett made welfare 10 times harder to get in 2013 with her changes to the welfare act and took less than 6 months to make the changes .

   So stop dreaming that if you need it you get it bullshit. I have been dealing with the consequences of the winz dysfunction, the Pharmac medicines dysfunction and the dysfunction that exists in our health welfare funding. Put into welfare act since the mother of all budgets kicked the Social welfare system in the balls in 1991 through my young friends issues. Getting winz help has only got 10 times worse as no one has had the balls to touch it because of the attitudes you and others like yourself. Who refuse to even pay a single extra cent intax to protect untaxed gains on inflated property values ( Increased 20% in 2020 and no tax paid) as people suffer daily because of our chronically under funded health and health welfare system. PEOPLE NEED TO Wake the hell up.
   I am sick of the sit down shut up and put up attitude that exists in this country towards people who desperately need help. Just to live on a daily basis because of long term health issues and their problems being dumped in the to hard basket to protect the middle classes inflated property values .
   People have no idea of the mental health issues caused by this blatant under funding and the communities attitude of I am okay jack and you don’t matter attitude that is blatantly apparent in NZ today.

   BRING ON THE WEALTH TAX < PROPERTY TAX < OR CAPITAL GAINS TAX sooner the bloody better.
   IT is time this country got its community values back and ditched the bullshit individualistic neo liberal bullshit values .

9. Hey Bomber have you ever interviewed Jacinda? You should. And lay into her about all her middle of the road, property speculation pandering bullshit

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