Bernard Hickey is one of the most important political economists in game, his ability to use research to explain complex economic processes while explaining it’s political dimensions makes him one of the most public economists we have in NZ.
Here he explains the fundamental problem of the NZ Economy…
…the issue isn’t high migration, the issue is that neither National or Labour spent enough on infrastructure to keep up with the huge migration game.
It creates fake growth which in turn causes social friction as the domestic working class are pitted against cheaper migrant labour.
Our top tax rate is the 39th highest in the world behind all the Scandinavian countries plus Germany, the United Kingdom, Ireland, France and South Africa!
Australia’s top tax rate is 47cents!
Our GST rate doesn’t even get us into the top 50 and our corporate tax rate is 40th while Government spending against GDP ranks 56th!
I’m not looking for socialism here folks, just basic garden variety regulated capitalism!
We are addicted to a low wage economy because 30 years of neoliberalism has gutted the union movement.
That’s why I love listening to those who have exploited that low wage economy screaming in agony now…
Rotorua hospitality businesses shut down on Monday in protest at not being able to get the workers they need.
One says it will be catastrophic for the tourist town if they can’t get staff before summer.
…unfortunately, Labour have given up and singled they will open the immigration floodgates and start the same dynamics that have gridlocked Auckland into stand still…
The Government is opening up two more categories for migrants to become residents as it seeks to reconnect with the world after the pandemic and fill major workforce shortages.
Immigration Minister Michael Wood has announced today the skilled migrant visa category, that was paused during the height of Covid-19 and border closures, will reopen along with the parents category from mid-November.
Consultation is also going to begin on a new uncapped and “simplified” points system for migrants that fall outside existing programmes.
This follows the Green List, which provided pathways to residency for the 85 most-needed professions.
We are so addicted to a low wage economy that we will risk triggering a spike in unemployment to capitulate to big industry who are reliant on cheap labour.
This will see unemployment rise as big industry dump Kiwi workers for their cheaper imports and we will see the impact of this next year as the recession kicks off.
To inoculate the country against these dynamics, we urgently need the Fair Pay Agreements to ensure the imported workforce are unionised.
It’s a hell of a juggling act, but if anyone can do it, it’s Michael Wood.
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