Another OCR rate rise – NZ Economy at risk: Immigration vs Fair Pay Agreements vs Unemployment Insurance
Boom!
Reserve Bank Gangsta and proud defender of NZ state control of the financial system announces 50points WHILE stating he considered the 75 bazooka (I believe it will be called the ‘mighty taiaha’).
That he is verbalising a 75 point hike and alerting the market to where they might need to move seems dependent on what the big consumer price inflation data says in the US on the 13th and NZ on the 18th.
If we have persistently high or even a spike, he has the room to jump to 75 without spooking the markets with uncertainty the way the UK did last month.
The balancing act highlights how much of the gravity that is holding the economy together right now is our incredibly low unemployment rate.
Once you see unemployment spiking alongside high inflation and high mortgage rates that 44% of mortgage holders are re-fixing over the next 12 months, all the ingredients for an enormous economic recession are there, that’s why the Government is keeping such a tight hold of immigration because a sudden surge there would immediately start hitting jobs.
That’s why the Governments strategy of Fair Pay Agreements and the Unemployment Insurance are so critical, unfortunately I only think one can work.
Fair Pay Agreements.
This will extend unionism to the 84% of workers not covered by a Union.
We are not an over taxed, over regulated economy!
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!
And we are voted easiest to do business by the World Bank!
Our economic problems are not an over taxed, over regulated economy, our problem is we are reliant on a low wage economy created by the de-unionisation of the work force via the Individual Contracts Act.
I’m not looking for socialism here folks, just basic garden variety regulated capitalism!
Unionising the NZ workforce will force wages and work conditions up while coping with the influx of new workers via immigration.
The Unemployment Insurance however is a white elephant that won’t do what it says.
What I love most about this Gold plated 6 month holiday scam for PSA members, is that Grant Robertson defends this by pointing to research which concludes that when people are sacked, they struggle to get welfare. But those workers only struggle to get welfare when they are sacked because WINZ and MSD are spiteful, malicious, bureaucrats whose service model is to be obtuse as possible.
How can the solution to MSD and WINZ being spiteful, malicious and obtuse to those seeking welfare be a $3.5billion dollar taxpayer funded holiday for PSA members?
Why not make WINZ and MSD less cruel?
Why spend $3.5billion?
Why suck up to the PSA?
We can either have unionism for all or we can have 6 month gold plated holiday schemes for PSA members, you can’t have both!
If the Government lose control of employment by allowing in too much immigration without Fair Pay Agreements in place they will spark a jump in unemployment when people are feeling their most economically insecure and frightened.
Regardless, Adrian Orr’s mighty 75point taiaha may still crash on people as early as next month.
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The government needs to hold firm on the immigration gates as long as they can because if National ACT gain power there will be no gates and no fence.
Brilliant comment. Those promoting immigration forget why the country is in the state its in. Immigration = low wage economy and rampant house prices. Those complaining of higher mortgages costs clearly bought at a time when home ownership was out of control. As with any investment there are ups and downs, just as Kiwisaver is experiencing at present.
Nact would be disastrous for our country and those living in Auckland voting for that coalition be prepared for rampant Immigration and traffic to a standstill. As the joker said ” you get what you fucking deserve “.
This shows the stupidity of make the reserve bank in charge of keeping inflation low at the same time as keeping employment low . It is hard act to balance especially by the same person .
A mortgage holder owing $500000 is now about $280 a week worse off but Robinson does not want to share any of his pot of gold
That’s a complete generalisation though Trevor How many people have already fixed their rates? If you are taking on more debt right now I am not sure why we should all fund that through a tax cut, because ultimately that is what we will be doing. It is complete f’ing bonkers to offer tax cuts when you are trying to control inflation.
Spot on Bomber. I worked my whole life in the private sector and my God are unions needed (as the “boss” that’s my observation).
The whole idea of a special insurance for the PSA / PMC types leaves me fearful that the normal dole will be marginalised, reduced and harder to get. It’s the working class, and lower skilled who will suffer. Let the PMC share the cold and things might improve.
“Australia’s top tax rate is 47cents!”….and almost nobody actually pays it.
You cannot compare headline tax rates across countries because the rate thresholds and allowances differ. Aussie is a good example of this, where rate thresholds come in at much higher levels and there are myriad allowances.
A better comparison is the total tax as a percentage of GDP.
New Zealand: 37.5%
Australia: 35.8%
https://en.wikipedia.org/wiki/List_of_countries_by_tax_revenue_to_GDP_ratio
In other words, we are more heavily taxed than Australians
But their goods an services are way cheaper so comparing tax apples with oranges need to be thought out in its entirety. Higher wages also.
Not asking for socialism Bomber? If not, why not…
Aussie banks have raped & pillaged for way too long. The Emperor (Reserve Bank) has no clothes, and it is time for new political strategies so NZers can put their collective feet on Orr’s throat.
The alternative is “tailism”-essentially being spectators-as the RB acts as the local agent for international finance capital.
Simply removing control of the Reserve Bank from the enemies of the people, and having it issue credit for the government directly, would be a good start.
Most of those Aussie banks are owned by Americans now. Sad.
The question is do the workers need to belong to an “official” union? One recognised by the state?
I fro one have set up a union of workers where a gold coin is the membership fee. In the process of setting up an incorporated society and registering as a union. Only need 15 members to start with.
With 84% of workers not to worried about union membership, this basically free to join workers union is bound to be a big success.
https://www.employment.govt.nz/starting-employment/unions-and-bargaining/unions/
Wonder how the CTU will view the slew of new unions about to be created through compulsion. I guess by stand over tactics like crime land bosses?
Rise of the Union, or rise of those who have been sucked into land value exploit of the first home, at a afford rate of interest that shall compile come next year due to banks profit margins for their owner investors, above their profit rates, that shall climb as we shall be one of the third countries that shall suffer decline in this coming next year,meaning the predicted crash bubble of the housing market,shielded, shall not begin only to explode, and sorrow for those first home buyers. Is not capitalism and state capitalism, both sides the cancer of our humanity profit driven exploit lucky our summer is coming as our increasing costs of basic humanitarian need gets exploited,shelter food warmth,all exploited by corporation profit for shareholders max our profits from last years, therwise we will invest elsewhere.