1. To post you need to register an account and await approval. Click Here to sign up!

New Zealand’s Prime Minister - Capitalism a ‘blatant failure.' Cracking down on Cheap Migrant Labour

Discussion in 'World Economy' started by Tadhg Gaelach, Oct 22, 2017.

  1. Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313
    SwordOfStCatherine and maxflinn like this.
  2. maxflinn

    maxflinn Legend Donator Battle Royale Political Irish

    Likes Received:
    4,392
    Trophy Points:
    263
  3. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313
    It's interesting that the New Zealand National Party was all for national control of resources, a living wage for workers, and a robust social welfare system until the 1980s - when their courage totally collapsed and they became an extreme Thatcherite party. Labour also dallied with Neo-Liberalism, but thank God, there has always been a back bone of decency in the New Zealand population and perhaps now they have a government that is going to tackle the social collapse.
     
  4. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313
    The New Zealand First \ Labour government are looking at stricter border controls to protect the living standards of the working class, and at changing central bank policy to include maximum employment in its remit. Actually, this is not so strange. The US Fed and the Bank of Japan have the same mandate. It was the same in New Zealand until 1979, when, ironically, a Neo-Liberal influenced Labour party dropped the maximum employment mandate and told the NZ Central Bank that it only had a mandate to control inflation. The Neo-Liberal dogma is that if you keep inflation under control the wealth of the rich will not be devalued and so they will be able to invest more and create more employment - trickle down economics. Of course, we know that all of that is pure bullshit. Sadly for us here in Ireland, the European Central Bank was set up at a time when Neo-Liberalism was the unquestioned orthodoxy of the financial elites. The ECB has no responsibility to consider employment in its policies - only to control inflation. The result is 50% youth unemployment in Spain - and official figure of 18% youth unemployment in the whole of the EU.
     
  5. roc_

    roc_ Member Political Irish

    Likes Received:
    86
    Trophy Points:
    28
    It's not capitalism per se. It's their housing market.

    This is old ground, but has conveniently been forgotten. Time to revisit one of the greatest (and best selling and influental) economic books ever written:

    Progress and Poverty - Wikipedia
     
    Tadhg Gaelach likes this.
  6. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313

    I have a lot of respect for Henry George. But, to be honest, in a Capitalist system you can't cordon off land and say "this is above speculation." The ideology of Capitalism is that "everyone" benefits from speculation and any taxation of capital distorts price discovery.
     
  7. roc_

    roc_ Member Political Irish

    Likes Received:
    86
    Trophy Points:
    28
    Why not?

    "Render unto Caesar what is Caesar's".

    Land possesses qualities that are not expressed in the formal rationality of the market. And it is never the effort of the entrepreneur that creates its value, so why should charlatans be allowed pretend they do and then lay claim to it?

    Never mind that banks see it as the safest bet for lending. There are multiple clear rationales why it ought not be included in the capitalist mechanism.
     
    Tadhg Gaelach likes this.
  8. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313

    Well, I think you've hit the nail on the head there. If land speculation was curbed, the entire banking model of the Western world would have to be thrown out the window. They will fight tooth and nail to stop that happening.
     
  9. roc_

    roc_ Member Political Irish

    Likes Received:
    86
    Trophy Points:
    28
    It needs to happen. It is only a question of political will.

    Michael Hudson on Finance Capital

    "... A: The original hope of banking and finance capitalism in the 19th century was that banks would make productive loans to finance industry. The aim was for banks to do something new, that no economy had done in the past: make loans not merely to ship and market goods once they were produced, but to finance new capital investment by manufacturers and producers, as well as by the public sector to build infrastructure. The idea was for these investments to create profits out of which to pay the interest and the principal back to the lenders.

    This was defined as productive lending. Nothing like it occurred in antiquity or in the post-feudal period. Investment always had been self-financed out of savings. Banks only entered the picture when it came to shipping and trading what had been produced.

    As matters have turned out, banking has allied itself with real estate, mineral extraction, oil, gas and monopolies instead of with industry. So instead of getting a share of the profits, it has focused on lending against economic rent. This technical term is defined as unearned income. It is obtained by charging prices in excess of cost value. Economic rent has no counterpart in the cost of putting means of production in place. And land has no cost; it is provided by nature. The only “cost” is the price of buying the right to charge rent on it. This economic rent is created by special legal privilege or ownership rights to install tollbooths on roads, education systems and other basic needs. Owners aim to charge as they can, without regard for how this affects overall growth and balance.

    Banks have the privilege of creating credit and charging for access to it. Most bank credit is extended to buy property or rent-seeking privileges already in place. Banks rarely are set up to evaluate new capital investment. Their time frame is notoriously short-term. It takes time to develop production facilities, mount a sales campaign and develop markets for new goods. It is easier simply to buy a privilege to extract charges without producing anything at all. This is what property rights are, along with special privileges such as charging interest without making a tangible investment. So banks back the kind of economy that makes money without new capital investment. The easiest way to do this is to make loans for real estate at increasingly debt-leveraged, bank-inflated prices. They call this a post-industrial “service” economy. It is simply a rentier tollbooth economy..."
     
    Tadhg Gaelach likes this.
  10. TheWexfordInn

    TheWexfordInn Respected Member Donator Battle Royale Political Irish

    Likes Received:
    1,708
    Trophy Points:
    163
    Id call it quite a success in comparison to to the South American country which has the worlds largest reserves of oil that has twenty million living in poverty.
     
  11. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313

    The problem with Venezuela is that Chavez didn't put a top to Capitalism there.
     
  12. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313
    The battle is hotting up in New Zealand as the popular government tries to protect native workers from cheap migrant labour - and cheap employers try to abuse the law to get more and more cheap labour into the country.

    Immigration NZ accepts assessments were flawed
     
  13. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313
    Generation Snowflake likes this.
  14. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313
    Generation Snowflake likes this.
  15. Generation Snowflake

    Generation Snowflake Member Political Irish

    Likes Received:
    830
    Trophy Points:
    93
    Of Two Minds - Here's Why Wages Have Stagnated--and Will Continue to Stagnate american data, but i think it applies everywhere
    The only way to reverse declines in labor participation and stagnation in wages and demand is to make it easier to start enterprises and hire people.
    Mainstream economists are mystified why wages/salaries are still stagnant after 7+ years of growth / "recovery." The conventional view is that wages should be rising as the labor market tightens (i.e. the unemployment rate is low) and demand for workers increases in an expanding economy.
    But wages are only rising significantly for the top 5%, while workers between the bottom 81% who have seen their household incomes decline and the top 5% are experiencing stagnant earnings.

    ...
    [​IMG]
    In effect, productivity gains have accrued to the top 5%. This chart shows that while productivity has advanced, household income has remained flat.

    [​IMG]
    No wonder wages as a percentage of the economy have been declining for decades. Global corporations have the advantages of financialization and globalization, but everyone else is staggering under the weight of higher taxes, higher costs and heavier regulatory burdens.
    ...
    The only way to reverse declines in labor participation and stagnation in wages is to make it easier to start enterprises and hire people, and dramatically lower the cost basis of the entire economy. There is scant evidence that policymakers have any real interest in either of these goals or any knowledge of how to make them happen, despite the abundance of lip-service paid to "business-friendly" strategies.





    The financilasation of the west from the 80's has been a disaster, and instead of addressing the problems in 2008, haircuts and a global reset while changing the current model, the central banks all colluded to try print their way out of trouble with global QE.

    Which can only mean monopoly capitalism for everyone is their goal. I dont see how these fucks are blind to what they are doing.

    I dont know enough about New Zealand's economy other then they do make stuff and have large agricultural exports, but they should be very similar to us.
    Increasing wages is the key, and unlike our mickey mouse economy, hopefully they can show the way.
     
    Tadhg Gaelach likes this.
  16. Frankgarrett

    Frankgarrett New Member Political Irish

    Likes Received:
    39
    Trophy Points:
    13
    One thing about NZ I'm interested in is the price of housing. The Labour Party campaigned on reducing immigration because unaffordable housing and wage stagnation: Hard Labour: NZ's Ardern takes tougher line on immigration

    Britain has an issue with wage stagnation and Ireland has an issue with immigration inflating house prices, yet we can barely get our politicians to discuss the issue.
     
    Plasticpaddy and Tadhg Gaelach like this.
  17. Plasticpaddy

    Plasticpaddy Member Political Irish

    Likes Received:
    781
    Trophy Points:
    113
    Nothing will change until we have a united democratic socialist world and money is abolished.Of course mass immigration is encouraged to keep wages down and the people are divided.
     
    Tadhg Gaelach likes this.
  18. TheWexfordInn

    TheWexfordInn Respected Member Donator Battle Royale Political Irish

    Likes Received:
    1,708
    Trophy Points:
    163
  19. OP
    Tadhg Gaelach

    Tadhg Gaelach Legend Donator Battle Royale Political Irish

    Likes Received:
    17,523
    Trophy Points:
    313

    You have been spewing out this garbage since Maggie Thatcher was a young girl. It was lies then, and its lies now. Capitalism is the Culture of Death.
     
  20. Old School Nationalist

    Old School Nationalist Member

    Likes Received:
    168
    Trophy Points:
    43
    Lessaiz Faire Capitalism is the culture of death. Man is a flawed creature by nature and he must be restrained from excessive impulses. We need the state to curb greed. People are allowed to own the means of production. That's Capitalism. I have zero problem with that. People want to be rich, when all they really need is a dignified life. A Catholic priest began The Mondragon Corporation based on Catholic principles of justice. Nobody is a Billionaire, but everyone has dignity. Mondragon in Spain is the shire from LOTR. Search for it on Youtube.