Not much good news around about the NZ economy.
Standard & Poor Chief economist David Wyss told Auckland economists yesterday that there is a one in three chance of another crash and while the “recession is over”, it’s a very fragile recovery. NZ businesses say they cut too deep in the recession last year and are struggling to rebuild because many of the skilled workers they laid off have gone elsewhere – and who can blame them? Tens of thousands got the chop with no redundancy pay and NZ wages and conditions are falling further and further behind Australia’s. Confidence is faltering and today, our government will fork out around NZ$1.6 billion in taxpayers money to 35,000 depositers in South Canterbury Finance that were covered under the extended guarantee scheme.
The best our government can come up with? Cut workers’ protection against unfair dismissal, restrict their access to union advice, cut their meals and rest breaks and put their holidays up for grabs.
You don’t have to go far to find some pretty grumpy voters. And they’re set to get a lot grumpier come the 1st October when GST goes up and most find that their tax cut has already been eaten up.
This clip from Jim Stanford (aka Lieutenant Stanfordo), who wrote “Economics for Everyone” has parallels, and also some warnings. Paula Bennett’s Welfare Working Group has been promoting unemployment insurance, but look what happens to the workers who are laid off in this video. Compulsory savings is an attractive idea, but without government guarantees, workers can end up getting nothing. I hope someone makes a NZ version.