Don’t know about you, but I’ve noticed a lot more car window washers on intersections lately. My local one is back after not seeing him for years, because they mostly disappeared during the nine years of almost full employment under a Labour-led government.
But they’re back. They’re part of New Zealand’s informal economy, where in hard times, people are forced to make a living in whatever way they can because they cannot find jobs or are unable to start businesses in the formal economy. These are part of the working poor who are working very hard but who are not recognised, recorded, protected or regulated by the government.
There’s no question that New Zealand does have an informal (or underground) economy. The question is how big is it and is it growing?
Unfortunately, we have no idea about the size of the underground economy in New Zealand because people working in the informal economy are not registered as businesses or employees and they do not pay taxes.
But think about the workers that you see around the place. There’s the flower and strawberry sellers on the side of the road. There’s those who do jobs “under the table” to top up their meagre income or unemployment benefit. There’s those who work from home and even in garages as sub-sub-sub contractors making things, sewing or putting things together, there’s those who mow the lawns, do a bit of catering on the side and there’s the street vendors selling jewellery, fake watches and sunglasses in the streets.
Increasing poverty and the growing gap between rich and poor is one of the underlying reasons for the growth of the informal economy – even in first world countries.
It is is poverty that forces people to take up unattractive jobs in the informal economy and the low incomes that such jobs yield create a vicious cycle of poverty.
It’s not good for our economy or society either. No taxes paid, no ACC levies funded, no health and safety, no minimum wage, no other protections.
It’s almost like the car washers are a barometer of the state of our ecconomy and the well-being of New Zealanders. If it is, then we’re in big trouble.
Sadly, with a government with no plan for jobs, I fear I’m going to see a lot more of my local car window washer.
Question, why didn’t they avail themselves of the opportunities that the Labour Government for 9 years supposedly provided. Why didn’t they ‘upskill’ instead of having washing windows at an intersection as their fallback position? What other skills does your local window washer possess that will ensure he at least has a chance to gain employment? I imagine the answer to these questions is ‘none’. Given this, the question you need to ask yourself. Darien, is why?
Yeah saw some down the road from my place just yesterday for the first time in years. @Dave for the ones I saw presumably because they were in school at that time.
Darien, now that you mention it, they are back in force. Still, the Tories would say that shows enterprise, just like the kids up the chimneys did back in the day …
I haven’t seen any in Wellington. To be frank, the day the last one hung up his/her bucket, the roads got much safer and I was pleased to see the back of them.
Interesting thought, but NO.
When I lived in Auckland during 2003-2006 there were plenty of window washers at a couple of regular intersections around the place.
Is this really the most worthwhile thing to blog about today?
I just hope that declare their income for tax purposes and have their benefit deducted appropriately. I wouldd bet you ten to one that they do neither and therefore are stealing from the overburdened taxpayer who continues to fund the extravagent spending promises of Cullen.
Yes unemployment has increased since the start of the recession – and the earthquakes in Christchurch have made matters even more difficult for people finding work. Maybe some of those people in the next few weeks may find it just a little bit easier to find work with large employers in a few days time with they can agree to start with the provision that if they do not measure up to standard then they will lose their jobs.
Another thought – are these the youth who have been priced out of the job market because Labour said they should be paid the minimum wage – but as a result have been priced out of the job market???
Just keep clutching at those straws Darien.
“Another thought – are these the youth who have been priced out of the job market because Labour said they should be paid the minimum wage – but as a result have been priced out of the job market???”
If the same service is being provided – IE the same job done – they should be paid the same. Why is this so hard for some to grasp?!??!?!
“because they mostly disappeared during the nine years of almost full employment under a Labour-led government”
Best laugh I’ve had all day…couldn’t read the rest of your post after that.
Notice how on the same day they announce a bloated new bureaucracy for Christchurch they announce some maybe amalgamations sometime in the future, and how the lazy media tug their forelocks and carefully report both with a positive spin for their Tory masters?
Indicators do indicate Darien.
What is interesting is the increase of cockroach trolls who seem to emerging already for the next elections.
Jennifer – I think your are being deliberate in misleading with you comment about a bloated new Bureaucracy. From what information I see it is short to medium term and it will be very small. Stop the misleading and inaccurate statements or I will continue to pull you up and call them for what they are.
Interesting point is that Labour support the establishment of this special government Department.
@Phil the ones I saw were in Newtown so they are back in Wellington perhaps just not brave enough for the CBD yet.
Yes, washers are definitely an indicator. In Northland, my locale, school rolls are dropping with transience of families and pupils, along with scant ‘positions vacant’ in local papers. I challenged the Northland Age editor to run the figures from the archive and he wouldn’t, but there are now at best half a dozen low wage jobs and a few corrections dept. etc., compared to half a broadsheet page 2000 to 2008.
Indicators not ideology, Indiana and fellow tory brown nosers.
I see washers frequently at the Dominion Road and Mt Albert Rd intersection in Auckland.
The question about the informal economy… It is always just a guess, but to me it seems that while there are a lot of people involved, the amount of money isn’t big. For most people it is an extra not worth the hassle of starting a formal business – someone does babysitting two hours once per week, someone does basic sewing and has 5-10 customers a month… There is a lot of it where I live (Mt Roskill) and I do not see anyone for whom the informal economy would be the main source of income, it is a top up for whatever formal source of income they have.
Hi Rich
Window washing is just a step up from begging 
Man what a depressing sight. 
What is interesting is the increase of cockroach trolls who seem to be emerging already for the next elections.
February training school for 2011 Nat dirty tricks brigade. First assignment for trainee trolls in March? De-stabilise Phil Goff. Results? Goff is more stable than ever. Marks out of 10? Zero.
Don’t know who you were referring to. But deleted. Clare
“Informal economy”…..must remember that next time you accuse the alleged rich of avoiding tax. “no Darien they were merely exercising the right to participate in the informal economy”.
Window washers did disappear because the cops bothered to prosecute and pick them up. Perhaps the police are now busy elsewhere solving other crimes.
The work wanted notices on supermarket noticeboards give another clue to the real state of the economy.
I would be interested to know how many of these are put up by women who have lost their jobs but don’t register in the unemployment statistics because they were not the primary earners of the family.
The spiny spinster thinks the police are elsewhere, but of course like any cottage industry the sharper commercial operators soon see commercial advantage from heaying out some operators from prime spots , and then instead of a cheerful wave when you dont wish to partake of their service , you get a menacing finger or have your panel keyed as they walk past to the next punter. The cowboy stage then turns into a duopoly ala Vofafone/Telecom or Foodstuffs/Countdown or DB/Lion.
Ah unregulated capitalism !! . It allways has the same end game
Thank you, John Key. Ambitious for car windows to be cleaned.
@ Cactus: a classic comment in the vein of ‘both the rich and poor are entitled to sleep under bridges’. It is ludicrous to equate hard out windscreen smearers with the likes of Canterbury Finance speculators.
The bacon squadron by the way seem to have been busy enough anyway, blowing people away and assaulting them.
True wheel, in Herne Bay the millionaires sleep closer to the bridge than the poor. All depends on your perspective, which if you think means cops cant blow away some chump with a gun before they get shot at, seems rather distorted in favor of always believing that the downtrodden aren’t authors of their own misfortune.
Hug inn
All done to avoid reporting of income and therefore keep welfare for families and other forms of welfare. Darien has opened up the hornets nest here. I don’t believe window washers and women who work from home should pay tax, unlike the rest of you however I’m just consistent in applying my methodology to the entire economy.
Darien obviously hasn’t visited South Auckland anytime int eh past 10 years where window washers happily worked even under the Labour government.
These entrepreneurs actually make a killing…even down South…until the police move them on.
Bet they don’t declare their income either.
Unless national does something about the fuel prices there wont be many cars on the roads that will need windows washed.
whaleoil, how do you know they make a killing? is that just a guess, and what in your head defines a killing?
Yup, I’ve seen them. It’s a classic problem, too many unemployed people become a nuisance to the public.
Dear Lord Darien, you want to tax the homeless car washers..?
For years we’ve been told by the eco-zealots that this is exactly what we need to achieve, so I expect that praise will soon be poured onto the government for this great initiative…
In my job, in the last 9 months there have been many more customers who ask for a ‘cash only’ payment to avoid GST than in the previous 5 years combined.
These are for invoices that are $600- $1800 range, and the service would be for the pretty well off to start with.
“Monty says:
March 29, 2011 at 5:27 pm
I just hope that declare their income for tax purposes and have their benefit deducted appropriately. I wouldd bet you ten to one that they do neither and therefore are stealing from the overburdened taxpayer”
You mean like the people who take/give cash for jobs because they have decided they are overburdened taxpayers and wan to skip GST and other taxes? This ok though aye Monty, cos these people are paying “some” tax. Your grey scale masquerading as black and white is fascinating
I’ve been working in Otara for over 14 months now. I havent seen a single window washer. I have seen a couple in the City though and agree they did disappear for a long while, after they were clamped down upon (possibly under a Labour Government, I dont know)
@True Wheel “The bacon squadron by the way seem to have been busy enough anyway, blowing people away and assaulting them.” I imagine they would be first people you would run screaming to, if your “rights” had been impinged. What a dreadful statement to make about our hard working police. For gods sake, if Police end up shoting someone or having to physically subdue some moron, it is for two very valid reasons, protecting the public (that includes you Wheel) and protecting themselves and their colleagues. You’re a disgrace.
@ Lou: the NZ police are certainly necessary for all manner of useful and unpleasant jobs such as dealing with and cleaning up after car crashes, search and rescue and community policing. But personally I prefer to have as little contact with them as possible and would only ever contact them as an absolute last resort. The police come adrift when then step into their political role, when they start using guns (torso shots only) and when they investigate themselves.
I have met enough police and detectives to know what the culture is really like. Some of the pommy imports seem to be different though I will admit. Cops like Martin Folan and the genius that continually pepper sprayed a prisoner in a cell, Abbot that shot Stephen Wallace, and the types that batton lawful protestors and unionists are the disgrace.
Tell us YOUR plans for jobs Darien….
@ Whaleoil, we would all be concerned if these ‘dudes’ failed to declare their other income, especially if they are on a benefit of some kind.
@Anne-Maree : http://www.scoop.co.nz/stories/PA1101/S00080/growing-an-economy-that-works-for-you.htm
And there will be more.
Great isn’t it Anne?
Goff kicked butt on Q&A 
@Cactus Kate – It’s better that they chase real crooks than window washers.
@Tracey – maybe the people in Otara are too poor to pay for window washing.
Soon probably been too poor for cars, bleepin petrol hikes! 
@Darien, yeah there will, because Labour is gunna kick butt!
What is Labour going to do for people like Spud?
@True Wheel, that is not what you meant at all, as you back track rapidly. Your intent was quite clear for all to see. As far as ” lawful protestors and unionists “, it is highly unlikley, in this country, that “lawful” requires Police intervention. Trepass does however and when protesters reduce themselves to no more than criminals, such as the destruction of property does, then Police act accrodginly. You are living in a fools paradise that beleives anarchistic behaviour should go unpunished. Remind us all again about the “bacon patrol” as you eloquently put it. Its still a disgraceful comment and lacks any semblance of class on your part. Could it be you have been on the wrong side of these defenders of our citizens one too many times, and harbour a tiny grudge?
@ Lou: Please try talking about Darien’s post instead of being an apologist for the blue bellies. I don’t back down, but also don’t want to be banned for being off thread by engaging in this side issue.
I have no convictions, acknowledge the cops perform a useful role in various societal circumstances but they are not my cup of tea for political and personal reasons. The police culture is generally thuggish and belongs in an earlier era. Tasers and pepper spray are commonly used as compliance devices rather than for their original purposes.
The cops will appear at an employers premises in minutes if a union such as Unite is involved in a picket, try calling them for unfair treatment at work, you will wait a long time. The NZ police act in a class society on behalf of the ruling class as well as finding lost trampers.
Darien-I’ve read that speech a number of times. Every time someone says Labour has a plan and National doesn’t.
I like a good plan
I see some nice rhetoric…some typical “red=good, blue=bad” stuff but honestly nothing that says how jobs are going to be created. It’s still just a wish list. A nice wishlist-but until I can see something that looks more like an action plan, I’ll keep waiting…and hoping.
Coz here’s a hint-don’t keep telling us what we want/what you want…tell us HOW you’d deliver it.
wow -who would have thought some comments about window washers would have the trolls screaming into action.
@ PFZ ps its not Lord Darien – its Lady Darien!
The only real mention of creating jobs in that speech Darien is of cleantech, which doesn’t really address the problem of unskilled and low skilled labour of which we have an abundance.
It also notes that Labour ran a surplus, it doesn’t however balance that by noting Labour reigned over one of the most lucrative years in our economy, that tumbled like cards near the end of Labour’s office. Had Labour stayed, it too would have had to borrow at a similar rate(considering the tax cuts Labour proposed were considerably similar, and involved expensive measures such as a universal student allowance).
I read nothing in that speech that inspired me to believe Labour has a new vision, it just smacked of empty rhetoric and a resurgence of the “rich pricks” mentality, of against the “rich people”. I don’t buy it.
@Bed Rater – The warm glow of victory is all I need.
@Anne-Maree and Jared – I can assure you there is a lot of work going on behind the scenes in Labour. We’re just not ready to put it out there yet, but be patient – it will come.
We have to accept that in 2008 a majority of citizens didnt mind a government without a plan, so they voted for national. The only “plan” which has been followed since then is ACT’s. Clearly articulated by sica recently and by Rodney Hide in early 2009 when speaking to the Business Round Table. National still has no plan, or not one set out in black and white as is demandned regularly here of labour.
There is a pattern emerging from labour speeches, if you read them. In particular David Cunliffe and Annette King’s speeches recently show a definite plan in a particular direction or directions.
I have yet to see any political party give us anything much more than the equivalent of “mission statements”.