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Friday, August 06, 2010

6.8% unemployment rate - there is no depression in NZ

Jobless figures jump for Maori, Islanders
Unemployment is hitting hardest among the young, Maori, and Pacific Islanders, and especially in the top half of the North Island. It rose 19,000 in the June quarter to reach 159,000, a rise of 0.8 of a percentage point to 6.8 per cent, much higher than predicted. Ministers said that, though worse, the figures were still an improvement on the 7.1 per cent figure at the end of last year.

Incredible isn't it, the optimists cried the recession was over and off we all merrily went believing that we could continue living a consumer lifetsyle of SUV's, Plasma TV's and cosmetic surgery all paid for on the credit card. Surprisingly however it turns out those 'green shoots of recovery' are really the dried snot of recession, even our boy in the bubble, John Key said he was 'optimistic' unemployment wouldn't go over 7% (Unemployment then went to 7.1%).

The mainstream media who are dependent on advertising didn't make much noise about this explosion in our unemployment rate yesterday (most 'experts' said it wouldn't go above 6.2% or 6.4%) but we have to start facing up to the fact that we are facing a crises of capitalism in the exact same way the 1929 stock crash was a crises of capitalism. The neo liberal Milton Friedman low tax, deregulation free market mantra is dead, only this Government seems to be attempting to invoke it as a response to the 2008 stock market collapse, we need to start moving beyond failed economic theory and start focusing on those who are hurting from this great recession.

This 6.8% unemployment rate hits us right when John Key gives his rich boss mates the 90 day right to sack and NZers will rely on public services now more than ever. As a response to this we should be borrowing MORE money to pay for those public services in the short term - YES you heard me - borrow MORE money. One of the things the Right wing can thank Cullen for is paying down our debt so that now it is relatively good when compared to the rest of the developed world, NZ needs to start focusing on the 220 000 NZ children living below the poverty line, not handing out tax cuts out to the top 2% Sam Morgan club.

To all those vulnerable NZers who are being told to tighten their belts by our Merchant Banker Prime Minister because greedy Merchant Bankers in the US crashed the global economy, if you aren't angry right now, you haven't been paying attention.

John Key's vacant aspiration and empty optimism doesn't make that 6.8% unemployment rate any more palatable.


At 6/8/10 9:39 am, Anonymous Anonymous said...

How the fuck is Key and his mates at the Herald gonna spin that one I wonder?

At 6/8/10 10:30 am, Anonymous Anonymous said...

I'm not an economist, all I know about economics is how to manage my own finances/budget. But as an ordinary NZer I have been aware for quite some time that unemployment is high, that things are not good if you're not in the rich elite and that things are going to get worse before they get better. My family are all aware of this, my friends are all aware of it, even aquaintances, the public talk about these things amongst themselves. How on earth can so called experts not know, not see, not hear? What a waste of an education, a student loan, and now a salary, when these idiots are not aware of whats obvious to the average person.

At 6/8/10 10:57 am, Anonymous Anonymous said...

No actually its the overtaxation of enterprise - used primarily to fund the entrenchment of a welfare mentality, that is caused this increase. Businesses need freedom to grow, not to be strangled by paying for the lazy.

If people had to pay for themselves, and government got out of the way, it would be better.

At 6/8/10 1:16 pm, Anonymous JonL said...

Overtaxation of enterprise? NZ has one of the lowest overall tax rates in the OECD!!
Anon 2 - it merely shows how out of touch with the general populace, these people are. Like most academics!

At 6/8/10 1:18 pm, Anonymous Anonymous said...

"This 6.8% unemployment rate hits us right when John Key gives his rich boss mates the 90 day right to sack"

The vast majority of business' (75-80%) have less than 5 workers and merely eke out a living. Explain to me in light of this fact how they are rich boss mates of Key.

Given the high failure rate of business in NZ I think there is a fundamental disconnect between how you perceive business and the reality.

At 6/8/10 1:47 pm, Anonymous DonBrown said...

Hi, lazy-thinking, lazy-arse, anonymous -whoeveryouare.

NZ has low and flat taxes.

The welfare mentality is one that looks after babies, children, the young and developing, the poor, ill, disabled, elderly.

It provides universal healthcare, training for work and industry, research, infrastructure, housing, standards, police and welfare agencies etc.

NZ needs a bit more of all of this - it needs to stock up on the family silver lost during the 1980s.

You're like a leech, lazy-arse. Happy to take the good but refusing to pay for it.

At 6/8/10 2:10 pm, Blogger Wayne said...

"Businesses need freedom to grow, not to be strangled by paying for the lazy."

What a load of fucken bullshit. 99.9% of people on welfare are not lazy. Far from it. They have had some bad luck. It could happen to any of us.

The current economic mess which has given rise to these high levels of unemployment was not caused by your imagined lazy underclass.

It was caused by massive corporate corruption (the type of guys John Key would be matesy with) - by greedy jackals who would normally decry socialism , but when it came to themselves demanded the greatest financial bailout in history from the ordinary taxpayer.

How many of these corporate crooks have even served one day in prison?

Any system in which a man can have a salary 1000 x higher than the ordinary worker for doing far less work or far less real value is seriously seriously fucked up. http://abcnews.go.com/Blotter/story?id=5965360&page=1

And people who would defend such a system are just as fucked up.

At 6/8/10 2:55 pm, Anonymous aj said...

New Zealand is the easiest place in the world to do business but one - Singapore. 'Freedom to grow'? The business environment is failing to employ New Zealanders in this world depression/recession. No, we don't need to borrow MORE. Just cancel the tax cuts that give the lions share of $$ to the top 5% of earners and reinvest in jobs.

At 6/8/10 3:01 pm, Anonymous AAMC said...

And The countries which follow that dogma are such examples of successful societies aren't they anon, oh no, that's right, China just bought them cause they're so in the shit. I suggest you get your head outta Fox News and take a look at reality. It failed, get over it!

At 6/8/10 3:04 pm, Anonymous aj said...




At 6/8/10 5:10 pm, Anonymous Chris said...

Then fuck off to Somalia, Anon 2.

At 6/8/10 6:30 pm, Anonymous Anonymous said...

Why should I have to pay for your education, healthcare, benefits. Fuck you, pay your own way.

At 6/8/10 7:15 pm, Anonymous Anonymous said...

"Just cancel the tax cuts that give the lions share of $$ to the top 5% of earners and reinvest in jobs."

How do you reinvest in jobs if no one is demanding products and services in the first place which are the cause of job creation.


At 7/8/10 11:42 am, Anonymous aj said...

Anon. Even Smile & Wave talked about creating jobs {recall the 'cycleway'?} so he must be a retard too. Of course being a do-nothing Nat we've seen fuck all delivery on promises and aspiration

At 7/8/10 10:40 pm, Anonymous Anonymous said...

"Of course being a do-nothing Nat we've seen fuck all delivery on promises and aspiration"

The Nats promised not to privatise anything until their 2nd term. Would you prefer they didn't keep that promise?

The vast majority if NZers actually prefer (as witnessed by the 50%+ support for National) that the govnt do nothing at this time because they recognise that our economy will improve as the global economy improves.

Obviously as a socialist you'd like someone to 'do something' since you like being led and controlled but the majority of us don't.

Looks like you have another 4.5 years of whining ahead.

At 9/8/10 11:05 pm, Anonymous fatty said...

"Why should I have to pay for your education, healthcare, benefits. Fuck you, pay your own way."

You know what would be funny....if you had a stroke, then an uneducated ambulance driver fucked up, leaving you brain dead and you died a slow death....then your widowed wife had to get a weekly benefit, just to pay the bills.

*Before you reply to tell me you have life insurance...I don't care...it'd still be funny.


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