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.