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Thursday, August 11, 2011

Welfare cutbacks during economic meltdowns don't work

Last week, the oracles of the NZ Economy were declaring NZ would only have 5% unemployment next year, the next day, the US Stock exchange plunged 500 points. Add to this the vacant optimism of Treasury's ridiculous growth predictions and one has to ask, is this meltdown outside their freemarket paradigms, and if it is, why are we listening to them?

Why would we privatize 49% of our assets when the global economy is in meltdown? The Government's free market ideology is part of the problem, not part of the solution. It wasn't until the late 1930's that the full social impact of the 1929 collapse was felt, President Hoover would endlessly proclaim 'prosperity is just around the corner' - talk of a recovery is a joke.

The social alienation feeding the riots in London have an economic dimension, will cutting back benefits in the manner Paula Bennett wants to implement help the economic conditions in NZ for the 221 000 children living in poverty? Of course not.

Politicians and media have both ignored the electorate of poverty in NZ, to the point they pretend it doesn't even exist, only last week John Key was claiming inequality was dropping in NZ while Paula redesigns welfare eligibility so that they remain invisible to official statistics.

All stick and no carrot makes little Johnny a prison statistic.



At 11/8/11 3:57 pm, Blogger Kiwi Riverman's Blogesphere said...

John Key is not just blind, he just can't see!

At 11/8/11 6:57 pm, Blogger Nitrium said...

The National Government (and its chief Crony Capitalist, John Key) is completely bereft of good ideas as to how to address the budget deficit (let alone the DEPRESSION we are in) it's actually kind of scary. While surely crying for our country, I'll ironically be snapping up some of NZs prime assets at bargain prices (we are now in a bear market) when National put them up for sale after the election they will almost certainly win. Hey, the bright side is at least some of our companies will be owned by a NZer!

At 11/8/11 7:34 pm, Blogger AAMC said...

It is interesting how all of the "Conspiracy Theorists" have been predicting this fall, Michael C. Ruppert almost to the day, and yet the economists, who are supposed to be in the know, seem totally surprised.



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