Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


The Crisis Facing NZ

The Crisis Facing NZ

By Dr Michael Kidd - Nimbin NSW Australia

The standoff between Cullen and Key disguises the sad loss of productive capacity in NZ over the last decade, which has seen an emphasis on consumption and the loss of jobs in production industries in the city and country. Because of the high direct and indirect taxes, and interest rates many firms have decided to outsource or move overseas. Although we have the lowest official unemployment rate, the real numbers of people who have left the work force is over 50% higher than in 1985. There is certain blindness about globalisation, for example the Agreement on Trade-Related Investment Measures (TRIMs) restricts our ability to increase the local content of goods manufactured here, or to make an overseas investor export rather than import. Central planning is not the answer but the lowering of costs within NZ.

A good example is that there are only two main companies (Goodman Fielder and Weston, both overseas owned) in the market for milling and biscuit wheat. They can & do close mills at their whim and source flour from Australia.

The enormous foreign debt - compared to $16 billion in 1984 - is more than our GDP, so we should be thanking the mom and dad Japanese investors for keeping our country afloat as we have lost the ability to live within our means.

Unearned consumption and wealth is the root cause of NZ structural problem - just as there is no such thing as a free lunch - eventually people who invest in NZ will want to see a return for their investments; or will reach a point where they will not continue to artificially underwrite NZ’s so called growth - even at the cost of selling short.

Several areas of reform arise out of this discussion: looking at the adherence to the principles of free trade with out asking the same of our trading partners; reviewing the obstacles on profit driven industries - of these the small employment pool created by welfare, and the high cost of compliance and indirect taxes are the most insidious.

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Werewolf: Living With Rio’s Olympic Ruins

Mariana Cavalcanti Critics of the Olympic project can point a discernible pattern in the delivery of Olympics-related urban interventions: the belated but rushed inaugurations of faulty and/or unfinished infrastructures... More>>

Live Blog On Now: Open Source//Open Society Conference

The second annual Open Source Open Society Conference is a 2 day event taking place on 22-23 August 2016 at Michael Fowler Centre in Wellington… Scoop is hosting a live blog summarising the key points of this exciting conference. More>>

ALSO:

Buildup:

Gordon Campbell: On The Politicising Of The War On Drugs In Sport

It hasn’t been much fun at all to see how “war on drugs in sport” has become a proxy version of the Cold War, fixated on Russia. This weekend’s banning of the Russian long jumper Darya Klishina took that fixation to fresh extremes. More>>

ALSO:

Binoy Kampmark: Kevin Rudd’s Failed UN Secretary General Bid

Few sights are sadder in international diplomacy than seeing an aging figure desperate for honours. In a desperate effort to net them, he scurries around, cultivating, prodding, wishing to be noted. Finally, such an honour is netted, in all likelihood just to shut that overly keen individual up. More>>

Open Source / Open Society: The Scoop Foundation - An Open Model For NZ Media

Access to accurate, relevant and timely information is a crucial aspect of an open and transparent society. However, in our digital society information is in a state of flux with every aspect of its creation, delivery and consumption undergoing profound redefinition... More>>

Keeping Out The Vote: Gordon Campbell On The US Elections

I’ll focus here on just two ways that dis-enfranchisement is currently occurring in the US: (a) by the rigging of the boundary lines for voter districts and (b) by demanding elaborate photo IDs before people are allowed to cast their vote. More>>

Ramzy Baroud: Being Black Palestinian - Solidarity As A Welcome Pathology

It should come as no surprise that the loudest international solidarity that accompanied the continued spate of the killing of Black Americans comes from Palestine; that books have already been written and published by Palestinians about the plight of their Black brethren. In fact, that solidarity is mutual. More>>

ALSO:


Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news