Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Labour's Reserve Bank Policies

Labour's Reserve Bank Policies

Income Equality Aotearoa New Zealand Inc. ¾ Closing the Gap

There are some very good points in the recently released Labour proposal on the Reserve Bank policy but..... says Peter Malcolm National Secretary of “Closing the Gap”- Income Equality Aotearoa New Zealand Inc

We are pleased to see Labour’s proposed Reserve Bank policy is to retain money in New Zealand, by the way of savings rather than to export the money in mortgage interest margins to mainly overseas banks, during times when inflation needs to be controlled. And a compulsory Kiwi Saver scheme has always been a good idea, but only when it is coupled with significant increases in the minimum wage, so that all can afford the contributions and the extra contributions, when necessary.

Our great concern is the absence of any targets for unemployment, which suggests that the Labour party is still wedded to ideas of Rogernomics and the failed doctrine of a ‘trickle down economy’ that our nation’s current unequal society can attest to.

When employment is seen as the major way in which financial resources are distributed in society, there has got to be enough jobs for all those who need them. And in a fair society the jobs would be well-paid.


But in the Labour party’s proposal, the only time employment is mentioned in the document is in a proposed amendment,


‘Labour will amend the Reserve Bank Act to read: “The primary function of the Bank with respect to monetary policy is to enhance New Zealand’s economic welfare through maintaining stability in the general level of prices in a manner which best assists in achieving a positive external balance over the economic cycle, thereby having the most favourable impact on the stability of economic growth and the level of employment.”’


As such, employment is a possible by-product of the policy and not part of the policy itself.


Since the original inflation target was given to the Reserve Bank in 1989, it appears to have used the monetarist concept of a “natural level of unemployment” to ensure a low wage economy with little or no pay rises (at least for the workers). Since the mid-1980’s we have averaged an unemployment rate of over 6%. Our lowest rate was 3.65% in the mid-2000’s, which showed that people worked when jobs were available.


Our country’s huge inequality gap can be chiefly attributed to three neo-liberal decisions: setting an independent Reserve Bank a sole low inflation target; introducing laws that disempowered Unions; and draconian welfare cuts in the early 1990’s for the almost permanent 6% victims of the other two policies.


Until such time as a Labour Government specifically requires the Reserve Bank to seek a target unemployment rate (of below 3%) at the top of its criteria, we will know that we have a party that is still Rogernomic at heart, regardless of its rhetoric. What we need is one that has a genuine desire to help the vast majority of New Zealanders who have missed out on any real rewards over the last quarter century.
Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Scoop Editor "Ask me anything" : Scoop's 'Invisible Paywall'

Operation Chrysalis: The Final Countdown - Thanks & There's Still Time To Pledge

Phew! We are now counting down the hours to the end of this crowd-funding campaign at 11pm on Sunday. Thankyou to all those Scoop readers and supporters who have pledged already. You have been awesome. But this is not over yet. More>>

 
 

PARLIAMENT TODAY:

IPCA Reports: Significant Problems In Police Custody

In releasing two reports today, the Independent Police Conduct Authority has highlighted a number of significant problems with the way in which Police deal with people who are detained in Police cells. More>>

ALSO:

Inspector-General of Intelligence and Security: Inquiry Into GCSB Pacific Allegations

The complaints follow recent public allegations about GCSB activities. The complaints, and these public allegations, raise wider questions regarding the collection, retention and sharing of communications data. More>>

ALSO:

TPPA Investment Leak: "NZ Surrender To US" On Corporates Suing Governments

Professor Jane Kelsey: ‘As anticipated, the deal gives foreign investors from the TPPA countries special rights, and the power to sue the government in private offshore tribunals for massive damages if new laws, or even court decisions, significantly affected their bottom line’. More>>

ALSO:

Werewolf: The Myth Of Steven Joyce

Gordon Campbell: The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country... More>>

ALSO:

RMTU: No Public Submissions On International Government Procurement Deal

“The government is preparing to assent to the Government Procurement Agreement, a World Trade Organisation Treaty which opens up New Zealand Government contracts to foreign companies and closes the door on local businesses and their workers. However the Foreign Affairs, Defence and Trade Select Committee is refusing to take public submissions on the decision.” More>>

ALSO:

Gordon Campbell:
On Pacific Spying

So New Zealand spied on its friends and allies in the Pacific – and has not only been passing on the results to the NSA, but has apparently passed on the details of the Pacific’s relations with Taiwan to our other best friends, the Chinese. On the side, the Key government has also been using the security services to gauge the chances of Trade Minister Tim Groser landing the top job at the WTO... More>>

ALSO:

State Housing Transfer: Salvation Army Opts Out

The Salvation Army has decided against negotiating with Government for the transfer of Housing New Zealand stock.
More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news