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

 


Why is the Reserve Bank happy with low wage growth?

Media release

Why is the Reserve Bank happy with low wage growth?

“There seems little prospect for better wage growth if the Reserve Bank is to be believed”, says CTU Economist Bill Rosenberg. “It says the slow wage growth is because of more people wanting jobs, rapid immigration growth, and the high unemployment rate.”

“This is a circular argument. People are being forced into the job market because stagnant wages mean more people have to work for the needs of their households. At the same time harsher rules on social welfare benefits and the low level of those benefits force people into a job market where as the bank says, there is ‘elevated unemployment’. In these circumstances, immigration should not be used to undermine workers rightly asking for wage increases.” Rosenberg said.

“There is a high risk that growth peaks this year without most people seeing any sign of it in their pay packets.” Rosenberg said.

“The Reserve Bank’s rhetoric is not encouraging. It seems to see wages as just another price and it will rally against any significant rise in them. There is no recognition of the needs of workers who depend on wages for their livelihoods, nor of their productivity, which has risen much faster than real wages since 2009. The implication is that if wages do rise faster the Reserve Bank will clamp down with higher interest rates.” Rosenberg said.

“At the same time the Reserve Bank acknowledges the longstanding problem with the overvalued exchange rate. It seems to think it is a mystery, and just sits on its hands. There are policies that could be used in New Zealand to help address it. A more competitive exchange rate would help high value exporters and reduce our reliance on commodity exports whose prices have peaked, while creating better jobs.” Rosenberg said.

“Meanwhile there is little sign of a pause in interest rate rises.” Rosenberg said.

ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Greens: Russel Norman To Stand Down As Co-Leader

Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party’s Annual General Meeting in May. Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM.

“After nearly a decade as Co-leader, now is a good time to find a new challenge for myself, and to spend more time with my family” said Dr Norman.

“This is my ninth year as Co-leader and I think it’s time for a change. Now is a good time for new leadership for the Party. My replacement will start from a strengthened base and will have a full parliamentary term to establish himself in the role and take the Greens into government in 2017." More>>

 

Gordon Campbell: On The Eleanor Catton Rumpus

If anyone was in doubt about the accuracy of the comments made in India by Eleanor Catton, the reaction from some quarters here at home has gone a long way to proving her point… More>>

ALSO:

More Rent Assistance, Less State-Owned Housing: John Key Speech - Next Steps In Social Housing

"We are going to ensure that more people get into social housing over the next three years, whether that is run by Housing New Zealand or a community provider. The social housing budget provides for around 62,000 income-related rent subsidies a year. We are committed to increasing that to around 65,000 subsidies by 2017/18, which will cost an extra $40 million a year." More>>

ALSO:

The Future Of Work: Andrew Little - State Of The Nation 2015

In 2005 when I led the EPMU we worked together with Air New Zealand to find a way to keep engineering jobs that were heading overseas. A lot of these workers were people I’d known for years and they were facing not just losing their jobs but not being able to find the kind of work they do without going overseas. A lot of people were facing personal and financial upheaval.... More>>

ALSO:

Gordon Campbell: On The Sabin Case, The Pressures On Greece And (Songs About) Coyotes

Mike Sabin is a National MP, and the current chairman of Parliament’s law and order committee. Yet reportedly, he is being investigated by the Police over an assault complaint... However, the PM will not comment on any aspect of the story. More>>

ALSO:

Houses, ISIS, King (& Catton): PM Post-Cabinet Press Conference

The Prime Minister met with reporters to discuss: • Social housing, the Auckland housing market • The prospect of joining international forces to combat ISIS • David Bain’s compensation • The lowering of the flag for the King of Saudi Arabia's death ... More>>

ALSO:

Gordon Campbell: On Tomorrow’s Speeches By John Key And Andrew Little

The Key government has already kicked off the political year on a stridently ideological note, with Environment Minister Nick Smith choosing to lay all manner of sins at the door of the RMA. Tomorrow, the government will wheeling out its best salesman – Prime Minister John Key – to sell its plans for state housing… . More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news