Bernard Hickey explains why New Zealand’s political economy is doomed and why I like to listen to the cry of corporations that exploit low wages

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Bernard Hickey is one of the most important political economists in the game, his ability to use research to explain complex economic processes while explaining its political dimensions makes him one of the most public economists we have in Nova Scotia. Zeeland.

Here he explains the fundamental problem of the New Zealand economy…

… the problem is not high migration, the problem is that neither National nor Labor have spent enough on infrastructure to deal with the huge migration game.

TDB recommends NewzEngine.com

This creates false growth which, in turn, causes social friction as the domestic working class is pitted against cheaper migrant labor.

We are not overtaxed, on the regulated economy!

Our highest tax rate is the 39th highest in the world behind all Scandinavian countries plus Germany, UK, Ireland, France and South Africa!

Australia’s highest tax rate is 47 cents!

Our GST rate doesn’t even put us in the top 50 and our corporate tax rate is 40th while government spending to GDP ranks 56th!

And we’re voted the easiest to do business with by the World Bank!

I’m not looking for socialism here, folks, just basic regulated capitalism!

We are dependent on a low-wage economy because 30 years of neoliberalism have gutted the labor movement.

That’s why I love listening to those who exploited this low-wage economy cry out in agony now…

Hotel businesses in Rotorua closed in protest against immigration restrictions and warn of ‘catastrophic’ consequences

Hotel businesses in Rotorua closed on Monday in protest at the inability to get the workers they need.

One says it will be catastrophic for the tourist town if they cannot find staff before the summer.

…unfortunately Labor gave up and opted to open the immigration floodgates and start the same dynamic that crippled Auckland…

Government immigration announcement sees skilled migrants and relatives categories reopen

The government is opening two additional categories for migrants to become residents as it seeks to reconnect with the world post-pandemic and address significant labor shortages.

Immigration Minister Michael Wood today announced that the skilled migrant visa category, which was halted at the height of Covid-19 and border closures, will reopen with the relatives category from from mid-November.

A consultation will also begin on a new system of uncapped and “simplified” points for migrants who do not fall under existing programs.

This follows the Green List, which provided pathways to residency for the 85 most needed professions.

… yes, more International student scamsmore exploited migrant workers and more hyper tourism – all the things that screwed us up last time.

Yay.

We are so dependent on a low-wage economy that we risk triggering a spike in unemployment only to capitulate to big industry that depends on cheap labor.

This will lead to rising unemployment as big industries abandon Kiwi workers for their cheaper imports and we will see the impact this next year as the recession begins.

To inoculate the country against these dynamics, we urgently need fair wage agreements to ensure the unionization of the imported workforce.

It’s a hell of a juggling act, but if anyone can pull it off, it’s Michael Wood.

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