When will we get true independent analysis of the impact of neo-liberal economics on the cohesion of our community? This applies around the world. When the IMF printed an article by a Nobel Prize winning economist recently saying that they had it wrong with neo-liberalism I had to have a lie down. At long last.....
These results were entirely predictable 30-40 years ago during the heyday of the “New Zealand Experiment”. This failed experiment meant to kick start the economy with opposite effects happened during the age of Neoliberalism, which after the initial jolt after global hyperinflation of the early 80’s has been progressing slowly and surely across the globe. NZ was the fastest and most radical, and had economic repercussions that led to among the slowest growth of the OECD. It didn’t work, but the ideology became so entrenched it stuck. The political gutting of unions, relative economic inequality due to radical tax flattening (the poor paying a much larger relative portion of their income), privatizations and deregulations all led to this catastrophe. And now the newly rebooted hyper-neoliberalism in NZ is a recipe for disaster.
I think the tax question was too blunt. Asking if people who are struggling want to pay more taxes is, of course, asking for a no. Asking if the top 1% or 10% & corporations should pay more tax & lose tax loopholes is likely to result in a yes, from many.
Yep, the tax question was scattershot. There's a world of difference between income taxes, and taxes on speculative flows including pollution, inheritances, capital gains, real estate and windfall profits.
Of course, economic elites exist and are far more prevalent today than in the days of social democracy. Of course, they affect political outcomes, with the parties of economic elites (ACT, National, NZ1) spending 14 to one over Labour in the 3 years preceding the last election. Of course, they are tied to the media in ownership, advertising and the increased use of Herman and Chomsky’s propaganda model called “flac” – the ample resources for extra lobbying, writing editorials, internet YouTube disinformation, etc.
We see little discussion in these poll questions of the original meaning of populism such as the Trumpist effects on NZ1 and ACT pointing towards a strawman “elite” – scientists, government servants, those smart people who get paid more than us working people. To an extent that is true but the solution is to divert attention from the most powerful “elites”, those with the money and power towards those that are middlemen for the will of the people -those in government who need to be demonized - with cliches of “wokeism”, anti-science YouTube spread disinformation and other similar means while the real elites run laughing to the bank. As they say, the government may be the cage but it is protecting us from far worse predators of Private corporations and wealthy individuals. “Expand the floor of the cage”.
Sadly this government has huge links with the Atlas Network -which is BigOil, tobacco, guns, mining, BigPharma etc. All the nastiest mega corps. The policies they are putting in place here are almost identical to other countries where they have got people into power. Read this:
“A crash programme of massive cuts; demolishing public services; privatising public assets; centralising political power; sacking civil servants; sweeping away constraints on corporations and oligarchs; destroying regulations that protect workers, vulnerable people and the living world; supporting landlords against tenants; criminalising peaceful protest; restricting the right to strike…”
“..the Atlas Network, a global coordinating body that promotes broadly the same political and economic package everywhere it operates.
Thanks. Initially the the Atlas Network sounded a bit too conspiratorial for me like the Trilateral Commission or Bilderberg Group that struck fear in both the left and far right. But I respect Monbiot and it does appear that they have an inordinate amount of power (as do the Trilateral Commission or Bilderberg Group) with dark money funding of think tanks. These think tanks spend lots of effort and resources sending out what Herman and Chomsky call “flac” as part of their propaganda model.
I was shocked at how many Sean Plunkett used in his RNZ Morning Report segment preceding the extremely close 2005 election. It was relentless and it came from the so-called “left” media outlet. He soon left for his right-wing shock jock position.
But this is not a “conspiracy”. It is perfectly legal thanks in part to their lobbying efforts. It is “institutional” in that this is simply the power of capital looking after its interests of maximizing profit. If the last Koch brother dies tomorrow, others will fill in the gap. Our media..even our “government” media is highly susceptible to these neoliberal propaganda barrages. So we now have straw man saviors like Trump and Seymore that serve their agenda.
As Monbiot says "these junktanks are like the spike proteins on a virus. They are the means by which plutocratic power invades the cells of public life and takes over. It’s time we developed an immune system."
From the IPA to the NZ Initiative to the TaxpayersUnion: New Zealand should be wise to the provenance of these think tanks, and at least aware of their international #libertarian connections. That our own think tanks are being trained up by Koch and dark money-funded libertarian networks should give us cause for concern. https://newsroom.co.nz/2020/10/21/who-the-hell-is-gideon-rozner-anyway/?
And on the far right flank are such organizations as Steve Banon-funded NZ "Counterspin" radio (whose name is the same as the radio programme by FAIR, a left media watchdog group in the USA). They helped enroll the anti-Vax brigade to march on parliament with successful propaganda posing as saviors from Big Business.
Both Groundswell & Freedom movements were organised & funded by Jordan Williams, so-called “Taxpayers Union” (nothing to do with unions or taxpayers) -a big player for pushing disinformation for Atlas & ACT (another Atlas org), along with Hobsons Choice, IPA and NZ Initiative (Luxon is a member).
Ka pai Bryce for bringing this growing discontent into the open.
Disenchantment with authority/government, depression, social diseases and loss of hope can all be correlated with a country's level of inequality. Aotearoa NZ has one of the highest levels of inequality amongst the OECD developed nations.
Another telltale indicator is levels of participation in local and national elections. This goes hand in hand with distrust of politicians in general.
For decades our governments have attempted to address the symptoms of inequality. This plaster over approach has failed simply because the underlying disease, inequality of wealth/income has never been addressed.
Until and unless we as a nation recognize the deeper problem then the discontent you describe will continue and grow.
I agree. For that we need to tax the wealthiest NZers, but also corporations. We also need to stop foreign ownership of NZ, our land, resources, assets & services.
Not taxing the poorest might also be an option. I’d like to see top incomes (or wealth) and bottom incomes tied by some formula - 10x, 20x, 50x ? What is reasonable?
Closing tax loopholes and taxing the top 10% at a much higher rate & a wealth tax?
The top 1% of NZ owns 25% of the wealth. The top 10% owns 70% of the wealth. The bottom
*half* of the country owns less than 2% of the wealth.
To end rampant inequality they need to be tied in some way- and our tax system needs to be much fairer. GST further penalises the poorest.
Tax avoidance by the rich is huge, but mostly not acted on.
I think that’s understandable under the austerity of this government. What’s interesting is that many respected economists don’t believe there was any big problem with our economy before the redundancies, lack of confidence & Neoliberal changes brought about by the coalition.
Eg Bernard Hickey
Craig Renny
I agree with them. The coalition are reframing the “economy narrative” so that they can do the usual Neoliberal:
“Defund- Cause to Fail- Privatise”- mostly to overseas corporate ownership…
In public education, public health, roads, water… etc using huge propaganda rolled out by the Atlas org ‘junk tanks’ - TPU, NZInitiative, IPA, Hobsons Choice, and so on
So everyone wants lots more services but they aren't prepared to pay for them??? How crazy is that?? It's like saying you want a nice car that will take you lots of places but you're not prepared to buy petrol. Populist people are ruled by their emotions but not by their brains.
We can easily pay for services if the top 20% pay tax on their wealth - like they used to pre 1980s
New Zealand went through a major program of tax reform in the 1980s. The top marginal rate of income tax was reduced from 66% to 33% (changed to 39% in April 2000, 38% in April 2009, 33% on 1 October 2010 and back to 39% in April 2021) and corporate income tax rate from 48% to 28% (changed to 30% in 2008 and to 28% on 1 October 2010). Goods and services tax was introduced, initially at a rate of 10% (then 12.5% and now 15%, as of 1 October 2010). Land taxes were abolished in 1992.
We need to close tax loopholes, and put the corporate and top tax rates back at pre Neoliberal levels
When will we get true independent analysis of the impact of neo-liberal economics on the cohesion of our community? This applies around the world. When the IMF printed an article by a Nobel Prize winning economist recently saying that they had it wrong with neo-liberalism I had to have a lie down. At long last.....
These results were entirely predictable 30-40 years ago during the heyday of the “New Zealand Experiment”. This failed experiment meant to kick start the economy with opposite effects happened during the age of Neoliberalism, which after the initial jolt after global hyperinflation of the early 80’s has been progressing slowly and surely across the globe. NZ was the fastest and most radical, and had economic repercussions that led to among the slowest growth of the OECD. It didn’t work, but the ideology became so entrenched it stuck. The political gutting of unions, relative economic inequality due to radical tax flattening (the poor paying a much larger relative portion of their income), privatizations and deregulations all led to this catastrophe. And now the newly rebooted hyper-neoliberalism in NZ is a recipe for disaster.
Agree. snd these hyper neo liberals then slaughter the entire Public Service ! Ehat a pack of idiots !
Great article Bryce. I hope Christipher Luxon and Chris Hipkins are reading it.
Another good article Bryce. Thank you
Very useful commentary. Thank you.
Looks like we are at the beginning of the real 21st century !!
I think the tax question was too blunt. Asking if people who are struggling want to pay more taxes is, of course, asking for a no. Asking if the top 1% or 10% & corporations should pay more tax & lose tax loopholes is likely to result in a yes, from many.
Yep, the tax question was scattershot. There's a world of difference between income taxes, and taxes on speculative flows including pollution, inheritances, capital gains, real estate and windfall profits.
Of course, economic elites exist and are far more prevalent today than in the days of social democracy. Of course, they affect political outcomes, with the parties of economic elites (ACT, National, NZ1) spending 14 to one over Labour in the 3 years preceding the last election. Of course, they are tied to the media in ownership, advertising and the increased use of Herman and Chomsky’s propaganda model called “flac” – the ample resources for extra lobbying, writing editorials, internet YouTube disinformation, etc.
We see little discussion in these poll questions of the original meaning of populism such as the Trumpist effects on NZ1 and ACT pointing towards a strawman “elite” – scientists, government servants, those smart people who get paid more than us working people. To an extent that is true but the solution is to divert attention from the most powerful “elites”, those with the money and power towards those that are middlemen for the will of the people -those in government who need to be demonized - with cliches of “wokeism”, anti-science YouTube spread disinformation and other similar means while the real elites run laughing to the bank. As they say, the government may be the cage but it is protecting us from far worse predators of Private corporations and wealthy individuals. “Expand the floor of the cage”.
As Artikel auf Deutsch lesen wrote,“the attempts at definition have one thing in common: they say practically nothing. ...The term populism is not only harmful, but also superfluous. There are more precise and politically more effective terms for the characteristics that populists are accused of. Antipluralism, for instance, is a far better term when it comes to describing the claim to sole representation of the will of the people. ...Authoritarian fits better when criticising the leadership cult of a movement.” https://www.ips-journal.eu/topics/democracy-and-society/why-the-term-populism-is-harmful-6317/#:~:text=In%20this%20case%2C%20the%20populist,ideology%20without%20a%20substantive%20core.
Sadly this government has huge links with the Atlas Network -which is BigOil, tobacco, guns, mining, BigPharma etc. All the nastiest mega corps. The policies they are putting in place here are almost identical to other countries where they have got people into power. Read this:
“A crash programme of massive cuts; demolishing public services; privatising public assets; centralising political power; sacking civil servants; sweeping away constraints on corporations and oligarchs; destroying regulations that protect workers, vulnerable people and the living world; supporting landlords against tenants; criminalising peaceful protest; restricting the right to strike…”
“..the Atlas Network, a global coordinating body that promotes broadly the same political and economic package everywhere it operates.
https://www.theguardian.com/commentisfree/2024/jan/06/rishi-sunak-javier-milei-donald-trump-atlas-network
Thanks. Initially the the Atlas Network sounded a bit too conspiratorial for me like the Trilateral Commission or Bilderberg Group that struck fear in both the left and far right. But I respect Monbiot and it does appear that they have an inordinate amount of power (as do the Trilateral Commission or Bilderberg Group) with dark money funding of think tanks. These think tanks spend lots of effort and resources sending out what Herman and Chomsky call “flac” as part of their propaganda model.
I was shocked at how many Sean Plunkett used in his RNZ Morning Report segment preceding the extremely close 2005 election. It was relentless and it came from the so-called “left” media outlet. He soon left for his right-wing shock jock position.
But this is not a “conspiracy”. It is perfectly legal thanks in part to their lobbying efforts. It is “institutional” in that this is simply the power of capital looking after its interests of maximizing profit. If the last Koch brother dies tomorrow, others will fill in the gap. Our media..even our “government” media is highly susceptible to these neoliberal propaganda barrages. So we now have straw man saviors like Trump and Seymore that serve their agenda.
As Monbiot says "these junktanks are like the spike proteins on a virus. They are the means by which plutocratic power invades the cells of public life and takes over. It’s time we developed an immune system."
Exactly. Here’s how it changed our elections here
From the IPA to the NZ Initiative to the TaxpayersUnion: New Zealand should be wise to the provenance of these think tanks, and at least aware of their international #libertarian connections. That our own think tanks are being trained up by Koch and dark money-funded libertarian networks should give us cause for concern. https://newsroom.co.nz/2020/10/21/who-the-hell-is-gideon-rozner-anyway/?
And on the far right flank are such organizations as Steve Banon-funded NZ "Counterspin" radio (whose name is the same as the radio programme by FAIR, a left media watchdog group in the USA). They helped enroll the anti-Vax brigade to march on parliament with successful propaganda posing as saviors from Big Business.
Both Groundswell & Freedom movements were organised & funded by Jordan Williams, so-called “Taxpayers Union” (nothing to do with unions or taxpayers) -a big player for pushing disinformation for Atlas & ACT (another Atlas org), along with Hobsons Choice, IPA and NZ Initiative (Luxon is a member).
https://johnmenadue.com/a-grim-atlas-guides-nzs-right-wing-politics/
This puts our Democracy hugely at risk - along with using “urgency” and “fast track” and very short submission time frames..
Atlas Network is operating in 100 countries to stop climate action and progressive politics
The Atlas Network: Big Oil, Climate disinformation & constitutional Democracy:
https://youtu.be/tlQOw6qpblY?si=e9GhjPX6oqd8XQ4x
Compared to NZ situation here
https://thestandard.org.nz/atlas-smirked/
Ka pai Bryce for bringing this growing discontent into the open.
Disenchantment with authority/government, depression, social diseases and loss of hope can all be correlated with a country's level of inequality. Aotearoa NZ has one of the highest levels of inequality amongst the OECD developed nations.
Another telltale indicator is levels of participation in local and national elections. This goes hand in hand with distrust of politicians in general.
For decades our governments have attempted to address the symptoms of inequality. This plaster over approach has failed simply because the underlying disease, inequality of wealth/income has never been addressed.
Until and unless we as a nation recognize the deeper problem then the discontent you describe will continue and grow.
I agree. For that we need to tax the wealthiest NZers, but also corporations. We also need to stop foreign ownership of NZ, our land, resources, assets & services.
Not taxing the poorest might also be an option. I’d like to see top incomes (or wealth) and bottom incomes tied by some formula - 10x, 20x, 50x ? What is reasonable?
Closing tax loopholes and taxing the top 10% at a much higher rate & a wealth tax?
The top 1% of NZ owns 25% of the wealth. The top 10% owns 70% of the wealth. The bottom
*half* of the country owns less than 2% of the wealth.
To end rampant inequality they need to be tied in some way- and our tax system needs to be much fairer. GST further penalises the poorest.
Tax avoidance by the rich is huge, but mostly not acted on.
You surprise me Bryce.
A survey set up like that, pretty much all leading questions, shouldn't be taken seriously at all.
The questions certainly invited the answers they fetched. They were loaded to the gunwales.
The “strong leader” currently is the rich and powerful, So that is a dead end !
Telling is that people want more service but not to pay for it.
I think that’s understandable under the austerity of this government. What’s interesting is that many respected economists don’t believe there was any big problem with our economy before the redundancies, lack of confidence & Neoliberal changes brought about by the coalition.
Eg Bernard Hickey
Craig Renny
I agree with them. The coalition are reframing the “economy narrative” so that they can do the usual Neoliberal:
“Defund- Cause to Fail- Privatise”- mostly to overseas corporate ownership…
In public education, public health, roads, water… etc using huge propaganda rolled out by the Atlas org ‘junk tanks’ - TPU, NZInitiative, IPA, Hobsons Choice, and so on
So everyone wants lots more services but they aren't prepared to pay for them??? How crazy is that?? It's like saying you want a nice car that will take you lots of places but you're not prepared to buy petrol. Populist people are ruled by their emotions but not by their brains.
We can easily pay for services if the top 20% pay tax on their wealth - like they used to pre 1980s
New Zealand went through a major program of tax reform in the 1980s. The top marginal rate of income tax was reduced from 66% to 33% (changed to 39% in April 2000, 38% in April 2009, 33% on 1 October 2010 and back to 39% in April 2021) and corporate income tax rate from 48% to 28% (changed to 30% in 2008 and to 28% on 1 October 2010). Goods and services tax was introduced, initially at a rate of 10% (then 12.5% and now 15%, as of 1 October 2010). Land taxes were abolished in 1992.
We need to close tax loopholes, and put the corporate and top tax rates back at pre Neoliberal levels
How does this discontent in NZ compare to other countries with simiilar demographics and politics to NZ ?