Perhaps Freudian, the word ‘relief’ hasn’t been used in relation to state assistance since the Great Depression when it described the government’s relief work schemes eg the building of the Homer Tunnel on the Milford Road.
But questions …
1/ How are the other 300,000 beneficiaries not on the Jobseeker Premium going to feel about being paid a basic rate of up to 50% less than the favoured? Probably like those green grocers and butchers who were shut down in favour of dairies and supermarkets during lock down four. Justifiably angry and unhappy.
2/ Grant Robertson says the IRP is about ‘cushioning’ and economic stimulus but if you’ve just been made redundant and know the benefit you are receiving will be halved in 12 weeks, would you be out spending? Apart from on the basics like mortgage or rent, food and utilities?
3/ Given the two large English-speaking countries without wage subsidies - Canada and the US – have unemployment rates of 13-14 %, why will NZ be any different? Ours will be in double digits when the IRP policy ends - when the chance of finding other work is lowest. If still in power, will a left-wing government introduce massive ‘benefit cuts’ - knocking the Jobseeker Premium recipients back to Jobseeker Regular rates? (BTW Treasury estimates are for Jobseeker numbers to reach 297,000 in 2021)
4/ How long can the economy be kept artificially afloat? That’s the question for National. Will they have the kahuna’s to tell the country – during the election campaign - that we cannot keep borrowing? Or will they be forced into a Faustian bidding war for votes?
5/ Does the public understand that when Roberston talks about creating a unemployment insurance scheme similar to other countries that it will, if it is anything like the US scheme, be paid for via employer and employee premiums?
(BTW when I searched the budget expense tables for the wage subsidy I found one item described as "The 2020 forecast of non-departmental expenses includes costs in relation to the Government's response to COVID-19" projected as $9.122 billion. That's already well surpassed.)
The Folly Of Impermanence.
1 hour ago
3 comments:
4/ How long can the economy be kept artificially afloat? That’s the question for National. Will they have the kahuna’s to tell the country – during the election campaign - that we cannot keep borrowing? Or will they be forced into a Faustian bidding war for votes?
Lindsay,is number 4 a rhetorical question? I suspect the economy will limp along until the election and whomever wins will deliver the ugly truth to voters after the big day. If the hammer blow is delivered early enough, regardless of the pain and suffering being served up, voters will have forgotten by the time the next voting day comes around.
It worked for labour in 1984/1987, I'm sure it will work again, regardless of who is in power.
Re 4 - From whom has the money been borrowed?
OMG, I forgot the quotation marks on my reference to Lindsay's question 4/.
"Grammar, the difference between knowing your shit and knowing you're shit."
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