Lightnews — Scholar-powered news

Craig Renney @clrenney.bsky.social · 1d

#nzpol

Episode 25 of Locked Out with Craig Renney looks at the singularly most idiotic policy launched yet by the government. Visible from space levels of moronic. Have watch now 😄

youtu.be/8aTWMV6ULIc?...

Ep25 The singularly most stupid policy yet launched by the Coalition government

YouTube video by Big Hairy Network

youtu.be

1 21 56

Craig Renney @clrenney.bsky.social · 1d

The decision is a demonstration of the organising power of trade unions, charities, NGO's and the wider Living Wage movement. We should celebrate their victory and the lasting good it will achieve for thousands of households in New Zealand.

2 8 37

Craig Renney @clrenney.bsky.social · 1d

It’s clear that someone around the Cabinet Table could see that cutting the wages of some of the lowest paid workers in the country is not a way to build a more prosperous economy, and we should thank them. More of their voice is needed to prevent other harmful reform.

2 6 21

Craig Renney @clrenney.bsky.social · 1d

Removing the Living Wage protection in government contracts would likely cost the government additional money in higher welfare payments and other costs. The only beneficiaries of the proposal are the companies that would have been able to slash wages by up to $11,336 a year.

1 5 17

Craig Renney @clrenney.bsky.social · 1d

The living wage is set at a level that allows New Zealanders to live a decent life. Decent work and decent wages should be the hallmark of employment in New Zealand. The previous government recognised this by adding it to the guidelines in 2021 procurement.govt.nz/assets/procu...

procurement.govt.nz

1 6 17

Craig Renney @clrenney.bsky.social · 1d

#nzpol

GOOD NEWS ALERT 🚨

Today the government relented to pressure from the @livingwageaotearoa.bsky.social and retained the requirement for contracted workers to be paid at least the Living Wage rate in Government Contracts. Around 5,000 workers will likely benefit from this decision

4 69 290

Craig Renney @clrenney.bsky.social · 2d

Overall, this cut signals how far we have fallen. Remember that we were supposed to have recovered by now and growth was supposed to have returned. It hasn’t, the policy mix of the government likely makes growth harder. Back on track? More like off the rails.

4 13 56

Craig Renney @clrenney.bsky.social · 2d

There is also a risk that in the short run we will be driving higher inflation. A lower OCR means a lower NZ$. That likely means higher petrol prices and higher imported food, energy, and goods pricing. That will put further pressure on inflation- likely to breach 3% soon.

1 13 43

Craig Renney @clrenney.bsky.social · 2d

We should be using fiscal policy to help manage the economic cycle - instead the government is determined to force the Reserve Bank to do all the work. That hinders our recovery and leads to unnecessary misery. Real people will suffer in communities around Aotearoa for this.

2 13 42

Craig Renney @clrenney.bsky.social · 2d

That in turn means that it is likely to be a year before this cut creates any real new economic activity. So there is no relief for NZ in the short run. Job losses and ‘spare capacity’ will continue for some time. We should have cut earlier, as called for by the CTU

1 9 32

Craig Renney @clrenney.bsky.social · 2d

We are only just now reaching the point where our interest rates are stimulatory (I.e below the neutral rate). That means the cuts to date have likely done little to stimulate growth. It takes about a year for an interest rate cut to translate to real world

1 11 34

Craig Renney @clrenney.bsky.social · 2d

#nzpol The Reserve Bank has cut the official cash rate by 0.5%. That sounds great. But banks only cut interest rates that much when the economy is in trouble - and not when things are going well. This cut is a sign of economic weakness, not strength. A 😄🧵

2 57 160

Craig Renney @clrenney.bsky.social · 3d

#nzpol Sometimes a policy is so stupid it makes you question the very fabric of reality. Decisions so fabulously, almost wantonly dumb, you wonder if we actually live in a simulation. Welcome to the world of removing Jobseeker Support for 18 & 19-year-olds. craigrenney.substack.com/p/a-small-wr...

A small wrinkle in the Jobseeker policy

The government’s recent changes to benefits feel like this: the house is on fire, and this policy is them turning off the smoke alarm and saying it’s fixed

craigrenney.substack.com

10 110 260

Craig Renney @clrenney.bsky.social · 4d

This is a policy with no basis in any analysis. It's designed to look tough. It actually makes them look thoughtless and out of touch. It's arbitrary, mean, and simply designed to disguise the fact that the government is failing young people. Is this what being back on track feels like?

4 44 170

Craig Renney @clrenney.bsky.social · 4d

The government has a target to reduce the number of people on jobseekers by 50k. I assume they have announced that they will not meet that target by simply reducing the number of people who can access jobseekers? Or will they cheat their way to a win, like child poverty statistics?

1 11 95

Craig Renney @clrenney.bsky.social · 4d

Since the election, there are 37,243 fewer 15-19 year olds in filled jobs. The jobs market for young people is as bad - if not worse - than the GFC. So adding 6% to the cost of tuition fees and halving apprenticeship boost support makes life even harder. Brilliant work National.

2 26 130

Craig Renney @clrenney.bsky.social · 4d

This creates frankly bonkers outcomes. If one parent works an hour less a week, their child gets $13,942. In fact, one parent can work 11 hours less a week and the household is still better off. Secondary benefits (like Accommodation Supplement) are likely to stretch that gap even further

1 26 130

Craig Renney @clrenney.bsky.social · 4d

#nzpol The government has announced that 18/19 year olds, who live in a household where the parents earn $65,529 or more, can't claim jobseekers support. If both parents work 27 hours on the minimum wage - $634 a week - they will be expected to now financially support their adult offspring. A 🧵

10 89 180

Craig Renney @clrenney.bsky.social · 5d

The Minister of Finance's reply to our letter, and further reporting, is here:

www.thepost.co.nz/nz-news/3608...

‘Not sound economics’: 20 economists slam government’s economic strategy

The signatories – including former Productivity Commission chair Ganesh Nana and economist Susan St John – say the Government’s fiscal approach has worsened the recession, weakened public services, an...

www.thepost.co.nz

3 6 13

Craig Renney @clrenney.bsky.social · 5d

#nzpol 20 Economists have penned an open letter to the Prime Minister and Minister of Finance - asking for change. The contents and signatories to the letter are at: craigrenney.substack.com/p/open-lette...

Open Letter to Prime Minister and Minister of Finance

Our current economic approach is causing real harm. We need to change track

craigrenney.substack.com

3 22 82

Craig Renney @clrenney.bsky.social · 5d

That’s a great question. One of the best ways would be government procurement. Working with social enterprises both encourages their development & great community outcomes. Govt can match any extra costs from using social enterprises against the savings they make from the extra services they provide

1 1

Reposted by Craig Renney

Foxy @foxylustygrover.bsky.social · 9d

Snap poll on The Panel:

Should the power grid be nationalised?

Yes 91.8%
No 8.2%
#NZPol

7 22 120

Craig Renney @clrenney.bsky.social · 10d

The CTU is calling on political parties to support communities, and support the economy, by adopting this policy. We need to stop making the same mistake - in believing that more market-based solutions will solve a problem created by the electricity market itself.

2 8 36

Craig Renney @clrenney.bsky.social · 10d

If generators chose to invest their returns in new generation, rather than profit, that would help lower electricity costs. We need to make sure that vulnerable people can afford to put the heating on when they need it – not just when the electricity market says it’s okay.

1 6 34

Craig Renney @clrenney.bsky.social · 10d

Privatisation in electricity hasn’t worked. We propose to use the profits earned by the existing government stake in gentailers to bring them back into public ownership over time. The faster these companies make profit, the faster they will be in public hands.

1 4 22