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Trickle Down

Entry 136, on 2005-02-28 at 14:05:35 (Rating 2, News)

In New Zealand we were "taken over" by the political new right in 1984, and the country was exposed to the modern ideologies of the free market, labour reform, and free trade. Unemployment rose sharply, we had record numbers of businesses going bankrupt, and many New Zealand companies were taken over by foreign interests.

We were told that modernisation of infrastructure, labour conditions, and business practice was necessary to ensure the long term health of the economy, and that everyone would benefit in the end through the trickle down effect. That is, look after the big business and international investors, and as business conditions improve employment will increase and wages and conditions will improve.

Well, here we are 20 years after the big change started and where are we now? Unemployment is at a record low levels, but this has only happened since we got a more left leaning party in government. Business conditions have never been better. Businesses are reporting record profits, and management salaries have never been better. But what has happened to the trickle down?

Unions have been suppressed here for years, but finally people are realising what a big rip-off the whole thing has been. Big business ships huge profits overseas, mediocre managers are paid obscene salaries, but the New Zealand worker, who has become far more productive and has driven the improvements, gets nothing.

There are signs of things changing though. Manufacturing and other related workers are demanding a 5% increase. The labour market is tight, so they have a good chance to get it. Its a small enough amount to ask for after 20 years of sacrifice, really. Its about time that everyone got at least this amount.

Economists and business leaders are predicting disaster, of course. Its not good for the economy, they say. Well who cares? What's the point of having a healthy economy (at least, healthy according to one way of looking at it) if only the top 10% of income earners are going to benefit? I think we should be aiming at an economy which provides benefits for the majority of the people participating in it.

If we get some inflation, or decreased interest from overseas investors, or even a slight increase in unemployment, so what? Its just the pain we have to put up with to get some gain! Maybe it will be real gain this time.

Comment 1 (18) by Stan on 2005-03-07 at 18:16:52:

You're right! I want more money too. I'm sick of my boss getting a raise and not me.

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