Sunday, 17 December 2017

Governing For The “Other Half” Of New Zealand.

Up Where We Belong? In the end, the promise to be a “transformational” government is a promise to put the need of the many ahead of the greed of the few. Keeping that promise is unlikely to retain the confidence of the business sector, but it just might be enough to win the confidence of that “other half” of the New Zealand people whose votes made this government possible.

THE LABOUR PARTY has never been very tolerant of dissenters. It is, therefore, unsurprising that very few within its ranks have reacted positively to my recent posting on The Daily Blog. No matter how many private reservations Labour supporters may be harbouring about Grant Robertson’s “fiscally responsible” economic policies, they would rather his critics refrained from giving public voice to their concerns.

The case they make for maintaining radio silence on the new government’s performance is that criticism, no matter how well-merited or constructive, will only reinforce the National Oppositions “shambolic” narrative. What Jacinda Ardern and her team need more than anything else at this time, argue their supporters, is a few weeks of relative calm in which to prepare themselves for the challenges of 2018.

Convincing New Zealanders that their new finance minister is not a swivel-eyed economic loon is regarded as crucial to this process of political consolidation. Grant Robertson winning accolades from mainstream journalists for his fiscal and economic responsibility is much more to be desired, at this stage of proceedings, than receiving the hearty endorsement of radical leftists. It’s “baby steps” that Labour needs to take right now – not giant strides.

One critic of my criticism put it like this:

“What you are dealing with in NZ today, is a fairly conservative political climate. The political Left is no longer a strong and coherent force. The electorate is split roughly down the middle between Left and Right. Any government somehow has to bridge the conflicts and disunity to represent the voting population, and it’s going to be centrist. The new government is treading carefully very deliberately, so as not to alienate the business sector or impede market confidence. The new government has to gain confidence and that imperative guides it for now.”

But, if the electorate is “split roughly down the middle”, then describing the Left as no longer “a strong and coherent force” makes no sense. Equally nonsensical is the suggestion that in a society characterised by “conflicts and disunity” the only viable strategy is to embrace the politics of centrism. Governing on behalf of the centre makes sense when, on social and economic issues, there is a broad measure of agreement. While that may have been the case in the 1960s, it is certainly not true of today.

Nor is it true that New Zealanders are living in a “fairly conservative climate”. Mainstream newspaper and magazine editors may like to think that their own conservative views are also those of the majority; and talkback hosts like Leighton Smith will loudly insist that they are; but that half of the population routinely excluded from mainstream political discourse seethes with entirely justifiable resentment and barely suppressed rage.

These New Zealanders are unlikely to be mollified or impressed by the spectacle of a Labour-led government “treading carefully very deliberately so as not to alienate the business sector or impede market confidence.” They have, after all, seen this happen many times before and they know that the moment “their” government makes the maintenance of business confidence its No. 1 priority, then all hope of it ever living up to its promise of “transforming” society flies out the window.

Because, of course, gaining and maintaining the confidence of the business sector involves a great deal more than managing-down Crown debt and building up healthy surpluses. Nothing requires more in the way of constant state intervention and control than a laissez-faire economy. The slightest hint that the plethora of legal constraints required to keep the markets “free” might be thinned-out or, horror of horrors, done away with altogether, is absolutely guaranteed to send the confidence of the business sector into a nosedive.

Just recall the howls of outrage that accompanied Metira Turei’s promise to make a bonfire of the MSD’s hated “sanctions”. New Zealand’s brutal social welfare regime fulfils exactly the same role as Britain’s nineteenth century workhouses: it is a means of ensuring that workers will accept low wages and poor working conditions in preference to enduring the humiliation and material deprivation of life on “the benefit”. Any relaxation of the “rules” governing beneficiaries’ lives would shake the business sector to its core.

Even more destabilising to the business sector would be any serious attempt on the part of a “transformational government” to rebuild the strength and fighting spirit of the trade union movement. Restoring “compulsory unionism”, and lifting the current legal restrictions on the right to strike, would instantly provoke employers into full-scale revolt. They do not need to read the works of Karl Polanyi to know that “the only way politically to temper the destructive influence of organized capital and its ultra-market ideology [is] with highly mobilized, shrewd, and sophisticated worker movements.”

My point is that just about any measure aimed at loosening the controls that keep the “free market” running smoothly will be deemed unacceptable by the business sector. Any attempt to make the lives of working-class people less constrained and fearful; any move to emancipate and empower the inhabitants of the social depths; will be interpreted by those who occupy the commanding heights of our society as a direct thrust at their interests and privileges.

Yes, raising taxes and/or increasing the deficit would be regarded as an unfriendly act, but so, too, would decriminalising marijuana, or emptying the prisons of all those found guilty of victimless crimes, or following the example of Costa Rica and abolishing the armed forces.

In the end, the promise to be a “transformational” government is a promise to put the need of the many ahead of the greed of the few. Keeping that promise is unlikely to retain the confidence of the business sector, but it just might be enough to win the confidence of that “other half” of the New Zealand people whose votes made this government possible.


This essay was originally posted on The Daily Blog of Saturday, 16 December 2017.

Friday, 15 December 2017

Grant Robertson’s “Mini-Budget” Presents Progressives With A “Maxi-Problem”.

 Same As The Old Boss? Robertson’s fetish for paying down Crown debt and amassing government surpluses will limit this government’s options to doling out some extra cash to beneficiaries and the working poor; increasing public servants’ pay; and making a handful of modest improvements to the nation’s infrastructure.

IT’S OFFICIAL – there is now no prospect of this government living up to its promises of introducing “transformational” change. Thanks to Grant Robertson, the Labour-NZ First-Green Government will, with one exception, be fundamentally indistinguishable from the Clark-Cullen ministry of 1999-2008.

The exception? After its initial “Free Tertiary Education” and “Families Package” spending splurges, the Ardern-Robertson ministry intends to keep new spending at levels well below those of both Clark-Cullen and Key-English. Robertson’s fetish for paying down Crown debt and amassing government surpluses will limit this government’s options to doling out some extra cash to beneficiaries and the working poor; increasing public servants’ pay; and making a handful of modest improvements to the nation’s infrastructure.

Now, don’t get me wrong, all of these things are “nice to have”, but we must be very clear about the sort of economic policy Robertson’s “Mini-Budget” is locking-in. Essentially, what we have is a new government offering to be – at best – a slightly more generous version of the government it replaced. At worst, we may be looking at an initial burst of generosity followed by years of the most flinty-faced parsimony. Very much a case of “meet the new boss, same as the old boss”.

Conservative politicians and commentators are forever telling us that problems cannot be solved simply by “throwing money at them”. This simply is not true.

If a business is failing to grow; if it’s employees are being lured away by promises of higher wages; if the technology in use is out-of-date and prone to breaking down: what does the business owner do? If he’s smart, he borrows additional capital and ploughs it into the business. With the additional funds he buys new technology which, in turn, allows him to employ fewer staff at higher wages. The resulting uplift in the business’s productivity generates higher profits, out of which he repays the borrowed capital sum.

Throwing money at problems works a treat. If it didn’t, Capitalism would never have gotten off the ground.

Unfortunately, Robertson does not appear to grasp the critical fact that if New Zealand is to be “transformed” then he, as Finance Minister, is going to have to lay his hands on a very large sum of money. But, not only is Robertson averse to increasing the level of Crown Debt (even though it has never been cheaper for governments to borrow money) but he is also absolutely determined not to use the most important tool which governments – and only governments – possess: the ability to raise “capital” by levying taxes.

Raising taxes is important not only because it would allow the government to accumulate the financial resources necessary to do more than deliver a one-off lift in the incomes of the poorest New Zealanders, but also because a significant increase in the taxes of the wealthiest New Zealanders would begin to undo the transformation that the neoliberal policies of the past 30 years have already accomplished.

The transformation I’m talking about is the transformation which brought an end to the humane and generous social-democratic society for which New Zealand was renowned internationally, and which, in its place, erected the brutally competitive and grossly unequal society the vast majority of New Zealanders are required to live in today. If that society is to be transformed into something more decent and caring, then a substantial redistribution of wealth and power will have to be accomplished.

That could have been the brief of the much-ballyhooed “Tax Working Group”. (On the subject of which I penned a small political fantasy for The Daily Blog back in September.)  But, once again, Robertson erred on the side of caution – not transformation. The Tax Working Group, chaired by Robertson’s mentor and political patron, Sir Michael Cullen, has been given a ridiculously narrow brief, whose less-than-transformational outcomes will not come into effect until after the 2020 General Election.

By when, of course, it will be much too late to rescue this government from its all-too-evident parsimony and political gutlessness. Robertson’s tight rein on spending can hardly fail to set the coalition partners at each other’s throats. And as for that “Hallelujah Song” of emancipation and transformation, which Jacinda Ardern somehow convinced Winston Peters of Labour’s willingness to sing. Her ruthless finance minister will, long since, have truncated its stirring verses to a few discordant bars.

There will be some who take umbrage at my uncompromising pessimism. To them I say: “It is only because I have been here before.” I remember another inspirational Labour leader who put an end to nine long years of National Party rule by promising to take New Zealand “up where we belong”, and who then allowed his Finance Minister to wreak havoc on the expectations and aspirations of his party’s electoral base.

David Lange’s was a “transformational government” and no mistake. As transformational in its way as the First Labour Government. Except that, the transformation Labour wrought was not the transformation the people who’d voted for it were expecting.

“Rogernomics” was able to destroy New Zealanders’ humane and generous society because the political resistance to it was too little, and came too late. If the members and supporters of this government similarly fail to act immediately and decisively against the give now/withhold later policies of Finance Minister Robertson, then the best chance New Zealanders have had in 30 years to heal the harms of the neoliberal “revolution” will be lost.

Not that you’ll hear the National Party and their friends complaining. The low debt and large surpluses bequeathed to them by Grant Robertson will be more than enough to fund yet another round of generous tax cuts – for the rich.

The right-wing transformation of New Zealand will continue apace.


This essay was originally posted on The Daily Blog of Friday, 15 December 2017.

Transformational Politics Demands Transformational Economics.

Change Agents? Grant Robertson’s economic orthodoxy bodes ill for the expectations of Labour, NZ First and Green Party followers that Jacinda Ardern will, indeed, preside over the “transformational” change promised in her new government's coalition agreement.

LABOUR’S ECONOMIC ORTHODOXY presents its supporters with an A-Grade conundrum. If all you ever do is all anyone has ever done, then what are the chances that anything will ever change? Something in the Marxist nucleotide of Labour’s DNA continues to carry forward the message that economics and politics are inextricably linked. Stuff up the former and the latter will swiftly follow suit. That being the case, Grant Robertson could be Labour’s worst enemy.

Not that he should feel too badly about that, because Labour finance ministers have a well-established historical reputation for being their party’s worst enemies.

One has only to think of Philp Snowden, Chancellor of the Exchequer in Britain’s first and second Labour governments. While no one could fault the old man’s dedication to Labour’s working-class voters, his utterly conventional economic ideas left him helpless in the face of the Great Depression. In the words of his biographer, Keith Laybourn: “He was raised in an atmosphere which regarded borrowing as an evil and free trade as an essential ingredient of prosperity.”

It was Snowden’s unwavering faith in these nineteenth century liberal orthodoxies that broke his party and discredited his government. The people who paid the price for their Chancellor’s intellectual rigidity were (as is so often the case) his beloved working-class.

Things might have gone the same way here in New Zealand just a few years later had the proposals of Labour’s economically orthodox leaders (Michael Joseph Savage, Peter Fraser and Walter Nash) not been voted down by the more radical members of their party’s caucus.

It was thanks to this latter group that Labour went into the 1935 election with an economic policy calling for the “immediate control by the state of the entire banking system; the provision of currency and credit to ensure adequate production, guaranteed prices and wages; readjustment of all mortgages” – along with a policy of state-fostered industrialisation which, today, would be described as “economic nationalism”.

How very different these policies were from the policies of Roger Douglas, the Labour Finance Minister who championed the same laissez-faire economic policies implemented by Philip Snowden between 1929 and 1931. “Rogernomics” radically transformed New Zealand’s economy and politics – and very nearly destroyed the New Zealand Labour Party!

The two politicians most responsible for rescuing Labour from political oblivion were Helen Clark and Michael Cullen. In a double act of extraordinary sophistication, Clark and Cullen kept hold of the political reins for nine years by cleverly masking both the true extent of their government’s economic success, and the political opportunities it opened-up.

As Finance Minister, Cullen proved a master at making his burgeoning revenue surpluses, which might have funded a much more ambitious social-democratic programme, disappear.

Some of Cullen’s billions were invested in the special superannuation fund that still bears his name. Even more went into Working for Families, the massive employer subsidy which Cullen introduced in preference to allowing the trade unions to extract the money from corporate shareholders. Most of Cullen’s surplus billions, however, were directed towards paying down Crown debt.

The opportunity cost of these fiscal diversions would only become apparent towards the end of the next decade, when New Zealand’s physical and social infrastructure began to, quite simply, fall apart.

That Michael Cullen has for many years been Grant Robertson’s political patron and mentor bodes ill for the expectations of Labour, NZ First and Green Party members that Jacinda Ardern will, indeed, usher in the “transformational” change promised in the new government’s coalition agreement.

Even before he received his ministerial warrant, Robertson was at pains to bind Labour to precisely the same diversionary economic strategies pioneered by Cullen.

A Finance Minister who repeatedly swears allegiance to his own “Budget Responsibility Rules” is unlikely to champion the sort of creative and progressive economics that makes for creative and progressive politics.

Unless, like Savage, Fraser and Nash; Ardern, David Parker and Robertson are reined-in by a Labour caucus determined to fulfil their government’s “transformational” ambitions, then the long-deferred renovation of New Zealand’s disintegrating institutional and physical infrastructure will not receive the resources it requires.

A transformational government cannot be brought into being except by means of transformational economics. For all his faults, Roger Douglas understood this fundamental proposition. Progressive voters need a Finance Minister whose economic policies are as bold as his government’s political promises.


This essay was originally published in The Waikato Times, The Taranaki Daily News, The Timaru Herald, The Otago Daily Times and The Greymouth Star of Friday, 15 December 2017.

Wednesday, 13 December 2017

Yanis Varoufakis Would Tell Grant Robertson That Neoliberalism’s Rules Are For Breaking – Not Keeping.

 Progressive Economist: Yanis Varoufakis is one of neoliberal capitalism’s most outspoken and acute critics. Winston Peters might have declared his determination to give capitalism a human face, but Varoufakis would likely argue that the necessary transplant operation would entail far more effort than it was worth! Hardly surprising given his belief that the leading capitalist nations have been waging an unrelenting war on their poorest citizens for the past forty years.

IMAGINE THE REACTION if Finance Minister, Grant Robertson, announced a broad-ranging, government-sponsored seminar on progressive economics chaired by Yanis Varoufakis. Vilified and demonized by EU bankers and politicians for his heterodox economic ideas, Varoufakis resigned as Greece’s Finance Minister in 2015 rather than impose yet another of the European Central Bank’s crushing economic diktats on his impoverished homeland.

Inviting Varoufakis to chair a seminar on progressive economics would constitute the clearest possible proof that the Labour-NZ First Coalition’s promise to be a “transformational government” was genuine. International and domestic market reaction to such an announcement would, however, be instantaneous and extreme. New Zealand’s government would be portrayed as having taken leave of its senses.

And, in many respects, the markets would be right. Varoufakis is one of neoliberal capitalism’s most outspoken and acute critics. Winston Peters might have declared his determination to give capitalism a human face, but Varoufakis would likely argue that the necessary transplant operation would entail far more effort than it was worth! Hardly surprising given his belief that the leading capitalist nations have been waging an unrelenting war on their poorest citizens for the past forty years.

Writing for the latest newsletter of Project Syndicate, Varoufakis marvels at the “bourgeois rage” directed at the “militant parochialists” responsible for Brexit and Trump:

“The range of analysis is staggering. The rise of militant parochialism on both sides of the Atlantic is being investigated from every angle imaginable: psychoanalytically, culturally, anthropologically, aesthetically, and of course in terms of identity politics. The only angle that is left largely unexplored is the one that holds the key to understanding what is going on: the unceasing class war unleashed upon the poor since the late 1970s.”

As evidence for his class war claim, Varoufakis presents the following stark statistics:

“In 2016, the year of both Brexit and Trump, two pieces of data, dutifully neglected by the shrewdest of establishment analysts, told the story. In the United States, more than half of American families did not qualify, according to Federal Reserve data, to take out a loan that would allow them to buy the cheapest car for sale (the Nissan Versa sedan, priced at $US12,825). Meanwhile, in the United Kingdom, over 40% of families relied on either credit or food banks to feed themselves and cover basic needs.”

Unleashing Varoufakis on the equivalent New Zealand data would doubtless produce a series of equally startling conclusions. Which is why Grant Robertson, himself, would, almost certainly, resign rather than invite someone like Varoufakis to draw the obvious policy conclusions from the last 30 years of class war in New Zealand – especially since many of that war’s most destructive campaigns were conducted under the generalship of Labour Party politicians!

Robertson’s pitch to New Zealand’s capitalist class is very different from Varoufakis’s unabashed “economic humanism”. Only this morning, (11/12/17) speaking to the Auckland Chamber of Commerce, Robertson declared:

“For us to keep being able to afford the policies necessary to achieve higher living standards we must remain fiscally responsible. It goes without saying that a Government that presides over high deficits, increasing debt, or a shrinking economy could not provide the quality public services that New Zealanders want and deserve. That is why we have developed and committed to our Budget Responsibility Rules.”

Which is precisely the sort of language that Varoufakis encountered when he travelled to Brussels on his doomed missions to secure a more rational approach to managing the consequences of Greece’s crippling indebtedness. That Robertson shows every sign of being as committed to following “the rules” as the European Central Bank’s pitiless bailiffs, strongly suggests that, even if he could, somehow, be prevailed upon to organise a seminar on progressive economics, and invite Varoufakis to chair it, the maverick Greek economist would feel obliged to decline.

The former Greek Finance Minister’s own experience tells him that “the rules” formulated by the world’s economic and political elites; “the rules” bankers and politicians consider themselves bound in solemn duty to uphold and enforce at all costs; are, in reality, no more than “the rules of engagement” in neoliberal capitalism’s “unceasing class war” against the poor. If Varoufakis was ever to accept an invitation to chair a government-sponsored seminar on progressive economics, it would only be because he had already been convinced, by their actions, that the politicians asking him to elaborate a more “transformational” political economy were rule-breakers – not rule-keepers.


This essay was originally posted on The Daily Blog of Tuesday, 12 December 2017.

Tuesday, 12 December 2017

Bringing Down Labour’s Warrior Queen.

Magnificent Loser: Boudica may have raised the Ancient British tribes against their Roman rulers, but she proved to be no match for the discipline and experience of Suetonius's XIV Legion. If Jacinda Ardern is to successfully overthrow the Neoliberal political and economic consensus and establish a genuinely "transformational" government, then she will have to weld her disputatious political tribes into a fighting machine every bit as formidable as Bill English's disciplined and experienced National Opposition.

ANYONE WHO VISITS the British Houses of Parliament cannot fail to notice her. Upright in her war-chariot, the Ancient Britons’ warrior queen, Boadicea, and her daughters, burst out of history like a trio of avenging angels. The bronze statuary does not, however, celebrate a victory. In the bloody revolt against Roman rule of 60AD, Boadicea (or Boudica, as she is properly called) was the loser. It was Suetonius, commander of Rome’s XIV Legion, who won.

Jacinda Ardern’s sudden emergence as New Zealand’s warrior queen, though nowhere near as bloody as Boudica’s, certainly bears comparison in terms of its sheer drama. Like Boudica, Jacinda was able to draw together all the political tribes determined to end the incumbent government’s rule. Also like Boudica, she has enjoyed considerable initial success.

What lies ahead of Jacinda, however, is an enemy who, though outmanoeuvred, has yet to be decisively defeated. Like Suetonius’s XIV legion, the National Party is well-equipped, highly-experienced, and, most importantly, formidably-disciplined. Jacinda’s ragged tribes may outnumber them – but can they outfight them?

The Colmar-Brunton opinion poll, released by TVNZ’s Q+A show on Sunday, brings that latter question into sharp focus. National’s level of support, measured at 46 percent, has not only held up, it has actually improved slightly over the 44.4 percent it won at the General Election.

For the governing parties, the news is not so good. When translated into seats in the House, the Government’s numbers (Labour: 39 percent; Greens: 7 percent; NZ First: 5 percent) deliver no advance on its current tally of sixty-three. If Jacinda was anticipating a “post-election bounce” in the polls, then she and her colleagues will find it hard to avoid feeling ever-so-slightly jumpy.

It’s not only the fact that National continues to enjoy a substantial lead over Labour that must be vexing the Government, but also the sheer size of its opponent’s electoral base. Unlike the Centre-Left, the Centre-Right in New Zealand is not required to continually marshal political parties as diverse as they are disputatious. Instead, they can range themselves against the Left’s warrior queen as a formidable unitary force commanded by a single leader. If Jacinda is Boudica, then Bill English is Suetonius. And if the Government represents the fractious war-horde of the revolting British tribes, then the National Opposition represents the XIV Legion.

Historical metaphors aside, the disposition of political forces revealed in the latest Colmar-Brunton Poll reflects a dangerously divided society. National’s voters clearly remain unconvinced by the new government’s arguments for change. Certainly, this poll has registered nothing like the decisive 10 percentage-point shift in voter allegiance that followed the election of Helen Clark in 1999, and John Key in 2008. Branded by its enemies as a “coalition of the losers”, the Labour-NZ First-Green Government is beset by legitimacy issues entirely absent from previous MMP configurations.

These legitimacy issues are unlikely to be ameliorated by the Government’s apparent determination to keep its spending within the narrow bounds of its “Budget Responsibility Rules”.

The strategic thinking behind this self-imposed restraint is unclear – to say the least! For parties and candidates pitching themselves against the status-quo, boosting electoral turnout is everything. Donald Trump and the Brexiteers did not win by offering their angry constituencies careful and measured policies! For Labour’s share of the popular vote to overtake National’s, its leaders need to roll-out policies of sufficient boldness to mobilise the tens-of-thousands of New Zealanders who have, hitherto, seen little or no point in voting. Proud reiterations of your government’s “fiscal and economic responsibility” will likely strike many of these potential voters as a pretty odd way to bid for their support. Very much a case of “meet the new boss, same as the old boss.”

National’s strategy, by contrast, is clear and simple: take confidence in our strength; remain united and disciplined; and seize every opportunity to inflict maximum damage upon the Government. The Centre-Right seldom requires special policy carrots to lure its voters to the polling-booths. Conservatives know who their friends are.

When Suetonius set the XIV Legion across Watling Street and waited for Boudica to come at him, he was supremely confident that, providing his men remembered their training and followed their orders, the Britons would be unable to translate their numerical advantage into victory. On the contrary, he anticipated that the massive casualties inflicted by his legionaries would soon break the British tribesmen’s fighting spirit and send them into headlong retreat.

If Bill English and his National Opposition are similarly able to hold the line, and drive back every government advance, then he, too, will be rewarded with a loss of confidence in his enemies’ ranks. Moreover, if he takes advantage of Labour’s ridiculous determination to limit the Coalition Government’s room for fiscal and economic manoeuvre, then Bill English, like Suetonius, will bring down his warrior queen.


This essay was originally published in The Press and The Dominion Post of Tuesday, 12 December 2017.

Saturday, 9 December 2017

Warning Signs: The Briefings To Incoming Ministers Reveal A Country Gripped By Multiple Crises.

 Ominous Warnings: The Briefings to Incoming Ministers, released this week, paint a bleak picture of the previous government's consistent under-funding of public services. The veteran political journalist, Richard Harman, puts it like this: “What the Government is confronting is two separate pressures on its spending – one deferred spending from the austerity imposed by the last Government as a response to the GFC in 2008 and a new force in the form of a rapidly growing, ethnically diverse population.”

THE BRIEFINGS TO INCOMING MINISTERS (BIMs) have laid bare the accumulated failures of nine years of National Party Government. In sector after sector senior civil servants paint a grim picture of incompetence and neglect. The clear message which emerges from this sorry record is that New Zealand has been the victim of a nine-year austerity programme that nobody – other than the poor – seems to have noticed. Taken together, the BIMs offer stark proof of just how deep the class divisions in this country now run.

The veteran political journalist, Richard Harman, puts it like this: “What the Government is confronting is two separate pressures on its spending – one deferred spending from the austerity imposed by the last Government as a response to the GFC in 2008 and a new force in the form of a rapidly growing, ethnically diverse population.”

One of the reasons the three parties making up the present government were able to secure the votes necessary to win power was because the National-led Government was no longer able to confine the effects of its austerity programme to the poorest – and brownest – working-class communities. The effects of prolonged underfunding were beginning to be felt in New Zealand’s leafy suburbs as well as in its meanest streets. More and more people shared in the common agreement that something must be done.

An understanding that a great deal more money would have to be raised and spent, should have been at the heart of that agreement – and Labour should have been the party that put it there, imbuing it with the moral and intellectual force required to overcome the Right’s inevitable resistance. This had been the strategy of the Labour Party in the early 1930s, and it succeeded brilliantly. Labour took power in 1935 with a comprehensive and progressive manifesto, backed by the irresistible weight of an informed and impatient public.

Sadly, this was not the case in 2017.

Rather than build a broad consensus around the need for a substantial increase in public expenditure, funded by an equally large increase in taxation, Labour set out to convince voters of the exact opposite. No increase in personal income tax contributions were necessary, they were told, not even from the very wealthy. Corporate taxation, similarly, would not need to rise. The rate of the Goods and Services Tax could remain fixed at 15 percent. There would be no Capital Gains Tax, Land Tax or Inheritance Tax. Labour was at pains to let people know that it intended to cleave faithfully to the broad fiscal and economic settings bequeathed to it by the outgoing National Government. Gusts of rhetorical stardust notwithstanding, the new Finance Minister, Grant Robertson, was determined to run a tight fiscal ship.

In essence, Robertson’s strategy was the same as Steven Joyce’s, his predecessor: keep the middle-classes happy. National had done it with rock-bottom interest-rates, and by allowing the value of their personal assets to soar. Labour hoped to keep them happy with promises of free tertiary education and affordable homes for their kids; decent pay raises for teachers, nurses, hospital doctors and civil servants; and the gradual upgrading of New Zealand’s ailing infrastructure as and when finances permitted. For the working-class and beneficiaries there would be lots of smiles and hugs – and bugger-all else.

But, as Harman puts it on Politik: “There is a subtle but strong message running through the Briefings to Incoming Ministers […] which comes near to putting a price that the Government is going to have to pay to implement its promises.”

Unsurprisingly, given the neoliberal predilections of senior Treasury officials, the price envisaged is a capitulation to the idea of opening-up the renovation of New Zealand’s public services and infrastructure to private investors. Robertson’s principal advisers are steering him, very quietly, in the direction of Public-Private-Partnerships. In this they will be greatly assisted by Robertson’s personal aversion to unorthodox economic ideas, and by his determination to stay within the bounds of his “Budget Responsibility Rules”.

No matter that New Zealand is short 75,000 houses, or that 700,000 Kiwis cannot be sure of the purity of their drinking water. Too bad that there aren’t enough beds for the mentally ill, and that the prisons are full-to-overflowing. Unfortunate that our courts are so under-resourced that justice is being denied by trial delays of up to 18 months. Labour will continue to resist the rising clamour for increased spending via the tax rises essential to the maintenance of a civilised society.

The grim picture painted in the BIMs is the consequence of National’s class-driven programme of austerity. Labour’s seeming helplessness in the face of the multiple crises they reveal, is the direct consequence of its refusal to accept that the wounds of austerity can only be healed by applying the sovereign remedy of substantial increases in state spending – facilitated by a radical expansion of the tax base.


This essay was originally posted on The Daily Blog and Bowalley Road of Saturday, 9 December 2017.

Friday, 8 December 2017

Trump Recognises Jerusalem: The Zionist End-Game Begins.

There Can be Only One: No matter how eloquently the partisans of a Jewish homeland reassured their Arab neighbours that they had nothing to fear from a future State of Israel, the brute logic of Zionism argued against the longevity of any such attempt at cultural and religious cohabitation. Sooner or later, the sheer impossibility of the two communities, Jewish and Arab, rubbing along together in peaceful coexistence would become apparent. And when that happened, one of those communities would have to go.

“APOCALYPSE IN THE VALLEY OF ARMAGEDDON”. The Daily Blog editor, Martyn Bradbury, certainly displays a gift for evocative language! On the subject of President Donald Trump’s recognition of Jerusalem as Israel’s capital, however, I believe Martyn’s evocation of the apocalypse is premature. Trump’s decision is less a sign that Armageddon is imminent, and more a signal that the Zionists’ end-game is about to begin.

By announcing the United States recognition of Jerusalem as Israel’s capital, Trump has sent two very important messages to the extreme Zionist elements in Israeli society. The first message is brutally simple: the so-called “two-state solution” to the Israeli-Palestinian conflict is dead. The second, to the government of Benjamin Netanyahu, is that, as the political logic of the two-state solution’s demise is followed to its inevitable and brutal conclusion, the United States has got Israel’s back. Not just at the UN Security Council, but everywhere Israel needs American support.

The political logic of the two-state solution’s demise is inextricably bound up with the relentless colonisation of the West Bank by extreme Zionist “settlers”. Essentially, the so-called “settlements” were planted on the West Bank in order to render the formation of a viable Palestinian state impossible. The larger those settlements grow, the tighter the hands of Israeli politicians are bound. The political cost of dismantling the settlements has risen so high that no sensible Israeli any longer believes that a Palestinian state is achievable.

This leaves the Israeli authorities with two options. They can either continue to act as an army of occupation on the West Bank of the Jordan River: controlling every aspect of the Palestinian people’s lives, while Zionist settlements metastasise into every corner of Palestine’s shrinking body. Or, they could simply transform the West Bank into a Palestinian-Free Zone.

This latter option has lain dormant in Zionism from its very inception. No matter how eloquently the partisans of a Jewish homeland reassured their Arab neighbours that they had nothing to fear from a future State of Israel, the brute logic of Zionism argued against the longevity of any such attempt at cultural and religious cohabitation. Sooner or later, the sheer impossibility of the two communities, Jewish and Arab, rubbing along together in peaceful coexistence would become apparent. And when that happened, one of those communities would have to go.

Ethnically cleansing the West Bank would, of course, be a gross violation of international law. It would constitute a crime against humanity on a scale not seen since the break-up of the former Yugoslavia, the Rwandan genocide and, more recently, the expulsion of the Rohingya people from Myanmar.

Protected by Donald Trump and the American veto in the UN Security Council, however, Israel is unlikely to much care what the world thinks or does. When all is said and done, isn’t its fifty-year occupation of the West Bank a blatant contravention of international law? And, haven’t Israel’s repeated incursions into Lebanon, and its brutal bombing of the civilian population of Gaza, occasioned many crimes against humanity?

If a decision to expel the Palestinians from the West Bank is taken by the Israeli authorities, it would undoubtedly provoke fury in the Arab world. So great is Israel’s military power, however, that launching any kind of meaningful retaliation against such forced expulsions would risk a potentially devastating Israeli counter-strike.

Some of the most extreme Zionists might even welcome an Arab attack. What better justification for levelling the Al-Aqsa Mosque and laying the foundation-stone for the Third Temple?

Certainly, the rebuilding of “Solomon’s Temple” and the expansion of the State of Israel to the full extent of its biblical boundaries would be welcomed by the tens-of-thousands of so-called “Christian-Zionists” (and fervent Trump supporters) living in the United States. In their eyes, such developments would constitute proof-positive that the “End Times” had well and truly begun.

“Apocalypse in the Valley of Armageddon” would only be the beginning.


This essay was originally posted on The Daily Blog of Friday, 8 December 2017