Tuesday, September 6, 2011

New Zealand at the Crossroads


 The NYT on the "success" of Neo-Liberalism.

As "No Right Turn" says this graphic is "an appalling indictment of Neo-Liberalism".

In New Zealand we have seen the effects just this year. Over 17% increase in wealth for the top few percent while 200 000 children live in relative poverty.

The pattern in New Zealand, since our great Neo-Liberal experiment, following the USA, Ireland and UK, has been the same.

 Coddling the rich is destroying the American dream.

"No matter how many times it's said, lowering tax rates for the highest income Americans does not create jobs or stimulate the economy. In fact, a detailed look reveals that the overall economy does slightly better when taxes at the top are significantly higher. This also holds true on the state level, as states with higher top personal tax rates have growth rates and median incomes that average greater than those with low (or even no) taxes. No matter how many times the experiment is repeated, or how long you extend the results, cutting taxes for the wealthy does not stimulate growth."

Most of the wealth earned by Americans went to corporates.
"Corporate profits captured 88% of the growth in real national income while aggregate wages and salaries accounted for only slightly more than 1% of the growth in real national income".

In New Zealand cutting taxes for the wealthy was supposed to stimulate the economy. Since the first round of high end tax cuts,  investment in the productive economy, wages and manufacturing, in New Zealand, stagnated, and capital flew to gambles on offshore markets.

Decimation of Union and employee rights, and cuts in Government spending  has resulted in huge drops in real income, for all but a few New Zealanders.

New Zealand is at the crossroads.
We can vote for National and ACT, and join the list of failed States like the USA and UK.

Another three years of failed Neo-Liberal policies will destroy the country we know.

Do we want third generation unemployment and riots in the streets like the UK. Or the repressive, unequal, surveillance society the USA has become.

For the first time since 1984 we have a clear choice. Continue down a failed Neo-Liberal road, or Own our Future.

We can vote for the Greens   and Labour. For  sensible policies, which were middle of the road, before Neo- Liberal religious hysteria took over.

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