The NZ Council of Trade Unions says the root cause of our inflation and cost of living challenge is the lack of a long-term economic plan. The issues New Zealand is facing could be addressed with an Inflation and Incomes Act. Inflation is viewed as a short-term crisis, when in reality, it's a long-term problem associated with New Zealand's present economic model. Economist Craig Renney (in person for this return visit) and policy analyst Diana Russell speak to their proposal on Tuesday 7 March – at 5.30pm at 2/57 Willis Street. Right now the main tool for controlling inflation is increasing the interest rate - that takes money out of working people's pockets disproportionately and increases unemployment - mostly for low income Kiwis. That makes New Zealand's already dire wealth gap worse, and hobbles our long-term economic growth. Every New Zealander is grappling with inflation and the cost of living. We need to be having a new conversation about how we address these issues not just now, but in the long run. We need a new approach that builds greater resilience to inflation and develops a more equitable economy in the process. An Inflation and Incomes Act would create a framework for how New Zealand manages its transition to a longer-term low-inflation environment. It would better marshal our economic development, infrastructure, and public service needs so that we can respond to inevitable economic change. The Act would pave the way for the kinds of investments that we need to tackle inflation in the long-run. Investments in home insulation, electrifying the vehicle fleet, and building the homes we need. Making sure that supply-chains are resilient, and that there is genuine competition in markets. And doing so in a way that manages the cost so that it is simply borne equitably by New Zealanders. Inflation is not a new problem for the poorest in New Zealand. It will continue to be an issue for all Kiwis unless we change how we approach it. We need to look towards alternative measures of curbing inflation that doesn't just call for higher unemployment. Craig Renney - NZCTU economist Diana Russell - NZCTU policy analyst
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Human Rights, Environment Obligations, and Ethical Investment: Aotearoa New Zealand is Going Down the Wrong Path
Dr Robert Howell
1 Introduction and Summary
A considerable portion of the world’s investments are unethical in that they have inadequate regard for the welfare of people and/or the planet. They invest in companies that abuse workers’ or other stakeholders rights. Their activities destroy our environment. Very few companies are fully fossil-free, or operate within ecological boundaries. One of the reasons for this is that the term ethical investing is defined by such unvalidated concepts as ESG, or responsible.
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Should the Reserve Bank target unemployment as well as inflation? Will the new government abolish the dual mandate?
Back in 1989 – near the end of the fourth Labour government – the inflation-busting Reserve Bank Act was passed. Labour has shifted well away from the Rogernomics of that decade, and in 2021 Grant Robertson added maximum sustainable employment to the bank’s mandate - with the support of coalition partner NZ First.
Our Reserve Bank joined a powerful grouping of central banks that have dual targets, including the US Federal Reserve, the Reserve Bank of Australia, the Bank of Canada, the Bank of England and the European Central Bank.
Going into the 2023 election, National and Act committed to a return to the 1989 objective. Will they take us out of the mainstream and into a straitjacket rather than a life-jacket? And how does it square with their stated aim of getting people off the dole and back to work?
Coverage can be found here
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The next three years – the job ahead for Labour, Greens and Te Pāti Māori
The Fabians had a session on Nov 14th reflecting on the elections. Our panel of Simon Wilson, Senior Writer at NZ Herald, Bridie Witton, Stuff Press Gallery Reporter and Ollie Neas, freelance writer used the election results as a springboard to target some of the key issues for Labour, the Greens and Te Pāti Māori as they head into opposition.
Coverage can be found here
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