So we got a big jump for the minimum wage - $21.20.
The advantage for the Government is most of the people they pay, aren't on the minimum wage.
The burden is carried by the small businesses of this country, the same small businesses that any number of polls tells us were already downbeat about the year ahead.
And how can you not be?
You can't get staff because the border is closed, the remaining unemployed you don’t want for obvious reasons.
You can't get the stock you need and what stock you can get has gone through the roof, price-wise.
And against that backdrop the Government, none of whom bar one, possibly two, have ever owned a business in their lives, goes and dumps another cost on top of the pile.
There's politics involved as many of those getting the bump will be Labour voters.
Labour is the party of the unions and the unions are all about getting more for less.
But what will bite them, as its bites all Governments, is the wider economic mood and performance.
Our economy is stuck. The debt printed spend up is over, fear pervades current activity, one of our biggest income earners in tourism is shot for another year, we are paying more in tax, on average another 2000 a year for each of us, and the inflation rate is at record levels.
And despite what they will try and spin about it being international, the key is to look at the actual number.
It's 5.9% and climbing. And when you compare it to the inflation of others you'll find ours is one of the highest going and the reason for that is the spend up using debt.
You spend using debt when your borders are closed. For those who didn’t close, like Britain, their GDP was out over the weekend and it's 7.2% for the year. That's the highest since World War 2.
Is ours 7.2%? Of course not.
You don’t fix inflation by piling more costs, onto costs, that are already fuelling inflation. It is the most simple of economic principles and yet when you have unionists and library dwellers running the place there's no telling them.
Well, actually there is - MBIE told them the wage bump would cost jobs. But when you're riding as the limousine left posse you have to remember you are far superior in every aspect to bumpkins you rule over.
Mike Hosking is a New Zealand television and radio broadcaster. He currently hosts The Mike Hosking Breakfast show on NewstalkZB on weekday mornings.
4 comments:
Your first big mistake Mike is thinking that they are a government.... they couldn't govern a crap in an outhouse. Secondly, Adern and her academic brown nosing mates couldn't give a toss about small businesses, or farmers for that matter, so economics is nothing to worry about. Kiwialan.
AARGH !!
All of the politicians, political advisors, HR staff, Govt department workers are all on good (plusgood) salaries.
Out there in the real world, where the nation's real hard workers are (small business and farms) they are being crippled.
I worked as a pharmacist until recently, and I was appalled at the pay rate of pharmacy technicians. These are the people that dispense your medicine accurately, and draw the pharmacist's attention to the doctors mistakes.
Trainee tech, last I saw $19 an hour
So for every $1.20 extra that the worker gets the government pinches 21c in tax for the lower rates. So the increase in wages will put up costs for the employer which will carry through to cost for purchases for the worker which have already gone up 6% and will increase even more as a result of wage increases. The worker will end up paying even more, but that siuts the government fine as any increase in the cost of goods increases the GST take.
If the workers think they are getting a great deal they are dreaming.
This scheme is worked out by a govermnent assisted by the greens which cost this country upwards of $12 million per annum in salaries.
Add the ineffective opposition parties and the salaries are over $22 million per annum.
Show me the return on that investment!
I would have to say I know lots of teachers/midwives/nurses who are desperate for work and are people of principle but unable to work because of the mandates. These are people that have been treated very poorly but would be grateful to anyone that employed them and would likely be very loyal.
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