Neo-colonial @oxfamnz continues to bully small island states

Oxfam joins others on the reactionary left in seeking to bully former colonies over their economic policies, in particular, their tax policies that promote tax havens.

The Cayman Islands is a British overseas territory that chooses to stay British with limited self-government. If the British were to start bullying it over its tax haven and offshore financial centre policies, it would immediately seek independence.

This attempt by former colonial masters to bully small countries to toe their line on tax policies is not done in any way for the benefit of these former colonies and their economic development. It is old-fashioned imperialism with a new motivation, tax imperialism. The aim is to prevent capital flight and the erosion of the business tax base in developed countries.

This is a seething hypocrisy given that Oxfam was all for #TPPANoWay. It is OK to go your own way on tariffs, intellectual property and investment and other economic regulations but not taxes. Countries have a tariff sovereignty but not a tax sovereignty.

This is a self-serving neo-colonial hypocrisy. The sovereignty arguments for #TPPANoWay are identical to those for the right of countries to act as tax havens. Identical. Tariffs deny other countries export markets; tax havens deny other countries tax revenue.

Small island states were left-wing and environmentalist heroes on climate change at the most recent conference on global warming in Paris but are villains regarding tax havens. In both cases, these small countries are exercising their sovereignty regarding their foreign policies and economic policies.

Oxfam believes that the democratic rights of former colonies do not extend to shaping their own economic policies. Oxfam wants them to be put on a neo-colonial leash.

Democracy and Political Ignorance: Why Smaller Government Is Smarter

US tax rates before and after government transfers

Child poverty, @jacindaardern and what higher wages cannot buy

The Left thinks the solution to poverty is giving the poor more money because poverty is caused by the poor not having enough money.

Labour MP Jacinda Ardern introduced the exception in an op-ed in the Sunday Star Times. People are poor because they do not have enough money unless that is because of a lack of money because you are not married or not living with the father of the child.

Ardern was raging against a report by Lindsey Mitchell arguing that a major driver of child poverty is the breakdown of the family and the rise of single parent households. Ardern said that

I’ve spent the better part of six years reading and researching the issue of child poverty, and what we need to do to resolve this complex problem in New Zealand.

And yet here it was, the silver bullet we have all been looking for. Marriage. Getting hitched. Tying the knot. It turns out that we didn’t need an Expert Advisory Group on child poverty, or any OECD analysis for that matter – apparently all we really need is a pastor and a party

Ardern preferred to attribute the increase in child poverty to welfare benefit cuts in the early 1990s.

There is an exception within this exception for the living wage as Ardern says 

But the other factors Family First was so quick to dismiss – low wages and staggering housing costs – mean we have 305,000 children in poverty. And this is the stuff that needs to change. It’s time we faced reality.

A living wage increase can solved family poverty. Actually getting a job and earning a wage does not reduce poverty among single-parent households but living wage increases do for families.

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Source: Jacinda Ardern: Govt must improve the lot of our children – National – NZ Herald News.

You cannot have it both ways. That low wages cause family poverty but no wages does not.

The best solution to child poverty is to move their parents into a job. Simon Chapple is quite clear in his book last year with Jonathan Boston that.

Sustained full-time employment of sole parents and the fulltime and part-time employment of two parents, even at low wages, are sufficient to pull the majority of children above most poverty lines, given the various existing tax credits and family supports.

#feelthebern will raise your taxes

#FeeltheBern? There’s a Cure.

 

why no protests against #UBI bureaucratic job losses but #TPPANoWay protests aplenty about jobs?

The universal basic income is a rare bird for the left. It is the only time the usual suspects on the left are happy to cut government bureaucracy.

Furthermore, the left makes no inquiries as to how these redundant bureaucrats who administered the welfare state will find jobs. The market is left to work its magic for once. How convenient.

When a tariff cut is proposed, a trade deal signed, or job reduction in a bureaucracy suggested perhaps as the result of a privatisation, left-wing activists chain themselves to factory gates or government offices in solidarity. The social upheaval from the job losses among existing workers and their dim prospects of reemployment are paramount in their minds.

Why in the case of a universal basic income is the left so relaxed about job losses. Indeed, it celebrates as an advantage of a universal basic income that “Most of the bureaucracy of the welfare system [is] swept away” .

The universal basic income is the only time the left welcomes a reduction in bureaucracy and the role in the state. This switch from welfare payments to a universal basic income does not make those on the benefit any better off. Normally they are worse off under a universal basic income.

None of the the less well groups which of the concern of the left gain from a universal basic income. Despite this, they sell the jobs of their comrades in the public sector down the river.

I cannot believe the explanation is job losses are OK as long as they are the result of left-wing policies. Unless the labour market is liberalised, its ability to find new jobs for workers, for example, made redundant in the public sector after the introduction of a universal basic income is not any under greater than under a right-wing policy that costs jobs.

Homeless means living rough or in a car @DavidReiMiller @greencatherine @secondzeit

Statistics New Zealand spent 21 pages trying to define the term homeless. How Orwellian.

When I first moved to Canberra and when I moved back, I stayed with friends. Some regard that as being homeless under the Statistics New Zealand definition, much to my own surprise.

I qualify because I shared accommodation . Having shared or short-term accommodation is not homeless. The descriptions shared and short-term accommodation quite adequate to the task.

People living in temporary accommodation including with friends are not homeless. Their situation is unsatisfactory but describing it does not justify butchering the English language by conflating their inconveniences with the few hundred people who live rough each night.

image

Source: New Zealand Parliament – Homelessness in New Zealand.

Those that conflate having a roof over your head tonight with living rough take advantage of the great sympathy people have for those living rough for people in far less dire situations.

#MiltonFriedman v. @berniesanders

#MorganFoundation wants frontal attack on NIMBYs

Morgan Foundation wants the National party-led government to take on NIMBYs not only with more high-rises and urban intensification but congestion charges too!  There is only so much courage you can expect in one term of government. Relaxing the Auckland urban limit, which will hopefully cause housing prices to stop rising in Auckland was not enough.

No softly softly catchy monkey here. No concept of winning the battles you can win.

The effects of cutting the Australian company tax by one percentage point

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Source: The incidence of company tax in Australia | The Treasury.

Alfred Marshall says it all on evidence-based policy

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Image

Gap in GDP per Australian, Canadian, French, German, Japanese, New Zealander and British hour worked with the USA

This data tells more of a story than I expected. Firstly, New Zealand has not been catching up with the USA. Japan stopped catching up with the USA in 1990. Canada has been drifting away from the USA for a good 30 years now in labour productivity.image

Data extracted on 28 May 2016 05:15 UTC (GMT) from OECD.Stat from OECD Compendium of Productivity Indicators 2016 – en – OECD.

Australia has not been catching up with the USA much at all since 1970. It has maintained a pretty consistent gap with New Zealand despite all the talk of a resource boom in the Australia; you cannot spot it in this date are here.

Germany and France caught up pretty much with the USA by 1990. Oddly, Eurosclerosis applied from then on terms of growth in income per capita.

European labour productivity data is hard to assess because their high taxes lead to a smaller services sector where the services can be do-it-yourself. This pumps up European labour productivity because of smaller sectors with low productivity growth.

@PikettyLeMonde pension fund socialism has finished taking over #capitalism #Piketty

Peter Drucker first pointed out in the 70s that the retirement savings of ordinary workers will end up opening the majority of public listed companies. That day has come much to the disappointment of the Leftover Left ranging from Thomas Piketty to Max Rashbrooke.image 

Source: CONVERSABLE ECONOMIST: US Corporate Stock: The Transition in Who Owns It.

Any call for higher taxes on investment incomes and capital and even tax havens is an attack on the retirement savings of ordinary workers.

Tax bracket creep in Australia

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