Greens and Labour printing jobs the way they will print money

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The Labour/Green Commissariat planning to create Kiwi-Power NZ Power are claiming it will magically create 5000 jobs.  Can you imagine?  Half a dozen people go around the country buying power from the generators at the same extortionist fair price, and then, abracadabra!!!  5000 jobs are created.

If implemented, there would be a $500 million to $700 million hit to electricity company revenues, says Labour leader David Shearer, declaring the policy timing was not deliberately aimed at the MRP sale.

That would flow to savings for households of between $230 million and $330 million and promote the creation of as many as 5000 new jobs and $450 million a year of additional activity because of the competitive advantage and increased household buying power created by lower prices, a study for Labour by the BERL consultancy says.

Intuitively, this just screams “bullshit!”.

Looking closer, it isn’t of course NZ Power that will create the 5000 jobs.  Oh no, that would be silly.

Instead, you, and every other household, will save $330 a year on power.  That’s a massive $27.50 per month.  You’ll feel that difference in your wallet, won’t you?

And you’ll go out, every month, to spend that $27.50 (because you won’t be stupid enough to save it, will you?).  And by spending it, you will stimulate the economy so much, that 5,000 jobs will be created out of it.

Let’s even assume that $27.50 a month generates this level of economic stimulus, just for giggles.  Don’t you think the economy has a certain amount of spare capacity to absorb this unprecedented demand in  retail spending?   Apparently, once your NZ Power generated $27.50 hits your pocket, every retail outlet, wholesaler and manufacturer have everyone running around not being able to do a single thing more than they were doing the day before, so they all will be looking for new staff to cope with you buying a paperback novel.  Or a case of beer.  Or a pair of club coloured sports socks for your kid.

If it was that easy, don’t you think National, or any government for that matter, would have offered the kind of tax cuts to generate employment?  All they would have to do is to provide a $2000 per household rebate on an annual basis to start chipping away at unemployment at about 30,000 jobs a year.  That would see full employment within a decade!

Those 5000 jobs are nothing but smoke and mirrors.  Just like the $27.50 a month, or $6.35 per week, per household, will not be felt economically.

The Green Taliban are mad.  We know that.  What is a little puzzling is that Shearer has jumped on this band wagon.  At $6.35 per week per household, does he really think that nationalising electricity is worth it?

 

Source:  NBR


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story.  And when he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet.   Cam Slater doesn’t do quiet, and as a result he is a polarising, controversial but highly effective journalist that takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him.  But you can’t ignore him.

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