So, Jacinda wants unemployment under 4%, how’s she going to do that? Pass a law?

Credit: Luke

Jacinda Ardern wants unemployment under 4%. She says that’s where it should be.

Well, with her policies you have to wonder what planet she is on thinking it will get even close to that.

Prime Minister-designate Jacinda Ardern says New Zealand?s unemployment rate should be below 4%.

She has also put a timeline on the government?s plan to ban overseas speculators from buying existing homes in New Zealand, saying the mechanisms to do so will be established by Christmas.

Ms Ardern made the commitment this afternoon while addressing a room full of unionists in her first major public speech since becoming prime minister-designate.

A major party of her speech hinged on what she, and incoming deputy prime minister Winston Peters, call the ?low-wage economy.?

She says Labour is aware that, while the majority of workers are employed by big, profitable companies ? some small businesses will feel the effects of the new government?s plans to raise the minimum wage to $20.

?That?s why one of the tasks for the Tax Working Group will be to look at models overseas for lower taxation for small businesses.?

For too long, Ms Ardern says, a line has been pushed that decent wages and strong economic growth don?t go together.

?I simply don?t buy into baseless claims that paying people well means there will be fewer jobs. In fact, the overwhelming weight of evidence is that strong wages for all working people help to boost growth and create jobs.?

She says GDP per capita is ?barely growing? and unemployment is stuck at 5%?but she says it should be below 4%.

This is because, she says, the economy has become more geared toward speculation and extraction than value-added exports.

?Low wages aren?t simply a problem for low-wage workers, they are a problem for businesses and the economy.?

Ms Ardern says under a Labour/NZ First government, ?we can finally have fair wages.?

She says unions, such as the CTU, played a ?crucial part of our campaign.?

She really has no idea how markets, especially Labour markets work. She even thinks she can compensate employers to get them to keep staff on:

Jacinda Ardern says she’ll look at compensating businesses who are struggling with the rise of the minimum wage.

Under the coalition deal in April next year the minimum wage will go up by seventy-five-cents to $16.50 an hour, by April 2021 people on the minimum wage will get $20 an hour.

A small business owner in Nelson is worried the rise in wages will mean they have to raise prices and possibly let staff go.

“It’ll always go back onto the consumer, so our prices will have to go up, so if we have clients we have clients, if we don’t we don’t,” cleaning company owner Sarah Stewart told 1 NEWS.

The Prime Minister-elect is promising to look at models in places like Australia that offer tax breaks to small businesses to try and offset the cost.

“Low wages aren’t simply a problem for low wage workers, they are a problem for businesses and the economy as a whole, I want to see an end to a race to the bottom on wages,” Ms Ardern said today.

Muppets. They have no idea how business works.

This little girl thinks things happen because she wishes it so. I think she will soon find out that government is a whole lot harder than mouthing bumper sticker slogans.


-NZ Herald, TVNZ