The Government has no qualms about Australian companies shifting jobs to New Zealand because of lower wages.
Labour is concerned that New Zealand is becoming a desirable destination for Australian businesses taking advantage of the wage gap.
Several big Australian banks and food producers have shifted jobs to New Zealand in the last two years.
Now call centres are also making the move, mostly because it is cheaper.
Darien Fenton MP said the trend is deeply worrying.
Economic development Minister Steven Joyce said the wage gap with Australia is an opportunity to create more jobs.
But the Council of Trade Unions said an economy created on low paid jobs lowers productivity, which could actually widen the pay gap even further.
Remember the energy policy disucssion (here and here on TVHE) – where the Labour and Greens took a number from the Wolak report to try to justify a single buyer model. Via a reader here is Frank Wolak himself: (More details here)
The Labour-Greens’ single buyer electricity policy has a problem.
While it remains politically resonant with voters who perceive power companies as rapacious and inescapable, the American academic whose analysis is a key plank of the Labour-Greens NZ Power proposal says the Opposition parties have got it wrong.
Not only that, but Stanford University’s Professor Frank Wolak – a top US electricity markets academic and one-time regulator – says that despite repeated assertions to the contrary, he never concluded that power companies here had ripped off consumers to the tune of $4.3 billion over the mid-2000′s.
Unfortunately, that $4.3 b figure has been the smoking gun fact around which the political argument for the policy has been built.
I’ve seen the view that DSGE models fail the Lucas Critique come up a bunch in recent years, and nodded my head in agreement. But I’ve never popped a post down saying it – so this speech by Plosser gives me that opportunity (ht Stephen Williamson). I find it hard to disagree with this statement:
However, I see Bill has started his review over at Groping to Bethleham – I suggest jumping over there and reading that. I will not read it until I’ve caught up – but knowing Bill this will be good, so I can recommend it unseen
If anyone comments here, can you not discuss the book or the review. Instead, I wouldn’t mind more recommendations of things to read