Comments on: The Sunday paps http://jafapete.wordpress.com/2008/08/03/the-sunday-paps/ "fifth-rate tired old commie crap" Redbaiter (kiwiblog, 25 April 2008) "jafapete, enthusiatic lickspittle apologist for Labour" Whaleoil (Whale Oil Beef Hooked, 8 July 2008) Sun, 05 May 2013 07:44:19 +0000 hourly 1 http://wordpress.com/ By: macdoctor01 http://jafapete.wordpress.com/2008/08/03/the-sunday-paps/#comment-1126 Sun, 03 Aug 2008 02:11:30 +0000 http://jafapete.wordpress.com/?p=1225#comment-1126 JP: I agree with you that inflation is indeed the major driver behind current wage claims. Inflation in a recessionary environment is a disaster for low wage workers as their bargaining power is reduced at the very time that they need it the most. If unemployment starts to rise appreciably (it is still very low at the moment), I think our “working poor”, as you put it, will be in for some unpleasant times. This will happen no matter who is in power in November.
I suspect that, if Labour remain in power, the pain of low-wage workers will be less severe but more prolonged. With the Nats it will be more painful, but shorter. Lovely choice.

]]> By: macdoctor01 http://jafapete.wordpress.com/2008/08/03/the-sunday-paps/#comment-1123 Sun, 03 Aug 2008 00:17:56 +0000 http://jafapete.wordpress.com/?p=1225#comment-1123 McCarten is only partly right in that there is currently very low unemployment so lower paid workers have substantially more leverage with their employers than they do in a high unemployment situation. I don’t think it has much to do with unionisation or some sort of worker’s uprising (which strikes me a wishful thinking on McCarten’s part).

MacDoc, Good points. You forgot the “push factor” — inflation. This impacts bites the low paid first and hardest. And they are exposed to actual prices, not just what Statistics NZ decide should go in the basket.

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