Subject: Re: M-TH:NZ Date: Thu, 23 Oct 97 13:19:35 -0000 From: Bill Cochrane <wrc1961-AT-midland.co.nz> Bob, NZ's welfare state was based largely on the ability of our farming sector to generate sufficent overseas exchange to meet the rising consumption expectations of the populace. Our manufacturing sector was highly protected,internationally uncompetitive with below average productivity growth, but along with the state soaked up unemployment and contributed to an increasingly egalitarian distribution of income.(wealth is a moot point as no really good data exists on wealth distribution here). While wage fixing was conducted within a centralized judicalframework no explicit relationship existed between productivity growth and wage growth, basically the wage sufficent to keep a labourer and his wife and kids was determined and then a complex system of 'relativities' was used to determine the wages of other occupations. The wheels dropped off this little wagon for a number of reasons, - agriculture was unable to continue its central role due to the demise of traditional markets, falling commodity prices ( a secular trend over the last 100 years or so) and a falling rate of productivity growth ( ie the rate of growth of productivity was not sufficent to compensate for the falling unit commodity prices). - Low levels of unemployment and a strong institutional position allowed uniuons to pursue high wage demands despite indifferent productivity growth and a weakening economy.This obviously began to seriously impact on the profitability of capital. - exogenous conditions deteriorated markedly, ie the western capitalist economies all hit the wall in the early seventies as well, pretty much the straw that broke the camels back for NZ. To restore capitalist profitability the state embarked on a program to, - restore labour market discipline through reducing the institutional power of unions. - reduce aggregate demand and increase labour market discipline through allowing unemployment to rise. - recommodify state activities, increase the size of the capitalist sector and hence the scope for profit. - promote productivity growth and reduce dependence on agriculture through removing trade barriors- the idea being that by exposing NZ manufacturing to international competition our manufacturing sector would be forced to inovate and compete. Unfortunately manufacturing collapsed almost utterly with perversely agriculture being one of the few sectors to respond as planned. You get the picture - reduce the real wage, increase the intensity of labour, expand the scope of capitalist competition etc. What did people such as the unions do about this, fuck nothing by enlarge. The unions continued their support of labour through out its restructuring program largely on the grounds that national would be worse and if the truth be known because labour continued to protect the institutional structures that allowed a large number of unions to exist.It also handed out the odd knighthood pretended to take them seriously most of the time and even made the occasional cursory gesture in the direction of the CTU's (council of trade unions) adled and bizzare plans. There is no organised opposition at a national level to continuing restructuring, though increasingly small bands of people are rallying in defence of some local service that is being striped away, the CTU is an ineffectual joke lead by a buffoon and run by a coterie of people who think slogans such as"workplace reform" and "a new spirit of cooperation with capital" are a substitute for analysis and action. More latter as my ride is here and I'm off to the pub. Bill Cochrane 4 King St Ngaruawahia New Zealand Ph (07)8247722 --- from list marxism-thaxis-AT-lists.village.virginia.edu ---
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