Shane De Bo: Labor must seize economic opportunity

Comment

The party considered to be the best manager of the economy is often the party that ends up in government after the election. If a political party is not considered financially reliable,
After that policies on health, education and housing were not credible. That may not be fair, but then again, very little is fair in politics and governance.

That is why parties spend so much time developing an image of responsibility in this area. National has an advantage here – it is often seen as the party of business – and is considered good with numbers. Recent evidence from the past three elections might suggest otherwise, but it’s a symbol that sticks.

Left parties must work very hard to show people that they can take responsibility for the national finances. Labor and the Greens signed up to the Budget Responsibility Rules in 2017, which explains why. They have to show that they are „ready” for the government. Even if the public doesn’t fully believe it, it is enough to allay public anxiety and win the election.

Along with that prudence in 2017, Labor also had a spending plan – the families package. Through this, thousands of children were rescued from poverty. It provided the first welfare budget, and much-needed investment began to flow into health and education. That prudence meant that when the government needed to turn around the cash pipeline during Covid or Hurricane Gabriel, it had the space and capacity to do so.

But the party did not set out a vision of what a good economy would look like. It never came down to what voters themselves should get; How is the government going to make their lives better and more importantly easier? When some overhyped investment didn’t bring much return or the gloss of new spending announcements wore off, the public got tired of being told to wait in various ways. Billions were spent, but little seemed to happen. The good times clearly happened to someone else.

When National finally got its act together, that natural advantage and Labour’s lack of an economic plan led people to take National seriously again. Labour’s response during the election was to say how bad nationalism was rather than what it stood for. Propaganda is rapidly negative. The debate over whether tax cuts are needed, and why cuts to public services, is stagnant. To their credit, the Greens have made a positive difference and have reaped the electoral reward. Labor chose to play on national turf.

In 2023 many people will be hanging around for what Labor did wrong. Understanding the problem helps, but only if it leads to real change. To do that, the worker must listen hard and learn. Thousands of voters turned away from Labour, seeing nothing for them in the party. They stayed away from the voting core because there was no plan for the economy that they could understand and see some benefit from.

That new vision must start with the understanding that life for many New Zealanders is hard and easy solutions are good. While tax cuts may bring short-term relief during a cost-of-living crisis, in the long run they hurt public services, widen inequality and worsen inflation. They work because they answer the question most people ask – how do I earn enough for my family?

Labor has a job. It should clearly articulate a new, positive vision for the economy and the enabling role of government. It should provide answers that speak to people’s problems, not answers that government knows how to solve. Voice for the unemployed. Yes, it should be responsible – but it should be responsible to the end. That result should be a better economy that works for everyone, not just landlords and high-income earners. This will work particularly well for those who abstained from the polls in 2023 or who chose to leave Labor from 2020.

Labor can look abroad for examples of this working well. US President Joe Biden has delivered a strong economy, low unemployment and significant investment in infrastructure. He is unabashed in wanting to deliver growth „from the middle and below”. Inflation has more than halved. This is what a good economy looks like – “good paying union jobs” as Biden calls it. This is contrary to the provision of National. This is an opportunity for Labour.