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A HISTORY OF HOUSING IN NEW ZEALAND

Details
Miles Lacey
02 March 2021

 

 

Prior to the European settlement of New Zealand, most Maori lived in small villages where the very notion of ownership was unheard of.  Housing was usually allocated according to the position held by a person, or more commonly, a family within the community.  The houses were usually made of whatever materials were available, especially raupo.  They were also quite small because most of the activities undertaken within the villages were done outside or in communal buildings such as the marae (meeting house). 

The earliest European inhabitants were whalers, ship repairers and missionaries who generally lived in small stone or wooden cottages that were constructed from the same materials used by the local Maori.  By about the 1840s pre-fabricated housing was being brought in from Australia.

Earthquakes in 1848 and 1855 in the Wellington region made builders reluctant to use bricks and masonry for building materials.  Instead, strong timber from native trees, especially rimu and kauri, became the most common building materials.  This, combined with readily available land, meant that most housing tended to be single or double-storey dwellings.  By the outbreak of the First World War the Californian bungalow had become the most common building type in New Zealand.  

Apart from certain inner-city areas or areas with steep terrain (such as Wellington city), the vast majority of homes were privately owned single storey stand-alone dwellings on their own sections.  Many of these private homes were not owned by those who lived in them.  In mining towns like Denniston on the West Coast of the South Island and railway towns like Cross Creek on the Rimutaka (now Remutaka) railway incline in the lower North Island, the homes were owned by companies.   In other places, the homes were owned by landlords and property speculators.  And, of course, slum lords.  

Charities and local councils sometimes provided cheap housing for old age pensioners and certain groups in need of help but, until the 1930s, anyone who was unfortunate enough to end up sick, unemployed or otherwise unable to afford the rents being charged found themselves living in slums.   Discrimination against non-Europeans when it came to trying to buy or rent property also resulted in many people reduced to living in housing that was often little more than wooden and corrugated iron shacks.   Until the Depression, in the 1930s this poverty was mostly confined to a few inner-city areas or in rural areas where it was largely out of sight and out of mind.

During the Depression, many companies went bankrupt while others dismissed some, if not most, of their workforce.  Those employers who did keep their workers slashed their wages.  Public servants faced pay cuts of 20% or more with the result that many people began to default on their mortgages or rents and were evicted.  Slums began to expand and so did extreme poverty, malnutrition, diseases, social unrest and political militancy.  For young unemployed men, their already dire situation became worse as they were sent to work camps in remote areas to do heavy labour such as road construction and were forced to live in work camps where the accommodation was often nothing more than tents.

Traditionally, charities were able to step in and help if people fell on hard times but the demands placed upon the charities by the Depression proved too much for them.  Not only were the numbers of people needing help too great to cope with but they couldn't raise the money they needed to provide help.  

Many of the more liberal clergy, such as the much-beloved “Uncle Scrim", were so shocked by what they saw they began to support the Labour Party and its policy of building state housing.  There is no doubt that Labour's state housing policy was a key factor in their election victory in 1935.

The first state house didn't become available for rent until 1938 and the image of Michael J Savage – the first Labour Prime Minister of New Zealand – helping to move the furniture of the first state tenant into their state home remained a lasting image for generations of Labour supporters.  The house is nothing spectacular to look at: it's a plain-looking timber house with plenty of sun sitting on a quarter acre section in Miramar, Wellington.  Yet this house would be the prototype of thousands of state houses.

During the Second World War state housing construction took a back seat as resources were diverted to fight the war against fascist aggression but, once the war had ended, the government resumed its state housing building programme.  It was motivated, in part, out of honouring its pledge to look after returning servicemen but also by the need to provide employment for them.  Whole suburbs of state houses were constructed and assistance, such as cheap housing loans and rent to buy agreements, were introduced to make homeownership as affordable as possible.  

In eastern Porirua, Lower Hutt, Wainuiomata and south Auckland (to name but a few places) state housing areas grew rapidly.  However, the growth of these areas wasn't fast enough to cope with two major demographic changes.  The first was the rural to urban drift of (mostly) Maori workers who'd lost their jobs on the farms thanks to growing mechanisation and the second was the arrival of Pacific Islanders to work as cheap labour in the factories and on the farms.   

Maori and Pacific Island workers moving to the new state housing areas underwent a major culture shock as they found themselves in an environment where there was no sense of community and where there was little use – or value – attached to their languages, cultures and traditions.  This, combined with their struggle to find work due to racial discrimination and language barriers (in the case of Pacific Islanders), led to many social problems of which alcoholism, crime and gangs were among the more prominent features.

It was from about the early 1950s that state housing areas began to get a bad reputation among the bourgeoisie, especially when it came to young people.  My father was one of those “juvenile delinquents" of “questionable moral character" who were the subject of the Mazengarb Report: a government inquiry into juvenile delinquency in Lower Hutt launched in the 1950s.  (https://en.m.wikipedia.org/wiki/Mazengarb_Report)  

Not only did social attitudes towards state housing and those who lived in state housing change from about that time but the type of state housing that was being built.  The stand-alone single-story house on a quarter-acre section was giving way to terrace housing and semi-detached two-unit dwellings.  The quality of the materials was declining as the emphasis switched from quality to building as many cheap state housing units as possible.  The switch to poorer quality building materials led to problems like leaking roofs and pipes, mildew on the ceilings and walls, and homes that were bitterly cold during winters and unbearably hot during summers.  This led to many health problems among state tenants, including children, who were getting illnesses like asthma, whooping cough and rheumatic fever that resulted from poor quality housing.  (https://www.rnz.co.nz/news/regional/291866/porirua-says-bad-housing-a-central-govt-problem)  Those who thought this was only a state housing problem were soon to find out that going for the cheapest building materials and builders to save money were about to find out the hard way that this could also happen with private housing.

The proliferation of state housing helped keep private rents down and dramatically increased the quality of private homes.  In many cases, the private homes were being built by the same companies being contracted to build state houses, such as Fletcher.  However, with deregulation of the housing and construction sectors, the watering down of building codes and the opening up of the housing market to foreign property speculators during the 1980s and 1990s would have devastating consequences.

In 1984 David Lange became the Prime Minister of New Zealand and his Labour government began to embark upon a radical programme of deregulating the economy, privatising local and central government services and amalgamating various local governments.  While this was promoted as a means of reducing debt and making both the economy and government departments more efficient and competitive the reality proved to be very different and this was reflected in what happened to housing.

Deregulating the construction industry opened the way for so-called cowboys to enter the construction industry.  Many of them were hired because they were cheap labour rather than trained to any reasonable standards.   According to the October 12th, 2016 Newshub article “The Causes of the Leaky Homes Crisis” was caused, in large part, by building code changes in 1995 that allowed untreated timber to be used in housing frames.  The use of cladding also contributed to leaking homes that effectively made them uninhabitable and worthless.  (https://www.newshub.co.nz/home/new-zealand/2016/10/the-causes-of-the-leaky-homes-crisis.html)  

To make matters worse the amalgamation of local councils resulted in many people losing their jobs, including building inspectors.  This resulted in over-worked building inspectors being unwilling or unable to provide more than a cursory examination of buildings before signing them off as fit for the purpose for which they were built: a point that was highlighted in the Royal Commission of Inquiry into the collapse of the CTV building during the February 11th, 2011, Christchurch earthquake.

However, what proved to be just as toxic was the combination of the benefit cuts, the wage cuts that followed the introduction of the Employment Contracts Act in 1991 and the sale of state housing to property investors that were introduced by Jim Bolger's National Government that was elected in 1990.  Not only did these changes help create a housing shortage, especially for low-income people and the working classes, but they left many more people impoverished to the point they could no longer afford to pay their rent or mortgages and they ended up being evicted.  Some state tenants found themselves forced to pay market rental rates.

After the Christchurch earthquake in 2011, the National-led government used the earthquake as an excuse to evict state tenants and demolish the houses, as happened in Cannons Creek in Porirua and much of Lower Hutt, or to sell them, as happened in Titahi Bay.  

Add to this mix the Resource Management Act 1991.  This Act was supposed to restrain urban sprawl and protect the environment.  Instead, the Act was used as a powerful weapon by bourgeoisie property owners to prevent the construction of housing for low-income people, usually by citing the impact on property values.  The costs of complying with resource consents made it uneconomic for construction firms to build housing for low ìncome and working-class people.  It also failed to prevent widespread environmental pollution and water contamination, especially in rural areas.  (https://www.stuff.co.nz/national/politics/opinion/122284651/the-end-of-the-resource-management-act-is-nigh)  

From the 1990s onwards immigration policies were relaxed to encourage skilled workers to migrate here, especially ones whose skills and expertise was needed.  New immigration policies also allowed wealthy foreigners to invest in housing and various types of businesses in New Zealand.  This led to large scale purchasing of housing, particularly in Auckland.  Whole suburbs were built to meet the demand for housing that were created by these investors.  Some bought houses to rent them to affluent tenants but others bought houses to simply leave them empty until the value of the properties had doubled or even trebled before selling them in a practice referred to as land banking.

A ban on non-resident foreign ownership of existing housing stock (other than Singaporeans and Australians) was introduced by the Labour-led government in August 2018 (https://www.bbc.com/news/world-asia-45199034) but this did little to curb the rise of house prices and rent not only in major centres like Wellington and Auckland but also in areas traditionally shunned by most private property owners such as Porirua where the average rent is now $700 a week – the highest in New Zealand!

 

 









A SOCIALIST SOLUTION TO NEW ZEALAND'S HOUSING CRISIS

Details
Miles Lacey
02 March 2021

Article by Sione Ma'u 

housing_3.jpg

 

After the formation of the Labour-led coalition government in 2017, there were hopes that the housing crisis was going to be tackled. Labour promised a mass house-building programme called “Kiwibuild” that would build 100,000 new houses over a decade. The Government would play an active role in driving this programme and work together with developers, city councils and other landowners (such as iwi) to deliver high-quality housing at affordable prices for first-home buyers.

The Labour-led government also introduced some laws to mitigate the worst effects of the housing crisis. Rental properties were required to have adequate insulation and heating. Property sales to overseas investors were banned. Also, the bright-line test was extended to 5 years. (The bright-line test was a law that taxed capital gains from the sale of a property within 2 years of purchase.)

Kiwibuild was launched in 2018. Over the next year and a half, it failed to solve the housing crisis but demonstrated that the problem is too deep to be solved by tinkering with capitalism.

The depth of the crisis is described with facts and figures in “A stocktake of New Zealand’s housing” by Alan Johnson, Philippa Howden-Chapman and Shamubeel Eaqub. This report was commissioned by Phil Twyford, the Minister for Housing, prior to the launch of Kiwibuild. It was published in February 2018.

A major factor in the house price explosion between 2012 and 2017 was the massive increase in immigration, mainly into Auckland. Net migration into New Zealand during this period was over 260,000 people. The authors of the report estimated the shortfall in housing to be 28,000 dwellings. At the same time, the Government sold off thousands of state houses. Between 2011 and 2017, the number of dwellings managed by Housing New Zealand fell from 69,717 to 62,917.

The private housing market, private developers and the construction industry had failed to deliver.

The government needed to play a more hands-on role. New housing policies, partnerships, and various incentives for developers and first-home buyers would stimulate the construction of affordable homes. This is the basic idea behind Kiwibuild.

All the incentives in the world cannot make developers build affordable housing, as Phil Twyford found out. Under capitalism, profit is all that matters.

“It's been more difficult than we expected to really shift developers off their existing business model which is about getting a return on capital from small numbers of mid to high-end homes. We are wanting them to build more modest lower quartile homes.” (Stuff, 23 Jan 2019)

What counts as a modest lower quartile home is a 60 sq metre 2-bedroom apartment worth over $600,000. For households with a combined annual income under $100,000, this is still out of reach. From the outset, Kiwibuild was only going to provide housing for middle-class professionals who only 5 years earlier would have paid a similar amount for a 4-bedroom house with a front and back yard. The scheme would do nothing directly for the working poor. As Alan Johnson, the Child Poverty Action Group spokesperson on housing wrote:

“It is not programmes like KiwiBuild that will get rough sleepers off the streets and allow families to move beyond sleeping in cars or garages, but more state housing.

“After all, KiwiBuild is yet another variant of the trickle-down theme. In this instance, the idea is that if we build enough $600K houses for young middle-class households eventually the working poor and beneficiaries might be able to find a place to live.”

 Leaving aside the issue of who benefits from the scheme, Kiwibuild delivered less than 300 houses in its first year, well below the target of 1000 houses. In 2019, Twyford was replaced as housing minister by Megan Woods and the Government announced a Kiwibuild “reset”. The “overly ambitious” target of 100,000 new homes over ten years was scrapped and Kiwibuild was subsumed into Kainga Ora (Housing New Zealand under a new name).

 According to Megan Woods, Kainga Ora developments will include a mix of state homes, homes under a $400 million dollar progressive home ownership scheme (in which a home is partly owned by the government or a community housing provider), and Kiwibuild homes for those who can afford a mortgage to buy a home outright. So far, 12 families have benefited from the progressive home ownership scheme six months after it was launched.

Capitalism failed to prevent a housing crisis. The increase in population did not mean a corresponding increase in housing, it just made houses more expensive. Land banking and speculation for short-term profit made things worse. Sky-high prices mean that renting has become the only option for a large proportion of the population. The demand for rental properties has led to rapid increases in rent that outstrip the growth in wages.

In 2020, despite the pandemic, house prices increased another 19% across the country. In the main centres, developers and property investors are driving these increases. In suburban areas of Auckland, houses are being bought up left and right by developers, to be demolished and replaced by high-density apartments and townhouses. The new homes in turn are being snapped up by property investors taking advantage of low-interest rates, rising property prices and rising rents. The housing shortage has become a housing bubble. The frenzy is set to continue for some time as developers and investors try to make as much money as possible before the bubble bursts. Business as usual under capitalism!

Housing is a basic human necessity. We have the resources and capability in Aotearoa New Zealand to build adequate housing for everyone. There is enough land and building materials. There are enough builders and other workers to build houses. Kainga Ora should build 5000 state homes per year at a bare minimum. This is a completely doable task. In the midst of the great depression, the Savage Labour government could build 3000 houses per year. Since then, the working class has more than doubled and labour productivity has increased many times over. Taking advantage of the latest technology, high-quality prefabricated homes and apartments can be rapidly constructed.

 What is needed to realise this potential? A large scale project needs access to large-scale funding. Therefore the country’s banking system should be nationalised. Mass building and construction companies should also be nationalised under workers control and integrated into a national housing plan.

We also call for a maximum rent to be calculated based on the average wage and the size of the property. For example, rent on a 2-bedroom 60 sq metre flat should be no higher than a third of the average wage.

 To prevent land banking and speculation the government should also have the authority to requisition properties that are not being used.  That is,“use it or lose it”!

Of course, such policies would be fought against tooth and nail by banks, developers and property investors (i.e., capitalists) who profit from the status quo. Even something as mild as a capital gains tax, that Labour had campaigned on before the 2017 election, had them kicking up a fuss. Labour subsequently ditched the policy in Government.

Capitalist private property is the fundamental problem, which will be understood clearer and clearer as the housing crisis drags on. Solutions that try to work with or around capitalism are more effective at handing money to banks, landlords, and developers than making housing affordable. But to carry out bold socialist policies effectively will require the class struggle. State housing in New Zealand was a product of class struggle in the Great Depression. Workers in New Zealand should be inspired by this history. In the 2020s, as in the 1930s, the struggle for affordable housing is the struggle for socialism.

(Image is public domain.)

 
 

AMERICA: A DEMOCRACY IN CRISIS

Details
Miles Lacey
27 January 2021

White_House.jpg

 

After Joe Biden was elected President of the United States in November 2020 the big question on most people's minds was if Trump would go peacefully.

That question was answered on January 6th, 2021.

From the moment the election results began to roll in Trump insisted that he had won the elections but that the media and the Democrats had stolen it from him.

Barely a day went by when he did not accuse election officials of counting what he regarded as invalid votes, ignoring ballots and rigging election voting machines. He also made accusations of widespread voter fraud. Yet, when these accusations were made in various court hearings, even the judges whom Trump appointed declared that the elections were conducted correctly and there was no evidence of ballot or voter fraud

From the White House Trump crowed “Stop the steal!” and his administration continued to repeat this mantra to a media and a nation that had, with few exceptions, ceased to take him seriously.

The people who did take him seriously were the MAGA (Make America Great Again) cult that treated Trump as if he was an American Messiah, white supremacist groups like QAnon and Proud Boys and far-right private militia groups. Pro-Confederacy groups, Nazi and Fascist groups who had been emboldened by the Trump Administration also supported Trump's “Stop the Steal” mantra.

On January 6th, 2021, Donald Trump gave a speech outside the White House in which he called upon his supporters to march on the U.S Capitol building. The reason this date was chosen was that this was the day the U.S election results were due to be made official in Congress.

His supporters not only marched to the U.S Capitol but they stormed it. They occupied the building briefly before they were cleared out. Violent clashes between Trump's supporters and the police took place which left five people dead: one supporter, one police officer and three other people.

Almost immediately the Federal Bureau of Investigation (FBI) launched an investigation of what even the most restrained American media were now calling a coup.

Initially, Trump was accused of inciting a riot by calling upon his supporters to march to the U.S Capital to stop the steal but the FBI investigation and the huge amount of information posted on the Internet quickly revealed that these protesters had been planning the takeover of the U.S Capitol for several weeks. The combat gear, the zip ties and the weapons they carried left no doubt they had come to kill or harm specific people.

Two people who were specifically singled out were Mike Pence, Trump's Vice-President because he was the one who was to formally announce the election results to Congress, thus certifying the results, and Nancy Pelosi, the Democrat Speaker of the House and very vocal critic of Trump.

The mob had not been whipped up into a frenzy by Trump as had been believed on the day.

Indeed, the New York Times article “Capital Siege was planned online. Trump supporters now planning the next one” that was published on January 7th, 2021 stated:

“The planning for Wednesday's assault on the U.S Capitol happened largely in plain view, with chatters in far-right forums explicitly discussing how to storm the building, handcuff lawmakers with zip ties and disrupt the certification of Joe Biden's elections – in what they portrayed as responding to orders from President Trump.

“This went far beyond the widely reported, angry talk about thronging Washington that day. Trump supporters exchanged tactical advice about what to bring and what to do once they assembled at the Capitol to “conduct citizen's arrests” of members of Congress. One poster said, '[Expletive] ties! I'm bringing rope!”

“Such comments were not confined to dark corners of the Web. They were scooped up by researchers who made their findings public weeks before a seemingly unprepared Capitol Police force was overwhelmed by thousands of rioters, in an incident that left one officer, one rioter and three other people dead.”

Indeed, on January 26th, 2021, the Wall Street Journal published the article 'FBI Capitol Riots Investigation Shifts Gears' stated that the FBI had extended its investigation to “building broader conspiracy cases after making arrests on lower-level offences”.

It is believed that around 400 people have been arrested for their role in the riots but the FBI is expected to lay more serious charges and indict many more people as they ramp up their investigation to include conspiracy charges. According to the Wall Street Journal article, the FBI has had to bring in a lot of investigators to sift through over 200,000 digital tips gathered from social media, members of the public, confidential informants, local news and surveillance footage. The FBI field officers have spread out across the United States to make arrests, search homes and interview witnesses, family members and associates of those who've been arrested or have been implicated in their involvement in the riots.

Michael Sherwin, the acting U.S Attorney for the District of Columbia, was quoted in the article stating:

“The scope and scale of this investigation and these cases are really unprecedented not only in FBI history but probably DOJ [Department of Justice] history.”

That the riots were not only planned but that such planning extended all the way up to Trump and his key advisors, which include the far-right conspiracy theorist Steve Bannon of Brierbart News (and one of the top twenty people in QAnon), raises serious questions about just how much of a threat to the United States the far right poses and the extent of their influence during the Trump Administration. It is partly to address these issues that the U.S Congress voted to impeach Trump on January 14th, 2021 (BBC website same day).

As of today (January 27th NZDST, January 26th EST), the majority of members of the Senate voted to impeach Trump but most Republicans have voted to call the impeachment “unconstitutional”, which only goes to show how divorced from reality the Republican Party has become from reality.

In the immediate aftermath of the January 6th riots there were fears that similar violence would flare up again on Joe Biden's inauguration day, January 20th, with the result about 25,000 National Guards were brought into Washington D.C, key sites including the National Mall and the Washington Monument grounds were closed off to the public and everyone waited to see what would happen. One protester turned up!

Joe Biden's speech, which was broadcast live around the world, was only a short one that lasted barely 26 minutes. It was generally regarded as an ordinary speech that was only made remarkable because it wasn't Trump giving it.

It was a general consensus at the time of the election of Joe Biden, and certainly, a sentiment expressed quite forcefully by our American comrades in several articles that were posted on the In Defence of Marxism website, that Joe Biden was almost certainly going to be a lame-duck President who would do nothing to advance the interests of the working class. Even by the standards of bourgeois reformism, he was unlikely to deliver anything much.

Thus, Joe Biden must've caught many people on the political Left by his actions within twenty-four hours of his inauguration. Among them was the issuing of the following Executive Orders:

  • The United States will rejoin the Paris Climate Accord.

  • Removing the ban on trans people serving in the United States military.

  • Ending the process of the United States withdrawal from the World Health Organisation.

  • Revoking the permit for the Keystone XL pipeline.

  • Launch an initiative to advance racial equity and end the 1776 Commission.

  • Revoke order to exclude undocumented immigrants from the U.S Census.

  • Require the wearing of face masks and the practice of social distancing in all Federal buildings and facilities.

  • Stop the construction of the U.S – Mexico border wall.

  • Reverse the travel ban from Muslim-majority countries.

  • End harsh and extreme immigration enforcement.

  • Reverse discrimination on grounds of gender identity and sexual orientation.

  • Implement various measures to curb the spread of Covid-19 in the United States.

  • Restore collective bargaining power for federal workers.

  • Ask agencies to boost food aid and improve the delivery of stimulus cheques.

  • Lay the foundations for the establishment of a federal minimum wage of $15 an hour.

As Marxists, we have no delusions that these are anything other than mildly reformist policies. At best they may provide some short term relief for workers and marginalised groups within the United States but not the sort of changes that only a Socialist society will bring about. However, they must seem almost revolutionary after four years of the Trump Administration during which many basic rights for millions of Americans were trampled over, such as the right of a woman to have an abortion.

Biden's reformist policies have been driven by a perceived need to unite Americans but the problem that neither he nor those whom he has brought into his Cabinet, such as the first black female Vice-President Kamala Harris, is that Trump's Administration has exposed many serious flaws within the American version of bourgeoisie democracy.

As our comrades in the United States have correctly pointed out American democracy is in crisis.

Arnold Schwarzenegger recently tweeted a video in which he repeated a claim often made by many Americans. That is, American democracy provides a beacon of hope and inspiration for the rest of the world. In reality, that sentiment has never been entirely accurate and, within the last few decades, has been nothing more than a bare-faced lie. In an increasing number of countries around the world, the American version of democracy has been held up as a shining example of how not to run a democracy.

The American version of democracy has four key flaws:

  1. The President is determined by an Electoral College rather than the popular vote. Every state has a certain number of votes in the Electoral College that is determined by the population of that state. If the majority of votes are cast for a particular Presidential candidate all the votes in that state (with a couple of exceptions) goes to that candidate. This often means that the Presidential candidate who won the popular vote often doesn't become the President, as was the case in 2016 when Hillary Clinton won the popular vote but lost the Presidential election to Donald Trump because he won the majority of Electoral College votes.

  2. There are very few legal safeguards in the U.S Constitution or anywhere else in their legal system to protect against abuses of power by the incumbent President, not least because the President gets to appoint the very judges and other public officials who are responsible for holding the President and their officials to account. Trump, in particular, appointed many cronies to positions of authority including Supreme Court judges.

  3. The President can override Congress by ruling by Executive Order. There are no legal restraints placed upon Joe Biden or any other President to prevent them from ruling by Executive Order, apart from the highly partisan impeachment trials where guilt or innocence is determined by party loyalty rather than by whether or not the President did anything illegal and the occasional defiant Supreme Court judge.

  4. The mid-term elections ensure that the politicians are always in election mode and, therefore, making decisions based on how it would be received by their financial backers and those who would vote for them rather than what's in the interests of the American people, especially the working classes.

As Marxists, our key criticism of American democracy is that it's not a Socialist state of the workers, by the workers and for the workers. Despite the fact the wealth of the United States was built upon the sweat of the working classes and, for much of its history, slaves the wealth of the United States has been pocketed by a privileged elite that accounts for less than one percent of the population.

Here in New Zealand we often complain about the domination of the Labour Party by reformists, Blairites and the bourgeoisie but there's no doubt there are differences between them and the National Party. From time to time the Labour Party has even passed laws that have benefitted the working classes. For this reason, the working classes still continue to vote for and support the Labour Party and a key factor in why we support entryism in regards to that party.

In the United States, this distinction between the two major political parties does not exist. Both parties have largely dismissed the working classes as an unredeemable, stupid, poorly educated, lazy and bigoted rabble whose votes are only courted in key battleground states where their votes could make a difference. Little wonder that our comrades in the United States believe that the only hope for the working class is for them to form their own political party run on Socialist principles and practices rather than through the Democratic Party.

Covid-19 and the events of January 6th have changed the United States forever. There will be no return to the way things used to be and this has been grudgingly admitted through the executive orders passed by President Biden. He knows, as well as most Americans, that the burden of the economic and health consequences of Covid-19 has fallen disproportionately upon the American working classes. This has led to the growing radicalisation of the working classes. The problem they face is they don't know who to trust or who to turn to for answers.

Many of them threw their support behind Trump because he at least paid lip service to the need to create jobs and look after the working classes. The fact his policies left them worse off economically, did nothing to improve their job security or standard of living and cost many thousands of them their lives due to his incompetent handling of Covid-19 enabled the Democrats to win many seats in Congress and Senate and may have finally forced both President Biden and the Democratic leadership to accept that “business as normal” just won't cut it in 2021.

Ironically, Trump's MAGA thugs and their extreme right mates may have helped push the Democrats further left than its leadership feels comfortable with because of their actions on January 6th. It also opens up a very small window of opportunity for the American comrades to stage an intervention, especially as Bernie Sanders still has a lot of grassroots support within the Democratic Party that could be mobilised and even radicalised along Marxist lines.

Regardless of how one interprets the extraordinary events of January 2021 the one thing that cannot be denied is that American democracy has been exposed for the sham that it really is. Those who have borne the brunt of the suffering and pain that American Capitalism has created and which their so-called Democracy entrenched have had enough and they want practical and proven solutions to their misery. Thus, only a Socialist United States of America of the workers, run for the workers and chosen by the workers of America can free them from the evil that is American Capitalism.

New Zealand General Election 2020: Labour's Earthquake

Details
Miles Lacey
17 October 2020

Party

Party
Votes

%
Votes

Electorate
Seats

List
Seats

Total
Seats

Labour Party

1,169,397

49.1

43

21

64

National Party

638,393

26.8

26

9

35

ACT

190,106

8.0

1

9

10

Green Party

180,224

7.6

1

9

10

Māori Party **

23,938

1.0

1

 

1

New Zealand First

63,447

2.7

-

-

-

Others

115,967

5.0

-

-

-

TOTAL

2,381,472

 

72

48

120

State of parties after the count on election night (Turnout 82.5% - up 2.7% on 2017)

(*Special votes (overseas votes) yet to be counted ** Māori Party lead Labour in electorate -special votes will determine outcome)

A political earthquake struck New Zealand on general election night with the Labour Party securing a second term in office with an absolute majority. This is the first time since the MMP voting system was introduced in 1996 that a political party has won such a majority.

Read more ...

Budget 2020, COVID-19 elimination, and the new normal

Details
Sione Ma'u
24 July 2020

The New Zealand Minister of Finance, Hon. Grant Robertson, delivered the budget on 14 May 2020. Due to the COVID-19 pandemic the original budget had to be scrapped.  The new budget is  dubbed "Rebuilding together" and its main focus is on jobs.

The main budget item, whose cost dwarfs all others by an order of magnitude, is the $50 billion COVID Response and Recovery Fund (CRRF). Most of the money is to save businesses with wage subsidies and tax relief, and launch a number of major infrastructure projects to create more jobs.  About $30 billion of this fund has already been committed.   This also includes ongoing costs associated with keeping COVID-19 eliminated from New Zealand.  Everyone entering the country is put up, for 14 days, in hotels which have been repurposed as quarantine facilities.  People are tested twice during quarantine - near the beginning (day 3) and near the end (day 12) of the quarantine period, before being cleared to enter the country proper.

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Uprising shakes the USA: reaping the whirlwind

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Alan Woods
04 June 2020

Alan Woods comments on the uprising in the USA, which was sparked by the police murder of George Floyd, and has become the catalyst for an explosion of anger by the downtrodden in America that has sent shockwaves throughout the world. What is the way forward?

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US: what next as the whip of reaction fails to cow the masses?

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John Peterson and Jorge Martin
03 June 2020

 Over the last two years, more black Americans were killed by police than Americans were killed in combat in Afghanistan over the last 18 years. ‬More black Americans were killed by police in the last three years than people were killed in the September 11, 2001 attacks. ‪Combine this with a devastating economic crisis and pandemic, and it is easy to understand why a tipping point has been reached, as the accumulated rage and humiliation of centuries spills over onto the streets.

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Where did Coronavirus come from, and who will end up paying for it?

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Rufus Tyler
20 April 2020

The virus was first detected in Hubei Province, China. Bats were probably the original reservoir. Because humans don't have much close contact with these mammals, it is likely that the virus first jumped the interspecies barrier to another animal, perhaps pangolins, then crossed the barrier again, to humans, in a “wet-market”. Live animal markets house dozens of different species in close proximity in a warm, humid environment. This is the ideal breeding ground for infection. Captive animals are especially susceptible because they are stressed, compromising their immune systems.

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New Zealand: Covid-19 Response

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Sione Ma'u
12 April 2020

 

Image:Pixaibay

"Events on a world scale are moving at breakneck speed. The new coronavirus (COVID-19) has set in motion a chain reaction, which is upending any semblance of stability in one country after another. All of the contradictions of the capitalist system are coming crashing to the surface."

Hamid Alizadeh, Coronavirus pandemic opens a new stage in world history. www.marxist.com, 13 March 2020

The breakneck speed of events was evident here in New Zealand. On 1 March we had one confirmed case of COVID-19, a NZ resident returning from Iran. Two weeks later, we had 10. Then over the space of a week, the number of cases soared to more than 100. On the weekend of March 21-22 the government closed the borders to all but returning NZ citizens and residents. Finally, on 25 March the country was put into a complete lockdown. All worksites are now closed except for an approved list that provides essential services, such as food and medicine. Apart from essential workers, no-one can travel more than 2km from their place of residence. People can buy groceries and go for a walk to get fresh air. They must observe social distancing and interact only with people in their 'bubble', the handful of people in their immediate household.

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Enrol in Marxist University!

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IMT
20 March 2020
 
 

In Defence of Marxism is proud to announce the launch of Marxist University: the ultimate source of Marxist theory and analysis on a range of topics – from dialectical materialism to the national question, from women’s oppression to the role of the state. There is no better way to spend this period of enforced isolation than by educating yourself in the only ideas capable of changing the world!

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COVID-19 pandemic: the threatening catastrophe and how to combat it

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IMT
20 March 2020

 

 

The following statement by the International Marxist Tendency explains how capitalism has utterly failed to deal with the coronavirus crisis, and is putting the lives of millions of people at risk. In such a situation, half measures and tinkering with the system are futile. Only drastic measures will suffice to avert the impending disaster.

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Coronavirus pandemic opens a new stage in world history

Details
Hamid Alizadeh
13 March 2020

image: Pixaibay

Events on a world scale are moving at breakneck speed. The new coronavirus (COVID-19) has set in motion a chain reaction, which is upending any semblance of stability in one country after another. All of the contradictions of the capitalist system are coming crashing to the surface.

Read more ...

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