Author Archives: Brian Easton

The External Impact on the Family Firm

This was a Draft Chapter for Report on the Family and Societal Change Programme project which was never published. (March 1996)

Keywords: Globalisation & International Trade; Labour Studies; Social Policy;

Introduction

The internal activities of and relationships within a firm (or other economic agency such as a government department), are heavily influenced by the external pressures on the firm. As the case studies in the next four chapters will show the three firms and one government department have experienced major changes inside them, especially in terms of the industrial relations and its impact on the family life of workers. To understand the pressures for these internal changes we need to provide a context of the changes in the firm’s external environment.

Whose Heritage?

The Progressive Greens Suggest An Approach to Managing Conservation
Listener: 23 March, 1996.

Keywords: Environment & Resources;

This year I thought I would occasionally write columns about specific policies of political parties which are unlikely to get elected to parliament, but whose policy deserves wider consideration. The first example is a proposal of the Progressive Greens, who seek “more-market” solutions to environmental problems. Thus they have thought more than most about how we should manage the conservation estate of national parks, forests parks, scenic reserves and other conservation areas, arguing that it should not be under direct ministerial control.

Caversham Class

The Marked Increase in Economic Inequality Has Widened Society’s Class Divisions.
Listener: 24 February, 1996.

Keywords: Political Economy & History;

Erik Olssen’s just published Building the New World is an outstanding contribution to New Zealand historiography and to our understanding of the origins of modern New Zealand society. Over the years he, his colleagues at the University of Otago, and their students have built up a detailed picture of the life, work, politics, and society, in the Dunedin working-class suburb of Caversham in the period from the 1880s to 1920s. Olssen points out that what happened in Dunedin 90 years ago may not apply elsewhere, or at other times. But having grown up in Sydenham, a comparable Christchurch suburb, I was intrigued by the resonances with my experience, especially about social class.

Action and Reaction

Do We Need A Reserve Bank in New Zealand?
Listener: 10 February 1996

Keywords: Macroeconomics & Money;

The inability of the American government to manage its budget is notorious. In the early 1980s the Reagan administration and the US parliament cut taxes, raise military spending, and end up with a huge government deficit. As I write, over a decade later their successors, Bill Clinton and Congress led by Newt Gringrich, are still struggling with that heritage hoping to eliminate the deficit in another seven years. While the deficit stimulated the US (and world) economy during the 1980s, the rising debt as a proportion of GDP, poses a threat to the viability of the US and world economy. The President and the Congress know this, but they have not be very good at doing anything about it.

Income Distribution: Part I

A Study of Economic Reform: The Case of New Zealand,, edited Brian Silverstone, Alan Bollard, and Ralph Lattimore, (North Holland Books: 1996) pp.101-138.
Note: This item was so big it is in two parts. Income Distribution: Part II

Keywords: Distributional Economics;

1. INTRODUCTION

There is a widespread belief that a major consequence of the economic reforms of the 1980s and 1990s was increased economic inequality. As will become evident, this overall conclusion is correct, even if the mechanisms which generate the inequality are somewhat more complex than popular views articulate. We can trace these mechanisms in theory using Diagram 1. The rest of the paper assesses their strength and direction.

Economist Of the Year?

Choose Yours from this List of Possible Contenders
Listener: 13 January 1996

Keywords: Miscellaneous;

I am occasionally asked about “the economist of the year”, an award which is announced each November. Most people have not heard of it because it is very a business sector thing, sponsored by some commercial firms, selected by a committee appointed by the firms, with very vague terms of references. Not surprisingly the award tends to be idiosyncratic, and the newspapers are right to almost ignore it. Such oddities are not confined to New Zealand. The Nobel Prize in economics was never awarded to Joan Robinson, a major figure in three mid-century economic theory revolutions, apparently because one member of the committee vetoed her. Taste and judgement are so important. Rarely is a decision authoritative.

Economic Reform: Parallels and Divergences

by Brian Easton and Rolf Gerritsen

The Great Experiment edited by F. Castles, R. Gerritsen & J. Vowles (AUP:1996), p.22-47.

Keywords: Governance; Political Economy & History;

Introduction

The Labour governments of the 1980s were the first in Australasia to be forced to come to grips with the increased ‘globalisation’ of their economies-that is, the effect upon them of growing international integration of both capital and goods and services markets. This globalisation, it has been argued (cf. Kurzer 1991; Lee & McKenzie 1989; Notermans 1993), has exerted an inexorable pressure for a convergence towards economic policy-making that removes barriers to free-market mechanisms. Globalisation and greater international competition-as the 1970s oil shocks ended the post-war long boom-supposedly made traditional social democratic economic policy difficult if not impossible (Scharpf 1991). Redistributive, interventionist and expansionary strategies could no longer be employed without supposedly fatally undermining aggregate macroeconomic performance.

Systemic Failure

Listener 23 December, 1995.

Keywords: Governance;

“Standing back and viewing the evidence objectively, that I am left with the overwhelming impression that the many people affected were all let down by faults in the process of government departmental reforms. Society always likes to feel it is progressing, but there are lessons for society in all of this. No government organisation can do its job without adequate resourcing. In my opinion, it is up to governments to ensure that departments charged with carrying out statutory functions for the benefit of the community are provided with sufficient resources to enable them to do so.” Judge George Noble, Committee of Inquiry into the Cave Creek Tragedy.

The Formidable Politician

Bill Rowling (1927-1995) cared about the simple important things – like people.

Listener: 9 December, 1995.

Keywords: Political Economy & History;

It is just twenty years – twenty turbulent years – since the Third Labour Government was thrown out of office in what was then the largest election swing. And so began almost nine years of the rule of Robert Muldoon.

It’s Only Natural

From stockyards to communications, natural monopolies need to be watched closely.

Listener: 25 November, 1995.

Keywords: Regulation & Taxation;

A decade ago the Australian stock and station agents, Elders Pastoral, decided to enter New Zealand. A key activity is selling livestock, commonly done through stockyards. It is expensive to build one’s own yards, and most yards are under-utilized, with just one per region. So the firm wrote to each stockyard in the country, and asked if they might lease it for their sales on commercial terms.

Poverty in New Zealand – 1981 to 1993

New Zealand Sociology November 1995, Vol 10, No 2, pp.182-214.
Note This version has yet to have the graphs added.

Keywords: Distributional Economics; Statistics;

Introduction1

After around two decades of modern poverty research in New Zealand which has focused on poverty at a point in time, it is now possible to provide estimates of the changing numbers of poor over time.

A Healthy Prognosis

Twenty four Principles for Salvaging the Health System.

Listener: 11 November, 1995.

Keywords: Health;

It is the practice of this column to focus on explaining underlying economic analysis, rather than policy prescription. Typically, when I have to cut for length a column I have written, it is the policy that goes first. However we have got into such a muddle over our health system that this column breaks its practice and simply sets down a set of policy principles. (There are a number of areas which I have not discussed, because they are non-controversial – like that the biggest single health gain would be if we could abandon smoking.)

The Stock and Station Agent Industry

Keywords Business & Finance;

This is the draft of an article on the Stock and Agent Industry. My interest in the industry arose from a minor involvement as an expert witness in the recent commercial litigation on the Wrightson/Dalgety merger. But that is not the focus of the study. Rather it is to examine the contemporary industry using some recently developed economic analyses, and look at its past and future.

Images Of Economics

What Results When a Poet Tackles Economics

Listener: 28 October, 1995.

Keywords: Literature and Culture;

It is hard to provide concrete images of the economy, as is evident from the boring covers on most economics books. The title and author may be in large letters, or perhaps there are graphs and diagrams, but a compelling image is rare.

Hype and Bust: a Sorry Tale Of Past Mistakes Contains Future Lessons

Listener: 14 October, 1995.

Keywords: Business & Finance; Macroeconomics & Money;

Olly Newland’s Lost Property: The Crash of ’87 … and the aftershock is worth reading especially if you are thinking about investing in financial markets. It describes the founding and fall of his Landmark property corporation. The book cover describes the man as “one of the darlings of the New Zealand scene [in 1987] … wheeler dealer supreme. Banks almost (sic) queued at his door to lend him money; the media for his advice and comment. He had to field many requests to speak to investor groups.” Newland, would not be so immodest, but it is certainly true that there was a time when businessmen like him were flavour of the month.

The Economic and Social Impact Of the Raupatu

Evidence to the Waitangi Tribunal Claims to the Eastern Bay of Plenty Region (WAI 146) October 1995.

Keywords: Maori; Political Economy & History;

1. Introduction

1.1 My name is Brian Henry Easton. My profession is an economist and social statistician. In my 30 odd professional years I have held positions at the University of Sussex, the University of Canterbury, the University of Melbourne, and the NZ. Institute of Economic Research (which at one stage I directed). I currently hold various academic positions at the University of Auckland, Massey University, Otago University, and the Research Project on Economic Planning. I have written and edited 27 books and monographs, and over 200 published articles on a wide variety of economic and social issues. (Some of my many relevant publications are mentioned in references in this submission.) Over the last nine years I have worked as an independent consultant, and appeared before the Tribunal on other occasions including WAI 26/150, 45, 153, and 413.

1.2 I have been asked by Counsel for the Ngati Awa to assist the Waitangi Tribunal by providing expert opinion on the economic and social impact on the Ngati Awa of the Raupatu (confiscation) of their lands.

Holding on to the Past: Governing National Archives

Listener: 30 September, 1995.

Keywords: Governance;

The prime minister must have groaned when controversy erupted over the reforming of the National Archives, which holds most of the nation’s important records. It is the sort of row which his government does not need. The antagonized includes archivists, genealogists, historians, constitutional lawyers, Maori with land claims, and retired soldiers. The proposals have alienated them, yet the gains, if any, from the reforms will be small.

Working on It?

What Use is Part-time Work If Your Benefit is Cut and You Earn Little More?

Listener: 16 September, 1995.

Mike was finishing his university degree when he was offered a part time job with one of the biggest employers in the city. He took the job, did it well, and the employer eventually gave Mike a full time job. Three years later he is still working there. Mike’s experience is not unusual. Once the young worker walked into a full time job. Today’s young start off with bits and pieces of part-time work, obtain work skills and a reputation for good work disciplines, which eventually leads on to full time work.