Lack of competition for Aussie banks in NZ

In my recent book “On the Brink” I highlighted the problems of lack of competition in the banking sector. Last night TVNZ News broadcast a report on the mega profits being made by the Big Four Australian-owned banks which have 90% of the NZ market. Bank profits are higher in NZ than in Australia. The cost of banking is a major cost for kiwi households. If the government is serious about lowering the cost of living for kiwi households then it needs to introduce more competition into the banking sector.

The introduction of open banking needs to happen this year. The banks have been given sufficient time to introduce open banking for the benefit of their customers. And they haven’t. It’s time for the Commerce Commission to regulate the banking sector to force open banking in 2024. Let customers choose and make it easy for them to change banking providers. For more details of the reforms proposed copies of my book “On the Brink” can be obtained from Amazon .

Credit: Otago Daily Times.

Successful launch of new book “On the Brink: Reconnecting communities in age of division

Wellington author, Roger Ellis, launched his new book to an appreciative Johnsonville audience of 40 people at St Johns Church Hall. He spoke for around 25 minutes about the growing divisions in societies both in New Zealand and overseas. He covered some of the underlying causes including the intertwined international economic, social and environmental crises.

Roger Ellis has more than 30 years experience in government, telecommunications, and community not for profit work. In his prepared comments he discussed the role of new technologies in making social divisions worse. He also focused on economic inequalities as an underlying driver of polarisation since the 1980s and 1990s. Mr Ellis discussed the growing level of debt, low productivity and lack of long term strategy – particularly for infrastructure investment in New Zealand.

The new book proposes some solutions to the challenges facing the country. He advocates a localist or distributist perspective emphasising shared values based on human dignity, community, and subsidiarity. Roger Ellis called for a devolution of power and resources to regions and local communities allowing for regional and local variations but building more participatory democracy.

Mr Ellis’s speech was followed by a lively question and answer session covering local government, regional empowerment, and examples of local community initiatives in lower socio-economic areas of Wellington. “On the Brink: Reconnecting communities in an age of division” is available for purchase from Amazon Australia in both e-kindle and paperback editions.

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On the Brink – how to buy the new book

“On The Brink: Reconnecting communities in an age of division” by Roger Ellis

I’ve produced a handy flyer with additional information for those of you who have asked about staying in touch with both the book and helping promote the ideas. So below are some ways you can stay in touch:

Book summary: Are we a society in a process of disintegration? Growing wealth and income inequalities, housing shortages, breakdown of families, loss of confidence in public institutions such as media and politics, increased attacks and threats of violence against elected Members of Parliament and news media are becoming more prevalent. Misinformation is rife. This does not bode well for the future of a free and fair democracy. For a significant number of groups there is a growing post-Covid disillusionment with government, job insecurity, loss of cultural identity, the failed promises of globalization and especially the growing gap between rich and poor at home and abroad. On the Brink proposes solutions to change course towards a decentralised property-owning democracy in contrast to State Socialism  or Global Capitalism where we create an economy for the common good.

Paperback version available from www.amazon.com.au    $A24.00

E-version from https://www.amazon.com.au/dp/B0CV5W4VLV $A7.00

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Request the regular email updates: rogerellis@outlook.com

New book calls for new approach to overcome divisions.

Media statement

Tuesday, February 13th, 2024

New book calls for new approach to overcome divisions.

Tonight, a new book will be launched by Wellington author, Roger Ellis.

“This book, “On the Brink”, discusses creating conditions to foster the reconnecting of communities in an age of division. Over the last three decades we have witnessed a growing centralisation of economic and political power, the erosion of communities, and growing polarisation. The book identifies the underlying causes and suggests some solutions to help local and regional communities regain their place in decision-making and participation in a renewal of flax roots democracy,” said Roger Ellis.

“We need to give power back to local communities and regions so that people can make decisions over matters that directly impact them. That means rediscovering shared values that have worked for us in the past – such as respect for human dignity, a sense of community, seeking the common good, and subsidiarity.” said Mr Ellis.

The book covers a wide range of issues including the intertwined economic, social and environmental crises, technological advances, and offers some solutions aimed at empowering individuals, families, local communities and regions.

The book is available through Amazon bookstores in Paperback (from tomorrow) and kindle e-book (from today) editions and can be ordered from https://www.amazon.com.au   at https://www.amazon.com.au/dp/B0CV5W4VLV

The book launch is at 7.30pm tonight, at St Johns Church Hall, 18 Bassett Road, Johnsonville, Wellington.

ENDS

For further information

Roger Ellis

 rogerellis@outlook.com   +64 21 526 264

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Information about the Author:

Roger Ellis has 30 years professional experience in New Zealand government, business and community sectors having held a wide variety of management and governance roles in addition to community leadership positions. The book is based on reflections of the author’s discussions with a wide range of New Zealand and international leaders from business, government, indigenous and community groups.

A life of moral not market sentiments

In his recent book the former Governor of the Bank of England and the Bank of Canada, Mark Carney, sets out his insider view of the Global Financial Crisis (GFC) and its aftermath.

Carney takes up the triple crises of our time – Climate, Credit and Covid – and sets out proposals for reform. Throughout the book Carney argues the case for the dynamic creativity of the competitive market and for international trade arrangements. However he argues that markets are poor policymakers. They lack the necessary values or virtues needed to serve people in an inclusive way. Markets need to be based within a moral framework that builds social capital, environmental stewardship and promotes human flourishing.

Chapter 8 of his book highlights the failings of the global financial system which led to the GFC in 2008. Specifically Carney highlights what he terms “the three lies of finance”. The first being “this time its different”. Increasingly optimistic assumptions were baked into financial decisions. Flawed assumptions such as “house prices can only go up” and “financial innovation has reduced risk” took hold. The second great lie is that “markets always clear”. That is the supply of whatever is traded will always equal demand for it. This led to a practical indifference among policymakers that there was no need to be concerned about the housing and credit booms which led to the Global Financial Crisis. In the end, as Carney points out (Carney, 2021, p.171) the false belief that markets are always right meant that policymakers didn’t play their proper roles in moderating those tendencies in pursuit of the common good.

The third lie of finance is that markets are moral. It takes for granted the social capital which is essential for markets to fulfil their promise. Repeated episodes of misconduct in the run up to the GFC – including the Libor and FX scandals – called into question the social licence that markets need to fulfil their promises. (Carney, p171)

We are still overcoming the costs of the GFC. A decade after the crisis global banks misconduct costs had exceeded $320 billion, capital which, according to Carney, otherwise could have supported around $5 trillion of lending to households and businesses. Beyond the economic impact the misconduct of the banks has almost broken the public’s confidence in banking. In a context where trust is key 90% of the British public believed that banks were well run during the 1980s. After the GFC that number sank to just 20%.

While defending global institutions and espousing the work of Bank of England Carney also identifies the widespread public disillusionment with globalisation and the need to ensure that gains in GDP growth reach all sectors of society not just a privileged elite.

Carney should be congratulated for taking up a very broad challenge and for contributing an original perspective based on enduring values. Whether the policy prescription is sufficiently radical to deal with root causes of an arguably outdated financial system is a debateable point.

At 456 pages the book is a solid but thought-provoking read. Carney provides a comprehensive list of references and makes his case in a well-evidenced manner. Well worth reading for any student of economics or public policy.

Another corporate executive reveals the disturbing truth behind neoliberal economic theory

So much of today’s society is a result of the 1980s wholesale adoption of neoliberal economic theory. The problem is that such theories serve the private interests of a wealthy elite and not the public interest or the common good.

Learn more about the truth behind the theory in this video.

Time to stop the growing inequality in society

The elephant in the room is not whether tax rates should increase for corporates but that that there has been a huge transfer of wealth from workers to employers during the last 40 years. So says US corporate executive in his compelling critique of unregulated cartel capitalism.

Minimum wage increases required to combat inequality

Wages have fallen behind growth in productivity and growth in company profits. The consequence is that asset owners have enhanced their wealth position compared to workers who don’t own assets. The resulting inequality is bad for low income groups but its also bad for high income earners as the economy becomes increasingly unstable and subject to boom-bust cycles.

In this video US entrepreneur Nick Hanauer discusses minimum wage increases and Universal Basic Income idea.

Government should use printed money to increase benefits, which will be spent in the economy

I’m not sure about the wisdom of printing extra money unless there is an increase in goods and services being produced. But if the RB and government are committed to inflating the money supply through quantitative easing and low interest rates then it’s probably more effective to distribute the new money through low income families who need it most and are more likely to spend it into the economy. Either that or use RB credit for a universal basic income to cushion the impact on NZ labour markets in the covid19 world.

http://www.stuff.co.nz/business/opinion-analysis/300155251/government-should-use-printed-money-to-increase-benefits-which-will-be-spent-in-the-economy?cid=app-android

Huge increases in people without paid work

Concerning report from Cathnews about the large number of people impacted by unemployment and underemployment due to covid19.

Maybe it’s time to look into new solutions such as universal basic income and worker shareholding?

https://cathnews.co.nz/2020/11/19/new-zealand-unemployment-paid-work/