Rational and experienced employers care about their workers because they have learned that it is profitable to do so. At the margin, it is often more profitable to train, support and retain someone than to burn them off and start again. And even if you do start again, lessons will have been learned.
The same considerations should apply from the perspective of NZ Inc (if you’ll please pardon that collective noun). The welfare system links wealth/income generators to net beneficiaries, making it rational for the former to care about the latter. Why then is no-one seriously investigating the links between social and economic policy?
In particular:
- it would be nice to see the welfare working group (WWG) looking deeply into the reasons for underemployment, from both sides of the relevant markets. I’d expect a complete analysis to end up recommending a combination of sticks and carrots.
- and what’s with these Auckland mayoral candidates? Notwithstanding the recent troubles in JohannesChurch, Auckland surely has the most to lose from inequality-based social unrest, and the most to gain from including and upgrading the skills of poor Aucklanders. So why do none of the candidates even mention social issues, let alone the social/economic links?

