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Posts Tagged ‘Ruthenasia’

Radio NZ: Nine to Noon – Brian Easton – 7 February 2013

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– Nine To Noon –

 

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– Friday 7 February 2014  –

 

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– Kathryn Ryan & Brian Easton –

 

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Income inequality in New Zealand is set to become a central election issue, but is it really getting worse?

Brian Easton offers a solution how to address income inequality. Listen and find out what he suggests.

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Radio NZ logo -  nine to noon with Brian Easton

 

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Click to listen: Brian Easton, Economist ( 13′ 37″ )

 

 

 

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Acknowledgement: Radio NZ

(Hat tip: Murray Simmonds)

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“You Break It, We Fix It” – Is That How It Works?

13 January 2014 6 comments

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It all began in 1984…

But first, let’s look at the Governor-General, Sir Jerry Mateparae’s 2014 New Year’s speech,

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"As a nation, and as communities, we need to both celebrate our successes, and examine how we can help those families facing particular difficulties, so every child can grow up in a safe and secure home."

As a nation, and as communities, we need to both celebrate our successes, and examine how we can help those families facing particular difficulties, so every child can grow up in a safe and secure home.”

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My initial reaction upon hearing this statement from the Governor General was, thank god that the issue of deprivation facing children in our country is finally ‘trickling up’  the coridors of The Establishment.

It’s not like we haven’t been banging on for the last few years about the problems confronting us with child poverty; increasing inequality; homelessness; unemployment, under-employment; the growing wage-gap with Australia; etc, etc; etc; etc…

Once upon a time, New Zealand was one of the most equal societies on this planet. And we took great pride in that fact.

But then, something happened. Something disastrous which we were aware of; initially viewed with alarm; and then, like the frog in the pot of water steadily heating up, we got used to it.

We got Rogernomics.

Later followed shortly thereafter by the nastier, “crack-cocaine” version referred to as “Ruthenasia”.

From there, despite all the rhetoric and promises of wealth “tricking down”, things got worse. Much worse.

Sir Jerry’s speech was duly reported in the Otago Daily Times on 1 January;

The release of Children’s Commissioner Russell Wills’ report into child poverty in December found a quarter of Kiwi children were under the standard 60 per cent income poverty line, of which, 10 per cent were in severe and persistent poverty.

The report also highlighted the links between the lack of affordable housing and the preventable diseases spread through overcrowding.

Sir Jerry said while the structure and dynamics of New Zealand families had changed, the desire of parents to raise their children in a caring, loving environment had not.

“I often hear people say that everyone should have a New Zealand childhood.

“The care we provide to our most vulnerable citizens – our children – is a barometer of the wellbeing of our families and our society.”

But not all families could cope with the “inevitable challenges” life threw at them, Sir Jerry said.

IBID

Perhaps families could have coped better had National – not “life” – not thrown these challenges at them;

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English confirms big ACC levy rise likely

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Note how only a month after being elected into office, National was already spinning the public meme that Labour was to blame for the consequences of National’s impending ACC levy-rises? Such would be National’s modus operandi for the following years; everything blamed on the previous Labour government; accept no responsibility whatsoever.

If National wins a third term in office this year (unlikely), will they still attempt to use Labour as a scapegoat for their unsuccessful policies?

In the meantime, National continued their policy of raising government charges and taxes,

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Budget 2010 - Income tax slashed, GST to 15 pc

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English’s promise that income tax cuts would be “more than offset the rise in GST” ended up  hollow when more government charges were further raised;

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Tax hikes disguised as `reinvestment'

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Yet more indirect tax rises were forthcoming;

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Petrol prices creep higher

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And cuts to funding for social services. Again, children were targetted;

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Hundreds march over early childhood cuts

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And hefty user-pays charges implemented and increased;

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Vulnerable children at risk from Family Court fees increase

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With perhaps this, being the most odious and damaging of all to struggling low-income, poor families;

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Prescription fees increase

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Although NZMA chair, Paul Ockelford, asserted that prescription charge increases were “unlikely to be a barrier for most”, that statement appears to be the kind of arrogant, self-delusional nonsense that people out of touch with reality readily express amongst polite company, at well-laden dinner tables, of the tut-tutting affluent classes.

As writer, Herman Melville pointed out,

Of all the preposterous assumptions of humanity over humanity, nothing exceeds most of the criticisms made on the habits of the poor by the well-housed, well- warmed, and well-fed.”

Reality away from the likes of  Mr Ockelford’s genteel circle  is much different, and grimmer;

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Pharmacies carry debt for prescriptions

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From the above Herald story,

Nikki Turner, who works as a GP in Wellington as well as sitting on the Child Poverty Action Group, said any assumption that the $2 increase was a minor issue was not looking at the bigger picture.

“For a lot of people that’s fine, but for many people there are a lot of barriers to access to primary health care.”

New Zealanders on lower incomes, particularly those with large families or complex medical problems, would find the hike in prescription costs as another barrier.

“We know from the Ministry of Social Development’s own data on severe and significant hardship that many families don’t pick up prescriptions because of costs. If they’ve got a small amount of money left over, then prescriptions will go or they’ll delay picking them up,” she said.

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And remember – National presided over two tax cuts in 2009 and 2010. Cuts which benefitted the highest income earners in the country.

It is abundantly clear that those tax cuts were paid for by massive borrowings; state asset (partial-)sales; raising GST; cuts to funding for  state services; and raising user-pays charges for other State services (often for the most spurious reasons).

In simple, easy-to-understand-terms, low and middle income earners (but especially those on low and fixed incomes) ended up paying for tax cuts for the rich,

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Tax cuts - High earners set to benefit most

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This is what National does.

In the meantime, unemployment is still at 7.1% and – according to the Children’s Commissioner, in his first Child Poverty Monitor – child poverty has dramatically worsened,

The 2013 Monitor shows that one in four Kiwi kids are growing up in income poverty and one in six are going without the basic essentials like fresh fruit and vegetables, a warm house, decent shoes and visits to the doctor. Ten percent of children are at the hardest end of poverty and three out of five kids living in poverty will live this way for much of their childhood.

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Children’s Commissioner Dr Russell Wills says the project is about giving New Zealanders the full picture on child poverty rates and to get Kiwis talking about it.

“265,000 New Zealand children are living in poverty. Is this what we want for our kids?

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The Child Poverty Monitor is funded by the J R McKenzie Trust, an organisation with a long history of involvement in important social issues. The Trust’s Executive Director Iain Hines says they initiated this project because they saw an opportunity to make a difference for children missing out.

“We are concerned that the rate of child poverty in 2013 is twice that of the 1980s. We think this is unacceptable. If New Zealand’s road toll was twice that of the 80s there would be outrage and immediate action taken to reduce it. We need the same momentum and action on child poverty.

It is mind-boggling that we have arrived at a state of affairs where child poverty is increasing each year – and successive governments seem unable/unwilling to tackle it.

To our shame, governments seem more interested in throwing money at multi-national corporations and yacht races rather than the nation’s children – our future.

National, in particular stands guilty of inaction.

This was clearly highlighted when it was revealed that the Children Commissioner’s report was funded by a private organisation, the J R McKenzie TrustKey’s government refused point-blank to fund the investigation and subsequent report. Instead, the cost – $500,000 – was paid by the Trust.

By contrast, National found it easier to hand out corporate welfare such as $30 million to the Rio Tinto private aluminium smelter. Or millions to the Rugby World Cup tournament. Even Southern China Airlines got a $4 million tax-paid hand-out, courtesy, National.

One thing is for certain – Dr Russell Wills should not be expecting to be re-appointed Children’s Commissioner when his term is up. Not if the Nats are still in office by then.

Just to remind the reader, in his speech, Sir Jerry said,

“But not all families could cope with the “inevitable challenges” life threw at them.”

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Unsurprisingly, I take great exception to Sir Jerry’s comments. It is not “life” that is throwing “challenges” at New Zealand’s families: it is successive government policies and inaction. And nor are they “inevitable”. The sun rising every day is inevitable – government policies are not.

Polices such as these have been carefully planned for years prior to National winning the 2008 election and  have been methodically and unscrupulously executed with deliberate  intent to further an agenda of gradual “transformation” to a user-pays, low-tax, minimal-State economy.

It is shameful and sickening that Sir Jerry now laments that  “not all families could cope”. Once again, those at the bottom of the socio-economic heap are blamed for their precarious position. Unfortunately Sir Jerry, not all of us can live at the Governor-General’s residence at tax-payers’ expense.

Some families, however, can cope better than others,

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The NBR Rich List 2013 - The Rich Continue to Get Richer

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Perhaps equally galling is that even while our social problems worsen and poverty increases, people like John Key and Bill English continue to insist that things will, eventually, get better.

John Key in January 2008,

“This is a great country.  But it could be so much greater.  It has been so much greater. 

So the question I’m asking Kiwi voters is this:  Do you really believe this is as good as it gets for New Zealand?  Or are you prepared to back yourselves and this country to be greater still? National certainly is.

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National knows New Zealand has a great future if we embrace good ideas and put them into action. And my sense is that in 2008, New Zealand is ready for those new ideas – ready for a fresh start.

At this election, the National Party has the chance to harness the growing mood for change and march New Zealand towards a better tomorrow.

We know this isn’t as good as it gets.  We know Kiwis deserve better than they are getting.  We are focused on the issues that matter and we have the ideas and the ability to bring this country forward. 

National is ambitious for New Zealand and we want New Zealanders to be ambitious for themselves. “

Five years later, John Key, in December 2013,

“I am passionate about the future of New Zealand, and I’m in politics to make a difference for the better of our society.

By 2038, young people of today will be our leaders – whether it be in politics, business, academia, education, sport or arts.

They will guide the values, principles and direction of the country in years ahead.

One thing I’m sure of is while we will still be a young country, we will be a more confident multicultural country than we are now, a country that was built on a bicultural foundation. And today’s young people will help guide that future.

From the calibre and talent I see in our youth today, there is cause for real optimism about the years ahead.”

According to Key and other right-wing politicians, we just have to keep persevering with their policies.  So that, sometime in the future, things will “get better”.

Even as they get worse.

Getting worse since 1984…

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Hungry kids scavenge pig slops

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This blogpost was first published on The Daily Blog on 6 January 2014.

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References

John Key:  A Fresh Start for New Zealand

Otago Daily Times: English confirms big ACC levy rise likely

Scoop media: Government delivers April 1 [2009] tax cuts, SME changes

NZ Herald: Tax cuts: High earners set to benefit most

Dominion Post: Petrol prices creep higher

NZ Herald: Budget 2010: Income tax slashed, GST to 15 pc

Dominion Post: Tax hikes disguised as `reinvestment’

Sunday News: Hundreds march over early childhood cuts

NZ Herald: Govt borrowing $380m a week

Scoop media: Vulnerable children at risk from Family Court fees increase

Statistics NZ: 2013 Census QuickStats about national highlights – Work-Unemployment

NZ Herald: Prescription fees increase

Radio NZ: Pharmacies carry debt for prescriptions

Otago Daily Times: Governor-General urges Kiwis to care for children

Radio NZ: Challenge to help vulnerable families

Fairfax media: Govt pays $30 million to Tiwai Pt

Scoop media: NZ’s first monitor of child poverty released

Scoop media: Wellington philanthropic trust helping with survey of child poverty

Scoop media/NBR: The NBR Rich List 2013: The Rich Continue to Get Richer

NZ Herald/John Key: Kids of today offer bright future for NZ

Fairfax media: Hungry kids scavenge pig slops

Additional

Facebook: Inside Child Poverty New Zealand

Facebook: Child Poverty Action Group (CPAG)

Scoop media: Inequality keeps rising, says UC social research expert

Previous related blogpost

A Blighted Future – the price of an apple

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Labour: the Economic Record 2000 – 2008

16 November 2011 49 comments

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There has been considerable commentary made by Labour’s critics and political opponents that Labour was an incompetant economic manager, during their nine year term in office. The reality, though, is somewhat different. There are many things that Labour did well and some not-so-well.

But the records speaks for itself.

The following is data, in the form of easily understandable graphs, from Trading Economics, an American website. They collect data from the IMF, World Bank, Statistics NZ,  the Reserve Bank of NZ, etc,  (the usual motley crew of subversive, left wing organisations) to compile their finished presentations.

Each category will be presented via two graphs. Eg,

“New Zealand GDP Growth Rate”

Graph 1: 2000 – 2011

Graph 2: 1990 – 2011

National was in power from 1990 to the end of 1999.

Labour governed from the beginning of 2000 to the end of 2008.

National took office After November 2008.

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New Zealand Population 1960 - 2011

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New Zealand Unemployment Rate

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New Zealand Unemployment Rate 2000 - 2011

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New Zealand Unemployment Rate 1990 - 2011

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Long-term unemployment (% of total unemployment) in New Zealand

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Some politicians use long-term unemployed as an election weapon, to win electoral support. However, despite their mis-use of the facts and figures, long-term unemployment was dropping in the last ten years. Not that certain politicians would admit it, though.

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Long Term Unemployment (% of Total Unemployment) in NZ 2000 - 2008

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Note how long-term unemployment rose in the late 1980s and spiked in the early to mid 1990s. Can we remember what happened to New Zealand in that time? The terms “Rogernomics” and “Ruthanasia” might jog our memories.

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Long Term Unemployment (% of Total Unemployment) in NZ 1990 - 2008

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New Zealand Employment

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New Zealand Employment 2000 - 2010

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New Zealand Employment 1990 - 2010

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New Zealand Government Debt To GDP

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Despite claims that Labour “spent up large” during their nine year term, the truth is completely different.  As the IMF data shows with crystal clarity, Labour paid down debt. It was not until National came to office that debt levels took of again.

It could be said, with considerable truth, that Finance Minister Michael Cullen ran the government accounts with a fiscal discipline that would make Scrooge sit up and take notice.

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New Zealand Government Debt To GDP 2000 - 2011

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The IMF data shows fairly well why Labour had such massive debt kevels to pay down. It was an inheritance from the previous Bolger-led National Government of the 1990s. (Though National were addressing that debt, the reduction slowed from 1997 onward.)

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New Zealand Government Debt To GDP 1990 - 2011

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New Zealand GDP

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One of the many “charges” made by neo-liberals against the Labour Party is that centre-left governments are poor stewards of the economy and are anti-business. Yet, the World Bank data below shows quite dramatically how well New Zealand’s economy fared in the 2000s. Our growth was such that a common complaint from business was a lack of skilled, experienced staff.

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New Zealand GDP 2000 - 2010

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The early 1990s were marked by “Ruthanasia” – a continuance of Roger Douglas’s extremist neo-liberal, free market policies. All socio-economic indicators worsened during Ruth Richardson’s tenure as Minister of Finance. The World Bank data below shows how New Zealand’s economy was practically crippled under the tender mercies of the New Right.

It was not till 2003, under Labour’s governance, that the economy began to grow.

As an aside, there were took tax cuts during the 1990s. Result: minimal benefit for the economy.

Labour increased taxes for top income earners in the early 2000s. Except for a short-term ‘dip’, the tax rise doesn’t seem to have impacted on the economy.

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New Zealand GDP 1990 - 2010

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New Zealand GDP per capita

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New Zealand GDP per capita 2000 - 2009

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New Zealand GDP per capita 1990 - 2009

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New Zealand Interest Rates

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New Zealand Interest Rates 2000 - 2011

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New Zealand Interest Rates 1990 - 2011

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New Zealand Inflation Rates

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New Zealand Inflation Rate 2000 - 2011

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New Zealand Inflation Rate 1990 - 2011

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New Zealand Current Account

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This is the bit which shows how much we sell overseas (export), compared to what we buy (import). Exports can be wool, timber,  fish, dairy products, company profits, etc. Imports can be fuel, consumer products, vehicles, raw materials, heavy machinary, etc. The shaded gray should be above the ‘O’ line, instead of below it.

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NZ Current Account 2000 - 2011

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NZ Current Account 1990 - 2011

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New Zealand Government Budget

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This graph is an interesting bit. When John Key and Bill English refer to the previous Labour government expanding State expenditure, this is what they are referring to. And they are correct – but only half correct. As per usual, they are telling you only half the truth – and leaving out the  next, important bit.

Look at the next graph below, 1990 – 2000.

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New Zealand Government Budget 2000 - 2011

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In the graph below, it is clear that the National government from the early to mid 1990s (commonly referred to as “Ruthanasia”) and in the late 1990s, consistantly cut back on expenditure. Some of you may recall horror stories of those times; ex psych patients living rough, in toilets, with no State-community support; market housing rentals; and hospital waiting lists far longer than anything we have today.

On 3 April 1998, Southland dairy farmer Colin Morrison (42) died on a waiting list, awaiting a triple heart bypass surgery. In death, Mr Morrison symbolised everything that was terribly wrong with the health system in the late 1990s.  Public anger mounted as an unpopular government seemed unable to respond to concerns that our public services were being run down in the name of “efficiency”.

Little wonder that there was a 11.55% swing toward Labour in the 1999 General election – the electorate had had a gutsful of neoliberal policies resulting in growing inequality and social problems that seemingly went unheeded.  Contrasts

That is the reason why Labour spent so much during it’s term: to make up for the lack of social spending in the 1990s, and to meet growing public clamour for social services to be better resourced.

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New Zealand Government Budget 1990 - 2011

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Cash surplus/deficit (% of GDP) in New Zealand

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Contrary to the fantasies of some history-revisionists, trying to paint the previous Labour Government as “bankrupting the country”, Cullen actually posted some fairly respectable surpluses.

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Cash surplus-deficit (percent of GDP) in New Zealand

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New Zealand Sovereign Credit Ratings

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The following data-sheet shows New Zealand’s credit downgrades from 1977, when Rob Muldoon was Prime Minister, to the present.

Note that three credit downgrades happened duting three National governments; 1991, 1998, and this year. And if you include the Rogernomics period – that makes FOUR neo-liberal governments that were downgraded.

Do credit ratings agencies  seem “risk averse” to new right governments? Do they prefer centre-left governments?

First, look at 10 September 1998 (National government) – AA+ (negative outlook)

But when Labour came to power – 7 March 2001 – AA+ (stable outlook)

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New Zealand Prison Population trend since 1980

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The prison sentenced population demonstrates continuous and steady growth since 1986. The seasonal pattern of reduced numbers toward the end of each year is well established, and reflects the influence of the prisoner Christmas release policy 1 , as well as cycles of activity involving Police and the Courts. Notable is the sharp upturn in numbers which commenced in mid-2003, continuing through to June 2007.

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A closer look at the period 1962 to 1996. Note the huge ‘spike’ in the prison population from 1986 onwards. Except for occassional dips, the prison population has continued to rise steadily since the mid-1980s.

It cannot be a coincidence that New Zealand’s entire socio-economic fabric was unravelled and “reformed” in a process commonly referred to as “Rogernomics”. The process of “economic reform” continued  into the 1990s, referred to as “Ruthanasia”, up until 1996.

The prison population, though, continued to rise.

The ongoing effects of “Rogernomics/Ruthansia” are ongoing to the present day.

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Total prison population 1962 to 1996

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[This page still under construction – more data to follow. Keep checking back for more info.]

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