Wealth Gap widens leaders React...



God Zone gone wrong.



The Dominion Post reported: The richest 1 per cent of the population owns three times more than the combined cash and assets of the poorest 50 per cent. Though NZ is often lauded overseas as an egalitarian society, New Zealand's income inequality statistics are much worse than those of most other developed nations. More than 200,000 Kiwi children live below the poverty line. The income gap between rich and poor has been highlighted by the global

Occupy Wall Street

movement, which is rallying for a more just society and an end to corporate greed.

A Statistics New Zealand report says the richest inhabitants' net wealth runs into tens of millions of dollars, but is "likely to be underestimated". The report's 2004 data – the latest available – reveals the richest 10 per cent collectively possess $128 billion in wealth, with median individual wealth of $255,000. In contrast, the poorest 10 per cent collectively possess $17.2b, with median individual wealth of $3200. While the richest 1 per cent held 16.4 per cent of the country's net wealth, the poorest 50 per cent owned just 5.2 per cent.

Data from the Organisation for Economic Co-operation and Development shows New Zealand's income inequality climbed dramatically in the 1980s and 1990s after sweeping economic reforms and deregulation of labour markets. Disparities have plateaued since 2000, largely thanks to Working for Families tax credits, bigger pay packets for middle and low-income earners and declining investment returns for the rich. But the gap between rich and poor still ranked ninth worst in the developed world in 2008.

Child Poverty Action Group chairman Mike O'Brien said there was enormous disparity. Parents were turning to food banks and poverty-stricken children were more likely to miss out on doctors' visits because of the cost and to suffer income-related health conditions. "The experience of children in those bottom deciles is, quite frankly, pretty bloody bleak."

Thrift permits modest pleasures and personal pride

Cecilia Vilimanu works full-time as a caregiver, earning about $25,000 a year.

Careful with money, the 53-year-old does not have a credit card, and the thought of using an instant finance company horrifies her. "I don't have any debts. I never buy anything I can't afford. I save up and then I buy it."

Her clean Housing New Zealand flat speaks of her personal pride, but her pleasures are modest.

She drives an old Toyota Corolla worth about $200.

A keen walker, she recently saved up for a pair of $89 shoes. "They were on special."

Education has always been the key for her family, and she supported her son through a science degree course at Victoria University. "I made sure he had a roof over his head and food in his tummy, so all he had to worry about was studying."

Well that sets the scene…here is what some party leaders had to say on this issue:

NATIONAL

John Key says he has always been aspirational for New Zealanders. "New Zealanders should have opportunities to succeed, no matter what their background ... We're focused on growing the economy and creating better jobs with higher wages, so New Zealand families are better placed to get ahead."

Note: John Key never actually spoke to the actual question, there are no policy or pro-active remarks in his non-answer, key word aspirational a dream word that means nothing in real terms.

LABOUR

Phil Goff says he is not surprised by the figures. "I think most New Zealanders know that New Zealand has become a much more unequal place." Labour would address inequality through its proposed changes to the tax system, which include a new top tax bracket for people earning over $150,000 and a $5000 tax-free threshold.

Note: Phil actually makes some policy statements matched by some practical suggestions to assist reducing the gap.

GREENS

Co-leader Metiria Turei is unsurprised but dismayed by the figures. "It's families living on the very bare bones, not having enough to feed their kids, and all the social issues that tend to follow." The Greens planned to lift 100,000 children out of poverty by raising the minimum wage, improving Working for Families, insulating houses and increasing access to training.

Note: Likewise Metiria offers policy and actual actions to assist in reducing the gap.

ACT

Don Brash says he is not surprised by the figures but how wealthy someone was did not have a practical effect on what was important day to day. "What's important is having opportunity to make tomorrow better than today through our own efforts. Children should be able to take their share of state education funding to any school of their choice, public or private, thus reducing the inequality between students ..."

Note: Don Brash like John Key fails to answer the question and talks around the issue, its sort of aspirational in an bias kind of way but offers nothing of a practical nature.

Palmerston North Kids are suffering...

The report below was published today the figures it contains were before the huge increase in unemployment took place under the present government. At the last election John Key stated that fixing child poverty would be a prime objective...while the figures are shocking they are even more-so today after three years of cutting taxes for the 1% and ignoring the 99%. It is not hard to see why the Occupy groups are starting up.

Palmerston North's kids are not OK

About one-quarter of them live in poverty, and in 2010, there was the equivalent of almost one child abuse alert for every four children.

Poverty, ill-health and abuse are three big dangers that emerge from a children's profile compiled by Palmerston North City Council policy analyst Julie Macdonald for the council's community wellbeing committee meeting today.

Children aged up to 14 make up one-fifth of the city's population, and although they are affected in some way by all council decisions, there is no special provision that ensures their views always influence decision-making.

Protection from neglect and abuse, family income and employment, and housing affordability and security are identified in the report as crucial for the city's children's future wellbeing.

There were 15,700 children aged up to 14 living in Palmerston North in 2006, a figure projected to be growing towards 16,400 by 2021.

And last year, there were 4270 notifications of possible abuse to Child, Youth and Family in the Manawatu region for children and young people aged up to 17.

While the figures are not out of kilter with national reporting, the profile finds it is "a significant level of abuse and neglect".

On the poverty front, 22.5 per cent of the city's children were living in low-income households in 2006.

The figures pre-date the international recession and rise in unemployment.

At the same time 19.1 per cent of the city's total population was on low incomes, showing that children are more likely than adults to be poor.

"The number of children living in low-income households is important because low incomes are associated with lower educational attainment and poorer health," said Ms Macdonald.

More Palmerston North children identify as Maori (27 per cent) compared to the population overall, with 16 per cent Maori.

While as a group, the city's children are no more likely than the national average to be admitted to hospital, that rate is higher among 10 to 14-year-olds.

Ashhurst, Kelvin Grove and Cloverlea have the highest proportion of children living in their communities. [From the Manawatu Standard by Janie Rankin Monday 7^th Nov 2011]

Taking Control back

Three years of passing laws that suit the few at the expense of the many is the legacy of this National led mixture of strange bed fellows. The Hobbits episode, where labour laws were changed to suit almost bankrupt Warner Brother’s demands for compliant workers and a bigger subsidy was but one example. This almost criminal behaviour rushed in under urgency in the dead of the night typifies the arrogance of the Nats and their coalition of the willing, Act and the Maori Party and side swapping expert Peter Dunne.

Back in 2001 Andrew Greeley wrote:

·         “It should be no surprise that when rich men take control of the government, they pass laws that are favorable to themselves. The surprise is that those who are not rich vote for such people, even though they should know from bitter experience that the rich will continue to rip off the rest of us”.

This strange mixture of Act Party nutters, Maori Party bed mates and political prostitute Peter Dunne have made some weird choices and passed some laws that prove the validity of the quotation of Greeley. The increase of GST favoured the few, The massive downward tax changes for the rich favoured the few, the massive bale out of South Canterbury finance favoured the few, the massive increase in roading spending at the expense of public transport favoured the few, the gifting of 42 million to Mediaworks by Steven Joyce favoured the few and the latest effort of subsidizing our biggest polluters favoured the few.

While all this rewarding of the haves was taking place, unemployment has boomed and wages restrained all in the name of the world melt down which was caused by the very people passing these one sided laws.

Why do we put up with this? Is it because we want to be like America where crooks are rewarded…may be we should open our eyes and look at what the USA is really like. This is the latest info on poverty in the USA:

·         “The new Census data reveals that a stunning 46.2 million Americans, 15.1% of the population, lived in poverty in 2010. This is an increase of 2.6 million people since 2009. While these are staggering statistics that represent the highest number of American people to ever live in poverty, and a dramatic year-over-year increase, it significantly undercounts the total. The Census Bureau poverty rate is a highly flawed measurement that uses outdated methodology…. We can estimate that at least 56 million Americans, roughly 18.5% of the population, lived in poverty in 2010 according to NAS methodology, approximately 10 million more than the Census Bureau is reporting.”

Copying the Americans is like committing suicide…and believing in the tooth fairy.

This from the Manawatu Standard: “Palmerston North foodbanks are only "just keeping their heads above water", with hundreds more, struggling families, needing the basics to survive.

Over the past six months, the city's foodbanks have seen a "huge" increase in the number of people requiring assistance, and foodbanks are fighting to keep their pantries stocked while fewer donations are being made.

The Methodist Social Services has seen an 18 per cent increase in people needing help this year. The Salvation Army has had a 10 per cent increase.

Methodist Social Services manager Nici Scott-Savage said "We now have 699 more mouths to feed," she said. "We're getting a significant increase in people who are working and not coping, so it's not just people on benefits anymore. She said foodbank supplies would only just "survive" until the annual food drive in November.

"Survival is the operative word. We will have to continue buying food though.

"I have just received a grant which will keep us going for a while longer."

Palmerston North's Salvation Army community ministries manager Kevin Richards said it was "frightfully" concerned about the lack of food being donated. "It is becoming increasingly difficult to find food," he said. "We are still able to give people the basics but it's definitely not easy. Things are pretty tight. Things are challenging, to say the least."

He said foodbanks used to rely on the goodwill of businesses and individuals, but as the economy has tightened, so has the stream of donated goods.

"It's getting tough out there, and we're now really looking at how we get through and how we make sure we have enough food to feed everyone. It's becoming increasingly difficult for us to do what we do."

It is ironic that while community services struggle to feed those below the breadline the government and local councils spend millions on a RWC which will bring no profit to communities but boost the international rugby body…it really does make one wonder where our social values lie.

The NZ Herald now supports my view about the hype around the RWC:

“The economic benefits of the Rugby World Cup may have been wildly overestimated by the tournament's backers, as the Reserve Bank hosed down expectations of a $700 million boost to the economy.

Some spending would have occurred anyway by tourists who would now be "crowded out" by cup visitors. And more of that spending would be offset by an increase in imported goods and services required to accommodate the extra visitors.

"Spending related to the tournament may just offset spending on other activities."

Mr Richardson said it was difficult to quantify any impact hosting the tournament would have on consumer confidence, "which could potentially increase general domestic spending".

He said the net impact of the tournament on both short and longer term economic measures remained to be seen.

Senior lecturer of law at AUT University Craig Dickson said the Reserve Bank's uncertainty over the tournament's economic returns was consistent with his view that while hosting the tournament here was a great idea for a number of reasons, "getting wealthy isn't one of them". "Clearly the downstream spend that is supposed to occur from all these tourists is very difficult to measure but overseas experience over a number of years would indicate that it is often wildly overestimated by the cheerleaders of these sorts of events."

Professor Dickson believed as few as 25,000 of the 95,000 visitors expected for the tournament were in addition to tourist numbers that would be expected in a non-tournament year. 95,000 visitors are expected during the Cup, but as few as...25,000 of these will be on top of normal visitor numbers.