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	<title>Comments on: On the distribution of income</title>
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	<link>http://thestandard.org.nz/on-the-distribution-of-income/</link>
	<description>The New Zealand labour movement used to have its own newspaper. A group of us thought that now might be a good time for it to be digitally reborn: The Standard v2.0 - now in a new format The Standard v3.0</description>
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		<title>By: Tax cuts, the minimum wage, and incidence &#171; The visible hand in economics</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-108276</link>
		<dc:creator>Tax cuts, the minimum wage, and incidence &#171; The visible hand in economics</dc:creator>
		<pubDate>Mon, 01 Dec 2008 19:47:00 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-108276</guid>
		<description>[...] I find this statistic misleading - however, it is a statistic that the good people at the Standard swear by, so I am [...]</description>
		<content:encoded><![CDATA[<p>[...] I find this statistic misleading &#8211; however, it is a statistic that the good people at the Standard swear by, so I am [...]</p>
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	<item>
		<title>By: Bill to protect workers from labour-hire vultures at The Standard 2.01</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-63274</link>
		<dc:creator>Bill to protect workers from labour-hire vultures at The Standard 2.01</dc:creator>
		<pubDate>Tue, 24 Jun 2008 01:45:08 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-63274</guid>
		<description>[...] and undermine workers&#8217; rights by offering businesses a cheap way to get around labour law. My personal experiences and the horrific stories of other workers being exploited by labour hire companies make me think [...]</description>
		<content:encoded><![CDATA[<p>[...] and undermine workers&#8217; rights by offering businesses a cheap way to get around labour law. My personal experiences and the horrific stories of other workers being exploited by labour hire companies make me think [...]</p>
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		<title>By: Spin-busting: &#8216;Hardworking kiwis&#8217; at The Standard 2.01</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-59446</link>
		<dc:creator>Spin-busting: &#8216;Hardworking kiwis&#8217; at The Standard 2.01</dc:creator>
		<pubDate>Mon, 09 Jun 2008 02:11:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-59446</guid>
		<description>[...] reality. In reality, it is the low paid jobs that usually require the hardest work (try being a minimum wage labourer for a month). After all, wages are set by a market and the hardest, crappiest jobs, like the lowest [...]</description>
		<content:encoded><![CDATA[<p>[...] reality. In reality, it is the low paid jobs that usually require the hardest work (try being a minimum wage labourer for a month). After all, wages are set by a market and the hardest, crappiest jobs, like the lowest [...]</p>
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	<item>
		<title>By: A great place to raise your kids &#8230; with permanent lung damage &#171; Ideologically Impure</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-46283</link>
		<dc:creator>A great place to raise your kids &#8230; with permanent lung damage &#171; Ideologically Impure</dc:creator>
		<pubDate>Thu, 22 May 2008 01:39:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-46283</guid>
		<description>[...] Which isn&#8217;t suprising, really, when you know that almost half of New Zealanders earn less than the full-time minimum wage. [...]</description>
		<content:encoded><![CDATA[<p>[...] Which isn&#8217;t suprising, really, when you know that almost half of New Zealanders earn less than the full-time minimum wage. [...]</p>
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		<title>By: Should the government reward effort? &#171; The visible hand in economics</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-46060</link>
		<dc:creator>Should the government reward effort? &#171; The visible hand in economics</dc:creator>
		<pubDate>Wed, 21 May 2008 21:00:57 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-46060</guid>
		<description>[...]  22 05 2008   Recent posts by two of the most prominent New Zealand left wing blogs (the Standard and New Z Blog) lament the fact that the wage people are paid does not necessarily relate to the [...]</description>
		<content:encoded><![CDATA[<p>[...]  22 05 2008   Recent posts by two of the most prominent New Zealand left wing blogs (the Standard and New Z Blog) lament the fact that the wage people are paid does not necessarily relate to the [...]</p>
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		<title>By: Seano</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-45792</link>
		<dc:creator>Seano</dc:creator>
		<pubDate>Wed, 21 May 2008 12:42:45 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-45792</guid>
		<description>&quot;So, no, I don&#039;t begrudge a government that wants to take a small part of my income to help out those who, because of the nature of our economic system, have it tougher than me and help look after their families.&quot;

I disagree on the fact that 39% of my income is &quot;a small part&quot;.  I have no children, private health insurance, few if any claims on the State.  My direct taxes equate to at least two people on the minimum annual income.  How much more do you want?  Why is it my problem that people on low incomes feel they have a right to children and a house?  I don&#039;t even have a house.

How if I leave the country?  Will that make you feel better?</description>
		<content:encoded><![CDATA[<p>&#8220;So, no, I don&#8217;t begrudge a government that wants to take a small part of my income to help out those who, because of the nature of our economic system, have it tougher than me and help look after their families.&#8221;</p>
<p>I disagree on the fact that 39% of my income is &#8220;a small part&#8221;.  I have no children, private health insurance, few if any claims on the State.  My direct taxes equate to at least two people on the minimum annual income.  How much more do you want?  Why is it my problem that people on low incomes feel they have a right to children and a house?  I don&#8217;t even have a house.</p>
<p>How if I leave the country?  Will that make you feel better?</p>
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		<title>By: expat</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-45018</link>
		<dc:creator>expat</dc:creator>
		<pubDate>Tue, 20 May 2008 19:22:50 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-45018</guid>
		<description>Whatever Steve, we&#039;ve all done shit jobs while at university.  More fool you for taking on an asbestos job.

I&#039;ve paid my own way, paid my own student loan back, paid my share of tax - what do I get out of Labour? Fuck all mate, a shit health sytem, no investment in infrastructure for a decade until it starts to fall down, schools being closed, train system being fuckedup, and now a bunch of freakin right on academic socialists telling me I should be thankful for getting screwed.

I don&#039;t know where you live matey but 60k in Auckland with a mortgage and kids is minimum wage.

Think about the guys you were labouring with who had to support a family - they dont know that x% wage increas was actually 2/5ths of fuck all real increase given the cost of housing and basic living under labour.</description>
		<content:encoded><![CDATA[<p>Whatever Steve, we&#8217;ve all done shit jobs while at university.  More fool you for taking on an asbestos job.</p>
<p>I&#8217;ve paid my own way, paid my own student loan back, paid my share of tax &#8211; what do I get out of Labour? Fuck all mate, a shit health sytem, no investment in infrastructure for a decade until it starts to fall down, schools being closed, train system being fuckedup, and now a bunch of freakin right on academic socialists telling me I should be thankful for getting screwed.</p>
<p>I don&#8217;t know where you live matey but 60k in Auckland with a mortgage and kids is minimum wage.</p>
<p>Think about the guys you were labouring with who had to support a family &#8211; they dont know that x% wage increas was actually 2/5ths of fuck all real increase given the cost of housing and basic living under labour.</p>
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		<title>By: burt</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44699</link>
		<dc:creator>burt</dc:creator>
		<pubDate>Tue, 20 May 2008 08:40:58 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44699</guid>
		<description>Steve

When I first started working I was earning $109/week and the dole at that time was $90/week. For my extra $19/week I had to pay $9/week on public transport, $1.50 on compulsory union fees and I had to have a completely different wardrobe than if I had been on the dole. If you were thinking I wouldn&#039;t have a lot remaining to save for house then you would be correct. 

At that time people were saying that welfare compared to trainee/apprentice incomes was too high, and/or wages were too low, and that such comfortable welfare provided little incentive to work. 

Would you get out of bed at 6:00am catch a train, a bus and work 8 hours then catch a bus and a train 5 days a week for such a slim margin over the dole while incurring additional costs to do so? 

So how much has really changed? Here on this blog you bang on about the need to lift wages, as I did then and as I do now. It was a Labour govt then, it&#039;s a Labour govt now and still nothing changes. 

Vote for a change, stop being suckered by this &quot;we look after the workers&quot; bullshit from Labour, the Labour pollies look after themselves and the workers get shafted - welcome to Labour govt.  

Why don&#039;t you, Tane and a few other anon bloggers here at the Standard start a new workers party, I&#039;d vote for it if it puts it&#039;s own beliefs into it&#039;s policies and stopped being apologists for a bunch of self serving poll driven redistribution junkies.</description>
		<content:encoded><![CDATA[<p>Steve</p>
<p>When I first started working I was earning $109/week and the dole at that time was $90/week. For my extra $19/week I had to pay $9/week on public transport, $1.50 on compulsory union fees and I had to have a completely different wardrobe than if I had been on the dole. If you were thinking I wouldn&#8217;t have a lot remaining to save for house then you would be correct. </p>
<p>At that time people were saying that welfare compared to trainee/apprentice incomes was too high, and/or wages were too low, and that such comfortable welfare provided little incentive to work. </p>
<p>Would you get out of bed at 6:00am catch a train, a bus and work 8 hours then catch a bus and a train 5 days a week for such a slim margin over the dole while incurring additional costs to do so? </p>
<p>So how much has really changed? Here on this blog you bang on about the need to lift wages, as I did then and as I do now. It was a Labour govt then, it&#8217;s a Labour govt now and still nothing changes. </p>
<p>Vote for a change, stop being suckered by this &#8220;we look after the workers&#8221; bullshit from Labour, the Labour pollies look after themselves and the workers get shafted &#8211; welcome to Labour govt.  </p>
<p>Why don&#8217;t you, Tane and a few other anon bloggers here at the Standard start a new workers party, I&#8217;d vote for it if it puts it&#8217;s own beliefs into it&#8217;s policies and stopped being apologists for a bunch of self serving poll driven redistribution junkies.</p>
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		<title>By: burt</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44618</link>
		<dc:creator>burt</dc:creator>
		<pubDate>Tue, 20 May 2008 06:41:55 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44618</guid>
		<description>Steve

Interesting graph, it shows very clearly just how powerful a zero rated tax threshold of circa $20K would be in delivering more money to the pockets of the most needy.

I think I can see why Dr. Cullen isn&#039;t a fan of a zero rated threshold, that being that if he isn&#039;t taxing low earners he&#039;s not able to play fairy god mother with their own money to buy their support. 

Imagine what a different debate this would be if all tax payers (not just targeted groups which were shown by internal polling to be non Labour voters) below the &quot;minimum wage&quot; threshold were not paying tax so that it could be redistributed to people earning more than them.</description>
		<content:encoded><![CDATA[<p>Steve</p>
<p>Interesting graph, it shows very clearly just how powerful a zero rated tax threshold of circa $20K would be in delivering more money to the pockets of the most needy.</p>
<p>I think I can see why Dr. Cullen isn&#8217;t a fan of a zero rated threshold, that being that if he isn&#8217;t taxing low earners he&#8217;s not able to play fairy god mother with their own money to buy their support. </p>
<p>Imagine what a different debate this would be if all tax payers (not just targeted groups which were shown by internal polling to be non Labour voters) below the &#8220;minimum wage&#8221; threshold were not paying tax so that it could be redistributed to people earning more than them.</p>
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		<title>By: jbc</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44563</link>
		<dc:creator>jbc</dc:creator>
		<pubDate>Tue, 20 May 2008 05:06:26 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44563</guid>
		<description>&lt;blockquote&gt;I tried to give you a look into what life is like for the bulk of the population who have incomes around that level and all you can do is talk about when you were a kid peeling potatoes.&lt;/blockquote&gt;
I mean no disrespect to those on low incomes with families, however if you wanted to show the picture of family despair then more carefully chosen facts might do a better job. Quite obviously family incomes are significantly higher than individual incomes.

I don&#039;t need a lecture on poverty though. I know exactly what it is.</description>
		<content:encoded><![CDATA[<blockquote><p>I tried to give you a look into what life is like for the bulk of the population who have incomes around that level and all you can do is talk about when you were a kid peeling potatoes.</p></blockquote>
<p>I mean no disrespect to those on low incomes with families, however if you wanted to show the picture of family despair then more carefully chosen facts might do a better job. Quite obviously family incomes are significantly higher than individual incomes.</p>
<p>I don&#8217;t need a lecture on poverty though. I know exactly what it is.</p>
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		<title>By: alex</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44559</link>
		<dc:creator>alex</dc:creator>
		<pubDate>Tue, 20 May 2008 05:01:18 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44559</guid>
		<description>Steve,

&quot;I tried to give you a look into what life is like for the bulk of the population who have incomes around that level and all you can do is talk about when you were a kid peeling potatoes. &quot;

&quot;tried&quot; being the operative word, I now see where you&#039;re coming from but this was not obvious from the original post or the graph used to back it up.

Your lumping everything into one graph, it really makes the graph meaningless.

&quot;See that line that says minimum wage? Nearly half of kiwis earn less than that.&quot; ... again is this bad? is this good?  is this on par with other countries?  This statement it not useful if you lump everyone on a graph.

If a solo mum with 3 kids is earning less than minimum wage then that&#039;s bad.

If a stay-at-home-mum who is supported by her husband earning $150k is earning less than minimum wage, big deal.

I&#039;m not disagreeing with the spirit of your post, just the graph that doesn&#039;t follow.</description>
		<content:encoded><![CDATA[<p>Steve,</p>
<p>&#8220;I tried to give you a look into what life is like for the bulk of the population who have incomes around that level and all you can do is talk about when you were a kid peeling potatoes. &#8221;</p>
<p>&#8220;tried&#8221; being the operative word, I now see where you&#8217;re coming from but this was not obvious from the original post or the graph used to back it up.</p>
<p>Your lumping everything into one graph, it really makes the graph meaningless.</p>
<p>&#8220;See that line that says minimum wage? Nearly half of kiwis earn less than that.&#8221; &#8230; again is this bad? is this good?  is this on par with other countries?  This statement it not useful if you lump everyone on a graph.</p>
<p>If a solo mum with 3 kids is earning less than minimum wage then that&#8217;s bad.</p>
<p>If a stay-at-home-mum who is supported by her husband earning $150k is earning less than minimum wage, big deal.</p>
<p>I&#8217;m not disagreeing with the spirit of your post, just the graph that doesn&#8217;t follow.</p>
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		<title>By: jbc</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44553</link>
		<dc:creator>jbc</dc:creator>
		<pubDate>Tue, 20 May 2008 04:49:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44553</guid>
		<description>&lt;blockquote&gt;You can slice and dice the figures anyway to make them look how you want - like when Farrar tried to pretend incomes went up faster under National but looking solely at the average ordinary time full-time wage - that&#039;s why it&#039;s best to stick with the full picture when the question at hand is â€˜what is the distribution of income among kiwis?&#039;&lt;/blockquote&gt;

Well I&#039;m sorry but I think that the figures presented don&#039;t really tell much of a story. There are too many factors included for a savvy person to be able to distill anything useful. Also, if you lump in all the different types of &lt;strong&gt;individual&lt;/strong&gt; income then you can not really talk about supporting dependents - as they might be in the graph too. That&#039;s where household income would be applicable.

I understand your dilemma of trying to show a broad picture without using too many (complicated) facts and figures - but this could have been done better.

Incidentally, since you mentioned the numbers came from Treasury I looked over there for the numbers. Didn&#039;t find (no worry), but what I did notice was this:

Average family gross income:	($)
- couple with children	92,882

Wow! If that&#039;s true then it is bloody fantastic. I guess WFF has boosted that number.</description>
		<content:encoded><![CDATA[<blockquote><p>You can slice and dice the figures anyway to make them look how you want &#8211; like when Farrar tried to pretend incomes went up faster under National but looking solely at the average ordinary time full-time wage &#8211; that&#8217;s why it&#8217;s best to stick with the full picture when the question at hand is â€˜what is the distribution of income among kiwis?&#8217;</p></blockquote>
<p>Well I&#8217;m sorry but I think that the figures presented don&#8217;t really tell much of a story. There are too many factors included for a savvy person to be able to distill anything useful. Also, if you lump in all the different types of <strong>individual</strong> income then you can not really talk about supporting dependents &#8211; as they might be in the graph too. That&#8217;s where household income would be applicable.</p>
<p>I understand your dilemma of trying to show a broad picture without using too many (complicated) facts and figures &#8211; but this could have been done better.</p>
<p>Incidentally, since you mentioned the numbers came from Treasury I looked over there for the numbers. Didn&#8217;t find (no worry), but what I did notice was this:</p>
<p>Average family gross income:	($)<br />
- couple with children	92,882</p>
<p>Wow! If that&#8217;s true then it is bloody fantastic. I guess WFF has boosted that number.</p>
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		<title>By: Steve Pierson</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44535</link>
		<dc:creator>Steve Pierson</dc:creator>
		<pubDate>Tue, 20 May 2008 04:29:18 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44535</guid>
		<description>jbc. Comments like yours make me despair. 300,000 people earn on or about the minimum wage and many of them do have dependents to look after. 

I tried to give you a look into what life is like for the bulk of the population who have incomes around that level and all you can do is talk about when you were a kid peeling potatoes. 

Try to imagine, working for minimum wage in a soulless job for a greedy boss who regards you as disposable. Imagine trying to get by and raise your kids on $25,000 a year. And then, imagine that just 8 years ago, under National you were getting just $14,500 a year, and you know that if they come into power again, there will be no more pay-rises for you, even as inflation eats away at what you do get.

I wonder if you can.</description>
		<content:encoded><![CDATA[<p>jbc. Comments like yours make me despair. 300,000 people earn on or about the minimum wage and many of them do have dependents to look after. </p>
<p>I tried to give you a look into what life is like for the bulk of the population who have incomes around that level and all you can do is talk about when you were a kid peeling potatoes. </p>
<p>Try to imagine, working for minimum wage in a soulless job for a greedy boss who regards you as disposable. Imagine trying to get by and raise your kids on $25,000 a year. And then, imagine that just 8 years ago, under National you were getting just $14,500 a year, and you know that if they come into power again, there will be no more pay-rises for you, even as inflation eats away at what you do get.</p>
<p>I wonder if you can.</p>
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		<title>By: Steve Pierson</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44528</link>
		<dc:creator>Steve Pierson</dc:creator>
		<pubDate>Tue, 20 May 2008 04:22:53 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44528</guid>
		<description>just looking at incomes of employed people would ignore the fact that there are people without jobs who want to work and their incomes are lower because they can&#039;t find work. It would also ignore the income levels of the nearly three quarters of a million people who get super, DPB, sickness, invalids, or unemployment (those benefits in order of number of popel who get them).

It&#039;s not such a big deal when you&#039;re looking at one snapshot in time and a very low unemployment period when benefit levels are stable but we&#039;ve done a whole bunch of graphs on incomes and we always use medians and all incomes because otherwise you miss out major effects like changes in employment levels and benefit levels and how those impact on real people.

You can slice and dice the figures anyway to make them look how you want - like when Farrar tried to pretend incomes went up faster under National but looking solely at the average ordinary time full-time wage - that&#039;s why it&#039;s best to stick with the full picture when the question at hand is &#039;what is the distribution of income among kiwis?&#039;

we don&#039;t have an infinite number of catagories (we do of tags) so I chose the catagory most aligned with the topic.</description>
		<content:encoded><![CDATA[<p>just looking at incomes of employed people would ignore the fact that there are people without jobs who want to work and their incomes are lower because they can&#8217;t find work. It would also ignore the income levels of the nearly three quarters of a million people who get super, DPB, sickness, invalids, or unemployment (those benefits in order of number of popel who get them).</p>
<p>It&#8217;s not such a big deal when you&#8217;re looking at one snapshot in time and a very low unemployment period when benefit levels are stable but we&#8217;ve done a whole bunch of graphs on incomes and we always use medians and all incomes because otherwise you miss out major effects like changes in employment levels and benefit levels and how those impact on real people.</p>
<p>You can slice and dice the figures anyway to make them look how you want &#8211; like when Farrar tried to pretend incomes went up faster under National but looking solely at the average ordinary time full-time wage &#8211; that&#8217;s why it&#8217;s best to stick with the full picture when the question at hand is &#8216;what is the distribution of income among kiwis?&#8217;</p>
<p>we don&#8217;t have an infinite number of catagories (we do of tags) so I chose the catagory most aligned with the topic.</p>
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		<title>By: jbc</title>
		<link>http://thestandard.org.nz/on-the-distribution-of-income/comment-page-2/#comment-44523</link>
		<dc:creator>jbc</dc:creator>
		<pubDate>Tue, 20 May 2008 04:13:41 +0000</pubDate>
		<guid isPermaLink="false">http://www.thestandard.org.nz/?p=1955#comment-44523</guid>
		<description>alex, finally some intelligent life!

You make a good point too. I can&#039;t see what benefit there is comparing the after-school income of my 15 year old self, with my income now as a full-time professional with nearly 20 years of experience.

At 15 I probably thought 5 dollars an hour for slicing potatoes was pretty good. They gave me some free 20c pieces for the games machines!  And I didn&#039;t have a mortgage or any dependents either.

captcha: &quot;Prentice rescued&quot;.</description>
		<content:encoded><![CDATA[<p>alex, finally some intelligent life!</p>
<p>You make a good point too. I can&#8217;t see what benefit there is comparing the after-school income of my 15 year old self, with my income now as a full-time professional with nearly 20 years of experience.</p>
<p>At 15 I probably thought 5 dollars an hour for slicing potatoes was pretty good. They gave me some free 20c pieces for the games machines!  And I didn&#8217;t have a mortgage or any dependents either.</p>
<p>captcha: &#8220;Prentice rescued&#8221;.</p>
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