web analytics

Getting emotional about economics

Written By: - Date published: 9:27 am, February 14th, 2008 - 64 comments
Categories: articles - Tags:

Michael Shermer of the LA Times asks:

“Would you rather earn $50,000 a year while other people make $25,000, or would you rather earn $100,000 a year while other people get $250,000?”

Somewhat surprisingly you might think, it turns out that most people chose the first option. They’d rather earn twice as much as others even though that means earning half as much as they otherwise could have.

Read on to find out why…

64 comments on “Getting emotional about economics”

  1. It looks like the psychology of economic wellbeing is the inverse of the politics of envy. It’s not so much keeping up with the Joneses as trying to be relatively better off compared to your peers, who may not necessarily be your immediate neighbours.
    The choice is posed in only monetary terms, they could have asked which way you’d be happier.

  2. BeShakey 2

    And of course this is a big issue for the left. It suggests that people may get upset if the government steps in to reduce the gap between (relatively) rich and poor, even if the rich end up better off in absolute terms.

  3. Lance 3

    When this question was first put to me, the note “Assume for a moment that prices would stay the same” was left off. That would lead me to choose the second option.

    Without that, I wasn’t looking at the dollar figure, I was assuming that in a society where everyone was earning $250,000 and I was earning $100,000 I would be “poor” (struggle to sustain myself – I assumed pricing would be adjusted so that someone on $250,000 was on a “comfortable” wage/salary), but if in a society where everyone was earning $25,000 and I was earning $50,000 – I would be “rich” (easily sustain myself, buy toys and give to charity).

    But with prices staying the same, I’d rather earn $100,000 while others earned $250,000. Anything else is just mind bogglingly stupid.

  4. djp 4

    agree with lance, the first thing that came to mind was “what is the effect to prices?”.

    which brings us back to the minimum wage debate… “what effect does it have on prices?”

  5. Camryn 5

    Labour party policy is spot on then. Let’s all have less, as long as we each get some special presents (e.g. WFF) to feel like winners.

  6. Tane 6

    Labour party policy is spot on then. Let’s all have less…

    Wages are rising faster under Labour than they did under National.

    National and the wage gap

  7. Camryn – that’s the stupidest thing I’ve ever seen you write. What do you think should be done to increase incomes?

  8. BeShakey 8

    Yawn, as they say, God abhors a vacuum, so I guess it was invitable that someone would step up to fill the gap left by D4J.

    djp and Lance: there have been studies where the prices have been held steady, or where prices are irrelevant and people still prefer to be less well off in absolute terms, if they are better off in relative terms.

  9. mike 9

    “Wages are rising faster under Labour than they did under National”

    Just no where near as fast as the cost of living or other countries have.
    To quote the next finance Minister ” A huge opportunity lost”

  10. How old are you Mike? Do you remember what happened to wages last time National was in?

  11. Steve Pierson 11

    mike. wages have risen faster than the cost of living. if you bothered to check the graphs you would see they are adjusted for inflation.

    It is exceedingly difficult to measure relative wage growth between countries due to changes in exchange rates, inflation rates and purchasing power parity, not to mention taxes and other complications. We don’t have a researcher to spend a couple of days working it out for us but I can tell you that NZ’s GDP per capita (an approximation of incomes per capita) has risen as a percentage of Autralia’s GDP per capita, after it fell behind in the 1990s. I’m work on a post on this topic.

  12. Santi 12

    How old are you Michael Porton? Do you remember what has happened to taxation (direct and indirect)during the last nine years Labour has been in power?

  13. Tane 13

    Just no where near as fast as the cost of living or other countries have.

    And now you’re just making stuff up. Do you actually do any research yourself, or do you just rely on John Key’s carefully focus-grouped talking points when you comment here?

  14. “We don’t have a researcher to spend a couple of days working it out for us”

    Didn’t Patrick Nolan do some work on this at NZIER http://www.nzier.org.nz/Site/Publications/NZIER_reports_working_papers.aspx (look at about October)

    Cross country comparisons are notoriously difficult to make, but does have a phd looking at effective marginal tax rates, and was able to make comparisons between the Australian and NZ tax systems.

  15. mike 15

    Steve, I do not have the time to dig up data etc but its obvious to most people that wages have fallen behind in NZ and house prices/fuel/rates /food etc,etc have ballooned.
    Not to mention interest rates which are 2nd highest in the dev world. Wasn’t Cullen scarmongering about high interest rates under a National Gov last election …

  16. Tane 16

    its obvious to most people

    That’s the logic of talkback. I’d rather deal in facts.

  17. How old are you Michael Porton? Do you remember what has happened to taxation (direct and indirect)during the last nine years Labour has been in power?

    Yeah Santi – I know it’s become more equitable and I know a lot more New Zealanders are paying more tax because a lot more are working and earning more.

  18. Phil 18

    Steve/Tane/Mike

    If you look at the latest numbers on Purchasing Power Parity (It’s either the OECD or the IMF that run them… i’ll dig out a link) you’ll see that New Zealand has drifted down the ranks quite a bit in the last decade. If I recall correctly, the results indicate that we now have a lower standard of living that Slovakia.

  19. mike 19

    That’s the logic of talkback. I’d rather deal in facts.

    Only if they suit the agenda though eh..

    Thanks Phil, I’m too busy deunionising my dept today. 2 down all gone by lunchtime.

  20. Camryn 20

    Tane and Sod – How is that stupid. You just disagree, is all. May I refer you to the policies of the Irish government during the Celtic Tiger period? Something like that’d be nice.

    http://en.wikipedia.org/wiki/Celtic_Tiger

    “Credit has been primarily given to free market capitalism: low corporate taxation; decades of investment in domestic higher education; a low-cost labour market; a policy of restraint in government spending; and EU membership – which provided transfer payments and export access to the Single Market.”

    One of those we can’t copy (EU), but the rest reads more like Act policy than Labour policy (except higher education investment, but sounds OK to me as long as it’s done well).

    I don’t want to get into a debate about our specific situation etc etc. You asked why I think Labour’s policies keep us all poorer than we would be and this is it.

    Exactly like the article says: Grow economy = small shares may be relatively worse off, but absolutely better off. Stifle pie growth = more equal, all absolutely worse off.

  21. BeShakey 21

    For a start, it’s hard to argue that Labour has ‘stifle[d] pie growth’. Many of the problems they are now being criticised for are the result of a booming economy, not a stagnating one.

    In terms of the article, I think you misinterpreted it. People prefer relative gains over absolute gains if they are forced to choose. So people would rather have more inequality (even if their personal situation worsens), rather than have less inequality (even if their personal situation improves). If you wanted to try and implement this as policy you’d want to create an underclass, not get rid of one.

  22. Ex Labour Voter 22

    So the hundred thousand New Zealanders who have left the country permanently in the last fifteen months for better incomes in Australia, Britain, and elsewhere, are just WRONG.

    Wow, that’s a winning message.

  23. Hey Cameron – “low-cost labour market” – that’s kinda what we’re talking about avoiding. Sheesh bro, you really don’t get it do you. I’ll try to make it simple for you:

    The problem is not the economy.
    The economy is doing very well.
    Many people are not sharing in this.
    Their wages are low.
    The money is there.
    How do we make their wages higher?

  24. Matthew Pilott 24

    Crap another reference to the Celtic Tiger. Well, aren’t we lucky to have a market of hundreds of millions on our borders or within a few hundred miles, with no trade barriers, and huge subsidies to help us along.

    Oh wait, that’s Ireland.

    Not a useful reference – it was due to the EU, and not Irish policy that worked there.

    P.s. that low corporate taxation – s that the one National voted against?

    ELV – maybe you’ve actually hit on something there – people don’t exist and exert effort purely for money. Of the people I know who have gone overseas – the’ve taken advantage of very low airfares to see a bit more of the world, have some new experiences and so on. They all plan to come back here in a few years.

  25. r0b 25

    Camryn: Exactly like the article says: Grow economy = small shares may be relatively worse off, but absolutely better off. Stifle pie growth = more equal, all absolutely worse off.

    It’s a beautiful theory Camryn, and at some times in history it must have been correct. I don’t see that it is correct for modern economies necessarily.

    Take America, with roughly 45% increase in GDP since 1995. Meanwhile numbers in poverty have oscillated. They certainly haven’t decreased, they are currently increasing. That’s with respect to an absolute definition of poverty too (not a relative one, relative levels are also variable over this time). See:

    http://en.wikipedia.org/wiki/Poverty_in_the_United_States

    So, why aren’t there 45% fewer people in poverty since 1995? It’s a bigger pie, but the same number of people are missing out! Well, here’s why. “In the United States at the end of 2001, 10% of the population owned 71% of the wealth, and the top 1% controlled 38%. On the other hand, the bottom 40% owned less than 1% of the nation’s wealth”

    http://en.wikipedia.org/wiki/Distribution_of_wealth

    In short, the growing pie makes (as usual) the rich richer, and it does sweet FA for the poor (and, increasingly, the middle class). They get 45% more of nothing. So in America we have the same rates of poverty, and increasing signs of middle class stress (ever lower rates of savings, ever higher rates of debt, record mortgage foreclosures, and so on).

    The growing pie theory is not working in America, it’s not a magic bullet. There need to be other mechanisms to make sure that wealth is fairly distributed. If you take an honest look at the data you will see this for yourself.

  26. MikeE 26

    “Would you rather earn $50,000 a year while other people make $25,000, or would you rather earn $100,000 a year while other people get $250,000?’

    It makes sense to want to earn $50k if everyone else earns 25k as you would be earning 2x as much as the average person.

    If you earnt $100k, while everyone else earned $250k you’d only be earning 40% of the average wage.

    Of course all of this is meaningless unless one knows how much say $50k or $100k would buy in each scenario.

  27. BeShakey 27

    MikeE – the usual assumption is that prices are constant (it might have been done badly and not stated in this study, but others have stated it, or used examples where price is irrelevant). In these cases the question is why you should care about what the average wage is, your options are absolute gain and relative loss, or absolute loss and relative gain. People prefer the latter even though their purchasing power (if the example is financial) is worse.

  28. Michele Cabiling 28

    Rob’s claim:

    “In short, the growing pie makes (as usual) the rich richer, and it does sweet FA for the poor (and, increasingly, the middle class)” is so old that it creaks.

    It retreads tired old Marxist-Leninist class warfare dogma which assumes that people are born, live and die in the same economic circumstances they start out in.

    Why is this a lie, when so many statistics seem to substantiate it? Let’s start at square one and take it a step at a time.

    First up, there’s a fundamental difference between statistical categories and flesh-and-blood human beings.

    When there’s a growing disparity between one statistical category and another statistical category over time, that doesn’t mean there’s a corresponding growing disparity between flesh-and-blood human beings over time, since human beings move from one statistical category to another.

    The statistical categories in this case are income brackets. There’s no question that incomes in the top income brackets have risen both absolutely and relative to the bottom income brackets.

    However, millions of people move from one income bracket to another. In fact, many US taxpayers whose incomes were in the bottom 20 percent in 1996 had a 91 percent increase in incomes by 2005.

    Meanwhile, taxpayers in the top one-hundredth of one percent — “the rich” or “mega rich” if you believe politicians and the media — had their incomes drop by 26 percent over those very same years.

    Obviously, when millions of people’s incomes nearly double in a decade, many of them move up out of the bottom income bracket. Similarly, when other people who were at the very top see their income drop by about a quarter, many of them drop out of that bracket.

    When we talk about “the rich” and “the poor” we mean rich and poor human beings, not rich and poor statistical brackets. Yet politicians and the media treat people and statistical categories as if they were the same thing.

    Part of the reason is that data on statistical brackets is more numerous and easier to find, whether from Census statistics or from a variety of other sources.

    Data based on following actual flesh-and-blood individuals over time is, however, also available. The statistics quoted above are from the US Treasury Department, which has people’s income tax returns, so it’s simple for it to follow the same people over the years.

    You can check out the numbers for yourself in a 13 November 2007 report from the US Treasury Department titled “Income Mobility in the United States from 1996 to 2005.” The same data is summarised in a Wall Street Journal editorial that same day.

    This is not the only data telling a diametrically opposite story from the usual leftard plaint that the rich are getting richer and the poor are getting poorer.

    A previous US Treasury Department study showed similar patterns in individual income changes between 1979 and 1988.

    Moreover, a longitudinal study conducted at the University of Michigan followed the same individuals over an even longer span of time. It also found most people moving from income bracket to income bracket over time — especially among those who began in the bottom 20 percent.

    The University of Michigan Panel Survey on Income Dynamics showed that, among people who were in the bottom 20 percent income bracket in 1975, only 5 percent were still in that category in 1991. Nearly six times as many of them were now in the top 20 percent in 1991.

    The University of Michigan data was also summarised in the 1995 annual report of the Federal Reserve Bank of Dallas, which issued an excerpt titled “By Our Own Bootstraps.”

    Among leftards, it is fashionable to sneer at income mobility as a cruel myth. As someone once said, you cannot refute a sneer. But among people who have not yet abandoned facts for rhetoric, it is worth stopping to consider whether they want to continue being jerked around for political gain by leftard politicians and their media enablers.

  29. Among leftards, it is fashionable to sneer at income mobility as a cruel myth.

    ‘Chele – roger gave you the stats disproving major income mobility the last time you pulled this shit up. Why are you trying to hawk it again? Oh that’s right ‘cos your a libertaritard.

  30. r0b 30

    I’m not sneering at social mobility Michele. My claim is that growing the American economy (“the size of the pie”) has not reduced poverty in that country. Some move out of poverty, some move into it, but the basic picture stays the same despite growth in GDP.

    Among leftards, it is fashionable to sneer

    Do you have even a rudimentary sense of self awareness Michele?

    Let me repeat the same advice you’ve had many times before here. Keep your posts shorter if you want people to read them. Don’t be rude. Don’t Plagiarise. Have a Nice Day.

  31. Michele Cabiling 31

    But the stats don’t disprove it dumbass!

    Sure, there’s a recalcitrant and growing welfare-nurtered intergenerational underclass of around 15 percent of the population that shows no income mobility.

    That’s because the kids never see anyone in the house getting up in the morning to go to work, and the only sources of income are crime and benefits. The apple never falls far from the tree, so most of these kids lack the self-discipline and other skills to even get onto the lowest rung of the ladder of opportunity.

    That’s the fault of power-hungry politicians who see a massive political dividend in keeping as many people as possible shackled and helpless on Nanny State’s plantation.

  32. Michele Cabiling 32

    Rob wrote:

    “Some move out of poverty, some move into it, but the basic picture stays the same despite growth in GDP.”

    As the Bible says: “The poor are always with you.” Even in a society of millionaires you can draw an arbitrary line on an income distribution chart to say the x percent of people (based on statistical categories) are “poor.”

    “Some move out of poverty, some move into it, but the basic picture stays the same despite growth in GDP.”

    Yes, based on aptitude and effort. How entirely appropriate that people should be rewarded for hard work, thrift and personal enterprise. And that those who fail to demonstrate these traits are penalised to the extent of their failure to display them.

    There’s a saying: “The first generation makes it, the second generation sits on it, the third generation loses it.”

    Why do you think the sensible mega rich tie up most of the behests they make in trust funds? It’s so that worthless offspring like Paris Hilton can’t squander the family fortune on “grasshopper” lifestyles.

  33. r0b 33

    Michele 1: It retreads tired old Marxist-Leninist class warfare dogma which assumes that people are born, live and die in the same economic circumstances they start out in. Why is this a lie…

    Michele 2: Sure, there’s a recalcitrant and growing welfare-nurtered intergenerational underclass of around 15 percent of the population that shows no income mobility. … The apple never falls far from the tree, so most of these kids lack the self-discipline and other skills to even get onto the lowest rung of the ladder of opportunity.

    Michele has been back at The Standard for a couple of hours, and she’s already contradicting herself. A new record. And an old trend.

    There is no consistency in your thinking Michele, you just spout incoherent libertarian pseudo-philosophy seemingly at random.

  34. Michele Cabiling 34

    There’s every consistency in what I say above.

    85 percent of people display income mobility over time. The 15 percent who don’t fail to do so, not because of any deficiency in the free market model, but because they were created and supported in their live-for-the-moment indolence by government intervention.

    The problem is not the market at all but venal power-hungry politicians quoting Mickey Savage crap like: “The welfare state is applied Christianity” to co-opt the political support of the well-meaning.

  35. burt 35

    This is how the policies of envy work. Tell people that $60K is rich and they will vote to punish the rich people for their own gain. Emotional voting, easily inspired in a low wage economy.

    Explaining to a teacher friend in 1999 that their $48K is only about 4-5 pay rises away from making him rich didn’t seem to make much sense against the partisan (in agreement with union opinion) head nodding of the time. Needless to say, he gets it now!

    BTW: The last sentence of teh quote you used adds valuable context to the question. “Assume for the moment that prices of goods and services will stay the same.” Without that clarification the first option seems like the smartest option.

  36. r0b 36

    Michele Cabiling folks. Give her a Big Hand.

    Good night!

  37. Michele Cabiling 37

    Try giving Robinsodomite a big hand (or rather a Big Fist) he’d appreciate it more …

  38. And once again MC proves her intellect. What was your degree in again M? Oh that’s right, Property Management. You are such a loser girl.

  39. Matthew Pilott 39

    Michele uses talk of “income brackets” to describe income mobility. This is either a lie, or she’s statistically inept. A bracket denotes a fixed statistical range (i.e. $0-$9,999; $10,000-$19,999 and so on). The report she mentions uses income quintiles – a measure of income in relation to others – not an absolute measure of income.

    High income mobility among quintiles simply indicates a volatile economy for the “flesh and blood”. The most obvious case is the report Michele so clearly admires. I’ve read it before myself, and wasn’t impressed.

    Of the people in the lowest income Quintile (not bracket) in 1996, 42% were still in the same quintile. By 2005 31% had dropped to the lowest quintile from higher ones. So income mobility works both ways – some people get rich, some are poorer and many stay the same.

    What this dos not disguise is the fact that the gulf between rich and poor is still yawning more than ever.

    So go the fucking market – it can make you rich, it can bankrupt you but it can’t do a bloody thing to help. Cheers for bringing this up Michelle.

  40. burt 40

    Matthew Pilott

    What this dos not disguise is the fact that the gulf between rich and poor is still yawning more than ever.

    So go the fucking market – it can make you rich, it can bankrupt you but it can’t do a bloody thing to help. Cheers for bringing this up Michelle.

    I could reword that as;

    What this dos not disguise is the fact that the gulf between rich and poor is still yawning more than ever.

    So go the fucking Labour party – it can make you rich, it can bankrupt you but it can’t do a bloody thing to help. Cheers for bringing this up Matthew.

  41. I see you’re already into the sherry, Burt.

  42. Matthew Pilott 42

    I could reword that as – yes, but that would make you an ignorant jackass, sugarpuff.

    Shit, Labour can make you rich? Go figure 😛

    That’s pretty low, even from you, Burt. Given that New Zealand is doing better than the US in the poverty-gap stakes, what will the ACT-National types do about it?

    Tax cuts. For the rich.

    Sweet.

    Feel free to make an intelligent contribution though, anytime.

  43. r0b 43

    America, New Zealand, it’s all the same to Burt.

    ‘Sod, you’re on fine good form tonight! (Well, maybe not the goats thing, but teleology, heh!)

  44. burt 44

    Labour for 9 years and it’s getting worse…. I don’t think anything suggested by ACT, National, Maori, Green or other poodles could sound as silly as claiming Labour are doing a good job. It sux now, change is clearly required. Let me quess, Labour have the answers this time, for the precious 4th term, they promise… please please.

    Or did I forget it’s the fault of the National party from the 90’s responding to the shambles left by Labour through the 80’s or what was that excuse for our falling statistic again?

  45. Cheers Rob (although I prefer the “goats” discourse – better cut-though across demographics).

  46. burt 46

    Robinsod

    No, not at all, but what would you like to debate, drinking that I’m not doing or one of the many and varied topics that come up in the thread?

  47. Yeah Burt – that reduction of glue-ear, over-crowding, foodbanks, youth suicide and all those other poverty indicators really sux. You’re right. I’m certainly gonna vote national this time. Bring back the 90’s!

  48. r0b 48

    Labour for 9 years and it’s getting worse

    Unemployment at a 20 year low. Minimum wage increased. Numbers on benefits down. Crime down. Economy growing. Cullen Fund and KiwiSaver providing long term planning. NZ doing well in international rankings for health, education, honesty, cost of doing business.

    Yes Burt, it’s getting worse, in your head.

  49. what would you like to debate

    Burt, I don’t want to “debate” anything with you because you are a moron and I find it much more enjoyable to mock you.

  50. burt 50

    rOb/Robinsod

    Matthew Pilott is quoted here.

    What this dos not disguise is the fact that the gulf between rich and poor is still yawning more than ever.

    I think you guys were not paying attention, the gulf between rich and poor is what I’m talking about. Please feel free to tell me it’s got better under Labour!

  51. r0b 51

    Burt, see above. America. New Zealand. Not. The. Same.

    Mathew was talking about America.

  52. Matthew Pilott 52

    r0b, maybe he’s talking about the United States of ANZUS?

    😉

  53. r0b 53

    Matthew – ahh yes – don’t you miss the Good Old Days?

  54. r0b 55

    S’all right Burt, we all make mistakes.

  55. AncientGeek 56

    I see ‘chele is back. Wondered where I was going to have some fun this weekend.

  56. r0b 57

    I’m off line this weekend AG, but y’all enjoy!

  57. Gooner 58

    Rob doesn’t think economic growth can make us all more prosperous as he doesn’t want the pie to get any bigger.

    I give up.

  58. Dean 59

    “Unemployment at a 20 year low.”

    This is true.

    “Minimum wage increased.”

    Shame about the tax brackets not moving in forever and therefore meaning people take home less isn’t it.

    “Numbers on benefits down.”

    You are obviously not counting WFF “tax credits” as benefits.

    “Crime down.”

    Except when the moon is full and it’s summer. I mean, really.

    “Economy growing.”

    Entirely debatable and only if you’re using the figures that suit you. It must be horrible looking at productivity rates.

    “Cullen Fund and KiwiSaver providing long term planning.”

    Shame we’re not allowed to provide long term planning for ourselves through tax credits though isn’t it? Or am I just being a hater and/or a wrecker?

    “NZ doing well in international rankings for health, education, honesty, cost of doing business.”

    Pity about the other OECD rankings, isn’t it.

  59. Wendigo Jane 60

    Oh yes Michele, when ‘The Bible’ – oh no hang on that would actually be Jesus – said ‘For ye have the poor always with you’ I’m sure he went on to say ‘But please feel free to do nothing about it, they will display income mobility over a period of time.’

  60. Matthew Pilott 61

    Wendigo Jane – bloody priceless 😀

  61. lprent 62

    Wendigo, I appreciate the laugh. But the spilt coffee was a bit of a problem. Please give me more of a warning.

  62. r0b 63

    Rob doesn’t think economic growth can make us all more prosperous as he doesn’t want the pie to get any bigger.

    Sorry Gooner, that makes no sense at all.

    I give up.

    Promise?

Links to post

Recent Comments

Recent Posts

  • Prime Minister to visit Fiji and Australia
    Prime Minister Jacinda Ardern will visit two of New Zealand’s most important Pacific partners, Fiji and Australia, next week. The visit to Fiji will be the first by a New Zealand Prime Minister in four years and comes during the 50th anniversary of Fijian independence and diplomatic relations between our ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Next steps in Criminal Cases Review Commission announced
    Justice Minister Andrew Little and New Zealand First MP Darroch Ball, have today announced the appointment of the Chief Commissioner of the Criminal Cases Review Commission (CCRC), the location, and the membership of the Establishment Advisory Group. Colin Carruthers QC has been appointed Chief Commissioner of the CCRC for an ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Horticultural Ahuwhenua Trophy finalists announced
    Māori Development Minister Hon Nanaia Mahuta and Agriculture Minister Hon Damien O’Connor co-announced the first horticultural finalists for the Ahuwhenua Trophy celebrating excellence in the Māori agricultural sector.  The three finalists are Ngai Tukairangi Trust from Mt Maunganui, Otama Marere Trust from Tauranga, and Hineora Orchard Te Kaha 15B Ahuwhenua ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • New support for students with dyslexia
    A new kete of resources to strengthen support for students with dyslexia will provide extra tools for the new Learning Support Coordinators (LSCs) as they start in schools, Associate Education Minister Tracey Martin announced today. The Minister launched the kete in Wellington this morning, at the first of three induction ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Rental reforms progress to select committee stage
    The Government continues to make progress on a fairer and more secure rental market for renters and landlords with the First Reading of the Residential Tenancies Amendment Bill and its referral to the Social Services and Community Select Committee.  “Now is the opportunity for landlords, tenants and others who want ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Papua New Guinea Prime Minister to visit New Zealand
    Papua New Guinea’s Prime Minister Hon James Marape will visit New Zealand from 21-25 February, Prime Minister Jacinda Ardern announced today. “New Zealand and Papua New Guinea have a warm and friendly relationship. I look forward to welcoming Prime Minister Marape here and strengthening the relationship between our two countries,” ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Free school lunches served up to thousands
    Thousands of children have begun receiving a free lunch on every day of the school week, Prime Minister Jacinda Ardern said. The Government’s free and healthy school lunch programme is under way for 7,000 students at 31 schools in Hawke’s Bay / Tairāwhiti and Bay of Plenty / Waiariki, extending ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Social Wellbeing Agency replaces Social Investment Agency with new approach
    The Minister for Social Development Carmel Sepuloni today announced a new approach that continues to broaden the Government’s social sector focus from a narrow, investment approach to one centred on people and wellbeing. Minister Sepuloni said redefining the previous approach to social investment by combining science, data and lived experience ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to strengthen protections for whistleblowers
    The Government is strengthening the Protected Disclosures Act to provide better protection for whistle blowers, Minister of State Services Chris Hipkins said today. “The Protected Disclosures Act is meant to encourage people to speak up about serious wrongdoing in the workplace and protect them from losing their jobs or being ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • PM speech at Parliamentary Chinese New Year celebration 2020
    Nǐn hǎo (Hello in Mandarin). Xīn Nián Kuài Lè (Happy New Year in Mandarin) Néi Hóu (Hello in Cantonese). Sun Nin Fai Lok (Happy New Year in Cantonese) Tēnā koutou, tēnā koutou, tēnā koutou katoa. Thank you for your invitation to attend this celebration today. I would like to acknowledge ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • IPANZ Annual Address
    Kia ora. Ngā mihi nui ki a koutou katoa. Nau mai haere mai ki te Whare Pāremata. E ngā mana whenua ki tēnei rohe Taranaki Whānui, Te Upoko o Te Ika, Ngāti Toa Rangatira, Ngāti Raukawa – kei te mihi, kei te mihi, kei te mihi. E ngā mana, e ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • 2020 IPANZ Annual Address
    Kia ora. Ngā mihi nui ki a koutou katoa. Nau mai haere mai ki te Whare Pāremata. E ngā mana whenua ki tēnei rohe Taranaki Whānui, Te Upoko o Te Ika, Ngāti Toa Rangatira, Ngāti Raukawa – kei te mihi, kei te mihi, kei te mihi. E ngā mana, e ngā ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Tougher penalties for gun crime a step closer
    Tougher penalties for gun crime are a step closer with the passage of firearms reform legislation through another stage in Parliament. The Arms Legislation Bill has tonight passed its Second Reading. “The changes have one objective - to prevent firearms falling into the wrong hands,” said Police Minister Stuart Nash. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Arms Legislation Bill: Second Reading
    Introduction Mr Speaker We all know why we are here today. It has been a long journey. The journey did not actually begin on 15 March 2019. It began on 30 June 1997. Almost 23 years ago, Justice Sir Thomas Thorp told us what was wrong with our firearms legislation. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New era for vocational education
    The Government’s work to put trades and vocational education back on the agenda took another major step forward today with the passing of the Education (Vocational Education and Training Reform) Amendment Bill, Education Minister Chris Hipkins said. “This is a watershed day for trades and vocational education. These law changes formalise ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Bill to Amend the Greater Christchurch Regeneration Act
    Speeding up the return of Christchurch regeneration activities to local leadership is behind the Greater Christchurch Regeneration Amendment Bill introduced to Parliament today by Minister Megan Woods. “As we approach nine years since the February 2011 earthquake in Canterbury, and with the transition to local leadership well underway, the time ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Milford Track to partly reopen after storm damage
    Hundreds of New Zealanders and international visitors will be able to get back out into nature with the Milford Track partially reopening next week, after extensive assessments and repairs, the Minister of Conservation Eugenie Sage announced today. The popular Great Walk has been closed since 3 February after an extreme ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government drives low-emissions transport momentum
    Up to 110 new EV chargers nationwide in cities and regions 50 electric vehicles for ride-sharing The Government is helping deliver more infrastructure and options for low emissions transport through new projects, Energy and Resources Minister Dr Megan Woods says. Tauranga, Nelson, Levin, New Plymouth and Oamaru are just some ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Kiwis better off under Coalition Government
    New Zealanders are increasingly better off under this Government as wages rise and families have more disposable income, Finance Minister Grant Robertson says. Stats NZ reported today that average household disposable incomes after housing costs rose 4.9% in 2019. This was the highest rise in four years and came as ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Another step towards restoring rights for screen production workers
    All New Zealanders need to have their voices heard at work to ensure we have an inclusive and productive economy. Today we introduce a Bill to do this for workers in the New Zealand screen industry, Workplace Relations and Safety Minister Iain Lees-Galloway says. “The Screen Industry Workers Bill will ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Enhanced Taskforce Green for Southland and South Otago
    The Government has announced further help for the Southland and Otago regions to speed up recovery efforts from the floods.  “I’ve approved Enhanced Taskforce Green (ETFG), making $500,000 available to help with the clean-up in Fiordland, Southland, and the Clutha district in Otago,” Minister for Social Development Carmel Sepuloni said.  ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Employers and Industry take the lead to connect students to vocational education
    Following the announcement that more than 340 schools will be funded to run events promoting vocational education, the Government has announced it will fund a further 257 events to be run by employers and industry. “These industry-run events will allow more than 30,000 students to connect with more than 2,000 ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Rental reforms a step closer with the introduction of the Residential Tenancies Amendment Bill
    Today the Government is making progress on a fairer and more secure rental market for renters and landlords with the introduction of the Residential Tenancies Amendment Bill in Parliament.  “This Bill includes a series of reforms to improve the wellbeing of the 609,700 households that live in rented homes, and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Biosecurity Minister announces world first eradication of pea weevil
    A Government programme to wipe out pea weevil has achieved a world first, with Biosecurity Minister Damien O’Connor today announcing the successful eradication of the noxious pest from Wairarapa. This means the nearly four-year ban on pea plants and pea straw was lifted today. Commercial and home gardeners can again grow ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Temporary Accommodation Service activated for Southland flooding
    Southland residents hit by flooding caused by heavy rainfall can now access help finding temporary accommodation with the Government activating the Temporary Accommodation Service, Minister of Civil Defence Peeni Henare announced today. “The Temporary Accommodation Service (TAS) has been activated by the Ministry of Business, Innovation and Employment to help ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Bridges: Over-hyped and under-delivered
    “Is that it?” That’s Finance Minister Grant Robertson’s response to Simon Bridges’ much-hyped economic speech today. “Simon Bridges just gave the most over-hyped and under-delivered speech that I can remember during my time in politics,” Grant Robertson said. “It’s not surprising. Simon Bridges literally said on the radio this morning ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Police to trial eye in the sky in Christchurch
    A trial deployment of the Police Eagle helicopter in Christchurch will test whether the aircraft would make a significant difference to crime prevention and community safety. “The Bell 429 helicopter will be based in Christchurch for five weeks, from 17 February to 20 March,” said Police Minister Stuart Nash. “The ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Momentum of trade talks continues with visits to promote Pacific and Middle East links
    The Government has kept up the pace of its work to promote New Zealand’s trade interests and diversify our export markets, with visits to Fiji and the United Arab Emirates (UAE) by Trade and Export Growth Minister David Parker. Building momentum to bring the PACER Plus trade and development agreement ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Coalition Govt’s investment in Customs nets record drugs haul: 3 tonnes stopped at borders in 2019
    The Coalition Government’s investment in a strong border and disrupting transnational organised crime produced record results for stopping drugs in 2019, says Minister of Customs Jenny Salesa. The illegal drugs were seized at the New Zealand border by Customs, and overseas by Customs’ international border partners before the drugs could ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Separated scenic cycleway starts
    Transport Minister Phil Twyford today kicked off construction of a separated cycleway alongside Tamaki Drive. A two-way separated cycleway will be built along the northern side of Tamaki Drive, between the Quay Street Cycleway extension and Ngapipi Road. There will be a separate walking path alongside. Phil Twyford said giving ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Earthquake-Prone Building loan scheme: eligibility criteria announced
    Owner-occupiers of unit and apartments living in earthquake-prone buildings will have certainty about the financial support they’ll be eligible for with the release of criteria for an upcoming assistance scheme, Minister for Building and Construction Jenny Salesa says. The Residential Earthquake-Prone Building Financial Assistance Scheme will help unit owners facing ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Travel restrictions to remain in place as coronavirus precaution
    Temporary restrictions on travel from China will remain in place as a precautionary measure to protect against the spread of the COVID-19 coronavirus. The restrictions which prevent foreign nationals travelling from, or transiting through, mainland China from entering New Zealand have been extended for a further 8 days. This position ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Over $1 million to help Tairāwhiti youth into employment
    Employment Minister Willie Jackson announced today that Tairāwhiti rangatahi will benefit from an investment made by the Government’s He Poutama Rangatahi (HPR) scheme. The funding will go to the Tautua Village, Kauneke programme and the Matapuna Supported Employment Programme which will fund 120 rangatahi over two years. “Both programmes work ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • School attendance has to improve
    All parents and caregivers need to ensure that their children go to school unless they are sick, Associate Education Minister Tracey Martin said today. “The school attendance results for 2019 show, across the board, a drop in the number of students going to school regularly,” the Minister says. “Apart from ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Crown and Moriori sign a Deed of Settlement
    A Deed of Settlement agreeing redress for historical Treaty claims has been signed by the Crown and Moriori at Kōpinga Marae on Rēkohu (Chatham Islands) today, Minister for Treaty of Waitangi Negotiations Andrew Little has announced. Moriori have a tradition of peace that extends back over 600 years. This settlement ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Waikato Expressway driving towards completion
    Transport Minister Phil Twyford today with Māori King Tuheitia Pōtatau Te Wherowhero VII officially opened the country’s newest road, the $384 million Huntly section of the Waikato Expressway. The 15km four-lane highway with side and central safety barriers takes State Highway 1 east of Huntly town, across lowlands and streams ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 3400 New Zealanders treated in first year of new hepatitis C treatment
    The rapid uptake of life-saving new hepatitis C medicine Maviret since it was funded by PHARMAC a year ago means the elimination of the deadly disease from this country is a realistic goal, Health Minister David Clark says. Hepatitis C is a blood-borne virus which attacks the liver, proving fatal ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Kaupapa Māori approach for homelessness
      Kaupapa Māori will underpin the Government’s new plan to deal with homelessness announced by the Prime Minister in Auckland this morning. “Māori are massively overrepresented among people experiencing homelessness, so, to achieve different outcomes for Māori, we have to do things very differently,” says the Minister of Māori Development ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government steps up action to prevent homelessness
    1000 new transitional housing places delivered by end of year to reduce demand for emergency motel accommodation. Introduce 25% of income payment, after 7 days, for those in emergency motel accommodation to bring in line with other forms of accommodation support. Over $70m extra to programmes that prevents those at ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Important step for new financial conduct regime
    Clear requirements for ensuring customers are treated fairly by banks, insurers and other financial service providers are included in new financial conduct legislation that passed its first reading today. “The recent reviews, by the Financial Markets Authority (FMA) and Reserve Bank of New Zealand, into the conduct of banks and ...
    BeehiveBy beehive.govt.nz
    1 week ago