How to tell you have a Tory govt

Written By: - Date published: 5:01 pm, April 16th, 2011 - 7 comments
Categories: class war, cost of living, Economy, equality, john key, national/act government - Tags:

Brian Fallow is one of the Heralds more understated columnists. Brian and I probably vote differently, but I find his articles usually worth the read. But there is understatement, and then there is deliberate obfuscation. His column today starts out workmanlike enough, repeating the PM’s case how average wages/salaries have increased in real terms around 6% over the last two years.

Then he turns to the median wages/salary figures released by Statistics NZ and shows how over the same two year period they have fallen 6%. That’s right… in real terms, the poorest 50% of New Zealanders are at least $80 per week worse off under National. This is how you can tell you have a Tory govt.

And then Brian concludes with a rather facile:

So depending on your point of view and which data you select, you can claim that people are 6 per cent better off or 6 per cent worse off.

What this really means of course is that the average and median income figures have diverged by around 12% in just two years. The only way this can happen is for the wealthiest New Zealanders to have gained dramatically at the expense of the rest of us. Logically this must represent a dramatic increase in income inequality in this country, a rather startling and damming conclusion Fallow studiously avoids making.

He almost gets there at one point: In statistician speak, “the distribution of earnings is asymmetrical, with a bulge at the low end and a tail at the high end”…. yet fails to drill into the implication of this. That in order for this long thin tail at the high end to have increased the average income by 6%, their actual incomes must have increased a great deal more than this. Again mute on a crucial point.

Those who actually read The Spirit Level will have noted how New Zealand already had one of the higher income inequalities in the developed world at the time the book was written two years ago, and how correspondingly poorly we performed on so many social health indicators. Now it turns out this govt has taken this already too high gap… and made it worse. In anticipation of the usual right wing tactic of blaming everything on the previous Labour govt, here is some data tracking several inequality measures for NZ since 1984.

Now I guess most of the regulars here at The Standard are none too surprised by this; especially those who’ve repeatedly pointed to Key’s astounding pre-2008 election comment about wanting to see wages drop. I have to confess that for a long time I was a tad sceptical that Key would have made that remark in the way it was reported. Well I’m thinking now I was wrong… that the numbers tell the story and Key did indeed mean what he said.

Because when you think that this govt cannot even build a decent cycleway in a timely fashion… you have to be impressed at exactly how effectively, how rapidly, this govt has made life better for their rich mates, while shamelessly paying for it from the pockets of ordinary working people.

All of which rather reminds me of Jared Diamond’s excellent book Collapse. In the course of the book he touches on a dozen or so long-vanished civilisations/cultures.. but dwells in depth on several. Perhaps the most poignantly recognisable were the Norse settlers in medieval Greenland who had carved a precarious niche in several coastal fiords of that otherwise uninhabitable land. In tracking the numerous factors that inevitably lead to their demise it’s quite remarkable how badly these otherwise intelligent and capable people responded to the external environmental and political changes impacting them.

Diamond points to evidence showing that due to the extreme shortage of desirable micro-climates, only a few farmholdings (the fundamental unit of their political structure) could hope to attain to prosperity and power… and thus inequality in this society was both extreme and unchanging. Which meant that the political/cultural decision makers, insulated from the suffering of ordinary Norse in poorer locations, stubbornly resisted the most obviously necessary changes (even simple things such as adopting more fish into their diet), protected their entrenched privileges and remained obtusely in denial of the limitations of their religious, cultural paradigms right up to the end.

But for nothing. As Diamond bluntly put it, “All their wealth purchased them, was the privilege of being the last to starve to death”.

7 comments on “How to tell you have a Tory govt ”

  1. todd 1

    You’ve got to wonder what lemmings perceive New Zealand as being the least corrupt country in the World. Throw corporate crime into the recent crime rate mix and it is easy to see the spin from the right, which is completely removed from reality. It’s not just that the divide has markedly increased under National, it’s that the right-wing are hacking away at any bridges that used to span the divide as well. Those on the edge of the cliff, will surely fall under a second term.

  2. Bright Red 2

    good post but the difference between the numbers is a little different than you portray.
    National’s favoured figures are only the average for ordinary time pay for full time workers. This is the measure that superannuation is set against but it has no wider significance. It’s influenced both by high outliers – Paul Reynold’s big tax cuts, for example. And it doesn’t count the incomes of about 50% of adults at all. It also doesn’t count the GST hike.
    The median household income counts all incomes of all adults and is a median so isn’t affected by changes to outliers, which means Reynolds and Key’s tax cuts don’t influence things but neither does the fact a lot more families are trying to get by without a breadwinner than 3 years ago. It’s a much better measure than the average fulltime ordinary wage, but it only comes out every year, rather than every quarter.
    I don’t want to get all ‘Lanth’ on you 🙂 but the drop in the median income doesn’t mean “the poorest 50% of New Zealanders are at least $80 per week worse off under National.” All it actually means is that the median (gross) income is down by that much. But the median is like the ‘typical’ income, so probably represents what has happened to most families’ incomes – but incomes lower have probably dropped more and high incomes have probably risen thanks to the tax cuts
    Fallow is wrong that we can’t estimate the effects of tax cuts on the household income. Treasury does it by assuming that two thirds of the income comes from one earner and a third from another. When I applied this using the tax rates in force when National took office and the current ones plus took into account inflation, the after-tax household median income is down about $2,900 a year, or 5.3%.
    whew, maybe there’s a guest post in that. actually, I just saw the lotto draw and got a different idea for one

    • RedLogix 2.1

      I don’t want to get all ‘Lanth’ on you but the drop in the median income doesn’t mean “the poorest 50% of New Zealanders are at least $80 per week worse off under National.”

      Yes fair cop. I accept that the statement is technically loose, but in general terms I think it’s ‘near enough to be good enough’.

  3. peterlepaysan 3

    A National victory at next election will ensure there is no cliff to fall off.
    It will have been destroyed.
    There will be only the wealthy.  Third world here we come.
    No longer will the wealthy have to travel overseas to witness poverty and its effects.
    It will be right here on our doorsteps (if we have a doorstep).

  4. Graham 4

    If a significant chunk of people in NZ are pushed into poverty, will they keep tolerating this bullshit?
    If push comes to shove, will these corporate @%*&wits (and their supporters) get angry mobs beating on their doors?

    • Vicky32 4.1

      If push comes to shove, will these corporate @%*&wits (and their supporters) get angry mobs beating on their doors?

      Sadly, I don’t think so… no matter how good a thing it would be!

  5. LeeFluff 5

    Very interesting.
    I am wondering now what the actual break point is in the statistics.
    i.e. at what population have no perceived benefit (zero net gain) from National’s taxation strategy?

    I’m not a stats bod, but is this an easy answer?
    …only that it seems that at least 50% of people shouldn’t vote pro Nats on the basis of their tax promise, but also that the percentage of the population might well be much greater than 50% whom have received no real benefit from the changes…

Recent Comments

Recent Posts

  • Equal gender representation on public sector boards for third year in a row
    Representation for women on public sector boards and committees is the highest it’s ever been with wāhine now making up 53.1 percent of public board and committee members,” Minister for Women Jan Tinetti said. Manatū Wāhine Ministry for Women’s 2022 stocktake of public sector boards and committees shows for the ...
    BeehiveBy beehive.govt.nz
    59 mins ago
  • New law passes on child support to sole parents
    A new law enabling sole parents on a benefit to receive child support payments for their tamariki was passed in Parliament today. “This change is estimated to lift as many as 14,000 children out of poverty and give families a median of $20 extra a week,” said Social Development and ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • New moves to curb youth vaping
    Crack down on disposable vapes   No new vape shops near schools or marae Restricted descriptions for product flavours The Government is taking action to reduce the number of young people taking up vaping, Health Minister Dr Ayesha Verrall has announced. “Too many young people are vaping, which is why we’re ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Fiji Prime Minister Rabuka to visit New Zealand
    Fiji Prime Minister Sitiveni Rabuka will visit New Zealand this week, Prime Minister Chris Hipkins announced today. “Prime Minister Rabuka officially visited New Zealand in 1998, over 25 years ago, and we look forward to welcoming him here once again,” Chris Hipkins said.  “New Zealand and Fiji have a long ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Sports stars and administrators honoured
    The King’s Birthday and Coronation Honours List 2023 includes sporting stars and administrators who reflect the best of New Zealand’s sporting community. Sir Wayne Smith has been knighted for services to rugby. Sir Wayne was Assistant Coach of the All Blacks at the 2011 and 2015 Rugby World Cups and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Kapa Haka rangatira amongst those honoured on King’s Birthday
    Ehara taku toa i te toa takitahi, engari he toa taki tini ‘My success is not mine alone, but that of the people” The King’s Birthday and Coronation Honours list 2023 celebrates Māori from all walks of life, reflecting the achievements of those who have made a significant contribution to ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • King’s Birthday Honours recognise strength of service to NZ
    The strength and diversity of service in New Zealand is a standout feature of today’s King’s Birthday and Coronation Honours list, Prime Minister Chris Hipkins said. “Each of today’s 182 recipients has contributed individually to our country. Viewed collectively, their efforts reflect an overwhelming commitment to service.” Chris Hipkins said. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Closer defence cooperation between New Zealand and Japan
    The Defence Ministers of New Zealand and Japan have signed a statement of intent for closer defence cooperation between the two Pacific regional partners. Andrew Little and H. E. Yasukazu Hamada met to sign the ‘Statement of Intent on Defence Cooperation in Maritime Security, Humanitarian Assistance and Disaster Relief and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • SPEECH: To the IISS Shangri-La Dialogue 2023 by the Honourable Andrew Little MP, New Zealand Ministe...
    New Zealand’s most recent defence assessment identified climate change and geostrategic competition as the two greatest security challenges to our place in the South Pacific. To the first issue, partners engaging and re-engaging with Pacific Island Countries are finding that climate change is a security and existential threat in our ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt supporting more rangatahi into training and employment opportunities
    The government is continuing to support rangatahi in providing more funding into Maori Trades training and new He Poutama Rangatahi programmes across Aotearoa. “We’re backing 30 new by Māori for Māori Kaupapa employment and training programmes, which will help iwi into sustainable employment or progress within their chosen careers” says ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Energy self-sufficient marae reopens with support of Government investment
    Murihiku Marae was officially reopened today, setting a gold standard in sustainable building practices as well as social outcomes for the people of Waihōpai Invercargill, Regional Development Minister Kiri Allan says. “The marae has been a central hub for this community since the 1980’s. With the support of $9.65 million ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • First major Whangārei public housing project in a generation complete
    The first major public housing development in Whangārei for decades has reached completion, with 37 new homes opened in the suburb of Maunu today. The project on Tapatahi Crescent and Puriri Park Road, consists of 15 one-bedroom, 4 two-bedroom, 7 three-bedroom, 8 four-bedroom and 3 five-bedroom homes, as well as ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Trade Minister to represent New Zealand trade interests abroad
    Trade and Export Growth Minister Damen O’Connor will depart tomorrow for London to represent New Zealand at the Commonwealth Trade Ministers’ Meeting and then to Paris to vice-chair the OECD Ministerial Council Meeting. “My travel to the United Kingdom is well-timed, with the United Kingdom Free Trade Agreement (UK FTA) ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Bill to boost national fuel resiliency introduced
    The Fuel Industry (Improving Fuel Resilience) Amendment Bill would: boost New Zealand’s fuel supply resilience and economic security enable the minimum stockholding obligation regulations to be adapted as the energy and transport environment evolves. “Last November, I announced a six-point plan to improve the resiliency of our fuel supply from ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Faster ACC payment top-ups and fairer system
    The Government is making sure those on low incomes will no longer have to wait five weeks to get the minimum weekly rate of ACC, and improving the data collected to make the system fairer, Minister for ACC Peeni Henare said today.  The Accident Compensation (Access Reporting and Other Matters) ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Compulsory code of conduct for school boards introduced
    A compulsory code of conduct will ensure school board members are crystal clear on their responsibilities and expected standard of behaviour, Minister of Education Jan Tinetti said. It’s the first time a compulsory code of conduct has been published for state and state-integrated school boards and comes into effect on ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech to the New Zealand Federation of Commercial Fishermen annual conference.
    Tena koutou katoa and thank you, Mayor Nadine Taylor, for your welcome to Marlborough. Thanks also Doug Saunders-Loder and all of you for inviting me to your annual conference. As you might know, I’m quite new to this job – and I’m particularly pleased that the first organisation I’m giving a ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Govt to support councils with buyout and better protection of cyclone and flood affected properties
    The Government will enter into a funding arrangement with councils in cyclone and flood affected regions to support them to offer a voluntary buyout for owners of Category 3 designated residential properties. It will also co-fund work needed to protect Category 2 designated properties. “From the beginning of this process ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government delivers changes to reduce pokies harm
    The Government has announced changes to strengthen requirements in venues with pokie (gambling) machines will come into effect from 15 June. “Pokies are one of the most harmful forms of gambling. They can have a detrimental impact on individuals, their friends, whānau and communities,” Internal Affairs Minister Barbara Edmonds said. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government delivers 1800 additional frontline Police
    The total Police workforce is now the largest it has ever been. Police constabulary stands at 10,700 officers – an increase of 21% since 2017 Māori officers have increased 40%, Pasifika 83%, Asian 157%, Women 61% Every district has got more Police under this Government The Government has delivered on ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister Mahuta talks Pacific ambitions at the first Korea-Pacific Leaders’ summit
    Minister of Foreign Affairs, Hon Nanaia Mahuta met with Korea President Yoon, as well as Pacific Islands Forum Secretary General Henry Puna, during her recent visit to Korea.  “It was an honour to represent Aotearoa New Zealand at the first Korea – Pacific Leaders’ Summit. We discussed Pacific ambitions under the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government drives $2 billion of business research and development
    The Government’s Research and Development Tax Incentive has supported more than $2 billion of New Zealand business innovation – an increase of around $1 billion in less than nine months. "Research and innovation are essential in helping us meet the biggest challenges and seize opportunities facing New Zealand. It’s fantastic ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Achieving lift off: National Space Policy launched
    The next ‘giant leap’ in New Zealand’s space journey has been taken today with the launch of the National Space Policy, Economic Development Minister Barbara Edmonds announced. “Our space sector is growing rapidly. Each year New Zealand is becoming a more and more attractive place for launches, manufacturing space-related technology ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New science and creative technologies wharekura announced
    A new Year 7-13 designated character wharekura will be built in Pāpāmoa, Associate Minister of Education Kelvin Davis has announced. The wharekura will focus on science, mathematics and creative technologies while connecting ākonga to the whakapapa of the area. The decision follows an application by the Ngā Pōtiki ā Tamapahore ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Freedom Camping changes a win for the environment
    Protecting the environment by establishing a stronger, more consistent system for freedom camping Supporting councils to better manage freedom camping in their region and reduce the financial and social impacts on communities Ensuring that self-contained vehicle owners have time to prepare for the new system   The Self-Contained Motor Vehicle ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speeding up the family court, reducing stress on families
    A new law passed last night could see up to 25 percent of Family Court judges’ workload freed up in order to reduce delays, Minister of Justice Kiri Allan said. The Family Court (Family Court Associates) Legislation Bill will establish a new role known as the Family Court Associate. The ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • UK FTA delivers benefits from today
    New Zealand businesses will begin reaping the rewards of our gold-standard free trade agreement with the United Kingdom (UK FTA) from today.  “The New Zealand UK FTA enters into force from today, and is one of the seven new or upgraded Free Trade Agreements negotiated by Labour to date,” Prime ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Next steps to reform outdated surrogacy law
    The Government will reform outdated surrogacy laws to improve the experiences of children, surrogates, and the growing number of families formed through surrogacy, by adopting Labour MP Tāmati Coffey’s Member’s Bill as a Government Bill, Minister Kiri Allan has announced. “Surrogacy has become an established method of forming a family ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Defence Minister to attend Shangri-La Dialogue
    Defence Minister Andrew Little departs for Singapore tomorrow to attend the 20th annual Shangri-La Dialogue for Defence Ministers from the Indo-Pacific region. “Shangri-La brings together many countries to speak frankly and express views about defence issues that could affect us all,” Andrew Little said. “New Zealand is a long-standing participant ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand–China science relationship affirmed
    Research, Science and Innovation Minister Dr Ayesha Verrall and the Chinese Minister of Science and Technology Wang Zhigang met in Wellington today and affirmed the two countries’ long-standing science relationship. Minister Wang was in New Zealand for the 6th New Zealand-China Joint Commission Meeting on Science and Technology Cooperation. Following ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supporting a strong future for screen sector
    5 percent uplift clearer and simpler to navigate  Domestic productions can access more funding sources 20 percent rebate confirmed for post-production, digital and visual effects Qualifying expenditure for post-production, digital and visual effects rebate dropped to $250,000 to encourage more smaller productions The Government is making it easier for the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister Sepuloni to attend 61st Anniversary of Samoa’s Independence
    Deputy Prime Minister and Associate Minister of Foreign Affairs (Pacific Region) Carmel Sepuloni will represent New Zealand at Samoa’s 61st Anniversary of Independence commemorations in Apia. “Aotearoa New Zealand is pleased to share in this significant occasion, alongside other invited Pacific leaders, and congratulates Samoa on the milestone of 61 ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt backs retailers with expansion of fog cannon programme
    The Government is continuing to support retailers with additional funding for the highly popular Fog Cannon Subsidy Scheme, Police and Small Business Minister Ginny Andersen announced today.  “The Government is committed to improving retailers’ safety,” Ginny Andersen said.  “I’ve seen first-hand the difference fog cannons are making. Not only do ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government will consider recommendations of Intelligence and Security Act review
    The Government has received the first independent review of the Intelligence and Security Act 2017, Prime Minister Chris Hipkins says. The review, considered by the Parliamentary Intelligence and Security Committee, was presented to the House of Representatives today.  “Ensuring the safety and security of New Zealanders is of the utmost ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt expresses condolences on the passing of HRH Princess Siu’ilikutapu
    Prime Minister Chris Hipkins has expressed condolences on behalf of New Zealand to the Kingdom of Tonga following the death of Her Royal Highness Princess Mele Siu’ilikutapu Kalaniuvalu Fotofili. “New Zealand sends it’s heartfelt condolences to the people of Tonga, and to His Majesty King Tupou VI at this time ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt expresses condolences on the passing of HRH Princess Sui’ilikutapu
    Prime Minister Chris Hipkins has expressed condolences on behalf of New Zealand to the Kingdom of Tonga following the death of Her Royal Highness Princess Mele Siu’ilikutapu Kalaniuvalu Fotofili. “New Zealand sends it’s heartfelt condolences to the people of Tonga, and to His Majesty King Tupou VI at this time ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Security support to Solomon Islands extended
    Defence Minister Andrew Little and Foreign Affairs Minister Nanaia Mahuta have today announced the extension of the New Zealand Defence Force (NZDF) deployment to Solomon Islands, as part of the regionally-led Solomon Islands International Assistance Force (SIAF). “Aotearoa New Zealand has a long history of working alongside the Royal Solomon ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister Mahuta to attend the first Korea-Pacific Leaders’ Summit
    Foreign Affairs Minister Nanaia Mahuta will travel to the Republic of Korea today to attend the Korea–Pacific Leaders’ Summit in Seoul and Busan. “Korea is an important partner for Aotearoa New Zealand and the Pacific region. I am eager for the opportunity to meet and discuss issues that matter to our ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Agreement between Indo-Pacific partners for supply chain resilience
    Trade and Export Growth Minister Damien O’Connor joined ministerial representatives at a meeting in Detroit, USA today to announce substantial conclusion of negotiations of a new regional supply chains agreement among 14 Indo-Pacific countries. The Supply Chains agreement is one of four pillars being negotiated within the Indo-Pacific Economic Framework ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Celebrating Samoa Language Week 2023
    Our most spoken Pacific language is taking centre stage this week with Vaiaso o le Gagana Samoa – Samoa Language Week kicking off around the country. “Understanding and using the Samoan language across our nation is vital to its survival,” Barbara Edmonds said. “The Samoan population in New Zealand are ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2023-06-06T05:59:28+00:00