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

  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    7 days ago

Page generated in The Standard by Wordpress at 2024-03-28T18:13:01+00:00