Thomas Sowell on suburban green rent seeking

Image

I learnt a new word today – truthiness

@bryce_edwards New Zealand’s war on the poor – a fact check

Bryce Edwards has shown in today’s column that he knows nothing about inequality in New Zealand, despite the statistics being at his fingertips:

Under capitalism there’s always going to be a war against the poor.

The process by which we divide up the resources of any society normally involves exploiting the majority for the benefit of the minority.

It’s called inequality. And this is how it is in New Zealand: those who have the most power look for ways to extract that money for themselves, or at least retain the status quo.

Against this are those who want to have a more equal society. It’s an age-old political issue, and one that has traditionally been at the heart of the left-right political divide.

In 2014 this concern about inequality has been a key feature of politics, underpinning much of what has occur…

Although the rich appear to have been winning for three decades in their ‘war against the poor’, perhaps the tide is turning?

There’s still every indication of severe poverty and inequality in this country.

Firstly, inequality has not increased in New Zealand for at least 20 years when either measured in figure 1 by the Gini coefficient or in figure 2, the top 1% income shares. Both the Gini coefficient and the top 1% income shares have not risen for 20 years.

Figure 1: Gini coefficient New Zealand 1980-2015

Source: Bryan Perry, Household incomes in New Zealand: Trends in indicators of inequality and hardship 1982 to 2013. Ministry of Social Development (July 2014).

Figure 2: Top 1% income shares, USA, New Zealand and Australia, 1970-2012

Source: top incomes database

Secondly, the benefits of the economic boom that lasted 15 years from the early 1990s until the onset of the global financial crisis would spread broadly across all sections of the New Zealand community. As shown in figure 3, both before and after housing costs increased. As shown in figure 4, real household incomes increased pretty much evenly across all of the 10 income deciles between 1994 and 2013.

Figure 3: Real household income trends before housing costs (BHC) and after housing costs (AHC), 1982 to 2013 ($2013)


Source: Bryan Perry, Household incomes in New Zealand: Trends in indicators of inequality and hardship 1982 to 2013. Ministry of Social Development (July 2014).

Figure 4: Real household incomes (BHC), changes for top of income deciles, 1994 to 2013


Source: Bryan Perry, Household incomes in New Zealand: Trends in indicators of inequality and hardship 1982 to 2013. Ministry of Social Development (July 2014).

Thirdly, as shown in figure 5, between 1994 and 2010, real equivalised median household income rose 47% from 1994 to 2010; for Māori, this rise was 68%; for Pasifika, the rise was 77%. Median household income increases of nearly 50% in 16 years should be celebrated.

Figure 5: Real equivalised median household income (before housing costs) by ethnicity, 1988 to 2013 ($2013).


Source: Bryan Perry, Household incomes in New Zealand: Trends in indicators of inequality and hardship 1982 to 2013. Ministry of Social Development (July 2014).

The massive improvements in Māori incomes since 1992 were based on rising Māori employment rates, fewer Māori on benefits, more Māori moving into higher paying jobs, and greater Māori educational attainment. Māori unemployment reached a 20-year low of 8 per cent from 2005 to 2008.

Over the last more than two decades in New Zealand, there has been sustained income growth spread across all of New Zealand society contrary to the warmed over Marxism of Bryce Edwards. Perry (2014) reviews the data every year for the Ministry of Social Development. He concluded that:

Overall, there is no evidence of any sustained rise or fall in inequality in the last two decades.

The level of household disposable income inequality in New Zealand is a little above the OECD median.

The share of total income received by the top 1% of individuals is at the low end of the OECD rankings.

Bryce Edwards’ analysis was in the typical Marxist tradition – it had no gender analysis. He failed to mention that New Zealand has the smallest gender wage gap of all the industrialised countries.

As he did not notice these great successes in household incomes, incomes of every decile, Māori economic development and the empowerment of women, Bryce Edwards had nothing to add in terms of either consolidating or improving on them.

The Europe that was

image

Image

The time for forgiveness in the war on terror

Image

Tips for journalists and wannabe bloggers on breaking the news

Let freedom reign

What if Abenomics fails?

Image

A growth in inequality together with growth in financial market activities : Probably not a mere coincidence

Meng Hu's Blog

Very recently, ThomasPiketty’snewbookCapitalintheTwentyFirstCenturyhasbeenwidelycommentedandhaseliciteda lotofreactions. Particularly in the United States. The theory advanced by the author is that the returns on invested capital (r) rises faster than economic growth (g) and written in the (already famous) formulation r>g, under the assumption that capital incomes are more unequally distributed than labor incomes and that the proportion of capital incomes in the total income rises. This mechanism creates an ever-increasing trend of income inequality, particularly found among the top 1%, although the evidence for diminishing return of capital accumulation considerably weakens this claim (Rognlie, 2014). But the theoretical problems with Piketty’s fundamental laws of capitalism will be covered in details in a later post.

View original post 3,362 more words

Gisborne Airport – New Zealand

Image

Previous Older Entries

The Market Monetarist

Markets Matter, Money Matters...

Darwinian Business

A blog exploring business from an evolutionary perspective, by Max Beilby

Spin, strangeness, and charm

Politics, media bias, science, and psychology

Moneyness

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Family Inequality

by Philip N. Cohen

What Paul Gregory is Writing About

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Woman's Place UK

Violence against women and sex discrimination still exist. Women need reserved places, separate spaces and distinct services.

TVHE

The Visible Hand in Economics

Kids Prefer Cheese

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

PILEUS

A Classical Liberal Blog on Political Science, Economics, Philosophy, Law, and More

George Mason Economics Society

Provoking discussion by publishing economic writing

Club Troppo

Economic, legal, political and social commentary

Offsetting Behaviour

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

JONATHAN TURLEY

Res ipsa loquitur - The thing itself speaks

single sex spaces

Single sex spaces are a question of consent

Adventures of a Tudor Nerd

Tudor History from the Wars of the Roses to the Death of Elizabeth I

Weapons and Warfare

History and Hardware of Warfare

Escape Velocity

Visions Of A Freer Future

Economist's View

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

No Punches Pulled

Laughter – the best medicine

TannerOnPolicy

Politics and Policy with a Libertarian Twist

Notes On Liberty

Spontaneous thoughts on a humble creed

Mostly Economics

This blog covers research work in Economics with focus on India.

Map Dragons

Written by map lovers for map lovers

New Historical Express

(Formerly Hatful of History)

FondOfBeetles

a developmental biologist in a gendered world

CONVERSABLE ECONOMIST

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

Barrie Saunders

Thoughts on public policy and the media

The Victorian Commons

Researching the House of Commons, 1832-1868

Coyote Blog

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

American Enterprise Institute – AEI

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The History of Parliament

Blogging on parliament, politics and people, from the History of Parliament

Catallaxy Files

Australia's leading libertarian and centre-right blog

Climate Audit

by Steve McIntyre

Books & Boots

reflections on books and art

Legal History Miscellany

Posts on the History of Law, Crime, and Justice

Sex, Drugs and Economics

Celebrating humanity's flourishing through the spread of capitalism and the rule of law

The Long Run

the EHS blog

The Undercover Historian

Beatrice Cherrier's blog

%d bloggers like this: