But @EleanorAingeRoy child poverty has not changed much in 20 years

Today in the Guardian writing on trends in family poverty New Zealand, Eleanor Roy said that

The fact that twice as many children now live below the poverty line than did in 1984 has become New Zealand’s most shameful statistic.

Roy goes back to the 1980s as her base because child poverty has not gone up or down by that much since that sharp rise in the late 1980s.

Child poverty among single-parent households has doubled since 1990 and tripled since 1988. Poverty in families with two parents present is not much higher now than it was in 1988. 

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Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015), Table H.4.

Child poverty rates among single-parent families that live with other adults is one-quarter that of single-parent families who live alone. The reasons behind that should be explored more by those concerned with child poverty.

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Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2013 – Ministry of Social Development, Wellington (2014), Tables F.6 and F.7.

The evidence is overwhelming that the main driver of the increases in the child poverty since the 1980s is rising housing costs.

In the longer run, after housing costs child poverty rates in 2013 were close to double what they were in the late 1980s mainly because housing costs in 2013 were much higher relative to income than they were in the late 1980s.

– Bryan Perry, 2014 Household Incomes Report – Key Findings. Ministry of Social Development (July 2014).

Any policy to reduce child poverty must increase the supply of houses by reducing regulatory restrictions on the supply of land.

Rather than blame the callousness of government in accepting higher rates of child poverty, Roy should blame its inability to take on the restrictions on land supply in the Resource Management Act that drive up housing costs for the poor. Increased child poverty in New Zealand is a by-product of housing unaffordability.

The rise of power couples in the USA

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The ‘hollowing’ of the American middle class

 

Brad de Long on Marx and adapting to The Great Enrichment

Source: Brad de Long, The Fall of the Soviet Union

The changing face of breadwinners in the USA, 1960 and 2012

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% Australian top incomes from wages, salaries and pensions since 1954

Australia has had a working rich for a long time now. Australian top income earners are top wage earners. They are athletes, celebrities, business executives and in the professions.

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Source: The World Wealth and Income Database.

% US top incomes from wages, salaries and pensions, 1913 – 2015,

The rich in the USA long ago became a working rich; most top incomes are from wages and salaries.

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Source: The World Wealth and Income Database.

NZ top income earners as lazy as ever @MaxRashbrooke @CloserTogether

Max Rashbrooke was good enough to remind us that the 2013 update of New Zealand top income shares came online a few days ago.

As is well known to everyone except those obsessed with top income shares, New Zealand top income shares have not changed much since the late 1980s. They are now no higher than in the good old days when New Zealand was an egalitarian paradise in their eyes.

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Source: The World Wealth and Income Database.

The effectiveness of social insurance in reducing poverty in the USA

Everything amazing now compared to 1946 but @jacindaardern not happy @dbseymour

Source: ‘Everything is amazing right now and nobody is happy’ or ‘Americans forget how good they have it’ – AEI | Carpe Diem Blog » AEIdeas

Child poverty in single parent and two-parent households in New Zealand

Looks like the greed of the top 1% was targeted exclusively as single parents since the 1980s. Child poverty in two-parent families has not risen much at all. These households often have jobs and will presumably be under the jackboot of neoliberalism stripping away their bargaining power through the decimation of unions and the introduction of the Employment Contracts Act. Despite these horrors, family poverty did not increase much if there are two parents in the house.

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Source: Bryan Perry, Household Incomes in New Zealand: trends in indicators of inequality and hardship 1982 to 2014 – Ministry of Social Development, Wellington (August 2015), Table H.4.

Bryan Caplan argues that there is an undeserving poor if they fail to follow the following reasonable steps to avoid poverty and hardship:

  1. Work full-time, even if the best job you can find isn’t fun;
  2. Spend your money on food and shelter before cigarettes and cable TV; and
  3. Use contraception if you can’t afford a child.

Average top incomes in New Zealand

The average top income in New Zealand is that of a professional, executive or entrepreneur.

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Source: The World Wealth and Income Database.

.@MaxRashbrooke kills case for #UBI @GrantRobertson1 @JordNZ

Rashbrooke in the snap-shot quote describes the massive new taxes to fund a universal basic income as a policy shift for which middle New Zealand must be prepared properly over many years. But the purpose of these great big new taxes is to ensure that those with whom the modern welfare state was designed to protect our left no worse off, not better off, just as good as they were under the previous regime of social insurance. Why take that journey when you can target their poverty directly to the current welfare state?

Source: Is Labour really going to deliver a UBI? – Inequality: A New Zealand Conversation.

.@nzteu is right, student loans entrench inequality

Those of European ethnicity had a median net worth of $114,000, compared with $23,000 for Māori , $12,000 for Pasifika and $33,000 for Asians according to the latest Statistics New Zealand data just released.

The Tertiary Education Union made great play about how much of the low net worth of young people and others is due to student loans

Young people (aged 15–24) had the lowest individual median net worth of any age group – just $1,000. The most common debt for young people is education loans.

The union then goes on to say that

Median education loan liabilities are only one-tenth of Pākehā people’s median assets, but they are a quarter of Māori people’s assets and over a third of Pacific people’s assets (table 7.01).

The data shows that the households with the smallest median net worth have the largest median education loans (table 2.02). These loans make up nearly a quarter of their total debt (table 2.03).

Over a third of households within the poorest quintile of net worth have education loans, whereas less than a tenth of households in the wealthiest quintile have education debt (table 2.04).

In a nutshell, not enough people are going to university because of the prospect of repaying student loans and more would go if it were cheaper and that would reducing inequality. The explosion in tertiary educational attendance over the last generation, an increase of about 150% for the adult population aged 25 to 64 was not good enough to reduce inequality.

Free tuition at University is a hand-out to those already had a good start in life. It will be paid for by those who will never go because they do not have an above average IQ.

Low-cost student loans were supposed to be away to reduce inequality. Instead, they give a flying start to those of already above-average talents. If social justice is to mean anything, it does not involve giving freebies to those who already have a head start in life.

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The average student loan debt is about $14,000 while the lifetime earnings premium from university education is about $1/2 million in New Zealand.

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Source: Statistics New Zealand, Household net worth statistics: Year ended 30 June 2015.

Lowering university tuition fees and easing the terms of student loans simply means that those who do well at university will not have to pay back as much to the government. People who succeed at university already have above average IQs so they already had a good head start in life.

Charles Murray points out that succeeded at college requires an IQ of at least 115 but 84% of the population don’t have this:

Historically, an IQ of 115 or higher was deemed to make someone “prime college material.” That range comprises about 16 per cent of the population. Since 28 per cent of all adults have BAs, the IQ required to get a degree these days is obviously a lot lower than 115.

Cheaper higher education does not help the not so smart secure a qualification they lack the innate talent to earn with decent marks and increases the chance of smart men and women marrying. This increases the inequality between power couples and the rest.

@younglabournz @YoungGreensNZ @nleemariu forgot family planning empowers women on @BackBenchesTV

Control over the number and spacing of women was central to women’s liberation. Young Labour and the Wild Greens forgot that last night on the BackbencherTV show. Neither could handle the notion that people should wait until they can afford to have children before having them. This is an old working class value with which the Young Labour panel member completely disagreed.

The number of children and the spacing between their births has been a major driver of the gender wage gap for decades. Central to greater female participation in the workforce and society outside the home is smaller families.

Many woman put-off having children to their late 20s and early 30s so they could first consolidate their education and career.

Bryan Caplan argues that there is an undeserving poor if they fail to follow the following reasonable steps to avoid poverty and hardship:

  1. Work full-time, even if the best job you can get isn’t fun.
  2. Spend your money on food and shelter before getting cigarettes and cable TV.
  3. Use contraception if you can’t afford a child

Raising a child takes a lot of effort and a lot of money.  One poor person rarely has enough resources to comfortably provide this combination of effort and money.

Young Labour in particular has forgotten the old working class value of being a responsible parent able to afford to raise your children and give them the best things in life.

Being a parent is hard work that requires a bit of discipline if child poverty is to be avoided through ill-considered choices and a lack of family planning.

Young Labour has forgotten the policy of the Labour Party on family planning

Labour believes that all individuals should have control over their own sexual and reproductive lives. An individual’s choice to determine the number and timing of one’s children cannot be compromised.

To ensure that all people can make free and informed choices about their future, Labour supports safe, affordable and universal access to contraception, sexual and reproductive services and information. Labour recognises all women have the right to make their own choices about their own bodies, and should have access to abortion services

New Zealand has a high rate of unplanned pregnancies, estimated at between 40% and 60% of all pregnancies. Labour’s health spokesperson, Annette King agrees that it is a problem and for too long people have avoided dealing with it.

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