New Zealand physical and human capital (by a skill level), 1986 – 2001

New Zealand working class is wealthier than the entire capitalist class. Their human capital, shown in the chart below as the human capital of the unskilled and non-degree workers, far exceeds the value of the physical capital stock of New Zealand.

image

Source: Lˆe Thi. Vˆan Tr`ınh, Estimating the monetary value of the stock of human capital for New Zealand, University of Canterbury PhD thesis (September 2006).

Only part of this physical capital stock is owned by the capitalist class given we live in the era of pension fund socialism. About a 3rd of that physical capital stock is owner occupied homes.

image

Source: Lˆe Thi. Vˆan Tr`ınh, Estimating the monetary value of the stock of human capital for New Zealand, University of Canterbury PhD thesis (September 2006).

The only reason that the share of unskilled and non-degree workers is in any way declining is the withering away of the proletariat. More and more people are joining the middle-class and going on to higher education.

 .

The value of New Zealand owner occupied homes, net capital stock and human capital stock since 1987

Tring Le found that the human capital stock was consistently 2.6 times the value of the physical capital stock of New Zealand.

I decided to apply that ratio to the net capital stock of New Zealand estimates of Statistics New Zealand back to 1987 to see what we get. It is pretty standard for the value of human capital to be two to two and one-half times the value of physical capital.

image

Source: National Accounts (Industry Benchmarks): Year ended March 2013 and Lˆe Thi. Vˆan Tr`ınh, Estimating the monetary value of the stock of human capital for New Zealand, University of Canterbury PhD thesis (September 2006), Table 4.8: Human and physical capital stocks.

All the above chart says it is most wealth in New Zealand is held by ordinary people either as their human capital or the value of their homes.

Brian Easton on whether inequality has risen in the past 20 years in New Zealand

Source: Brian Easton (14 March 2016) Do inequality and poverty matter? | Pundit

James Heckman on what money cannot buy including a universal basic income

Source: The Economics of Human Development and Social Mobility, James J. HeckmanStefano Mosso, NBER Working Paper No. 19925, February 2014.

This @amprog conservative antipoverty dictionary does not add up

The only alternative offered by the Centre for American Progress is send them on a course. This response, which is the standard policy response to any labour market crisis, will not solve poverty, mush less inequality.

Owned by U.S. households in poverty @BernieSanders @HillaryClinton

Image

Poverty and full-time work in America @BernieSanders @HillaryClinton

Image

How did the War on Poverty go?

Implicit tax on a lone parent returning to a low-paid job in the USA, UK, Denmark, France, Germany, Canada, Australia and New Zealand

image

Source: Economic Policy Reforms: Going for Growth – OECD (2016).

Will there be poverty on the Starship Enterprise?

A Facebook photo by Mary Ruwart reminded me of the question I posed in previous blog posts about whether there will be poverty on the Star Trek enterprise. Those security officers in the red tunics get a really bad deal, especially if they beam down to the planet with Captain Kirk.

The role of inheritance in top incomes

@ChrisHipkins @jacindaardern New Zealand graduate premium @dbseymour

How conceited students are to complain about a $20,000 student loan when they got $1/2 million coming down the pipe.

Source: A Degree is a smart investment | Universities New Zealand – Te Pōkai Tara.

Self-appointed social justice warriors in the New Zealand Labour Party and New Zealand Greens pander to this middle class greed. They should be ashamed of themselves.

26% of eligible students do not take out a student loan so they would really get a leg up from the abolition of tuition fees.

The median repayment time for those who left study in 2011 and remained in New Zealand was 5.8 years.

How did British billionaires make their money

Inheriting wealth is not what it used to be in Britain. There are all these upstarts running businesses or working in the City.

image

Source: Caroline Freund and Sarah Oliver, The Origins of the Superrich: The Billionaire Characteristics Database (2016).

@jacindaardern @ChrisHipkins why abolishing tuition fees entrenches inequality

image

Source: The Case Against Free College | Dissent Magazine.

Percentage of billionaires who inherited their wealth

China has been capitalist for long enough for a billionaire to actually inherit his wealth.

image

Source: Caroline Freund and Sarah Oliver, The Origins of the Superrich: The Billionaire Characteristics Database (2016).

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