New Zealand leads house price to income ratio across the OECD

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Source: IMF Global Housing Watch

Fewer in emergency accommodation under @NZNationalParty? @PhilTwyford @cjsbishop

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Source: 24 August 2016, Most homeless people working or studying, News, University of Otago, New Zealand, table 4.

More on homelessness fell under @NZNationalParty? @CarmelSepuloni @cjsbishop

I cherry picked my previous data on homelessness if the New Zealand sub-Reddit is to be believed and from which I am banned and cannot reply. Plotting the data in full is to cherry pick it. The chart below is simply the first two rows of the source data. The subsequent rows deal with those in emergency accommodation and in temporary accommodation.

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Source: 24 August 2016, Most homeless people working or studying, News, University of Otago, New Zealand, table 4.

When I shared this data on Carmel Sepuloni MP’s Facebook page, she rightly and constructively said

Thanks for your comment Jim. Unfortunately the number living rough has increased since 2001. We want to focus on improving the future, which is why we are holding our homeless inquiries so we can best understand and address this issue:

Rather than pointscoring, the issue is what to do to fix the problem. How desperate is much of the rest of the Left to beat up this issue as the fault of John Key. This is an an important issue that should not be used for point scoring by sufferers of John Key derangement syndrome.

Homeless people are those who I charted above. They are sleeping rough or in a car. They have slipped through the social safety net which is obviously not working for them. If you are in emergency accommodation, the social safety net is working. The issue is making that safety net work better in terms of moving quickly into more permanent accommodation..

How will @nzlabour @NZGreens ration their 100,000 affordable homes?

The Labour Party (and Greens) both plan to build 100,000 affordable homes and sell them within a specific price range. In Auckland, where houses cost in excess of $800,000 on average, they hope to enter the market at the $550,000 point with still quite reasonable housing.

What I ask you is how will Labour and the Greens make sure the affordable houses both are proposing are not snapped up by well-to-do buyers rather than families currently locked out of the market? What will the rationing mechanism be?

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Source: KiwiBuild – New Zealand Labour Party.

How will Labour  and the Greens ration these desirable houses given that they are priced well below the competition? If two buyers both offer $550,000 for the house, which bid will be accepted?

If the next best available house in Auckland is worth more than that because it is not sold by the proposed Housing Affordability Authority, the first bid for these houses will be $550,000 which is the maximum the government under a Labour Party is willing to accept? What happens then? 

It is basic economics that if you price at less than the market clearing rate which in Auckland is somewhere near $800,000, people will queue to buy what you have unless you raise the price. The exercise of building 100,000 affordable houses makes no sense unless the purpose is to undercut what the market currently supplies.

As the houses are to be sold by a government agency, there can be no black market nor dilution of quality to even up supply with demand. How will a deadlock in price bids be resolved if the maximum bid for an affordable house starts at $550,000?

Labour acknowledges the possibility of flipping by restricting resale for 5 years. But what stops investors just waiting 5 years as there is any significant price gap between these affordable houses and the private market alternatives.

What stops more affluent buyers living in these houses because they so much cheaper than the competing options in Auckland? If you miss out in bidding on one affordable home, do you go back to the end of the queue for the next that is built or get some priority?

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Homelessness fell under @NZNationalParty? @PhilTwyford @metiria @cjsbishop

People living rough doubled under Labour! Fell under the National Party led government despite the global financial crisis and the return of neoliberal oppression.

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Source: 24 August 2016, Most homeless people working or studying, News, University of Otago, New Zealand, table 4.

https://twitter.com/PhilTwyford/status/768196085160357888

World’s first pizza delivery by drone

How many of the 41,000 homeless don’t have a roof over their heads? @metiria @PhilTwyford

There is a difference between not having a roof over your head and being in emergency or temporary accommodation. It disrespects those who lack a roof over their head tonight to equate their grave misfortune with those fortunate enough to already be in emergency accommodation. Once they are in emergency accommodation, that shows that the system is working. Finding them somewhere to stay pending finding something more permanent.

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Source: 24 August 2016, Most homeless people working or studying, News, University of Otago, New Zealand, table 4.

https://twitter.com/childpovertynz/status/768631393459040256

https://twitter.com/PhilTwyford/status/768672477807456256

.

.@NZGreens do not understand business: minimum wage for contractors version

The Greens are most upset that a Labour party private members bill to specify a minimum wage for contractors was voted down by one vote in parliament yesterday.

If you earn than the minimum wage as a contractor, that is a signal wrapped in an incentive. Your poor hourly earnings is a signal to you that maybe you should get out of that contracting business and go back to being an employee where you will be paid at least the minimum wage.

Many small businesses make no profits at all in the first year or so as they build the business. The founders of the business get by on savings, which they anticipated when they drew up their business plan. No one expects a business to make an immediate profit or always be profitable.

Contractors are entrepreneurs chancing their arm. They need crisp signals about whether they are succeeding, failing or could succeed if they try harder or do something different. A minimum wage for contractors masks those important market signals of success and failure.

If your dream of owning your own business is not even paying the minimum wage, maybe it is time to get out of the contracting business.

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.

Why so few successful left-wing populists

The Twitter Left is doing its best to attribute the surge against globalisation and immigration to inequality. This is despite the main beneficiary at the ballot box is right-wing populists.

The beneficiaries in the last few years were UKIP, the French National Front, Alternative for Germany, various pro-welfare state but anti-immigration parties in the rest of Europe, Pauline Hanson and Donald Trump. Barely a left wing party in sight outside of Greece.

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Source: Only a third of the EU is governed by the centre-left | World news | The Guardian.

Bernie Sanders is a fake left-wing populist because much of his support comes from college students and the university educated, not the aroused working class. These college students are unwilling to pay more than $1000 in taxes for the socialist revolution especially if they have a job.

At the last New Zealand election, two-thirds of the electorate voted for other than centre-left and left-wing parties. The hard left party, Mana-Internet, won 1% of the party vote despite having millions of dollars in campaign donations from a criminal fugitive hoping to avoid extradition.

These right-wing populists combine a heady brew of nationalism and social conservatism, scepticism about market competition, strong support for social security and old-age pensions but not welfare dependency, and opposition to immigration, imports and cultural change. The rise of the parties are not the first signs of an aroused working class seeking to overthrow capitalism. Face up to it.

Why politicians and bureaucrats can never pick winners?

If politicians and bureaucrats were any good at picking winners, they will be on a fabulously well paid package at a hedge fund.

I would feel defamed if labeled a @NZGreen

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Anything opposed by the teachers unions must be a good idea

Just how anti-science are the Australian @Greens?

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Source: Denying Problems When We Don’t Like the Solutions | Duke Today

I am not sure that the Australian Greens earn brownie points for referring to the scientific consensus on global warming as follows

Current global climate change is primarily caused by human activities contributing to increased concentrations of greenhouse gases in the atmosphere, and is already contributing to disruption of human societies through sea level rise, extreme weather events, desertification, harm to health, wellbeing and other effects. This is the overwhelming consensus of the international scientific community.

The Greens then give their opponents a free kick regarding their views on coal:and their commitment to science-based risk policy:

No new coal-fired power stations or coal mines, and no expansions to any existing power stations or mines, plus the development of programs to assist coal-dependent communities to make the transition to other more sustainable sources of economic prosperity.

There is no attempt to refer to science to justify this blanket prohibition against a specific energy source.

The views of the Australian Greens is no more science based on atomic energy:

    1. The world should be free of nuclear weapons and the nuclear fuel chain.
    2. There is a strong link between the mining and export of uranium and nuclear weapons proliferation.
    3. The use of nuclear weapons, nuclear accidents or attacks on reactors pose unacceptable risk of catastrophic consequences.
    4. Future generations must not be burdened with dangerous levels of radioactive waste.
    5. Nuclear power is not a safe, clean, timely, economic or practical solution to reducing global greenhouse gas emissions.

If there is any basis in science with this blanket opposition, I am sure the Australian Greens might have mentioned it.

Do the Australian Greens refer to the scientific consensus on GMOs in their policy platform as a helpful reminder or is there just have an ever rising demand for more evidence

    1. Genetically modified organisms (GMOs), their products, and the chemicals used to manage them may pose significant risks to natural and agricultural ecosystems.
    2. GMOs have not been proven safe to human health.
    3. Scientific evidence produced independently from the developers and proponents of the GMO must be undertaken and form the basis for assessing and licensing of GMOs. GMO assessments must be broad, independent and scientifically robust.
    4. The precautionary principle must be applied to the production and use of GMOs.

Unlike the New Zealand Greens, at least they do not simply reject the possibility of GMOs, the Australian Greens prefer the tactic of never being satisfied by the evidence.

The only thing I can find on the position of the Greens on fluoridation and vaccines is from a Victorian upper house MP who is half sensible on these issues. On fluoridation she says on behalf of the Greens

The Greens policy is quite clear on this. We do not have a policy for or against fluoride. Our policy supports the right of communities to determine the introduction of fluoride into local water supplies.

Not expressing the opinion on the wisdom of not putting fluoride in local water supply hardly shows a strong commitment to science-based public health policy.

On vaccines, this Victorian upper house green MP is not too bad at all:

I want to begin by stating that the Greens join health and scientific experts in absolutely supporting vaccination as a safe, proven and critical preventative health measure. The elimination of horrific diseases such as polio in Australia is testament to the incredible effectiveness and importance of vaccines…

There is also a group of people who might be called ‘hesitators’. They are not strongly opposed to vaccination, but they have heard that there might be some risks and they are thus unsure about them. These people do not perceive a strong risk of their child contracting any of the horrible diseases that immunisation prevents, so they think that on balance it might be reasonable not to vaccinate or to delay vaccination until their child is older or they simply have not yet made a decision either way. Hesitating parents may not realise that in some areas the local vaccination rate is getting well below safe levels and thus the risk of an outbreak is increasing.

This is far better than her New Zealand counterparts who do not seem to have an opinion on this vital public health issue. Indeed, the New South Wales Greens moved in the state parliament to tighten up a bill on exemptions from vaccinations.

Changes to the NSW Public Health Act in 2013 prohibited unvaccinated children from attending childcare unless their parents held “a personal, philosophical, religious or medical belief involving a conviction that vaccination under the National Immunisation Program should not take place” and they had discussed the matter with their GP”. The NSW Greens moved an amendment to remove personal, philosophical and religious beliefs as a grounds for exemption. This is one of the few times I can say something nice about a green MP.

Many on the right have their doubts about climate change science, much of which is actually delivered driven by solution aversion.They do not like the costs of the solution so they attack the rationale for it for tactical reasons. Cass Sunstein explains:

It is often said that people who don’t want to solve the problem of climate change reject the underlying science, and hence don’t think there’s any problem to solve. But consider a different possibility: Because they reject the proposed solution, they dismiss the science. If this is right, our whole picture of the politics of climate change is off.

The Left picks and chooses which scientific consensus as it accepts. The overwhelming consensus among researchers is biotech crops are safe for humans and the environment. This is a conclusion that is rejected by the very environmentalist organisations that loudly insist on the policy relevance of the scientific consensus on global warming.

What is worse is this rejection of science is not based on solution aversion; that the costs are high. It is a plain rejection of science on principle by the green left rather than for tactical reasons such as by the right on global warming.

What is more worrying is all the science that is rejected by the left will make us more prosperous. Only when the solutions make is poorer does the green left support them such as with global warming and carbon taxes.

In many ways what divides the left and right onn science is a question of values: the value placed on progress, on the Great Enrichment, on the Great Fact and on the Great Escape.

The Greens are no more than a reincarnation of the 19th century British Tory Radicals with their aristocratic sensibilities that combined strong support for centralised power with a paternalistic concern for the plight of the poor:

  • 19th century Tory radicals opposed the middle classes and the aesthetic ugliness they associated with an industrial economy; and
  • Like the 19th century Tory Radicals, today’s green gentry see the untamed middle classes as the true enemy.

Many Greens think they are expressing an entirely new and progressive philosophy as they mouthed the same prejudices as Trollope’s 19th century Tory squires; attacking any further expansion of industry and commerce as impossibly vulgar, because it was

ecologically unfair to their pheasants and wild ducks.

Neither the failure of the environmental apocalypse to arrive nor the steady improvement in environmental conditions because of capitalism has dampened the ardour of those well-off enough to be eager to make hair-shirts for others to wear.

True to its 1960s origins, environmentalism is a mix of bureaucrats and hippies: a global, little-brother government that keeps the lower classes in line and a back-to-the-earth localism imposed on others but presenting no real threat to the inner city green elites’ comfortable middle class lives.

@NZGreens very sane compared to @DrJillStein @GreenPartyUS

Jill Stein managed to denounce American imperialism without mentioning the invasion of the Crimea and Russian intervention in the Syrian Civil War to prop up the old regime.

Stein is what Orwell called a renegade liberal. Progressives hunt the world for dictators to worship. As George Orwell said in 1941

Pacifism is objectively pro-Fascist. This is elementary common sense. If you hamper the war effort of one side you automatically help that of the other. Nor is there any real way of remaining outside such a war as the present one. In practice, ‘he that is not with me is against me’.

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