How @MaxRashbrooke showed housing costs is the main driver of poverty when trying to argue rising inequality was not driven by housing costs

Source: No, Mr English, housing costs are not a key cause of inequality – Inequality: A New Zealand Conversation

Rashbrooke then goes on to discuss how housing costs were not a main driver of the growing gap between the top 10% and the bottom 10% of the income distribution in New Zealand. My point is he is more concerned with the politics of envy than with building political support for action against poverty.

Rashbrooke showed that the main driver of poverty in New Zealand is rising housing costs. That is easy to redress but for the opposition of the left-wing parties to reforms to the Resource Management Act that will increase the supply of land and thereby drive down housing costs and rents.

Housing costs gobbled up much of the rising incomes of the poor for many years now in New Zealand as Rashbrooke showed today. The New Zealand Labor Party and New Zealand Greens are doing nothing about it. The regulatory constraints on the supply of land could be gone by lunchtime if the self-proclaimed champions of the poor and social justice supported the reform of the RMA.

The proposals of the New Zealand Labour Party and Greens for the government to build more houses is pointless unless there is more land is supplied. If there is no increase in land supply, all the building of more houses by government does is build the same houses of private developers would have built on the same fixed supply of land. There must be an increase in the supply of land to drive housing costs down for the poor.

Proposed trigger warning for New Zealand flag discussions

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Will Auckland become like San Francisco?

https://twitter.com/JoshZumbrun/status/652517712070082561/photo/1

@nzlabour @greencatherine @johnkeymp @actparty Australia and New Zealand country of asylum numbers since 1965

Australia and New Zealand at times has taken in a great many refugees from abroad according to the United Nation’s High Commissioner for Refugees data. Oddly enough these bursts of generosity coincided with a Liberal Country party government in Australia and National Party governments in New Zealand. The Left of New Zealand politics was too busy fighting to be nuclear free to make New Zealand a place of refuge for the victims of oppression when they had their hands on the wheels of power.

Source: UNHCR – UNHCR Statistical Online Population Database.

Because Australia took in so many hundreds of thousands of refugees, it is difficult to read the New Zealand data so I have reproduced the New Zealand data on refugees as a separate graph.

Source: UNHCR – UNHCR Statistical Online Population Database.

At times of crisis such as after the Vietnam War and the chaos in the Balkans, New Zealand has taken in a great many refugees – many times its current generosity.

The withering away of unions as a working class movement @nzlabour @FairnessNZ

Source: CONVERSABLE ECONOMIST: Update on US Unions

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#TPA more popular among democrats

What will it take to finish the Last Mile in ending extreme poverty

 

@jamespshaw @nzlabour @actparty inflow of asylum seekers into Australia and New Zealand since 1987

Data extracted on 08 Oct 2015 09:06 UTC (GMT) from OECD.Stat; Dataset: International Migration Database.

@NZNationalParty @nzlabour @NZGreens inflow of asylum seekers into #UK #Canada, #Australia and #NewZealand since 1980

New Zealand’s intake of asylum seekers has been embarrassingly low. The left-wing parties in New Zealand should be ashamed of themselves given the way they wear their international consciences on their sleeves about New Zealand being above it all morally, nuclear free, and can lecture the rest about war, peace and compassion from on high.

Data extracted on 08 Oct 2015 09:06 UTC (GMT) from OECD.Stat; Dataset: International Migration Database.

The UK absorbed an immense number of asylum seekers in the 1990 as did Canada. The data stops in 2013.

@GreenpeaceNZ @NZGreens energy poverty and extreme poverty

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Top 10 countries of foreign birth for Australian residents

Source: 3412.0 – Migration, Australia, 2013-14

What’s Right About Social Justice

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Jane Kelsey oppose handcuffs on the democratic choices of future governments! Does she opposes labour and environmental standards in trade agreements too?

https://twitter.com/JimRose69872629/status/651230008875220992

One of my policy essays for my Masters of Public Policy Degree in Japan was on the social clauses of the GATT. I described the labour and environmental clauses is a new form of colonialism.

My classmates were government officials from all around Asia, more than 20 countries. As they spoke English as a second language, they were pleased to learn of a new way of describing social clauses in trade agreements in English.

A Filipino friend had a blunter way of referring to social clauses in trade agreements: “the whites are back, telling us what to do”.

Jim Rose's avatarUtopia, you are standing in it!

Jane Kelsey in a television interview said she opposes the reductions in sovereignty in trade agreements that result from investor-state dispute settlement (ISDS) provisions because they limit the democratic choices of future governments.

If so, she must oppose environmental and labour standards in trade agreements and, more importantly, binding the hands of future governments with climate treaties. All international treaties are about restrictions on sovereignty.

Environmental and labour clauses in trade agreements and climate treaties all limit the powers of governments to legislate on environmental and employment law in accordance with the will of the people as expressed in the most recent election and change of government. Power to the people.

https://twitter.com/rorymccourt/status/625540621457960960

Jane Kelsey would do better focusing on those parts of the TPPA deal that lowers the net value of the deal such as those extending the term of patents over the drugs. All international treaties are about trade-offs.

View original post 212 more words

@jamespeshaw nails the #TPPA policy trade-off @NZGreens

About 1% more GDP but higher drug prices.

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Source: No increased medicine costs under TPPA | Stuff.co.nz

The next best arguments James Shaw made were xenophobia about foreign investment in land and some vast conspiracy theory regarding endangered dolphins.

When your next best argument is foreigners are coming to buy up all our land, you are playing from a weak populist hand. About half of million New Zealand born live in other countries.

About 80% of these live in Australia, the great majority as residents rather than as citizens. These New Zealanders living in Australia and elsewhere need protection under international agreements to ensure they are not the victim of populist outbreaks against the sale of land to foreigners.

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Source: Statistics New Zealand.

In addition, if a foreigner wants to pay over the odds for my house I am glad to separate a fool from his money.

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Source: Statistics New Zealand.

New Zealand has a strong interest in protecting the rights of its own expatriates as well as New Zealand foreign investors to buy land in other countries. As David Friedman explains:

Much more commonly, [economic imperialism] is used by Marxists to describe–and attack–foreign investment in “developing” (i.e., poor) nations. The implication of the term is that such investment is only a subtler equivalent of military imperialism–a way by which capitalists in rich and powerful countries control and exploit the inhabitants of poor and weak countries.

There is one interesting feature of such “economic imperialism” that seems to have escaped the notice of most of those who use the term. Developing countries are generally labour rich and capital poor; developed countries are, relatively, capital rich and labour poor. One result is that in developing countries, the return on labour is low and the return on capital is high–wages are low and profits high. That is why they are attractive to foreign investors.

To the extent that foreign investment occurs, it raises the amount of capital in the country, driving wages up and profits down. The effect is exactly analogous to the effect of free migration. If people move from labour-rich countries to labour-poor ones, they drive wages down and rents and profits up in the countries they go to, while having the opposite effect in the countries they come from.

If capital moves from capital-rich countries to capital-poor ones, it drives profits down and wages up in the countries it goes to and has the opposite effect in the countries it comes from. The people who attack “economic imperialism” generally regard themselves as champions of the poor and oppressed.

To the extent that they succeed in preventing foreign investment in poor countries, they are benefiting the capitalists of those countries by holding up profits and injuring the workers by holding down wages. It would be interesting to know how much of the clamour against foreign investment in such countries is due to Marxist ideologues who do not understand this and how much is financed by local capitalists who do.

Social Justice and Its Critics

 

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