“Family silver’ looking a bit tarnished

In the editorial today in the Dominion Post on the Solid Energy fiasco, the editorial writer made quite an extraordinary statement:

“Ideologues of the Right will claim that the whole sad fiasco shows the dangers of the state getting into business. This is simple-minded. Not all SOEs have ended up hundreds of millions of dollars in debt. Some SOEs have been well run; some have not.”

It is absurd to claim that making a $20 million net profit on a portfolio of $30 billion in state owned enterprises in 2013 is some sort of reasonable investment for the taxpayer.

homepaddock's avatarHomepaddock

Opponents to the sale of minority shareholdings in a few state owned assets would have us believe that the government is selling the family silver.

Treasury’s annual portfolio return shows that silver isn’t returning much:

Government businesses with assets worth $45 billion made a total net profit of just $20 million in the year to June 30, according to the Treasury’s annual portfolio report.

The assets don’t include Meridian Energy, Air New Zealand and Mighty RiverPower, which were partially privatised, but cover troubled entities like KiwiRail, Solid Energy and New Zealand Post, which are all struggling to make their business models work.

The annual review covers Crown-owned assets valued at $125b.

A return of just $20 million on $125b is lamentably low.
“For the residual commercial priority portfolio, overall performance (with some notable exceptions) was mediocre,” the Treasury’s Crown Ownership Monitoring Unit says in the report. . .

Total shareholder…

View original post 332 more words

Unexpected kind word for Parliament House protesters @GreenpeaceNZ @RusselNorman @NZGreens @greencatherine

The Greenpeace vandals who trespassed at Parliament, climbing up to put signs down the front in flagrant disregard of the most ample possible options for peaceful protest right outside at least had the integrity to plead guilty. That shows some sort of fidelity to law and an acknowledgement that what they did was a criminal offence.

John Rawls makes the point that the purpose of civil disobedience is not to impose your will upon others but through your protest to implore them to reconsider their position and change the law or policy you are disputing.

Rawls argues that civil disobedience is never covert or secretive; it is only ever committed in public, openly, and with fair notice to legal authorities. Openness and publicity, even at the cost of having one’s protest frustrated, offers ways for the protesters to show their willingness to deal fairly with authorities. Rawls argues:

  • for a public, non-violent, conscientious yet political act contrary to law being done (usually) with the aim of bringing about a change in the law or policies of the government;
  • that appeals to the sense of justice of the majority;
  • which may be direct or indirect;
  • within the bounds of fidelity to the law; and
  • whose protesters are willing to accept punishment. Although civil disobedience involves breaking the law, it is for moral rather than selfish reasons; the willingness to accept arrest is proof of the integrity of the act.

Rawls argues, and too many forget, that civil disobedience and dissent more generally contribute to the democratic exchange of ideas by forcing the champions of dominant opinion to defend their views.

Legitimate non-violent direct action are publicity stunts to gain attention and provoke debate within the democratic framework, where we resolve our differences by trying to persuade each other and convince the electorate.

Too many acts of non-violent direct action aim to impose their will on others rather than peaceful protests designed to bring about democratic change in the laws or policies of the incumbent government. That ‘might does not make right’ is fundamental to the rule of law. As United States Supreme Court Justice Antonin Scalia said

The virtue of a democratic system [with a constitutionally guaranteed right to free speech] is that it readily enables the people, over time, to be persuaded that what they took for granted is not so and to change their laws accordingly..

Both sides passionately but respectfully attempt to persuade their fellow citizens to accept their views. Win or lose, advocates for today’s losing causes can continued pressing their cases, secure in the knowledge that an electoral loss today can be negated by a later electoral win, which is democracy in action as Justice Kennedy explains:

…a democracy has the capacity—and the duty—to learn from its past mistakes; to discover and confront persisting biases; and by respectful, rationale deliberation to rise above those flaws and injustices…

It is demeaning to the democratic process to presume that the voters are not capable of deciding an issue of this sensitivity on decent and rational grounds.

The process of public discourse and political debate should not be foreclosed even if there is a risk that during a public campaign there will be those, on both sides, who seek to use racial division and discord to their own political advantage. An informed public can, and must, rise above this. The idea of democracy is that it can, and must, mature.

Freedom embraces the right, indeed the duty, to engage in a rational, civic discourse in order to determine how best to form a consensus to shape the destiny of the Nation and its people. These First Amendment dynamics would be disserved if this Court were to say that the question here at issue is beyond the capacity of the voters to debate and then to determine.

John Rawls’ view that fidelity to law and democratic change through trying to persuade each other is at the heart of civil disobedience reflects the difference between the liberal and the left-wing on democracy and social change as Jonathan Chait observed this week:

Liberals treat political rights as sacrosanct. The left treats social and economic justice as sacrosanct. The liberal vision of political rights requires being neutral about substance.

To the left, this neutrality is a mere guise for maintaining existing privilege; debates about “rights” can only be resolved by defining which side represents the privileged class and which side represents the oppressed…

Liberals believe that social justice can be advanced without giving up democratic rights and norms. The ends of social justice do not justify any and all means.

Why are Australian power prices so high?

https://www.facebook.com/101728306584541/photos/pb.101728306584541.-2207520000.1438944868./861328507291180/?type=3&src=https%3A%2F%2Ffbcdn-sphotos-f-a.akamaihd.net%2Fhphotos-ak-xap1%2Ft31.0-8%2F11053250_861328507291180_1501744766414222191_o.png&smallsrc=https%3A%2F%2Ffbcdn-sphotos-f-a.akamaihd.net%2Fhphotos-ak-xap1%2Fv%2Ft1.0-9%2F11223580_861328507291180_1501744766414222191_n.png%3Foh%3D7d78dc82a86fa3e14f177bea3c36b9ab%26oe%3D565270A0%26__gda__%3D1451436156_0e8ad6d61f62a121dd15b80791ea53dd&size=1062%2C1392&fbid=861328507291180

@DandLMitchell Lindsey Mitchell on poverty

Why are ex-Communists still on the Left forgiven for their past?

Director’s Law in New Zealand?

One group with negative net tax liability is low- to middle-income households with dependent children. For example, single-earner families with two children can earn up to around $60,000 pa before they pay any net tax.

Around half of all households with children receive more in welfare benefits and tax credits than they pay in income tax.

Bryan Perry (2015, p. 41)

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@metiria @NZGreens 20,000 drop in children in hardship in 2014

The material hardship measure shows a falling child material hardship rate using a threshold equivalent to the ‘standard’ EU level, down from a peak of 21% immediately after the GFC to 14% in 2014.

Using the more severe threshold, there was a slight rise through the GFC to 10% and a small fall to 8%, the level it was at before the GFC.

Bryan Perry (2015, p. 7, Key Findings)

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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), p. 133.

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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), p. 133.

Maori and Pasifika economic progress since 1988

From a longer-term perspective, all groups showed a strong rise from the low point in the mid 1990s through to 2010. In real terms, overall median household income rose 47% from 1994 to 2010: for Maori, the rise was even stronger at 68%, and for Pacific, 77%.

These findings for longer- term trends are robust, even though some year on year changes may be less certain. For 2004 to 2010, the respective growth figures were 21%, 31% and 14%.

Bryan Perry (2015, p. 67)

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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 D6.

@WJRosenbergCTU A brief history of rising equality in New Zealand

Bill Rosenberg at the Council of Trade Unions was good enough to tweet a Treasury chart that shows next to no increases in inequality in New Zealand for at least 20 years.

Inequality in both market and disposable incomes has been stable for a good 20 years, as the above tweet shows, while inequality in consumption has been falling. To back this interpretation of mine up, coincidentally today Bryan Perry published his annual report on income and inequality under the banner of the Ministry of Social Development.

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His report showed that there be no significant increase in New Zealand in at least 20 years.

Union density rates in USA, UK, Australia and New Zealand since 1960

Unions have been in a long-term decline in Australia, New Zealand, the UK and the USA for as far back as survey and administrative data can be collected. There is a bit of a hump in union membership in the mid-1970s in New Zealand, Australia and the UK but that was about it.

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Source: Source: OECD and J.Visser, ICTWSS database (Institutional Characteristics of Trade Unions, Wage Setting, State Intervention and Social Pacts, 1960-2010), version 3.0 (http://www.uva-aias.net/).

@metiria @NZGreens child poverty is driven by housing unaffordability – by Green opposition to RMA reform

Nothing much has happening to child poverty before housing costs in New Zealand since the early 1980s. It is after housing costs poverty that is crucifying the children in New Zealand.

image

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 F6 and table F7.

From HES 2013 to HES 2014 median household income rose 5% in real terms (5% above the CPI inflation rate)…

On the AHC moving line measures, child poverty rates in HES 2014 are around the same as their peak after the GFC. A good amount of the rise from HES 2013 to HES 2014 is due to the large rise in the BHC median, as noted above, rather than a change in the numbers in low income per se.

Bryan Perry (2015, pp. 3, 7).

The parties that oppose measures to increase the supply of land and reduce the cost of housing through reform of the Resource Management Act and its many restraints on the supply of land are the New Zealand Labour Party and New Zealand Greens.

Has NZ child poverty doubled as @MaxRashbrooke said?

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

Lindsay Mitchell put me onto a quote by veteran grumbler Max Rashbrooke that the child poverty rate doubled in New Zealand:

In a system where income goes disproportionately to the already well-off, ordinary workers are missing out on the rewards of their efforts, to the tune of billions of dollars a year. Welfare benefits, cut by a quarter in 1991 and increased just 8 per cent in the last budget, are far too low to meet people’s basic needs.

The result is a doubling of child poverty and the return of childhood diseases unknown in most developed countries – a national embarrassment, as one researcher described it.

Poverty, income and inequality data is collected in loving detail by Brian Perry every year for the Ministry of Social Development.

Figure 1: % child poverty in New Zealand (before and after housing costs), 60% 1998 median constant value, 1982 – 2013

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Source:

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Richard Cobden on the labours of diplomats

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Australia announces its futile carbon emissions target

via Australia’s Climate Change Policy Announced | Catallaxy Files.

Liberal voting cities markets have higher income inequality and worse affordability

All homeowners have an incentive to stop new housing because if developers build too many homes, prices fall, and housing is many families’ main asset. But in cities with many Democrats and Green Party members, environmental concerns might also be a factor. The movement might be too eager to preserve the past.

Matthew Kahn

via Why Middle-Class Americans Can’t Afford to Live in Liberal Cities – The Atlantic.

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