Child poverty and single parenthood

Employment and the risk of deep poverty in the USA

What’s left of the welfare state after dastardly neoliberalism still lifts most out of poverty

Full-time work on the minimum wage is enough to keep a NZ family out of poverty!

An OECD chart that shows New Zealand parents only need to work a little over 40 hours a week on the minimum wage to lift a family out of poverty in New Zealand.

image

The figure above shows that a lone parent with two children needs to work about 25 hours a week stay out of poverty in 2013 in New Zealand Once taxes are taken into account as well as additional family benefits such as in-work tax credits. New Zealand is one of the easiest places in the world to get out of poverty by working part-time for a sole mother.

The figure above from the OECD shows that New Zealand couple with two children needs to work about 40 hours a week to stay out of poverty. Of course, what is poverty depends on the definition of the poverty line and in this case by the OECD, it is defined as 50% of the median wage after taxes and family benefits. Another common definition of poverty is earning less than 60% of the median wage

The minimum wage is $14.75 per hour in New Zealand while proposals for a living wage in New Zealand are now $19.25 an hour. The Labour Party wants to increase the minimum wage to $15 per hour.The Greens want to increase the minimum wage to the living wage.

Simon Chapple and Jonathan Boston pointed out in their excellent book last year on child poverty in New Zealand that full-time work by one parent and part-time work by the other in the same household is enough to lift families out of most  definitions of poverty:

Sustained full-time employment of sole parents and the fulltime and part-time employment of two parents, even at low wages, are sufficient to pull the majority of children above most poverty lines, given the various existing tax credits and family supports.

The best available analysis, the most credible analysis, the most independent analysis in New Zealand or anywhere else in the world that having a job and marrying the father of your child is the secret to the leaving poverty is recently by the Living Wage movement in New Zealand.

According to the calculations of the Living Wage movement, earning only $19.25 per hour with a second earner working only 20 hours affords their two children, including a teenager, Sky TV, pets, international travel, video games and 10 hours childcare. This analysis of the Living Wage movement shows that finishing school so your job pays something reasonable and marrying the father of your child affords a comfortable family life.

The OECD’s analysis also showed that incentives for New Zealanders to work more and earn more is better than in most countries in terms of what happens if they earn a wage increase.

image

In New Zealand, when there is a 5% minimum wage increase, four percentage points  of that wage increase actually stays in the hands of the worker.

In some countries such as Australia, the USA  and UK, 60 to 80%of the minimum wage increase is gobbled up in reductions in benefits and taxes. At the same time, the minimum wage increase makes it less profitable for your employer to retain you so your job is more at risk.

The only explanation I have for why the Labour Party, NZ Greens and the living wage movement don’t highlight the success of the existing minimum wage in reducing family poverty in New Zealand is mass kidnappings.

image

But for these abductions most fowl, I’m sure the Labour Party,  NZ  Greens and the living wage movement would be dancing in the street celebrating successes of capitalism and freedom in New Zealand in keeping families out of poverty through the minimum wage.

Stay-at-home moms are poorer, less educated than working moms

FT_14.04.07_Stay At Home Moms_sahmWorkingDiff640px (1)

stay at home moms in poverty percentage

via 7 key findings about stay-at-home moms | Pew Research Center.

Will a living wage reduce child poverty in New Zealand?

Simon Chapple Jonathan Boston living wage child poverty

Image

A tale of two parents

https://www.facebook.com/AEIonline/photos/pb.44951363957.-2207520000.1427601542./10152802565713958/?type=3&src=https%3A%2F%2Ffbcdn-sphotos-h-a.akamaihd.net%2Fhphotos-ak-xap1%2Fv%2Ft1.0-9%2F1233384_10152802565713958_2404241805278738697_n.jpg%3Foh%3Df31ae7bab92c59c8d042e6ee5f4a780b%26oe%3D55A0B785%26__gda__%3D1433835964_1fbe9a275145246f6fd8ac18b0e3177a&size=600%2C952&fbid=10152802565713958

Did poverty increase after the 1996 US Federal welfare reforms?

Poverty-fig3a

via The Top 3 Things You Need to Know About the 2013 Poverty and Income Data | Center for American Progress.

Poverty and family structure in America

ednext_XV_2_mclanahan_fig04-small

via Was Moynihan Right? What happens to the children of unmarried mothers : Education Next.

Far Left Mana Movement admits it’s really cheap to feed the kids

 Joe Trinder, the Mana News editor, today blogged about the great expense of feeding the kids for ordinary families. In the course of doing so, he showed how extremely cheap it was for parents to make their children breakfast. The Far Left has inadvertently capitulated on school breakfast programmes been outside the reach of ordinary families.


I completely agree with Joe. A 1 kg box of Weet-Bix costs $7 and a 2 L bottle of milk costs $5.55. I buy the cheaper brands of Weet-Bix than this myself.

1 kg box of Weet-Bix will last maybe two weeks. 2 L of milk will last not much less than that if you pour the milk on Weet-Bix to the extent I do. Two weeks breakfast will cost much less than one dollar per breakfast as argued by Eugene Rush in her letter to the editor a few months ago.

If a family can’t find $.55 to make their children breakfast, they need targeted specific intervention from Work and Income New Zealand to see what additional financial assistance they need, including budget advice, and from the child protection agency, Child, Youth and Families.

  • Providing a hungry child with breakfast at school through a Feed the Kids Bill is parliamentary grandstanding that doesn’t strike at the root of the problem.
  • These hungry children are not provided with breakfast either at the weekend or during the school holidays. They are abandoned by the process set up under the Feed the Kids Bill championed by the hard left.
  • Worst of all, what about the parents? No good parent would have breakfast while their child goes hungry.

No provision is made by the hard left in its Feed the Kids Bill to feed the parents of these hungry children who also go hungry every morning. There is no other charitable explanation as to why their children were not given breakfast. No one in the house can afford breakfast both during school days, at the weekend and in school holidays.

As shown from the screenshot above, the Otago University’s annual Food Cost Survey suggests that to meet basic needs, a family must spend $44 per week for a five-year-old and $34 per week for a four-year-old in Wellington, which is where I live. That is, it costs about five or six dollars per day per child to feed them. A liberal diet for a small child for a day costs not much more than a cup of coffee at a cafe where I’m going shortly. The real issue is the income of parents.

The best solution to poverty is to move people into a job. Simon Chapple is quite clear in his book in the middle of last year with Jonathan Boston that a sole parent in full-time work, and a two parent family with one earner with one full-time and one part-time worker, even at low wages, will earn enough to lift their children above most poverty thresholds.

Sustained full-time employment of sole parents and the fulltime and part-time employment of two parents, even at low wages, are sufficient to pull the majority of children above most poverty lines, given the various existing tax credits and family supports.

The best available analysis, the most credible analysis, the most independent analysis in New Zealand or anywhere else in the world that having a job and marrying the father of your child is the secret to escaping poverty is recently by the Living Wage movement in New Zealand.

According to the calculations of the Living Wage movement, earning only $18.80 per hour with a second earner working only 20 hours per week affords their two children, including a teenager, Sky TV, pets, international travel, video games and 10 hours childcare. This analysis of the Living Wage movement shows that finishing school so your job pays something reasonable and marrying the father of your child affords a comfortable family life.

Single parenthood in the USA by ethnicity

ednext_XV_2_mclanahan_fig02-small

via Was Moynihan Right? What happens to the children of unmarried mothers : Education Next.

NZ is in the middle of the pack in reducing poverty rates through redistribution

The figure shows pre-transfer and post-transfer poverty rates among OECD countries (mostly the advanced economies).  The former (pre-transfer) are the market-driven poverty rates, before the tax and transfer systems kick in.

Source: OECD, *Poverty thresholds: 50% of median income.

HT: International Poverty Comparisons: What Do They Tell Us about Causes? | Jared Bernstein | On the Economy.

Child poverty in America using the Supplementary Poverty Measure of the Census Bureau

Measuring child poverty after tax and income transfers from the welfare state make a big difference to the measurement of poverty in the USA.

via What If We Had Measured Poverty Differently for the Past 50 Years? – CityLab.

When fighting child poverty, don’t mention housing costs

https://twitter.com/childpovertynz/status/569300522773188609

Chapple and Boston on the extent of welfare benefit fraud in New Zealand

What is more surprising about this honest disclosure of welfare  fraud to the Household Labour Force Survey of Statistics New Zealand in 2011 is  these welfare beneficiaries were so upfront about their criminal fraud.

These estimates must underestimate the extent of welfare fraud because some of these criminals would be aware that they should be slightly discreet in the company of any government official when discussing their eligibility for welfare benefits and any false information supplied in their claims for welfare benefits.

Some welfare cheats are alert to this  basic criminal skill and do not claim their benefit if called in to the welfare benefits  office for a reassessment of their eligibility. They don’t have the front to go near a government official while defrauding the taxpayer.

Yes, welfare fraud is a crime so people who perpetrated these crimes by obtaining welfare benefits under false pretences are criminals. If these criminals are caught, they are prosecuted for a crime and sometimes sent to prison.

HT: Muriel Newman

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