Category: Social Issues
The sudden resignation of Labour Leader David Shearer last Thursday has thrown the spotlight onto Labour Party politics. After just 20 months in the job, he decided to call it quits explaining that he no longer enjoyed the full confidence of his caucus colleagues. Some clearly believed he was not capable of leading the Party to victory in 2014.
Those with any interest in policy issues that matter to New Zealand’s economic future know that we have an ageing population; that there will soon be twice the number of pensioners as now, with bigger increases in the number of ‘old old’ with concomitant increases in health costs.
The welfare reforms that came into force this month have been described as the biggest changes to the benefit system since the original Social Security Act was passed into law in 1938. The underlying generosity of that scheme - which created a wide range of assistance measures including the Sickness, Invalids’, Unemployment, Emergency and Widows’ Benefits - is attributed as helping to keep Labour in power until 1949.
In the early 1990s the National government introduced welfare reforms that were met with enormous resistance and provoked a good deal of public sympathy for the plight of beneficiaries. The reforms featured benefit cuts which reduced most incomes by around 10 percent, with some losing as much as 25 percent.
In May this year, the Retirement Policy and Research Centre (RPPC) published a PensionBriefing: Census 2013 - shortcomings in questions about housing. It suggests that trends in home-ownership rates are less clear than many claim and may even have been relatively unchanged in the 30 years 1976-2006.
In her final speech in the House of Commons on 22 November 1990, the former Prime Minister Margaret Thatcher engaged in one of her more memorable exchanges with the Member from Southwark and Bermondsey, to explain that policies aimed at reducing the gap between rich and poor will result in everyone becoming poorer.
For fans of government largesse, the temptation of relative poverty rates must be irresistible. These rates reliably rise during periods of market-oriented reforms, and fall during periods of government expansions.
According to a survey carried out in 2010, New Zealand ranked first equal with Australia as the world’s most charitable nation. The World Giving Index, published by the Charities Aid Foundation used a Gallup survey of 195,000 people in 153 nations to assess the extent of charitable activities. It showed that 68 percent of New Zealanders had given money to charity during the last month, 41 percent had volunteered time, and 63 percent had helped a stranger.
Many of you will no doubt remember the Sanitarium advertisement from the 1960s, “Kiwi kids are Weet-bix kids.” During the long summer evenings you may have enjoyed a glass or two of Cabernet Sauvignon from New Zealand’s oldest winery, Mission Estate. Down in the South Island, during the day tourists will have had the thrill of a jet-boat ride on the Shotover River, courtesy of Shotover Jet. What you probably did not realise is that these apparently commercial organisations, operated by the Seventh-day Adventist Church, Marist Holdings (Greenmeadows) Limited, and the Ngai Tahu Charitable Group, have charitable therefore income tax exempt status.
As with overseas aid, such welfare programmes often do more harm than good. Instead of pouring funds into questionable schemes, governments should focus their efforts on lifting economic growth and creating an environment in which small business can flourish, since these are the only proven pathways for improving outcomes for the disadvantaged.
Loading ...
