Category: benefit

I don’t fully know how to feel so here’s some graphs

The day after the election I said “I’d be extremely surprised if it doesn’t turn out to be National-NZ First.” Well, I have the pleasure (I think?) of being able to say again: I was wrong.

I’m not entirely sure how I feel yet.
(I guess I’m happy? We’ll have to wait and see the content of the agreement and what the govt actually does. I hope the Greens demanded a lot and got it (this looks promising but we don’t have details or confirmation yet), and that Winston emphasised the 1/3 of him that’s like Sanders rather than the 2/3 of him that’s like Trump. There is real hope of climate action, more paid parental leave, faster minimum wage increases, reversal of the step-backwards pay equity law, adequate funding for health especially mental health, more support for students and some free education, repeal of national standards and charter schools, more affordable housing even if limited crackdown on speculation, adequately funding a full superannuation system in the future with the taxes future retirees are paying now, less poverty in families where adults are in paid work, and maybe even some benefit rises/humanisation.)

So instead of reactions or analysis I thought I’d do what I do best and make a couple of graphs.

Here’s the first one. It compares the votes received by the parties that ended up making up the government with the votes received by other parties who (a) managed to make it into Government and (b) plausibly might have banded together to form a government.1

votes for govt bloc vs alternative blocs

The takeaway from this is:

  • The 2017 government represents a majority of votes as well as a majority of seats. Under FPP, the government hadn’t represented the majority of votes since 1951. And even under MMP, governments don’t represent a majority of party votes every time (five times out of eight so far).
  • The alternative bloc (National & NZ First) would have been an even bigger majority: it got 1.29% more party votes than the bloc that formed the government. But this isn’t new. In 1996, the alternative bloc (Labour & NZ First & Alliance) got 4.42% more party votes than the bloc that formed the government. Both times NZ First chose what they thought was the best government bloc, not the biggest government bloc.
  • As I argued in my last blog, MMP creates monarch-maker situations more often than FPP because it more accurately reflects how people vote. As Winston pointed out in his reveal speech, neither National nor the Labour-Green MOU succeeded in winning a majority and king/queenmaking themselves. This left NZF able to make up a majority with either side. A lot of people don’t like kingmakers—especially when they’re people we don’t like, and especially when they don’t choose how we’d like. And I get it. But First Past the Post was worse. It artificially advantaged major parties and leads to disproportionate situations like 1978, 1981, 1984, and 1993 where the opposition bloc won more votes (often substantially more votes) than the government bloc but didn’t get the all-important majority of seats.

Here’s the second graph:

govt gender makeup

The takeaway from this one is pretty obvious.

Footnotes

  1. This means I’ve excluded other parties who might have liked to be part of a government bloc but they didn’t make it into Parliament (TOP, Conservatives, Christian Coalition, Legalise Cannabis, Values, sometimes Social Credit, sometimes NZ First, etc.). I’ve also excluded parties where it’s not plausible that they might have worked together: e.g. ACT with National and NZ First this time (they wouldn’t have been needed or wanted). I dunno if it’s plausible that Social Credit might have gone with Labour in 1978 and 1981 and National in 1984 because I don’t really know anything about Social Credit, but I’ve erred on the side of “who knows—maybe”. If we removed Social Credit from the numbers, the opposition blocs would be reduced. But still, in ’78 and ’81, Labour won the popular vote but National won a majority of seats. 
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If you support Labour, Green, TOP, Māori, or Mana: Party vote Green

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I wrote this post on Facebook and it’s got a bit of traction so I thought I’d put it here as well. (These thoughts aren’t unique to me: other people are making similar points.)

Most people intending to vote Labour, Green, TOP, Māori, or Mana probably have a reasonably similar idea of what we want our government to look like: more action on social justice and the environment, for example.

This post is an appeal to all those people to party-vote Green as the best choice for the government and Parliament you want to see—for the next three years and beyond.

(By the way, I’m not a Green loyalist: In previous elections I’ve party-voted Internet Mana, Mana, Green, and United Future.)

Here are my reasons:

  • The Greens have the best and clearest policy on the biggest issues that matter the most: halting climate change and ending poverty (though TOP, Māori, and Mana probably have better policy in some areas). Labour are pinching Green policies left right and centre, which is a good thing. In government, the Greens would lead and hopefully Ardern would follow.
  • The Greens need us. Based on the polling info we have at the moment, I’d say it’s at least 80% likely they’ll get back in, but it’s not certain—they need our votes. In contrast, Labour don’t need our votes, Māori and Mana need electorate votes more than party votes (though Marama Fox needs party votes so the Māori party would be my second choice), and TOP won’t get in, unless the polls are wrong to an unprecedented extent.
  • A vote for Green is a vote for an Ardern-led govt. But it’s a vote for more Green people & influence as part of her coalition, rather than more Labour people & influence as part of her coalition (or more NZ First people & influence…). Looking at the party lists, numbers 7,8,9,10+ on the Green list would be more effective advocates for the kind of government we want to see than numbers 44,48,52,56 or whatever on Labour’s.
  • Even if you prefer Labour to the Greens, do you prefer them 9x as much? They’re currently projected to get 9x as many seats. When your favourite party is surging so much, why not help their junior partners out a bit?
  • If the Greens underperform their polling a bit, they could go below 5%, and thousands of votes for an Ardern-led govt would be wasted. Depending on other results, that could be the difference between a Labour-led government and a National-led government. If Labour underperform their polling a bit, it would certainly affect things, but it wouldn’t have as significant an effect as the Greens missing out.
  • A Labour govt without the Greens (and preferably the Māori party) keeping them honest would disappoint most of us. Labour have a long history of disappointing the left. They’ve also achieved stuff for the left, but they do it when they’re pushed from the left, not when they’re pushed from the right. The exact same thing is true if you substitute the word “Māori” for “the left”.
  • Most important for me: A vote for Green this year is a massive vote of support for Metiria Turei and for beneficiaries, i.e. the poor, i.e. Jesus. (And imagine if it went down in history that when a party stood up for the poor in that way they were driven out of Parliament. I’d rather it go down in history that they did take a hit because of benny-hatred and Jacindamania, but they survived, formed part of the government, and helped lead it to a more compassionate policy for the poor.)

PS: The images at the start are from the We Are Beneficiaries group on Facebook.

I am so sick of this obvious lie, pt 2

Unemployment under Lab and NatAnother obvious lie too many National supporters believe is that Labour are bad for employment (because they raise the minimum wage too fast), and National have “solved unemployment” (because they’ve made it harder to maintain benefits):

National supposedly solved unemploymentkey labour anti jobs party

Now, it is true that Labour raise the minimum wage much faster, and that National cut welfare (in a recession!). But the unemployment rates have been more like the other way around,* and anyone suggesting National are better than Labour at keeping unemployment down is either believing or promoting a lie.

Actually, it’s a couple of lies… but they’re both obviously bollocks to anyone who’s spent five minutes looking into them:

LIE 1:

“Raisng the minimum wage reduces jobs”

TRUTH 1:

Sydney Morning Herald

new york times

Business Insider

CEPR 1

CEPR 2

DOL 1

DOL 2

treasury

As usual, Gordon Campbell says it best:

If, as Key claims, Treasury has done research that shows major job losses would result from gradual increases in the minimum wage, then this amazing information would be world news – because the vast weight of academic research around the world ever since the groundbreaking David Card/Alan Krueger work in the US fast food industry 20 years ago, is that it would do no such thing.

LIE 2:

“National have solved unemployment by making it harder to get the benefit”

TRUTH 2:

I’ve covered this before, and so have many others. Basically, kicking people off the dole (or DPB/invalid’s/sickness benefit) doesn’t magically put them into jobs; it just increases the number of people lacking either work or welfare (which has hit a record 110,000 since National’s bennie-bashing “reforms”). Creating a desperate unemployed person doesn’t create a job for them to go into.

This confusion arises from a basic failure to understand the difference between individual problems/solutions and socio-economic problems/solutions, as sociologist C. Wright Mills pointed out 55 years ago:

Mills quote

* It started to get bad under the Lange (& Douglas) Labour government, which was actually more like a Bolger/Key National government than a Labour one. Of course, just like with debt, things are more complicated than one graph could show.

PS: Graph and truncated y-axis from tradingeconomics.com; annotations mine.

Averages, intentions and inequality: more Key trickery

median vs mean

Graph from latest Household Incomes in New Zealand report; yellow and pink annotations are mine

John Key is being a Spurious George again. In explaining why he’d love to cut taxes for (mostly) the rich, but just can’t afford to yet…

Key pointedly said that when National took office the average wage was $47,000 a year but had risen to around $55,000 today, and was expected to climb to $62,000 by 2017. This was creeping towards the top tax bracket, where salary earners pay 33c in the dollar for earnings over $70,000.

“I don’t think it was anyone’s intention that someone on the average wage would be paying the highest marginal tax rate in New Zealand,” he said, echoing arguments National has been making in private for months.

Well, Mr. Key, it also wasn’t anyone’s intention for the incomes of the rich to rise so much faster than those of the poor, pushing up the average (mean) income to a level less than 30% of people reach. (Actually it was some people’s intention: right-wingers who think inequality is a good thing)

Key is trying to give the impression that the average (mean) income is the income earned by the person in the middle. But mean doesn’t measure the middle of the people, but the middle of the money; and of course the money is weighted towards wealthy outliers at Mr. Key’s end of the spectrum, who push the average up with their exponentially higher incomes.

A far more useful statistic is the median income: the amount that half the people earn more than, and the other half earn less than. This truly represents the average Kiwi. The median individual income is almost exactly $30,000 p.a. – just under the middle of the third-to-top tax rate band.

It’s actually getting more and more misleading to portray average income as a reflection of middle-income earners: As inequality worsens, the “middle of the money” (average income) is moving further and further from the “middle of the people” (median income). My eye makes it less than 10% difference in 1980, up to about 25% now:

Mean and median over time

Graph from latest Household Incomes in New Zealand report; yellow and pink annotations are mine

It’s also worth noting that the increased average income Key mentions has accrued almost entirely to above-median earners:

income changes recession and recovery

Graph from latest Household Incomes in New Zealand report; yellow and pink annotations are mine

Another problem with mean income figures is they hide inequalities like these and portray a boon for the rich as a boon for everyone.

I do agree in principle with indexing tax-rate thresholds (in fact, all thresholds… *cough*student loan repayments*cough*) for inflation, but Key’s trying to use that principle as a smokescreen for more tax cuts to the rich, spinning this as a release for the average NZer from crippling over-taxation, which is not true on any level whatsoever. Taxpayers between the median and mean incomes actually pay the lowest proportional tax:

Salmond Fig 8-2-01

Graph from Rob Salmond; yellow and pink annotations are mine

And in the context of a supposedly progressive tax system it’s the rich who are really best off:

“At very low incomes, New Zealand’s taxes are a little above the OECD average … But for high incomes, our overall “tax wedge” … is the lowest in the developed world.

Our tax system asks too much of those with little, and too little of those with much.”

This would only get worse under National’s proposed 2017 tax cuts.

In any case, if Key is really worried about too many NZers in the top tax bracket, there’s an obvious solution: Implement a new top tax rate(s) for the super-rich, like most similar countries have:

income taxes NZ aust
income tax UK france
income tax US

Soooooooooo: whatever people’s intention about who should be on the top tax rate, it’s clear John Key’s intention in referring to the mean income, rather than the median, is to mislead (or perhaps he simplify misunderstood statistics in a conveniently misleading way, as with child poverty at the last debate). Sadly he’ll probably largely achieve that intention.