Category: business

Miscreants

restartcartoon

The earth turns, the grass grows, the Press publishes articles with zero analysis or respect for human dignity.

Capitalist society marginalises young people, complains about marginalised young people interfering with the smooth running of capitalist consumption, and thinks the solution is to scapegoat them and hide them away.

Let’s drive away the intimidating, anti-social, miscreant capitalist system from our city centre/world.

Advertisements

Inequality is equality

inequalitygraph4

Well, I didn’t intend two blogs about Bill English in a row, until I saw this press release, where he cynically manipulates statistics to try and show that inequality is equality. English claims the tax system has become “more progressive” since National’s 2010 tax changes, because a higher proportion of income tax revenue is coming from the richest earners.

He’s ignoring one rather important point about income tax: You pay a lot of income tax if you earn a lot of income.

It’s not surprising that the top 12% of households (and 6% of individuals) are paying proportionately more income tax than they were in 2008, because they’re earning proportionally a lot more money. (The above graph shows the top 10%’s incomes rose from about $85,000 to $100,000 from 2008-2011, while the median income stagnated at about $30,000).

Simply put, the rich are contributing a bigger slice of the tax pie because they’re earning a bigger slice of the income cheesecake. This is not something to be happy about, and certainly doesn’t mean taxes are more “progressive.”

Let’s go back to high school for a sec: A progressive tax system partially offsets inequality by taxing higher incomes proportionally more than lower incomes. Income taxes are typically progressive (e.g. Bill English’s $297,400/yr is mostly taxed at 33%, while his toilet cleaner’s $14/hr is mostly taxed at 17.5%). Sales taxes like GST are flat (15% across the board), but in practice regressive, because they take up more of the poor’s incomes than the rich’s.

National’s 2010 tax changes made tax more regressive – the lowest income tax band (under $14,000) dropped 2%, while the top band (over $70,000) dropped 5%. Company and investment tax dropped too, but GST increased. Basically, in a time when tax needs to get more progressive to help combat inequality, National gave tax cuts to the rich instead.

Nothing about NZ’s rapid slide to inequality, this pro-inequality government‘s policies, or the statistics English misuses can possibly be called “progressive.”

Politics without politics – a local election guide

Progress without PoliticsPhoto from David Small

We have a week and a half to send in our votes for local body elections and then a few days later we’ll have a dramatically changed city council. Quite an exciting time, but the main barrier to informed voting seems to be that most candidates are doing their utmost to portray themselves as being non-party-affiliated and sometimes even ‘non-political.’

For some reason, this phenomenon seems particularly strong in Christchurch – Wellington have a Green mayor and Labour candidates.

I guess candidates want to cash in on cynicism about politicians, and appeal to our lazy post-modern ‘post-political’ ‘post-ideological’ political ideology. But it does make it rather hard to tell what they’re actually standing for, when nobody really follows local politics, and then all we get from the candidates is vague billboards and a paragraph of meaningless platitudes.

I’ve been looking into what lies behind these meaningless platitudes. Here’s what I’ve found out – four quick questions I think are worth asking:

1. Who voted for Marryatt’s pay rise?
2. What do the parties mean?
3. Who are the independents?
4. How about the mayoral candidates?

1. Who voted for Marryatt’s pay rise?

The seven right-wing councillors who voted for Tony Marryatt’s $68,000 pay rise won’t hold the balance of power anymore after the election – Bob Parker, Sue Wells and Barry Corbett are stepping down.

But the other four are standing again – Jamie Gough and Claudia Reid are standing for I-Citz in Fendalton-Waimairi, and Ngaire Button and Aaron Keown are standing for City 1st in Shirley-Papanui. There’s been some helpful billboard adjustments to remind us of who they are.

Gough is grovelling and asked to be forgiven, pleading youth and inexperience. $538,529 probably doesn’t sound like too much to a member of the Gough family… I guess he didn’t realise how pissed off everyone would be.

Anyway, hopefully voters haven’t forgotten how pissed off we were. James Dann is predicting two of the four will make it back – hopefully it’s less.

2. What do the parties mean?

I-Citz (Independent Citizens) ≃ National

I-Citz are “in essence, the local body version of the National Party.” Their typo-riddled website boasts of formal independence from national political parties, and National officially don’t dabble in local politics (see John’s comment below). But I-Citz’ candidates are all right-wingers such as the aforementioned Jamie Gough, Helen Broughton (who’s taken a better stance on Marryatt than her I-Citz colleagues) and conservative blogger John Stringer.

The People’s Choice = Labour

People’s Choice (formerly Christchurch 2021) was founded by Labour Party members in 1995. They’re open about their connection to Labour on their website.

The current People’s Choice councillors (Yani Johanson, Jimmy Chen, Glenn Livingstone) seem to have done pretty well from what I’ve heard.

City 1st ≃ National/ACT

A new spin-off of I-Citz and the now-defunct City Vision, City 1st try harder than the other parties to act like they’re not a party. I challenged them about this on their Facebook page and while Ngaire Button responded, she didn’t give me a good explanation of what makes her party not really a party. There were a few more comments today, but before I got a chance to read them, they deleted the whole thread and seem to have disabled all comments on their page. Thankfully I was paranoid enough to expect this and save some screenshots.

Anyway, Aaron Keown stood for ACT in the 2008 general election, while Button appears generally right wing and stood for I-Citz last time.

Saying the names of these ‘independent’ parties with a Sean Connery accent seems to make them more accurate.

A ‘network of the like-minded’ ≃ ??? Greens ??? Student Volunteer Army ??? Gap Filler ??? A Paradise Built in Hell ??? Well-meaning yuppies ???

I learned today that apparently four other council candidates are standing as a loose alliance – Raf Manji, Vicki Buck, Ali Jones (more on them below) and Erin Jackson.

They’re not using shared branding and they don’t have a group name, but they know each other, agreed to stand in four different wards, and seem to be into the same kind of things: participatory democracy and budgeting, environmental sustainability, community collaboration, ‘e-democracy’ and social entrepreneurship. All four are endorsed by It’s Our City.

They’re arguably just as much of a party as the others, and perhaps a lot of the same criticisms I’m making to City 1st apply to them too. But I think they’re a more genuine alternative to ‘party politics’ than City 1st – they seem to have a quite different view of how to do democracy. They also seem more genuinely bipartisan – they seem keen to work with Dalziel as mayor, and they seem more left than right, but not in really a traditional sense. But they’re enthusiastically endorsed by the right-leaning Sam Johnson, who’s not standing this time but he’s amongst their group.

At least, this is the impression I got from the one not-very-critical article I read. I’m not sure how reliable that article is (Gen Y? Really? Vicki Buck was mayor when Gen Y-ers were born). Seems interesting though.

3. Who are the independents?

The best way to find out about unaffiliated independents seems to be to google them and see what they’ve done before, and check if they have blogs etc. I can only comment on a few…

Fendalton/Waimairi: Raf Manji seems an intelligent guy with his finger in a lot of pies. My impression was that Faimeh Burke is most famous for her husband, Sir Kerry Burke, a former Labour MP and one of the ECan councillors the government dumped in 2010 (but see Jean-Luc’s comment below).

Shirley-Papanui: Ali Jones is a prominent critic of EQC and advocate for claimants. Jono Corfe is the quizmaster at Chch’s best pub quiz.

Riccarton/Wigram: Vicki Buck is bringing herself back (yet sadly without taking great pun opportunities). She was a popular (independent) mayor from 1989 to 1998 and since then has worked in clean energy and set up Unlimited and Discovery One schools.

4. How about the mayoral candidates?

Lianne Dalziel = Labour

I almost forgot to the mention the mayoral race, because it seems to be in the bag for Lianne Dalziel (but please nobody mention seismic shifts). Dalziel is running as an independent but she’s been a Labour party MP since 1990 (she’s stepping down to run for mayor). Since the earthquake she seems to have battled for the people of Christchurch better than most local MPs, particularly for her Christchurch East electorate. It’s a shame she won’t get a chance to take Gerry Brownlee’s job when the next Labour government gets in. But I think she’ll make a pretty good mayor, particularly if she follows through on social housing promises.

A fun fact about Dalziel that you won’t read elsewhere: as an idealistic teenager just returned from Cambodia, I e-mailed every MP and asked them to sponsor me for the 40 Hour Famine. Lianne Dalziel was the only one who did – she sponsored me $40.

Paul Lonsdale ≃ National/Business

Dalziel’s main competition, Paul Lonsdale, is best-known as manager of the Central City Business Association, which meant driving the youths away from the Hack circle before the earthquake, and managing the Re-Start container mall after it. He thinks political organisations should be run like businesses rather than political organisations (so he’s moving in the opposite direction to the ‘post-corporate’ democratic ideas of Manji et al).

Following a familiar theme, Lonsdale claims to be “completely apolitical,” but all his friends seem to be National Party/I-Citz members, and he thinks we need to work alongside Brownlee et al rather than challenging them. He also thinks dumping ECan democracy and selling council assets makes sense.

Pathetic justifications for pathetic wages

slavery minimum wageWell, they’ve passed the youth rate bill… Certain workers aged under 20 can now be paid at 80% of the minimum wage; a pathetic $10.80 per hour before tax. This comes a month and a half after a living wage was calculated to be about $18.40 per hour.

One thing I’ve noticed from the Facebook arguments I get myself embroiled in… Every time a debate comes up about the minimum wage, somebody makes the same tired point: if you raise the minimum wage too high, employers won’t be able to afford to provide jobs any more, or people with no skills will be priced out of the market, or workers will be costing employers more than they’re earning them, etc.

That’s of course true, but all it shows is that that the minimum wage CAN be too high, it doesn’t show that (or when) it IS too high.

You can’t just point out that sometimes a minimum wage can be too high and conclude that NZ’s minimum wage in March 2013 is too high (or as high as possible).  That’s not an argument, that’s just pure ideology without anything linking the theory to the present real life situation, therefore it can have no bearing on the present real life situation.  An argument would need to demonstrate that this theoretical danger is likely to happen at current wage levels, here and now… using research and evidence from here and now.

In fact, the evidence shows quite the opposite.  In the terse words of Treasury: the fear about minimum wage increasing unemployment “has not been true in the past. The balance of probabilities is that a higher minimum wage does not cost jobs”.  Increases in the minimum wage have not increased unemployment in recent history (if anything the relationship is the opposite, though it’s not a causal one: minimum wage has been kept low and unemployment pushed up by poor economic conditions and neo-liberal economic policy).

If we accept that it is desirable to have a minimum wage, we accept that it should be high enough to provide a decent living, without being so high that it reduces jobs.  The only matter for debate is where the balance is.  The Living Wage research indicates that our minimum wage is currently failing to achieve that balance, but the problem is not that it’s too high for employers to pay, it’s that it’s too low for workers to live on (and, by the way, John Key agrees).

Now the politicians are struggling too?

tremain comic mp pay

“Should the nation’s wealth be redistributed? It has been and continues to be redistributed to a few people in a manner strikingly unhelpful.”
– Kurt Vonnegut, Timequake, 1997.

Just like every summer, the Remuneration Authority has announced a back-dated pay-rise for MPs, and just like last summer, they’re claiming that we should actually be feeling sorry for politicians, because their pay is rising slower than average wages, and certainly slower than inflation.

This spurious justification completely misses the point that in the worst financial times since (arguably) the Great Depression, those who are earning at a luxury level – and can live without some of their excess – should be asked to sacrifice more than those who are struggling to make ends meet.  Still more so when they are so-called public servants whose pay is symbolically significant.

Unfortunately, it seems that the current government’s stance is pretty much the opposite of this principle – they’re willing to protect a tax system that’s “very generous” to the rich and an environmental policy that’s compassionate towards polluters, even if it means they have to claw an extra $2 from poor people’s prescriptions.

All pay should rise by the level of inflation by default, but as long as politicians are earning more than 99% of their people, they should willingly exempt themselves from the right to a pay-rise in these difficult times, as Hone Harawira has done the last two years.

Better yet, surely this economic climate is a pertinent time to rethink the ridiculous salaries and perks politicians, CEOs and other high-status personages receive?  Underlying the Remuneration Authority’s crude proportionalist argument is the assumption that what everyone earns is what they deserve, but the numbers are making that assumption less and less plausible.

Un-elected public service executives’ salaries are even worse than those of elected politicians, and in the private sector, worse still.  Over the past ten years we’ve had very healthy economic times and then we’ve had a recession, but one thing has remained consistent: CEO salaries have continued to grow and grow, and are getting more and more out of proportion to workers’ pay.

We all know this, so why do we tolerate it?

Bosses’ salaries and child poverty are two of the most extreme symptoms of inequality, which is at an all-time national high.  In order to fix either poverty or excessive salaries, we’ll need a massive mindset shift: we’ll need to stop pretending inequality, poverty and excessive wealth aren’t problems, we’ll need to put to death the delusion that people automatically deserve whatever pittance or fortune they receive, and we’ll need to develop an of the causes and effects of inequality.  And we’ll need to gain more control over our workplaces and government, so that we can attempt to halt the banal and relentless redistribution of our wealth into the hands of a few.

emerson comic dpb mp pay