Grant writes off Max Rashbooke’s book, and indeed all concern about inequality, as “the zero-sum fallacy; the idea that there is a set amount of cash in the economy.”
This is one of the worst straw man attacks I’ve seen in a while.
In fact, Rashbrooke et al understand better than our government that money is a relative measure, only meaningful insofar as it represents access to wealth/resources. It doesn’t matter how much total cash there is in the economy… what matters is:
a) how much resources/wealth there are in the economy, because that’s what determines how big the pie is.
b) how much cash you have in relation to others, because that’s what determines how big or small your slice of the pie is.
Total cash doesn’t affect the pie at all (if it did, Zimbabwe would be the richest country in the world).
Total cash and total resources are not ‘zero-sum’ phenomena. But percentage of access to cash and resources is (that’s the whole point of a percentage – it always sums to 100).
Rashbrooke (and, like, actual evidence and stuff) are concerned with inequality because when one person’s percentage of cash goes up, someone else’s ability to access available resources necessarily decreases. And when that’s too unequal (even when the pie’s huge) it causes numerous health and social problems across the whole society.
Grant is the one guilty of a fallacy: the idea that money is an absolute, not just a relative measure; so if there’s more total money in an economy, that automatically means there’s more wealth/resources available to people. This is more than just a fallacy, it’s a properly religious phenomenon – idolisation of money.
Post-script – extra responses to a few of Grant’s stupidest comments
“There’s no evidence that rising social and health problems are a result of income disparities.”
I’m actually astonished to see this much wilful blindness, even in corporate media. Huge amounts of research – very widely available – offer compelling evidence that inequality causes many social/health problems – from murder to community breakdown to high teen pregnancy rates. A journalist doing their job would acknowledge this evidence even if they disagree with its analysis. Grant doesn’t indicate whether he disagrees, whether he’s ignoring it, or whether he doesn’t know it exists … he simply says there’s “no evidence.”
The fact that the next sentence peddles an evidence-free stereotype (“Poor people get diabetes because they eat junk food, not because Sir Peter Jackson is rich.”) is the icing on the bullshit cake.
“Key to the inequality fantasy is that New Zealand is a neo-liberal rich-man’s paradise but the facts do not support this. Bill English said… [bla bla bla] Half the population are net beneficiaries.”
He goes on to uncritically parrot Bill English’s dishonest press release that I addressed a couple of blogs ago. If Grant was doing his job as a journalist and applying some critical thinking, he’d realise English’s figures show the opposite of what he claims.
Grant thinks workers should be grateful for being “net beneficiaries” of state assistance… grateful for a situation where their subhuman wages mean they don’t contribute much to the tax coffers, let alone to their own families, and Working for Families subsidises their employers to keep paying these sub-human wages. How much more grateful should the rich be for being “net beneficiaries” of a system that facilitates and supports such grossly unequal wealth?
“Economic growth is driven by innovative entrepreneurs adding to the total economy. They sometimes become rich by retaining some of the extra wealth they created.”
I don’t even know where to start with this statement, except to note that it’s pure ideology. He equates economic growth with ‘wealth,’ ignoring the fact that economic (GDP) growth doesn’t just include productive, wealth-producing activities, but destructive ones like crime, pollution and credit card debt. And he simplistically suggests ‘wealth’ is created by “innovative entrepreneurs,” rather than by the contributions of all workers; those who’re given the opportunity to utilise their creative/innovative skills, and those who aren’t.
The next sentence, where he uses a doctor as his archetypical example of a rich wealth-creating entrepreneur, reveals his ideological assumption that the rich become rich by doing good for the world. A better example of the very highest income earners would be a currency trader who makes much more than a doctor by producing nothing, just manipulating pieces of paper and numbers on computer screens.
Later in the article he again waxes lyrical about how much wealth the rich create, and how grateful we should be for their work. He also mentions how hard-working they are – predictably failing to provide any statistics linking hard work to high income. In fact, income and wealth distributions are way out of proportion to how hard people work… (unless the richest 1% percent work 10-16 times as hard as the average NZer).
“Poverty has many causes, welfare dependency amongst them, but blaming the hard-working for the failings of the indigent is not a solution.”
Grant is doing even worse – blaming the hard-working poor (like people working two jobs cleaning toilets on minimum wage to feed their families) for their own poverty. Despicable.
Finance Minister Bill English conceded that the Government would like to have had more New Zealand investors than the 62,000 and a higher share price than $1.50.
But he blamed in no small part Labour and Greens’ energy policy, accusing them of scaring off mum and dad investors from Mighty River Power and Meridian because of their policy to control wholesale power prices.
“They set out to sabotage lower income New Zealanders doing it. Unfortunately they’ve had some effect.”
So Bill English (yes, that’s the deputy prime minister, not your ignorant workmate) thinks poor NZers can afford to buy shares, and the only reason they aren’t buying shares in what we used to own together is that Labour and the Greens “sabotaged” their investment plans by “scaring them off.”
The most obvious explanation is that he’s trying to contort the embarrassing failure of the asset sales into being somehow the opposition’s fault.
A more worrying possibility is that he actually believes what he’s saying. This is, after all, the man who wrote off child poverty as merely “relative.”
70% of National supporters don’t know anyone who’s unemployed, so what are the odds the National deputy leader knows any “low income New Zealanders”?
As Robert McAfee Brown put it: “who we listen to determines what we hear; where we stand determines what we see.”
(Re. the title: I’m happy to be corrected)
NZ’s political parties
at the 2011 election now updated for the 2014 election, according to PoliticalCompass.org
“It’s actually a very clear decision for New Zealanders. It’s sort of centre-right versus the far left.” – John Key today
Coming from the most right-wing prime minister in NZ’s history, this is the height of dishonesty and hypocrisy.
More likely, the next Labour government will be centrist or centre-left… still considerably to the right of traditional Labour values yet hopefully a genuine alternative to the neo-liberal inequality consensus of the last four Labour/National governments. Cunliffe has gone on record acknowledging that this neo-liberal inequality experiment has failed our economies and our people.
Meanwhile, Key, a long-time architect of this failure, is still drinking the neo-liberal Kool-Aid… dogmatically pushing National’s far-right, anti-democratic, economically idiotic, ultra-capitalist inequality ideology as far as we let him get away with.
Key, with his loyal servants in the corporate media, will attempt to claim the ‘centrist high ground’ and whip up McCarthy-esque hysteria about Cunliffe. For the second time in Cut Your Hair history, I’m advising: set your bullshit detectors to maximum.
The endless popularity of the Key government represents everything that’s wrong with post-modernism.
John Key is completely unphased by passé modern phenomena like expert opinions and statistics.
Statistics say he’s not fulfilling pledges to catch up to Australia, let alone those 170,000 jobs he promised … but Key is more interested in his own personal subjective experience of “many Australians” wanting him to “go over and be their Prime Minister”. Well shucks, when you put it that way, why are we wasting so much time and money on the drab modern rationality of statistics and research?
Experts highlight the racist undertones of Key’s constituency … but Key, ever the post-modern relativist, chimes in with the inexorable subjectivity of all truths that impact badly on his government: “Racism is subjective.” (Just like poverty is ‘merely relative‘).
Those pesky experts have been at it again this week… Current New Zealander of the Year Dame Anne Salmond joins the Law Society and the Human Rights Commission in raising alarm about the “assault upon the democratic rights of New Zealanders” that is the GCSB bill currently being rushed through Parliament.
Salmond says “When a body as authoritative and dispassionate as the Law Society feels forced to report to the United Nations that the Government in New Zealand is acting in conflict with the rule of law, all New Zealanders should be very worried.”
Don’t they realise that we enlightened post-moderns are skeptical of so-called experts, authority and dispassionateness?
And, like Paula Bennett before him, he’s given the Human Rights Commission the same treatment. Never mind that they’re worried enough to use their rarely used right to report directly to the Prime Minister. He doesn’t even care enough to note the difference between this report and a select committee submission!
In these post-modern times, the Human Rights Commission are just another bunch of irrelevant experts that can be safely ignored and even de-funded because Key and Co. know NZers won’t get off our couches about it.
I’ve said the popularity of this government represents what’s wrong with post-modernism. But Key’s cynical manipulation of post-modern subjectivity is only part of the problem.
The other side is the apathetic population who swallow this hollow ‘post-political’ ideology because we like his smile, or wish we too could go from Hollyford Ave to multi-millionairehood, or submit to the lazy self-fulfilling prophecy that we can’t change anything … or simply don’t care about anything beyond our personal experience as individual consumers.
As John Key himself said in 2007, “A quiet, obedient, and docile population; a culture of passivity and apathy; a meek acceptance of what politicians say and do – these things are not consistent with democracy.”
Sleepy Kiwis’ casual surrender of democracy is the chilling confirmation of this truism. We are turning Key’s words from a prophetic warning to a Machiavellian political strategy. And we will reap what we sow.
Have you noticed that every time someone confronts National with a statistic showing that things aren’t going well (it’s happening increasingly often), they have the same cryptic response? They feign disbelief, and reveal that according to “The figures I’ve seen,” or “the numbers [Key] had seen,” or “The advice his government had received,” or “some of the other indicators,” exactly the opposite is true!
Whatever this alternative information source is, it has such a powerful effect on the government that they were “very surprised” that unemployment rose again last month. According to the information available to the rest of us, of course, this is no surprise – it’s been rising all year. But apparently when you have “the information WE’RE seeing”, the job market is “jumpy” or “bouncy” or “grumpy” or some other anthropomorphic euphemism to render statistics, truth and accountability completely meaningless.
So, I’m really curious to know: What is this mysterious “information WE’RE seeing” that the government are getting their ideas from?
Or these – National Party Pills?