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
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:
The takeaway from this one is pretty obvious.
- 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. ↑
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.
Here’s how I’m voting this time, and – more likely to be useful for you – the resources I used to make my decisions.
- It’s Our City’s suggestions about who to root for and who to root out. If you read nothing else, read this.
- Generation Zero ratings on 5 environmental issues
- Gap Filler’s candidate questionnaire (To be honest I didn’t read much of this. Too long!)
- Other bloggers’ thoughts (James Dann, Puddleglum, Steven Cowan, Sam Johnson)
- Answers to questions on vote.co.nz
- Who voted for Marryatt’s pay-rise (see my previous blog)
- Party/group affiliation (see my previous blog)
- Their spiels in the voting book
- Individual research into the individual candidates (this takes the most time. My previous blog comments on a few I’ve taken interest in)
Mayor (pick one or none)
Councillors – Fendalton-Waimari ward (pick up to 2)
Community Board members – Fendalton-Waimari ward (pick up to 5)
Canterbury District Health Board members (rank as many/few as you like, up to 26) (Updated 9/10/2013)
7 are elected but your votes are almost guaranteed to be transferred further down your list, so it’s worth ranking at least 12 if you can bring yourself to do so. I’ve ranked 25 to give my votes the maximum chance of contributing to anyone but Keown (see below).
- Paul McMahon (preventive health, mentions health inequalities, highlights wider causes of (un)health, community development/youth health experience, supports living wage for all, supports free public dental care in theory, part of the Anabaptist network, People’s Choice)
- Heather Symes (health practitioner, focus on vulnerable people, sympathetic to public dental care, supports living wage for all health workers and lower CEO salaries, signed Nurses Organisation pledge, People’s Choice)
- Oscar Alpers (focus on vulnerable people, public health not health insurance, People’s Choice)
- Adrian Te Patu (health practitioner, community/public health experience)
- George Abraham (health scientist, campaigning on free public dental care, wants to look after ‘less privileged’)
- Jo Kane
- David Morrell
- Anna Crighton
- Chris Mene
- Sally Buck
- Steve Wakefield
- Alison Franklin
- Drucilla Kingi-Patterson
- Andrew McCombie
- Wendy Gilchrist
- Tim Howe
- John Noordanus
- Margaret McGowan
- Andrew Dickerson
- Beth Kempen
- Murray Clarke
- Keith Nelson
- David Rowland
- Robin Kilworth
- Tubby Hansen
Unranked: Aaron Keown (Only attended
one two full Health Board meetings in 2012 but still picked up a cool $26,000 for his troubles. Tries to go where the populist wind blows, but occasionally reveals his true colours as an ACT member and Marryattophile who called quake victims whiners.)
Disclaimer: Fine, I admit it. I linked to the Bryce Edwards post 78% for ego reasons. He mentions me!
“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.
When I wrote my last blog on child poverty, I was planning to follow it up with a critique of ousted ACT leader Rodney Hide’s Herald column where he made the bold claim that there is no child poverty in New Zealand.
I was going to make all sorts of jolly yet incisive points about how I’m actually quite fond of Rodney (something I can’t say about more recent ACT leaders), but that he’s revealed an embarrassingly out-of-touch and simplistic understanding of poverty as a mere lack of money (“All kids are poor. Children typically don’t own much beyond a few toys”, “Poverty can’t be the cause … Liver … costs 70c a serve”).
I was going to point out that not everyone has grown up in the Protestant-work-ethic-Northern-European-stockpiling-rationalising-individualising tradition that he and I have, but that the economic system that’s been imposed here is set up to favour people with these values and shaft everyone (and everything) else.
I was even going to say that, despite all that, I’m considering trying out his suggestion of boiling up bones and getting a stew going for my lunches. Anyway, I didn’t get around to writing this blog, and now Hide’s “let them eat liver” column is old news.
Still, I think it’s worthwhile to address the most important point – the idea that poverty in New Zealand is ‘only’ ‘relative’ poverty and therefore isn’t ‘real’ poverty. Hide points to one common measure of poverty: living on less than 60% of the median wage. In Hide’s mind, all child poverty statistics can be summarily ignored, because this measure doesn’t measure what (supposedly) really matters: how much money the country has overall.
I suppose this poo-pooing of statistics is what enables Hide to state with a straight face that it’s the welfare state’s fault that kids go hungry, despite the fact that the child poverty figures began to skyrocket precisely when his friend Roger Douglas began to roll back the welfare state in the 1980s.
But this idea isn’t just touted by extremists living in a libertarian fantasy world; deputy prime minister Bill English used this very notion as an excuse to dismiss the Child Poverty Expert Advisory Group’s recommendation to set child poverty reduction targets, claiming that “such a relative poverty measure made no sense as it did not show how rich or poor people were in absolute terms”.
But hold on a second. Even if we go along with Hide and English and ignore the Advisory Group’s other poverty measures such as material deprivation or access to GDP growth, there’s something pretty fishy about such an easy dismissal of relative poverty, a.k.a. inequality.
This ignores a whole host of research showing that ‘relative’ inequality absolutely does matter. The book The Spirit Level compiles some of this research to show that unequal societies with high ‘relative poverty’ like New Zealand have significantly worse statistics for life expectancy, literacy and numeracy, infant mortality, homicide, imprisonment, teenage births, obesity, mental illness and social mobility than more equal societies – across the whole society, not just for the ‘relatively’ poor. Even though inequality or relative poverty is relative, it causes real, solid, objective, material, absolute damage.
The truth is that we’re relational beings, so it shouldn’t be surprising that how we’re doing relative to each other affects us – but neo-liberals indoctrinated into the “no such thing as society” philosophy seem to forget this.
Hide and English assume that what really matters is the ‘absolute’ matter of how much money people have. But since when was money ‘absolute’? Money only has meaning insofar as we give it meaning to represent the value of goods and services, and to say that this person can access this much goods and services, while that person can only access that much. In other words, it’s only meaningful as a relative measure; relative to real stuff and real power in the real world, and relative to how much stuff and power others have.
So, when Rodney Hide licks his lips about a “windfall that doubled all incomes” but “wouldn’t budge the child “poverty” figure”, that’s exactly the point. Doubling all incomes wouldn’t change what those incomes are relative to; it wouldn’t create any more resources. Inflation would soon ensure that each dollar was only worth half as much, so nothing would have changed at all. Poverty and affluence would be exactly the same as before.
Of course, if this ‘windfall’ was localised in New Zealand, it would give us relatively more access to resources than other countries; and that’s what National mouthpiece David Farrar, who endorsed Hide’s column, says we should be aiming for: “In these times of huge global economic uncertainty, the focus needs to be on economic growth, not [equality, which Farrar conflates with] increasing tax and welfare.”
But The Spirit Level shows that internal economic equality is far more important than economic growth for improving conditions in developed societies. Perhaps it’s because we care more about how we’re doing relative to people around us than about being even more relatively rich on a global scale than we already are.
So the fatal flaw of this spurious neo-liberal argument is that it absolutises the relative; money, while relativising the absolute; inequality.
Bill English and his government are repeating this error with devastating consequences by calling the real suffering of real children ‘merely relative’ while treating economic growth as the absolute to which all else must be sacrificed (and it isn’t even working).