Sunday, June 3, 2012

Poverty in New Zealand.


One of the biggest indictments of our current economic dogma is the number of people, in the worlds richest nations, living in poverty.

What comes first is POVERTY.

Poverty is what makes “breeding” for a living seem like a good option.
Poverty is what causes all the poor outcomes to the children of teenage mums.
Poverty is what causes people to be caught in a trap of continuing poverty.

We are never going to solve problems caused by poverty by making people poorer.

Social security and minimum wages that are so low, there is almost no chance of climbing out of the poverty trap, causes  the problems.

Abatement rates for those earning a bit of money while on social security are higher than those for millionaires.
A two tier education system is going to make escape from poverty even harder.

Low wages are not even good capitalism. “Businesses that cannot meet the costs of the resources they use should be allowed to fail, so others can make better use of the resources/labour”.
Every business paying low wages means there is little demand. Hurting all business.
“You should pay your workers fairly because they are the source of your wealth” Adam Smith.

Three decades of Neo-Liberal meanness is coming back to bite us. And the right want to make the victims lives harder.

A guaranteed minimum income, national super, has succeeded in practically eliminating poverty in the over 65′s. Less than 3% live in poverty, and that most likely is self inflicted.

If we are serious in eliminating poverty amongst children, 20% living in poverty, we would extend the GMI idea, that has been so successful with the elderly, to young people.

1 comment:

  1. The capitalist who invented the production line for cars also decreed that every worker in his factory should be paid enough to be able to afford to buy one of his cars, in effect, a living wage. Henry Ford would be shocked and appalled to see what his modern day equivalents do to their workers, and the shoddy pay that is considered to be acceptable compensation for labour.