All’s right with the world according to the latest release from Labours spin machine
We’re committed to making New Zealand the best place in the world to be a child. The work we’ve done so far to boost families’ incomes and lift children out of poverty has resulted in improvements across all nine child poverty indicators, and 2022 will see further changes come into force to help whānau make ends meet and ensure more children can get a great start in life.
The Labour Party’s New Year’s message cries out for a reality check. How does not having enough money for food square with being the best place in the world to be a child? Food banks through the Christmas period report distributing food parcels on a massive and unprecedented scale. The demand is not magically going to stop in the New Year, and furthermore a wave of back to school costs will just intensify the unsustainable pressure.
As the figure CPAG provides from the official data shows, progress on child poverty under Labour, even before Covid was not the transformative poverty reduction we were promised. The red part of the figure shows the numbers of children in severe poverty have barely budged- there should be zero under this line.
But the official data is always two years out of date. While the latest figures are unavailable we know from the social sector and harrowing media stories that the last two years of lockdowns has been particularly hard on families and children.
In “Tackling the big issues in 2022” we are told, no worries, help is on the horizon.
In April, for families with children, main benefits will increase by $15 per adult per week. An additional package of improvements to family support will also come into effect, with boosts to Working for Families payments, including the Family tax credit and Best Start, lifting the incomes of nearly 350,000 families by an average of $20 a week.
Let’s analyse that. The $15 extra per adult beneficiary should have been made last year. In the name of saving the state money, the time on inadequate benefits has been prolonged pushing up family debt. The state may have less debt but families have more.
The claim of an increased $20 per family Working for Family payments includes the periodic inflation adjustment that is obligatory under the legislation once cumulative inflation exceeds 5%. Families have waited 4 long years for the acknowledgement of this slide in their spending power. The real increase is just $5 extra per child in Working for Families payments will make little difference.
The 160,000 children in families in the red zone (below the very lowest 40% after housing costs line) will still be drowning without a lifeline. These children are denied the full Working for Families package of at least $72.50 a week, saving government around $500m a year. Their parents are often sick and face soaring rents or live in squalid temporary motel accommodation. Debts to the IRD and MSD are increasing with many fearful of seeking relief from work and income knowing support has to be repaid. Hunger is widespread.
Many other children in low-income families where there is paid work and incomes exceed $42,700 gross will find now the state wants them to repay more of their WFF tax credits back with an increase in abatement from 25% to 27% when they earn a little extra. That change was pushed through the House under urgency and contradicts Labour’s concern about work incentives. The mess of effective marginal tax rates that can exceed 70% over long income ranges has been swept under the carpet.
At the same time many New Zealanders are getting fabulously wealthy in a sustained speculative housing boom. Balance sheets of the top end of town have never looked healthier. The very wealthy live in a parallel universe, most oblivious to what is happening unless the lack of low paid workers to service their lifestyles inconveniences them.
On misery street, years of not having enough income has reduced household assets and increased debt – something that the current framework of child poverty reduction income targets renders invisible. A few dollars more per week will not solve the accumulated problem of diminished family balance sheets, real transformation is needed urgently.
So far the signs are that we can look forward to more spin and self-congratulations from Labours well-oiled machine in 2022, while deep and desperate family poverty entrenches a large underclass that portends ever increasing social unrest and polarisation.
Fifteen bucks – several years after they slapped on additional tax on fuel – two taxes for Aucklanders and implemented policies that have driven up rents enormously. That’s not winning in anyone’s book!
But let’s be honest, in order to win 50% of the vote all they have to do is appeal to the 50% of the population with below average IQ. 😉
Well that’s not going to work, the dummies all vote national and act!
The hard times have only just begun for the vast majority.
Just wait a few more months and see what declining oil availability, higher energy costs, rampant devaluation of money in the system [due to excessive ‘money-printing’ by central banks], declining capacity to produce food [due to planetary overheating and environmental collapse] and social breakdown bring.
Meanwhile, people like Jacinda Adern will continue to amass personal fortunes at the expense of everyone else. The figure currently talked about is $22 million acquired by Adern since she became PM, but it’s probably a lot more than that by now.
“Let them eat cake” [if they have no bread].
The only really interesting political question is: how much longer can the criminals and clowns that constitute political parties hang on to power, and how much more deceitful and vicious will they become in the pursuit of personal gain at the expense of everyone else?
Fascism (the melding or corporate and government interests backed up by force) already rules, and we should not be surprised to see anyone who disagrees getting ‘annihilated’. It has always been so whenever psychotic sociopaths gain power.
We have had excessive money printing in the world for well over a decade now. What makes you think that devaluation will happen now as opposed to anytime since money printing became a thing back in 2008?
Now don’t get me wrong, I am on your side, but unlike you, I believe that the criminals and clowns are actually in the process of consolidating power rather than losing grip of it….
{We have had excessive money printing in the world for well over a decade now.}
Over 400 years more likely. Ever since the days of the goldsmiths.
I am no fan of Jacinda and her government but I would like to see how she amassed this fortune you talk about . When you accuse some of sculduggery of this level you need to produce facts as there is not way it could occur honestly . You sound very much like the antivaxers
Well said Trevor/Joseph. I’m okay with people making statements with proof, not ” it’s there in front of you” hyperbole. The figure currently talked about is a discussion I’ve not heard of or read anywhere, who talks about it, where did it come from?
“Jacinda Adern will continue to amass personal fortunes at the expense of everyone else. The figure currently talked about is $22 million acquired by Adern since she became PM”
Please elaborate if you are one of the few who know the truth?
The biggest issue of our time is Covid and everything that is resulting from it. And i am not talking about the virus. Everything, absolutely everything, pales in comparison.
(facepalm)
True.
I tend to forget that all the governmental measures used to fight the biggest crisis we have ever faced are welcomed and are welcome to be set in stone for life, by some people. Lockdowns, divisive mandates, endless scanning, passports to participate in everyday life. Perfectly fine. Ditto the suppression of freedoms, liberties, rights, protests and free speech under the guise of – keeping us safe. I forget, that for some people, all of these things – keeps them safe and happy.
Well … If reading this Daily Blog offering doesn’t convince readers to NOT VOTE LABOUR next election (if there is one) I don’t know what will!!
It dismays me no end that so many folk that I speak to are simply ignorant of TRUTHS that shout out to us that “Saint Jacinda” is not an answer to anything!!
I didn’t vote “for her” & never will (although philosophically I’ve been a socialist life long (in my 80s now).
How so many NZers don’t see through Jacinda makes me think that too many NZers don’t know the history of our country even to a hundred years ago (or they’re lacking fundamental intelligence!). I’m glad I’m unlikely be here to experience it being repeated!
Adult poverty.
Family poverty.
And that’s all there is. ‘Child poverty’ is a convenient, broad sweeping and despicable euphemism used by neo liberals to divert attention from the low wage economy first introduced by roger ‘scam’ douglas, carried on by ruth ‘starve the bennies’ richardson and then left in the safe hands of helen U.N clarke and later on endorsed by john ‘tax haven’ key and his finance minister bill ‘dipper’ english and now, – jacinda ‘I feel for you’ Adern. After enriching themselves by selling off our state assets to foreigners and buying shares,…There are no buckets big enough to contain the amount of vomit I could pour all over these treasonous liars.
I suspect that the real increase in inflation is much higher than declared and that in reality it’s a pay cut. The cut will be felt most by the deprived children.
Excellent article.
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