A different approach to the wealth crisis

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When just 1% of the people of the world have private control of, and benefit from, more than half the world’s wealth then we have a profound wealth crisis which is a threat to human rights and democracy. In fact, it’s an existential crisis for humanity. 

The wealth crisis is deepening year by year and, even in the richest countries, the lives of those without wealth has descended into conditions where they are no longer able to take a respected, meaningful role in society. It means those who are still able to drive for change to end this crisis have an ethical and moral responsibility to do the job.

First we must accept that those who enjoy the economic and political influence such wealth provides have no collective appetite to end the crisis. 

Second we must also accept that our dominant political parties, which depend on political donations from the wealthy, will never of their own accord be prepared to push political policies which deal effectively with the crisis. Politicians are focused solely on staying in power and for them it means keeping on side with those who benefit from the wealth crisis. 

Third we must recognise that politicians and political parties themselves never bring progressive political change. Progressive change comes from politicians being pressured for change by political movements. The current Labour government for example will never lead political change to sort out the wealth crisis. Believing otherwise is delusional. Labour, like National, is an obstacle to change.

Lastly it follows that only a broad, well organised people’s movement will be able to end the wealth crisis. The good news is that people in this country have shown they can build such movements to drive political or social change. We have a rich history which includes, for example, the campaigns to give women the vote; ending our involvement in the Vietnam War; forcing the government to adopt anti-nuclear policy and homosexual law reform; ending rugby contacts with apartheid South Africa; increased political power and representation by women in all areas of life; progress in stopping the theft of Māori land through the Land March and in places like Raglan, Bastion Point and Ihumatao and just this week the DocEdge documentary celebrating the successful OHMS campaign (Organisation to Halt Military Service) which pushed Labour to end conscription for military training in 1972. 

Instead of relying on earnest and unsuccessful pleas for politicians to act on the wealth crisis we need a people’s campaign to end the rule of the oligarchs and their political enablers.

There are positive signs that such a broad movement may be developing in the various proposals for a fairer tax system. Let’s get behind these initiatives and begin the struggle to crush the wealth crisis.

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76 COMMENTS

  1. Is there anyone on this planet that seriously believes that Elon Musk’s wealth sits idle in a bank somewhere.

    • Just because his wealth is not all immediately available doesn’t mean he cannot access it if need be. Sick of all the right wing bullshit about not having liquidity – just sell one of your assets and ‘ta da’.
      Most lefties are aware that he and those of his ilk have more money than they will ever need. Despite Mr Geko thinking it was a good thing in Wall St – Greed is not good – it is antisocial. Those who support it (either intentionally or otherwise) are also antisocial.

  2. Would that it were so, John! Where do you see evidence of a developing “broad movement” to create a fairer tax system? All I see everywhere are signs of division rising, as people focus on identity politics and moronic symbolic changes that do no one at all any good. Wanting to be seen as a victim is rampant among the middle class, especially the young. But there is a lack of real sympathy or desire to do anything to lift the living situation of the poor, the true victims of an economy shot to hell. Where are all those houses Labour promised to build? No, no, let’s more tightly regulate how we raise chickens so that the price of eggs triples and there are shortages. Better stop, I’m starting to ramble, as I ponder the alienation, the division, the lack of compassion and the inaction. Seriously, John, please tell me where you see signs of a movement growing?

    • There are a number of movements looking at the tax system right: EcuAction Otautahi, Action Stations, Tax Justice Aotearoa.

      Frankly farming of chickens ought to be regulated the conditions in which these creatures lived was appalling!

    • it’s been pointed out time after fuckin time mjh the chicken regulations had a 10yr lead in. I’ll repeat that 10 fuckin years for producers to prepare…but this being NZ they did nothing so who is the current egg crisis on —the egg producers but they don’t care higher prices for less eggs will still buy a new ute.

      • Poultry farmers were always going to continue the lowest cost method of egg production until the last minute. No surprise. The egg crisis seems to have resolved itself. Eggs now cost more to produce and consumers pay more to sleep at night without miserable caged hens appearing in their dreams. Chooks in paddocks good job.

    • The middle class of NZ see themselves as poor. In some respects they are as you can easily work a 60 hour job and not get ahead here. But hardship in 2023 seems a lot different from what was considered hardship just a generation ago.

      More concerning is the amount of people who have never worked and feel they are victims, while getting free or subsidised housing, free health care, free welfare, free energy, free food parcels, free child care and even free supermarkets now and so forth, while telling the rest of society to work hard and give more.

      Benefits were supposed to be designed to help people who needed it as they could not get a job or were disabled.

      Now many are better off not working because the benefits have risen while wages are stagnant and we have ghost jobs that are (paid for) rather than paying an employee. Thus they can surprisingly never get anyone local!!!

      The problem is, going forward we are going to have a lot of high needs but completely unproductive people who have driven off all the workers fed up with it all – they also have plenty of time to sue and make complaints if service is not as expected. Meanwhile people are leaving jobs like nurses, police officers, doctors, teachers, or reducing their hours. Why bother, nobody is really thanking you in government.

      Who is going to look after all the high needs now? It is not just about money, there literally are less and less people who want to work a long stressful job than those who want to be a crypto trader, immigration advisor, sole parent on DPB (vs paid work sole parent), pensioner or influencer.

      • “The middle class of NZ see themselves as poor”

        Its an interesting proposition. Not disagreeing. In relative terms, yes, your neighbor living in the postcode across town is always going to be better off. And across the other end of town genuinely struggling to stay afloat. I don’t know of any city where this isn’t the case, and probably has been for eons. But without doubt modern capitalism has exacerbated the disparity.

        INV, part of the thinking of the so called middle class is tangled up with media saturation. We are all surrounded by it. The lifestyles of folk better off – often the very well off – are in your face 24/7, more so than ever. Comfortable affluence has become the promise of capitalism, but its a kind of a manufactured reality. A bit like reality TV. Simply, some people are better off than others, for any number of reasons. For some in the middle class, perhaps those without the benefit of a few years behind them to reflect on the choices they have made, the goals they have aimed for, if they perceive their own circumstances don’t match the promise of comfortable affluence, well, they start to think they’re hard done by. But yes, sometimes justified if you’re the working poor. Noone in NZ should be working 60hrs a week just to make ends meet.

      • Sorry this is long – but we have all been thinking for so long, can we define, refine, distil those thoughts into tentative proposals and then consider them and act while there is a ‘window of opportunity’ – woo not whoops!
        A lot of generalisation and disapprobation about non-workers.   I think we need a post here from someone who knows all about that background of the unemployed and unemployable.   Can we  have discussion here from those well-versed in the facts, (not just observers or theoretical do-gooders)?

        I use the terms lettuce-leaf and toy-shelf when thinking about the unemployed.  First, people are organic, they are sensitive beings, they feel emotions connected to their living.  Like lettuce leaves that will wilt when shut out of jobs, rejected, or faulted for errors or laxness when started in a job;  lettuces dry up or go slimy in time, so do people.   Then there is the toy shelf approach to workers.   When employers want to play (use them) they want to reach up and see what’s available, wind them up and off they go. 

        Immigrant workers  or AI aren’t needed, just a rational methodical educational approach to teaching life skills and work, leading to self respect.  Starting at college level with work experience placements but also time spent self catering in units at school as part of education away from home, this would lead to basic self-reliance, confidence and pride.

        People need regular work and pay and personal life, need a time for training, need mentoring to some extent – even setting reasonable time limits and standards for the job and giving a word of praise when done right.   And when they stay on the job when unemployed friends are travelling to a concert somewhere, it will be because of hope for advancement, for a rise after each year’s work, for certificate for new skills gained;  so encouraging stability and longevity.

        I would happily contribute to ideas for a new approach  to unemployment.   I feel that John Minto’s idea for a new movement of the people, for the people, should start up whereby people with useful knowledge and interest form groups within the whole and put ideas together about how to improve the present set-up and present these ideas to the others, who will have joined their own interest-groups.  

        We aren’t getting anything helpful from gummint, just the reverse.  They have all had their vision clouded by worrying about the frills in life, while neglecting the basics and the spirit of the country while all the time we are overshadowed by menacing machines of various sizes, exponential climate change decimating our built and natural environment, and cruel people who are thinking up a new deadlier holocaust.   

        I once again quote Lord Rutherford (who was well-known for making use of objects around him when needing gear to test simple ideas).  His rallying call about money has no definite source but this sounds like him, “We don’t have much money therefore we must think.”
         
        We would aspire to his working camaraderie and effectiveness.  “Rutherford was ever the happy warrior – happy in his work, happy in its outcome, and happy in its human contacts.”
        Sir James Jeans, 2nd Jan 1938.
        and
        “I have always been very proud of the fact that I am a New Zealander.”  Sir Ernest Rutherford, 1925.

        https://www.rutherford.org.nz/msquotes.htm  
        (This is a rich source of information about Rutherford.   Let’s make NZ worthy of him again.)

        • We need to return to a local industry based approach. Importing everything cheap has changed our society for the worse. We are a country with a want mentality not a need, a country where our people have a sense of entitlement about them. Building and making our own will restore pride in us as a country and this is not a new approach to employment but an approach that served us well during the 60’s, 70’s, 80’s and 90’s.

  3. Personally John I have no issue with wealthy people.

    But I agree they should be mandated to give back to the community with profits somehow if they do not already.

    As a business owner I have a policy of 20% of profit must go back to the community which is done by wholesale to NPA’s.

    • While it is good to see your own generosity. Do you seriously think that some people should have ‘vast’ amounts of money and some have not enough to live on.

      • Vast – what is vast? Just want to be sure we are talking the same quantities.

        Some absolutely work their proverbial off and deserve every cent – I have no right to remove a cent off their work ethics.

        Many fail by choice to be fair on the haves and have nots.

        However, many may not have choice – hence why I like ‘community’ more than govt.

        Mandate 20% of all business’s to give back directly to their community – I think them being directly involved is better than Govt taxing all in between. Even rebate the GST on it?

        I don’t have many answers but I won’t judge all by one brush.

  4. Hey John, all those campaigns you’ve cited as successful examples of what could be achieved by organized movements of people – none of them actually cost any individuals or New Zealand any money to bring about. So they were cheap for governments to agree to.

    • All of the Maori causes cost the government, they had to give back land that they/we owned, some of it prime real estate.

  5. While your comments are good I remember reading Animal Farm about 50 years ago in school & the line “some pigs are more equal than others”. I agree that we need a better government that represents all the citizens. However, unless you can change people’s hearts, the same problems will emerge since most of those seeking public office have private ambitions along with whatever public service motives they claim.

  6. A breakdown of links with the international labour movement seems to have been the major factor in the total collapse of the local left-wing organisations.

    Working-class demoralisation would be expected after such heavy defeats (and repression), but that doesn’t explain why the big socialist organisations would disappear entirely — and why local workers weren’t being sent to cut their political teeth in Paris, London, Berlin, etc.

    It also doesn’t help that the most motivated simply leave the country.

    • Perhaps it’s the case that the international labour movements, the local union leaders, and the big socialist organisations all had their leaderships taken over by highly educated knowledge workers – who then decided they actually had more in common with the other knowledge workers in finance and government ministries, than they did with the unskilled and skilled workers.

      In short, leading those organisations became just one job in a career, instead of a righteous cause.

      • Ada I think you’ve hit the nail on the head. But the new union leaders wouldn’t do that! – they don’t do physical work no more. Too upwardly mobile. Leave the workings to the cable guy.

    • Well there is some truth in that, but a class analysis of New Zealand gives a guide. This is a settler nation formed on a colonial takeover, land grabs, Red coat armed force and subordination of the indigenous population. There has always been a large petit bourgeoisie and “man alone” self employed reality and attitude. Unionism was at 50% before the Natzos union busting 1991 Employment Contracts Act reduced it to barely 20% today including the public sector.

      Class collaborationist leaderships like the NZCTU and American AFLCIO queer the pitch also. New generations of unionists are arising such as at Amazon (just) and Starbucks, young worker led movements not entrenched time servers.

      40 years of Neo liberalism across the OECD countries has seen indeed “the atomisation of the working class”, precarious work, contracting out and the primacy of individualism over collectivism. In the “old days” internationalism was definitely a thing. Thousands of NZ workers over the years travelled the globe for working class solidarity purposes–to China, USSR, Eastern Europe, Cuba, Nicaragua, Europe, UK, and even USA…but they did.

      It is down to the new gens and their allies now.

    • Capitalism around the world. Western business found it easier to offshore jobs for low wages and no conditions or get migrants into western countries for much lower wages.

      We now have the capitalists that benefited from that divide in labour in countries like India and China who are now wealthier in many ways and can buy up citizenships, assets and real estate around the world.

      Not sure that capitalism is about identity which was the straw man on migration that the lefties fell for.

      More regulation of international taxes and wages need to be balanced because if you can pay someone 50c an hour with no working conditions and no welfare system, then it doesn’t make sense to pay $22 p/h and have working conditions and then have everything free like health care and super – that the offspring of those wealthy migrants can also receive very easily by buying a student, entrepreneur or working visas.

      All that happens is that services become overloaded and a case bought to make them user pays. NZ is full of high wealth but no/low income people who then can assess NZ welfare while living in million dollar mansions and driving high end cars. This is a huge failure of our welfare system with few able to defend it against the woke, ravenous rampage to give NZ welfare away, as fast as possible.

      This make people who are supposed to be wealthy (but tend to just be in jobs like being a doctor) in the firing line for more taxes, so more and more professionals are discouraged from working in NZ in so called high paid careers. It is better to be a drop out, influencer or just work the system while living the high life.

      Taxes should be about promoting minimum standards aka 15% of corporate taxes at the minimum of revenue and no ‘IP’ costs being used to make a laughable tax take in countries that still have free welfare and services (but not for much longer with amount of people who seem to be able to freely partake in it without being born in the country, living in the country or paying proper taxes in the country).

      It is laughable that the lefties are still worried about top income taxes when the biggest corporates and richest companies in the world are paying 10% if that.

  7. no one on this planet is going to tax that 1%, but the enablers of the 1% will happily tax you and me on the unrealized gains of the houses that we lived, paper gains that were made during covid and before when every single council/government increased the values of our houses by essentially doubling them without any person having even offered that much money to buy the property. We are all just owners of debt. And we are supposed to take a tax on our debt – cause wealth – serious. lol.

    You would need a new form of thinking, and sadly the human species is as predatory as it always was, some are owners, some are handmaids, and handmaids like to think that they too can become owners if they are just ruthless enough.
    Currently we have parliament full of handmaidens to the 1% and they are doing their jobs well enough.

  8. The Kiwi rich don’t need taxing, they need investigating. Martyn Bradbury wrote here on TDB recently that there are now 14 multi billionaires and 3118 or so, give or take, individuals with $50 million plus EACH.
    The question should be how? A fair days pay for a fair days work? My hairy arse! Taxing the bastards would simply launder their ‘activities’ because they will almost certainly have the IRD in their pockets. Only honest people fear the IRD.
    14 multi-billionaires. 3118 individuals with $50 mil each. AO/NZ’s population @5.2 million. A farming economy derived from exporting. Homelessness, poverty, kids living in cars with their parents, four rapaciously greedy foreign owned banksters running inflationary house price rackets… We need a public, royal commission of inquiry, we need to become accustomed to telling our politicians what they must do rather than us being hypnotised into standing by while meekly watching on as the politicians we vote for then pay to act in our best interests please themselves.

    • Hell yeah Battlefield Earth.

      We had a commission of inquiry into really wealthy peoples tax ‘irregularities’ ages ago in the mists of the time of the late 1980’s, following the scandal of a random guy stumbling across a bunch of floppy discs when he bought a 2nd hand computer which contained damning evidence of tax crimes by some very wealthy NZ owners and leaders of really big companies of the time. He eventually handed the stuff over to Winston Peters. It was in the news for ages.

      The commission of inquiry enquired into these complex financial transactions of wealthy NZ business leaders who had quickly availed themselves of the opportunities provided to them by a fully deregulated financial market in the great 1980’s NZ era of deregulation and privatisation of everything, and they got super rich. They hired the smartest accountants and lawyers to figure out how to move your money operations all over the world, creating shelf companies, trusts etc, all the time paying no or fuck all tax here or there.

      We citizens learned from the outcome of ‘The Winebox Inquiry’, undertaken by the IRD, that these people and their companies, who rorted us for unpaid tax amounts equivalent to the entire amount of like what we might spend on health or education, passed some subtle tax law test and they were found to be doing tax ‘avoidance’ not tax ‘evasion’ – one is illegal and one isn’t ok, do we get that citizens? (I forget which is which) The poor old super wealthy! They’re not criminals. Nothing changed.

      Then a couple of decades later in 2016, we got the ‘Panama Papers’ and surprise! AO/NZ isn’t the main feature, but we still feature majorly, as a super convenient and easy peasy place to set up a company, pretty much a tax haven for the extremely rich, good for money laundering, hide your trust funds kind of a place to do business, don’t need to pay any tax here or in your own country. https://www.lawsociety.org.nz/news/publications/lawtalk/issue-896/new-zealand-foreign-trusts-and-the-panama-papers/

      MSD relentlessly pursues debt recovery from the poor and vulnerable, and we let these rich tax avoiding criminal gangsters get away with their white collar crimes. So fuck yeah, we need to change the rules and tax the rich.

  9. 1% controlling and benefiting from more than half the world’s wealth does indeed represent an existential crisis for humanity. I agree. But equally, its the 10%, the extremely well-healed who also benefit. The professional managerial class if you like. Arguably they have earned their relative wealth – a good many opportunistic crooks but also a good many smart and savvy individuals who have stepped up to become the engineers, surgeons and the like. And, arguably 50% of folk are doing ok, thank you very much, employed although not necessarily happy in their work, on the property ladder perhaps depending where they live, most certainly some discretionary income (although with current interest rates for some that’s getting considerably less). Globally of course this is not the case. Inequity and poverty are not the same in every part of the globe: what do they say, so many people living on less than $10 a day, or less, and a good many simply starving with no roof over their head. That’s the real existential crisis for humanity! Much of it we don’t see, or somehow it simply doesn’t register. That reality is not our own.

    But closer to home, growing disparity in wealth surely causes our own issues, equally, an existential crisis. Housing getting too expensive for an increasing number of younger folk, even though they are earning, heating and food becoming unaffordable for those already stretched or on fixed incomes. But I would argue that 50% are doing ok. Perhaps more. Depends on where you live I think. The bigger picture might well be a growing existential crisis but the 50% of modest means don’t live in that reality.

    So, John, while I agree completely that for those who enjoy the economic and political influence obscene wealth provides have no collective appetite to end the crisis, I would broaden the proposition to include the difficulty of getting even those of modest means on board with equitable change, let alone the well-healed 10%. Where’s the appetite for these folk? Yep, some will have an active social conscience, of sort, and a good many will pay lip service to transformational change, but short of social revolution personally I can’t see much happening in this space any time soon. And you’re right, history shows it comes from the bottom up. In 50 to 100 years it may well happen – exacerbated by any number of additional existential crises.

  10. Any attempt to tax the wealthy more in this country will just see them move elsewhere. The cognoscenti is already planning their exit should Labour be reelected. Not just the (relatively) wealthy but workers in their prime from professionals to tradies. We will be poorer without them.

    • rightard trope but like landlords selling up it never happens does it….we’re a soft touchwith a regulation free enviroment. andrew

      • There may not be a mass sell off, but how many are Airbnbs now? How many are just kept empty? Why do we have a rental crisis?

          • I’m not whining, I really don’t care. Plenty of whiners though. People can do what they like with their own property, to protect their assets & maximize the returns.

            • Yeah NC and that’s the core reason we are up to our necks in shite now. Please update your book on how to be wealthy and have nobody notice that you are not following the supposed rules, drawn up supposedly for the good of society/economy and financial speculators.

        • how by exporting their profits to investment funds,don’t pay tax, refusing to invest in NZ and stoking the property market….yup thank the lord for ‘wealth creators’ and we are rapidly heading toward the 3rd world with their massive contribution to NZ, stone age can’t be far off bob the last.

          I just wanna say PWC etc have the same grip here as they do in OZ so dirty dealings can be expected…why do the govt employ what is clearly a criminal conspiracy…might as well get in tony soprano and do the job properly

          • Bob boy is still in the stone age if he believes the definition of wealth is purely money. Clearly not loved as a child( and judging by his idealism, we can see why)

                • Countryboy if that is you under the longer name, you are settling into dementia picking on Bob. Don’t be a widgeon-pigeon. Come back here, put down your points of disagreement in numbered lists saving time of long background. And find one thing you approve of. Just saying. You give us good ag info.

                  • I love the attention afforded me it shows I’m making an impact.
                    Copying my comments the ultimate flattery.

  11. Concentration of wealth has been proven to be all but a myth as before the pandemic there’d never been greater wealth redistribution in the western world economies. Now, it is different. However, that is because employers were encouraged to retain staff during the crisis and needed cash in order to be able to do so. We had closed borders world wide.

    Going forward there is really not the necessity to unduly tax the wealthy much more than what they currently are taxed. The main aspect would be to close all the tax loopholes which sees the rich legally avoiding paying their fair share of tax. Then over time I would imagine a rise in the top rate of Company Tax might be feasible; perhaps also an additional tax such as an Asset Tax or a Comprehensive Inheritance Tax; there’s also other taxes that could be contemplated such as a Mansion Tax, a Financial Transactions Tax, or a tax designed to target complex legal entities such as trusts and business subsidiaries.

  12. I am afraid there will always be poor people unless the cycle of people who live in poverty having children and not taking advantage of the free education that is offered to improve their lot . There are people who cannot work due to physical our mental health. If we could filter out the freeloaders then there would be more to help them inprove their standard of living. Just taxing the rich will not solve the problem if the extra income leads to more living off the state .

    • As Sun Tzu said: “Do not reinforce failure.”

      We hand a large chunk of our taxes to these people, and they give us nothing but trouble in return.

      • Sun Tzu would look at our economic system, a a failure. Picking out those missing out and calling them drones is not the strategy he would concentrate on.

        The Chinese could and can do so many things better than we can. Perhaps we could learn to mould statues like them, faces with personality – not like Roman busts.
        Google Sun Tzu for an extraordinary facial image in stone?

        And here is more for the Mr Creosotes hoovering facts.
        While looking up the above I came across Clausewitz’ notion of total or absolute war. Could that be what
        General Eisenhower was warning the USA against?
        Total war is essentially a war in which the home front (that is, a state’s political system, society and economy) is mobilised to a massive degree for the continuation and expansion of the war effort—it implies the subordination of politics (internal and external) to the goal of purely military victory (a notion that …
        Absolute war – Wikipedia wikipedia.org
        https://en.wikipedia.org › wiki › Absolute_war

    • Trevor the free loaders are a tiny tiny minority, do you know how little people get and what they have to survive on after they have paid rent etc.

    • “If we could filter out the freeloaders then there would be more to help them inprove their standard of living.”

      I get that you want to filter freeloaders, the people who inherit wealth and don’t work, but who is the them?

    • Beneficiaries are, in a sense, monitored so that if they are work ready but aren’t willing to work, their benefit is canceled for thirteen weeks and they have to reapply with a detailed plan of how they are going to obtain employment.

  13. The US empire has got that under control.
    They’re crashing the global system with debt contagion, war(s) and hegemony.
    Whilst in it’s death throws it
    still tries to prove it’s the top dog.

    When it fails completely. We will all be equals.

    Amene.

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