LET'S NOT SQUEEZE THE NUTS OF THE VULNERABLE

Now here’s an interesting article:

“Beneficiary with children had benefit cut by half for seven months” [STACY KIRK, stuff.co.nz]

Hmmm.  And here’s another:

“Christchurch tetraplegic man disgusted after benefit slashed without warning” [CATE BROUGHTON, stuff.co.nz]

Oh, whoops, and here’s another:

“Marriage to US pensioner cuts Kiwi's pension to $80 a week” [CATE BROUGHTON, stuff.co.nz]

You’re seeing the picture about now I guess.  You have to wonder, why are so many of these stories hitting the New Zealand news right now?  Well, this is Election Year 2017 here in New Zealand, and we go to the polls on 23 September.  So, the main reason these stories are hitting the news now IMHO, is that the opposition Labour Party are using such stories as electioneering.  It’s a little cynical, but frankly, this current right-wing government in New Zealand needs to be severely taken to task on this issue.

And the issue is this: there are vulnerable people in this country who are not being given the help that they need.  The issue is real, and it is not confined to the people referred to in the articles above.  My own experience was entirely consistent with that.  

Now, the “Comments” sections in these stuff.co.nz articles are always fascinating reading.  These are comments that readers can add to the foot of the article, and multiple comments can build up quite an interesting debate.  Of course, there are a few comments from ill-informed, right-wing hacks that decry the radicals.  These hacks say that the issue of benefit cuts is NOT an election issue, and it is to do with our benefits department, WINZ (Work & Income New Zealand), only.

Oh, but it is an election issue.  And here’s why.

It’s fair to say that the culture and policy at WINZ is defined by the government of the day.  And these stories, above, show that there is currently a culture and a policy of trying to scrimp money off our most vulnerable people.  As you can deduce from the articles, the problem is systemic, when previously it was not under the Helen Clark Labour government.  Therefore, it is – at the very least – recent government policy.  So, the logic is that this current National Party, right-wing, heartless government is trying to claw back money from those who need it most.  So, rather than raise the tax rate at the higher income level, it is preferable for this government to target the vulnerable instead.   

All because the rich don’t like paying tax.

It would perhaps be justifiable – if immoral – were the National Party to be honest about the current policy at WINZ: “Well, our rich friends and sponsors – the ones who really support us, not the moaning, middle-class mortgage whores – want us to reduce their tax burden.  Rather than spend money on those who need it, we’re trying to rape and pillage every penny we can from social services, so we don’t have to raise income tax on our wealthy mates.”

But no, instead we see this spin from John Key; “… you can measure a society by how it looks after its most vulnerable”.  John Key was our previous Prime Minister who resigned suddenly, left to holiday in Hawaii and gifted Bill "Dull" English the leadership.

From what you can gauge in the articles above, Key's words are in complete contrast to what his government has ACTUALLY been doing over the last nine years, since those utterances.  Make no mistake; just because Dull English has taken over the reigns, that attitude and policy towards beneficiaries was formulated under Key and continues under English.

Call me old-fashioned, but I thought the definition of a civilised society is that the Haves look after the Have-Nots.  A civilised society does not demonise the vulnerable and deny help to the needy, as this right-wing government constantly does.

All because the rich don’t like paying tax.

Remember, remember, 23^rd September; you have a choice, New Zealand.  You can continue to vote for a party that squeezes the nuts of the vulnerable.  You can continue to vote for a party that is morally bankrupt.  Or not.

FURTHER READING:

"Under the line: Impact of poverty on children's health" [SAMANTHA GEE,  stuff.co.nz]

"Cristiano Ronaldo appears in court on tax charges" [Richard Conway, BBC Sports News]

"The (not so) wonderful world of WINZ" [CLAIRE BROWN,  stuff.co.nz]

"New Zealand's welfare system is no longer a functioning system, experts claim" [JOHN EDENS,  stuff.co.nz]

John Key  “you can measure a society by how it looks after its most vulnerable”.

https://www.nbr.co.nz/article/john-keys-first-speech-national-party-leader

SOCIETY BENEFITS

Now here’s an interesting article;

 

“Canterbury's mental health funding to be cut” [ASHLEIGH STEWART, stuff.co.nz, 16  February 2016]

And here’s another  . ..

“11,000 disabled children lose welfare benefit” [NZ Herald, 19 March 2015]

Aaaannnd another  . . .

“Benefits cut for 13,000 parents in new regime” [Simon Collins, NZ Herald], 23 October 2013]

Starting to see a pattern?

I had the misfortune to have to go to a Work and Income New Zealand (WINZ) office recently to secure a particular allowance for someone.  I have to add that this was only because I was thrown off the phone by WINZ’s automatic phone system that didn’t have enough capacity for its “customers”;

“I’m sorry, but our lines are all busy.  Please try again later …  [beep, beep, beep]”

So I’m at the WINZ reception desk, and I go to hand in a form that is signed by a doctor and another relevant health professional.

Receptionist; “Have you been with us before?"

Me; “Me? Yes, but not for many years.”

Receptionist; “Then you need to fill in this form and make an appointment.”

Me; “Why?”

Receptionist; “Because you’re applying for ‘Extra Help.’”

So I had brought in, what I thought was, a simple two-page form completed and signed by a GP and another health professional.  That wasn’t enough.  A 28-page form (yes, honest - 28 pages!) was thrust in my hand and I was told to go away and come back another day.  I’m not even going to start on why the quake-traumatised person's allowance I was advocating for should have been easy.  It wasn’t.  It's suffice to say that eight years of a right-wing, National government were in absolute clarity at that moment.

I felt sick, heavy and dizzy.  Everything slowed down . . .

I took a deep breath, held it for a moment, then breathed out slowly and looked around at the “customers” in that office.   I didn’t see any stereotypical scruffy dole dodgers with their tin cups out to beg.  No drug addicts, drunks or half-starved dogs. The people in there were all quite smart, respectable and the place was deathly quiet.  The one unifying factor that all the visitors had, was the same look.  In fact, a lot of people in Christchurch have that look now.  All the visitors in that WINZ office had the look; stressed, tired and “I don’t really want to be here.”

Eight years of a National government, and benefits – any benefit – are extremely difficult to secure.  Eight years of a National government, and you have jump through hoops to receive what you’re actually entitled to.  But of course, eight years of a National government has made “entitlement” a swear word, hasn’t it?  The greed of the National Party's sponsors and supporters have ensured that every drop of social service is squeezed to alleviate the government's screaming debt crisis.  I mean, God-forbid we raise income tax at the higher end to maintain a civilised society,  right?

You know, as I stood in the queue and looked around, I didn’t see any bludgers.  Next time you're passing a WINZ office, go in and have a look yourself. Spend some time in there and take in what you see.  

See what I saw.  

I saw a lot of vulnerable, desperate people, asking for help.  

But they weren’t getting it.

All because the rich don’t like paying tax.

WHAT PRICE LOYALTY, NEW ZEALAND?

Now here’s an interesting article:

“Made in NZ - do you buy into it?” [Nikki MacDonald, Stuff, July 2013]

I de-based myself today.  I went lower than I ever thought it was possible to go.  No, I didn’t buy instant coffee.  Worse; I bought a bottle of Australian wine.  

Now, here in New Zealand, buying Aussie wine is a bit like an American buying an AK-47.  It’s not yet a crime, but it’s pretty bad, eh?

Before you grab your torch and pitchfork, here me out: I bought on price.  The simple fact is that Australian red wines are – by and large – cheaper than our own wines here in Godzone.  As I was looking at the expensive NZ wines, I thought to myself for the first time, “What loyalty do I owe these companies?”

When I was growing up in the UK, I remember the advertising campaign that seemed to run for years; “British goods mean British jobs.”  This was a reflection that cheaper goods were starting to filter in from Taiwan, Japan and China.  The reality was that – to pay British workers a fair wage – British goods were more expensive than those from the Far East.  And we accepted that in good faith.  Indeed, it’s still a wonder today, that Chinese factories can exploit their workforce to the degree that a Chinese worker can roll a car off the production line for the cost of a bowl of rice.  That is the economic reality in China.  But Chinese workers don’t have the same protection ours do; Chinese factories don’t have the rigorous regulation, employment or Health and Safety regimentation that the West does, so their cost of labour is far lower.

So if we consumers are being fed messages to Buy New Zealand-Made, why am I struggling more and more every year - as an earning employee - to afford those New Zealand goods?  Why am I not feeling the love?

Let’s come back to the economic conditions here in NZ – compared with Oz.  Goods bought here - even NZ-made - are often more expensive than abroad, including Australia.  Is it because our wages are too high?  Are we being paid a fair wage?  Well, Australian workers continue to outstrip us in terms of wages, despite their downturn.  Indeed, over the last 30 years, New Zealand wages have hardly risen at all in real terms.  This means that our ability to keep up with the rising cost of goods actually falls shorter every year.  And yet, our productivity continues to soar!  If there is ever a Case Study for exploitation, I think it’s here in New Zealand.  In other words, we are working harder, longer, and for less money.  It's little consolation we're not alone.

If New Zealand wages are so low, why are NZ goods so damned expensive here?  Milk is an obvious one after wine.  Our wines are good - exported around the world - but we’re the international HUB of milk production.  And the reason for that is that it costs less to make milk here; cheaper water, cheaper wages, and relatively cheaper land.  Yet, it’s dearer to buy a litre of milk here than in most European countries!   

I'll tell you why that is.  It’s because price has NOTHING to do with cost-of-production.  Price has everything to do with our willingness to pay.  Yes, yes, yes; basic economic theory tells us that profit = sales – cost, so price depends on that equation.  However, if the customer isn’t willing to pay the price, the theory falls over.  If it costs $100 to make the widget, but the customer will only pay $1, then widgets aren’t made.  However, if a widget costs $1 to make, and the customer is willing to pay $100, then you can bet the customer will be charged $100.  It might not be fair, but that’s capitalism.  So if we are going to be charged more for NZ milk and NZ wine, how far should our loyalty stretch?  Frankly, there are some large and high-profile companies here in New Zealand, pulling on our heartstrings.  They pull out the “Loyal” card – but they ain’t givin’ back.

Let’s look at the theory of NZ goods keeping NZ jobs.  Well broadly, that’s still a truism today – but it’s not quite as “true” as it once was.  NZ corporates focus on “productivity” – "We need to be more productive," they cry.  But, if we are more productive, we actually do ourselves out of jobs!  We HAVE been more productive - and our continued broad increased productivity means less jobs across the NZ economy!  However, the statistics continue to show that we are not seeing the benefits of our productivity.  Not only are New Zealanders being exploited, but the corporate, right-wing spin today, is that we should have some sort of loyalty for our large NZ companies with those limited budgets of ours. We're told that NZ money spent on NZ goods trickles down into the economy, instead of going overseas.  Well I can tell you, the trickle down theory is the biggest bag of shite since Margaret Thatcher filled her rubber underpants.   Despite the right-wing spin doctors CONTINUING to promote “Trickle Down”, the economists and the statistics do not support the fact.  Indeed, money does NOT “trickle down”; money trickles UP.

I’m not saying that every business here in New Zealand is like this.  Indeed, there are some cracking businesses that earn our loyalty by the directors/owners’ hard work, their dedication to their staff, and their exceptional, true respect for the customer.  But there are many NZ businesses that don’t.  

So in summary, there are a lot of businesses in New Zealand that aren't paying their way in our country;

• As employees, businesses in New Zealand aren’t giving us the return for our hard work
• As customers, businesses in New Zealand aren't giving us lower prices for their lower cost-of-production – they can’t have it both ways!
• There are New Zealand businesses who are fleecing the consumer – charging us more than our overseas counterparts, playing on our heartstrings, but not passing that increased revenue component onto New Zealand workers.
• Directors in New Zealand continually award themselves annual pay rises MANY TIMES higher than inflation, but plead poverty when it comes to staff pay rises.
• New Zealand businesses want consumer loyalty from kiwis, but won’t reward staff for their productivity and won’t pass on the lower cost-of production to the consumer, in terms of lower prices.  So why should be loyal?

With all of that said, let’s be choosy about how freely we give our loyalty.  Let us not be blindly sucked into the "Buy NZ" game - until we have the incomes to have that luxury!  Instead, let’s give our loyalty to those great kiwi companies who have earned it, not to those who demand it.

FURTHER READING:

"Real Wages - the Brutal Truth" [ Mike Treen, Unite News, Feb 2014]

https://unitenews.wordpress.com/2014/02/19/real-wages-the-brutal-truth/

“The lag in wages vs. productivity costs you hundreds of dollars per week” [Systemic Disorder, Sept 2014]

https://systemicdisorder.wordpress.com/2014/09/11/wages-lag-vs-productivity/

"Re-run: Unemployment up, productivity up" [Marty G, The Standard, March 2011]

http://thestandard.org.nz/re-run-unemployment-up-productivity-up/

"Does your company give you a $148,000 bonus?" [Sydney Morning Herald, Dec 2015]

http://www.stuff.co.nz/business/world/75001193/Does-your-company-give-you-a-148-000-bonus-No-This-US-firm-does

"Are the fat cats pouring their own milk?" [Nicholas Blumsky-Gibbs, Otago University, Oct 2012]

http://www.otago.ac.nz/law/research/journals/otago043943.pdf http://www.otago.ac.nz/law/research/journals/otago043943.pdf