Living wage

Poverty on the rise, income gap widening? Nope. Just a left mantra without a basis in fact

I have to admit, ACT are actually doing what the media should be doing – researching opposition claims and countering them with hard facts.  Try this one on for size:

“A Roy Morgan poll shows that the issue people are most concerned about is income inequality. This just goes to show how the persistent repetition of a lie bewilders the public. Income inequality is not in fact rising. And the child poverty rate has been declining for nearly 20 years, falling from 35% in 1994 to 16% in 2007 and recently returning to pre-global financial crisis levels in 2012” said Dr Whyte.

“Those who advocate socialism have exploited the public’s concern about a rising number of people being trapped into a cycle of dependency. The Left’s repeated claims that New Zealand is getting more unequal are simply false and divert attention from policies that would help people out of dependency.

“Prior to the recent recession, there were 15 years of steady growth in median household incomes driven, in part, by the steady increase in the number of two-parent households where both parents are in paid employment (3% pa).

qwewew

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Labour relaunches their Hobbit Hater policy

Labour has re-launched their Hobbit Hater policy at the behest of the unions, proving that their investment in purchasing David Cunliffe and the 20% vote for the leadership has provided a cash for policy arrangement that is giving their leaders sticky knickers.

The Labour Party wants to repeal the law changes that were ceded to Warner Bros over The Hobbit films, a move which the Government says would cripple the $3 billion screen industry.

Labour leader David Cunliffe and MP Andrew Little launched the party’s work and wages policy yesterday, which included a boost to the minimum wage, and a commission of inquiry into workplace conditions.

Here’s an idea…why don;t they just declare a wages crisis, and in short order National will fix the problem. Seems to have worked for manufacturing and housing…it’s worth a crack.

So Labour wants to kill off the film industry in NZ, Dotcom’s party just wants to steal it, and the Greens want to destroy the oil and gas industry.

They really are the wrecking ball of the NZ economy.

But wait it gets worse…Labour also wants to kill jobs.  Read more »

Labour continue to dump on their Pasifika voters

From a Labour press release:

Under a Labour government, Kiwi business must exhaust the options for hiring local workers before bringing in overseas migrants.

The party also wants to target the exploitation of migrant workers. Businesses will have to pay at least the living wage, after accommodation deductions. Recognised Seasonal Employer (RSE) will be paid at least the minimum wage plus $1.25 an hour, with accommodation provided in addition to wages.

“We are also concerned that a significant number of workers are being brought into New Zealand for relatively low-skilled jobs on low rates of pay. This not only leads to exploitation of these workers but undercuts the local labour market, pushing wages down for Kiwis,” he said.

“To address that Labour will require employers bringing in overseas workers to pay a living wage (after accommodation deductions) where the job offer forms part of the reason the application is accepted. This does not apply for the Pacific quota migrants.”

wait-what

Labour donation facade SMASHED – Observation by the Owl

From today the Owl will start to take the lid off Labour’s Union donations and campaigns.

The first question I started with was this.

Why are unions not making any donations to Labour party especially in election year?

This is an incredible situation.

There is a clear rule under donation declaration that services in lieu must be reported along as cash donations.

Today the Owl SMASHES the situation and will show how donations are now replaced by campaigns. Before anyone says the Owl is a foolhardy – just remember this very important fact – it took 18 months but finally a numbers of unions had to declare millions in accounted funds.  Read more »

Incredible!!!! PSA let down members – Observation by the Owl

Brenda Pilott is one to watch…I posted this about a year ago.
11% increase on assets the members already own. How can you increase something that you are actually providing a service of subsidising for?.
But here is the rub.
PSA made $1.214M in 2013. Has $26M in assets.
How can the lowly pay involved in the living wage protest as directed by the PSA afford their own subsidised holiday homes?  Read more »

Living wage includes allowance for Sky TV

Beauty and Style blogger David Farrar stumbles into a political story, exposing the base assumptions that make up the “Living Wage” claim.

Brian Scott has published a critique of the so called Living Wage, and it should be compulsory reading for any politician that has treated the calculations done by Rev Waldegrave as a fit basis for public policy decisions. It is quite legitimate to have a view that wages should be higher, but to insist that the correct level is that calculated by Rev Waldegrave is a surrender to symbolism over substance.

The key findings by Scott are:

  1. Only 12% of low income households are two adults and two dependents, which the Waldegrave calculation is based on
  2. They assume you need 10 hours of childcare a week, even if the children are aged over 14
  3. They calculation of level of “basic necessities” is not based on any empirical measurement of the lowest cost of necessities, but merely a proportion of the average expenditure in deciles 1 to 5 (this one is key – it is a calculation based on the Browns should be spending as much as the Jones, and is not a caculation on how much income the Browns need)
  4. The calculation doesn’t account for some sources of household income such as trade-ins, sales, teenagers income (yet does include their costs) and school donation tax refunds
  5. The calculation double counts some expenditure such as childcare costs   Read more »
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Minister does job. Gets told off for doing it too well

beach-holidays

They like to call it beneficiary bashing.  What do you call it when a Minister gets criticised for making sure the rules are implemented properly?  Minister bashing?

Sue Moroney has a go at Paula Bennett for returning $1M of tax payers money to those who can’t afford overseas holidays

Labour’s social development spokeswoman, Sue Moroney, said there had always been penalties for travelling without valid reason, but Ms Bennett was wrong to claim beneficiaries could clearly afford to travel. Often the money was scraped together by other family members or was a gift.

“I think Paula Bennett’s attempts to paint this picture of beneficiaries off living the high life at Club Med is not accurate. If Paula Bennett thinks it’s easy to live on a benefit and somehow have money left over to go travelling, she needs to have a go at living on a benefit for a while and see how she gets on. Might have been the case in her day, but it’s not the case now.”

Come on now.  One moment Labour are trying to convince everyone that a quarter of New Zealanders live in deep poverty, and the  next minute you are trying to defend them going on overseas holidays?   Read more »

Pimping the Poor

Photo / Dean Purcell - via NZ Herald

Photo / Dean Purcell – via NZ Herald

Yet more from Simon Collins, Poor Pimper extraordinaire

“This is our living space at the moment,” says new dad Tali Harrington, indicating the small bedroom he lives in with his wife Joan and their 4-month-old baby Leila.

They share a six-bedroom Mangere state house with Harrington’s mum, his two brothers and sister and their spouses and children and four other nephews and a niece – 17 people in all.

“It’s quite stressful for us,” says Niue-born Harrington. “I need a healthy environment for my daughter, because a lot of them are smokers.”   Read more »

Minimum wages don’t work in alleviating poverty

Hat tip Lindsay Mitchell

A new study shows that the minimum wage as a means to alleviating poverty is a fallacy.

Minimum wages are poorly targeted to those actually in need, says Joseph Sabia, an associate professor of economics at San Diego State University.

  • Sabia’s own research has found no evidence that increasing the minimum wage reduces poverty, even among less-educated single mothers, who are specifically targeted by these policies.
  • Research by David Neumark and William Wascher found that while some poor workers that kept their jobs after the wage increase were lifted from poverty, others lost their jobs and fell into poverty. The Neumark and Wascher findings indicate that wage increases only redistribute income between poor and near-poor households.
  • Some in favor of wage increases have said that the poor record of wage increases on alleviating poverty is simply because poverty is an imperfect way of measuring the economic well-being of low-income households. As such, Sabia and Robert Nielson of the University of Georgia studied whether wages were effective in reducing alternate measures of well-being, finding no evidence that higher minimum wages helped people pay rent, pay utility bills on time, avoid financial or health insecurity, or make ends meet in other ways.  Read more »

The shortsightedness of a living wage

We all seem to forget we got started on shit wages.  We had to flat together to spread around the costs of rent, phone and power.  And these days, Sky and Internet as well.  Nobody back then felt that a McDonalds worker should be able to own a house, pay a mortgage, have a dog, a cat, two cars, smoke, drink, have a smartphone, Internet and Sky all on a McDonalds worker’s pay.

Yet that’s the narrative these days.

The problem with raising all wages to the point where they become a significantly higher cost to the employer is that it becomes financially viable to replace some of those workers with technology.

You’ve seen it at your supermarket.   Read more »