Oh no, another of Labour’s mantras of misery destroyed

Labour continues to run a mantra of misery about New Zealand, despite their claims of a positive campaign.

I think they think that if they say it enough it will become a truism rather than the Nasty party reputation they have built.

Unfortunately for them their campaign is built upon problems that are slowly coming right as the economy grows and their mantra of misery is becoming tiresome in teh face of facts.

One?area that they have harped on about, inequality is also coming right according to latest reports.

Child poverty has dropped back almost to pre-recession levels, as New Zealanders’ jobs and incomes finally climb out of a five-year downturn.

The Ministry of Social Development’s latest annual report on household incomes says the number of children in households earning below 60 per cent of the median wage fell by 25,000 to 260,000 last year, the lowest number since 2007 when there were 240,000 children in poverty. ?

The overall inequality rate measured by the Gini coefficient widened slightly, but the data has been volatile through the recession and the ministry said the trend line had been flat since the mid-1990s after a sharp increase in inequality in the decade before that.

However, beneficiaries slipped further behind average incomes because benefits are adjusted in line with prices, not incomes, so inequality worsened at the bottom of the income scale.

“While there is no evidence of growing income inequality in the population overall or between high income households and the rest in the last two decades or so, there is evidence here that there is a growing gap between the incomes of those heavily reliant on the safety net provided by main working-age benefits and the rest,” the report says.

“Housing costs accounted on average for a much greater proportion of household income for low-income households in 2013 than in the 1980s. This increased cancelled out the gains in before-housing-costs incomes for low-income households, leaving after-housing-costs incomes for bottom decile households lower in real terms in 2013 than in the 1980s, and much the same for those in the second decile.”

Social Development Minister Paula Bennett said the figures showed that Kiwi households had bounced back from the recession.

“In the past year 84,000 more jobs have been added to the New Zealand economy, 8,600 sole parents have come off benefit in the past year and there are nearly 30,000 fewer children in benefit dependent households compared to two years ago,” she said.

So if you rely on welfare and don’t get yourself into work then you are going tos till have problems, but if you get into work all sorts of government programmes kick in and help drag you and your family out of poverty.

This is a great start and as economic indicators improve so too will these numbers.

 

– NZ Herald

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