Monday, September 24, 2012

Gareth Morgan doesn't know what he is talking about

Gareth Morgan has changed his tune over the past few years. I once thought he dealt in facts. But reading the following in today's NZ Herald proved me wrong. He wrote:
The numbers on benefits move in line with business cycles. When the economy is growing and employers are short-staffed beneficiaries go to work - even those most maligned of beneficiaries, sole parents.

Data:

The only "numbers on benefits" moving in line with business cycles are the unemployed. And Gareth's article is most definitely about all beneficiaries.

3 comments:

JC said...

Although I've seen that graph often enough.. in the context you've put it in your article it just shows how inelastic the benefit system (excluding the UB) is.. it doesn't respond to changing economic circumstances.. its damn near a life sentence!

Most concerning is how little movement we got on the DPB from the WFF introduction.

JC

Paulus said...

Tsk, Tsk, Gareth Morgan has become the new socialist guru - he who knows all things.
He is very rich, following selling his shares in his son's company Trade Me, and persuading Kiwibank to buy out his very low performing Kiwisaver book for an exhorbitant sum. As result of having nothing to do he pontificates on all things social.
He used to be a well balanced guy but it must have gone to his head.

Kiwi Riverman's Blogesphere said...

Try and live on a benefit, and live without, it if you are unemployed and have no future prospects because hundreds of jobs are being lost every week.

Unemployment in NZ was down to just over 3% after Labour's first term. They must have done something right too!