Monday, November 22, 2010

Testing the Spirit Level thesis in NZ

Unbeknownst to me last week Victoria University hosted a conference about wealth inequality. They invited academics to address the findings of the Spirit Level (already widely criticised and exposed for some dodgy representation of statistics). According to the NZ Herald;

The greater the gap between rich and poor, the more likely people will grow up a drug user, a criminal, less educated, obese, pregnant while a teenager, even less trusting of others.


The New Zealand poor comprise non-wealthy welfare recipients and the non-wealthy workers. The problems that are attributed to wealth inequality are more prevalent among beneficiaries than among the working poor. That is amply illustrated by the difference in the incidence of these problems (bar obesity which has its roots in traditional diet/lifestyle change) between Maori and Pacific people. Teenage pregnancies, criminality, and substance abuse are more prevalent among Maori. Maori are far more likely to be on benefits than Pacific people.

What is even more striking is that Asians are the least wealthy group yet, thus far, do not under-achieve, abuse drugs or offend in disproportionate rates. Their various cultures are not beset with social problems. I don't suppose any academic raised these flies in the ointment.

The two things that work against the problems identified are strong families and work. Both are eroded by unconditional welfare. Not by income inequality.

Blaming income inequality is too easy. It also means the wrong solutions are identified. Those solutions are however very seductive to people who frame any and every problem as a lack of money.

Forum chair Jonathan Boston, the director of Victoria University's Institute of Policy Studies, said there was enough evidence to support the general thesis in The Spirit Level.

"My personal view is that we can have some confidence that more equal societies - other things being equal - have better social outcomes across a range of measures. It may not be absolutely conclusive, but I think it's reasonably persuasive."


Great. If the academics don't get it you can be sure the politicians won't. What concerns me is the host institute is also the home for the Welfare Working Group, providing advice and research etc. That they embrace the Spirit Level thesis doesn't bode well for that exercise.

5 comments:

Sanctuary said...

maybe it was "Unbeknownst" to you because the conference was for recognised experts in the field and not open to extreme right wing internet cranks?

Euan said...

"Recognised experts"....the same group of people who have been behind the failed welfare policies of the last 30 years!

Given the shocking results we see everyday of these policies, I place more credence in what Lindsay has to say.

Anonymous said...

The two things that work against the problems identified are strong families and work. Both are eroded by unconditional welfare.

Both are also eroded by conditional welfare and of course taxes

extreme right wing internet cranks

You mean the people who have their own arrangements for healthcare, love their children enough to pay for real schools, and have never accepted a cent of "welfare" in their life - and would rather die than bludge - BUT WHO ARE PAYING FOR IT ALL

The 5% of NZ (ACT voters) pay for 50% of NZ's welfare state. Another 10% of National voters pay for another 40%.

And I really don't know how to spell this out: but we're sick and tired of paying for bludgers and we're not going to do it any more!


The Secretary of the Treasury - remember him - said last week that we need to urgently balance the budget or we will cease to exist as an independent country. Either we can make the cuts now - or the IMF will make them soon enough! and tough and harder than anything ever advocated here.

If you think war veterans at least should continue to receive their pensions; that NZ should maintain a defense force and police force and their current levels; that we should keep having diplomatic representation; and at least a treasury and reserve bank - then drastic changes are required immediately.

Or - like Ireland, Portugal, and Greece - we can have rioters being gunned down in the streets, every foreign investor (starting with Warner Bros no doubt) getting their cash out now, the domestic mortgage market collapsing as the overseas funds are ripped out, and the government going into default.

One way or another
- welfare will end in NZ
- state schools will be privatised or closed down
- state hospitals and GPS will likewise be privatised or closed down

If you'd like that done in some kind of controlled manner; if you'd prefer your local school or hospital was still there although fully private - rather than closed down, all gear sold overseas, and vandalised - then you must support immediate terminate of all welfare NOW

or I hope you've got another passport, cos when NZ goes down the gurgler the "right" to emigrate to Aussie will be the first thing that gets stopped.

James said...

maybe it was "Unbeknownst" to you because the conference was for recognised experts in the field and not open to extreme right wing internet cranks?

As Lindsay is a recognised welfare commentator by many media outlets and has addressed international conferences on the subject of welfare I assume its not her you are sneering at with your ad hominem bile...?

Anonymous said...

Ministry of Social Backward Development.

Along with Wimmins Affairs, it needs shutting down