Saturday, May 14, 2011
The Brash letter - Taskfarce
Friday, May 13, 2011
Maori hurt most by youth rates?
When the Great Recession’s negative effect on the U.S. labor market was strongest, the national unemployment rate stood at 10.1 percent—a depth last seen in June 1983. But the greatest amount of pain was felt by younger and more vulnerable workers—though not in equal amounts. For instance, the unemployment rate for 16-to-19 year-olds reached 27.1 percent at the recession’s trough. For white teens, the figure was 25 percent; for black teens, it was close to 50 percent.
New Zealand's current 15-19 year-old unemployment rate is 27.5 percent. Unfortunately the HLFS tables do not show the ethnic breakdown of each age group. There is a suggestion here that Maori youth unemployment is over 40 percent.
According to the Department of Labour the Maori Youth NEET (not in education, employment or training) rate is around 17 percent:

The difference between the two rates comes about because the DOL defines youth as 15-24, not 15-19, and the unemployment rate for 20-24 year-olds is much lower.
Anyway the point of this post is to highlight the findings of the study because what holds for US blacks probably has relevance for NZ Maori.
... the picture grows even more troubling when the authors focus just on the 21 states fully affected by the federal minimum wage increases in 2007, 2008, and 2009. Approximately 13,200 black young adults in these states lost their job as a direct result of the recession; 18,500 lost their job as a result of the federal wage mandate—nearly 40 percent more than the recession. In
other words, the consequences of the minimum wage for this subgroup were more harmful than the consequences of the recession.
The substantial disemployment effects that emerge from the data raise an important question: Why do black males suffer more harm from wage mandates than their white or Hispanic counterparts?
The authors find that they’re more likely to be employed in eat-ing and drinking places–nearly one out of three black young adults without a high school diploma works in the industry. Businesses in this industry generally have narrow profit margins and are more likely to be adversely impacted by a wage mandate. There’s also substantial variation in regional location, as black young adults are
overwhelmingly located in the South and in urban areas. It’s also likely that unobserved differences in skill level and job experience play a role. To the extent that these differences are concentrated among young men of a particular race or ethnicity, this group would have the greatest risk of losing jobs when the minimum wage is increased.
Minimum wage increases remain politically popular, which means they’ll continue to be debated at the state and federal level for years to come. But the debate on the employment consequences of the minimum wage has been settled conclusively, and this research proves that those consequences are felt most by young black males.
(Hat-tip NCPA)
Tuesday, May 10, 2011
Returned heads reminders of a brutal past
Some Maori heads, with intricate tattoos, were traditionally kept as trophies from tribal warfare. But once Westerners began offering prized goods in exchange for them, men were in danger of being killed simply for their tattoos, French museum officials have said.
But that is only part of the story. Slaves were deliberately tattooed and beheaded when carved faces became a commodity. I can think of nothing more terrifying and barbaric. Undergoing the extreme pain of having one's face chiselled for reasons of rank and pride is one thing. Imagine experiencing the same agonising process in the knowledge that it is preceding your death. That is always my first thought when I hear about heads being repatriated. I struggle to understand why anyone wants a reminder of this brutal, exploitive practice.
One of the best things about the Treaty is that it effectively abolished slavery in Maoridom. The history of NZ Maori is a savage one. Peaceful tribes were obliterated or enslaved by stronger, more violent and acquisitive tribes. A recipe for a harsh, short-life society. The spiritualistic ceremonies that accompany the return of the remainders and reminders of such times are misplaced.
Maori, the island nation's indigenous people, believe their ancestors' remains should be respected in their home area without being disturbed.
Ironic as they weren't respected in life. Perhaps there is a healing and closure; an apologistic aspect to the process that evades me.
Monday, May 09, 2011
What makes some people vote
Now that is not a stupid reason to vote for someone. This young man has identified his most important value. And he looks for someone who mirrors that. I don't really know why but I found it fascinating witnessing how the Mr Nice Guy persona manifests in votes. And let's face it. There aren't that many people who are very interested in politics. I wasn't at his age either.
While it seems strange to me I need only examine my own attitude to sports. The names I hear about are vaguely familiar but I couldn't tell you whether a particular one waa a league player or netball star. When it comes to sports I tune out. But if I had to vote for a sports star it would be Tana Umaga because I met him and he was very nice and generous. And good looking.
Sunday, May 08, 2011
National's election platforms - welfare avoided again
So why not the biggest chunk of government spending - social security? Leaving it for ACT?
But in this term and the last, ACT also abandoned welfare as a central issue. Roy was spokesperson from 2005-08 and Douglas thereafter. Neither raised public conciousness about welfare the way Newman had before.
The greatest potential area for NZ to reduce spending, as well as improve outcomes, is in welfare. But that market research stuff they do tells parties to avoid the issue as too electorally sensitive.
Back yourself Brash and go after it. In the early 2000s, while still Reserve Bank Governor, you were publicly critical of welfare. Your outspokeness in that role laid the base for much of your current support. National has done next to nothing in this term and NZ now trails other developed countries in the reform stakes. We cannot afford to.
My advice to Kerre Woodham (and myself on more than one occasion)
Mother's Day is more a day for the children than it is for mums - all mums with healthy, beautiful children have a mother's day every day that their children stay safe and happy.
But this year - sorry to be a spoil sport - let's turn the spotlight on those mothers who are abject failures. All those mothers who haven't got a clue who their children's sperm donors were. All those mothers who have children because they get paid to - and, let's face it, they wouldn't get paid to do anything else. Those mothers who stay with men who hurt them and their kids because they're so pathetic and useless that any shag - even when it comes with a biff - is better than being alone.
This Mother's Day, I would plead that every mother who has had a child that they don't care about or can't cope with gets the help that they need....
I've been writing columns and banging on on talkback for more than 13 years about this and I am so, so sick of railing against the abomination that is child abuse in this country.
So this will be my last column on the subject. What I do is utterly futile.
Her emotion (or lack of it) is called burn out.
My advice to Kerre is don't stop writing but do start thinking about what policies need to change and be specific about what needs to happen. If you know that people have children because they are paid to, call for the end of such a policy. It is your money being used after all. If you think adoption is a better option, push for a change in CYF's attitude to adoption. How do you think it came about that NZ literally turned its back on the process? Vociferous, relentless, activism by feminists who believed that a child should always stay with its natural mother. How did it come about that we pay single women to have children? Feminist activism that deplored the nuclear family. Fight back and keep fighting. Not for a return to the past but for a new approach. Women today have so much more opportunity. They don't need these state crutches which if anything turn them into victims rather than empowered beings.
Take a breather and wait for the energy to return. It will.
Friday, May 06, 2011
Mr Tactless
Am I being pc because this guy makes me wince?
"What's so tragic about a 6.6 per cent jobless rate anyway?" asked Bank of New Zealand economist Craig Ebert.
Ex Treasury. Bloodless. Yeah, yeah and I'm a bleeding heart.
Mr Ebert obviously doesn't have friends or relatives who have lost jobs or businesses.
"A lot of countries would give their eye teeth for that sort of level, albeit we should hope for something a bit lower in due course. For a truly stuffed labour market, and economy, go back to the early 1990s, with 11.2 per cent [unemployment]."
Mr Ebert doesn't look old enough to have actually experienced the early 1990s. For the first time in my life I couldn't get a job and it is a most depressing, but empathy-building experience.
What really pisses me off is this supercilious attitude is what gives capitalism a bad name. Thoughtless prick.
Thursday, May 05, 2011
Auckland tornado a socialist 'cause celebre'
Worker killed in New Zealand tornado
Subsidising youth into work looks good on paper but....
It is unpopular to argue against this initiative but I will.
1/ Primarily any subsidy distorts the labour market. As do legislated minimum wages. The first assists the employer and the second penalises. I am surprised the anti-capitalist Greens aren't arguing against the (0n-going) subsidy. Sue Bradford used to rightly argue against WFF on the basis that it subsidises employers.
2/ Subsidies favour one and punish another. The potential worker who attracts the subsidy takes opportunity away from the potential worker who doesn't. Probably an older Maori or Pacific worker with greater financial committments than the young person.
3/ There are around 64,000 (15-24) young people officially unemployed. 1,000 subsidised positions tackles only a small percentage. It is an inefficient use of taxpayer's money to solve the problem of youth unemployment.
4/ What 'can't be seen' is as usual ignored. That $55 million is taken from taxpayers who might have used it to invest in their own economically constructive ways.
5/ Yes. If youth are going to be paid the dole it is better to get something for the money. Which simply avoids debating whether or not youth should even be paid the dole having contributed nothing to the economy thus far. Why shouldn't they remain the responsibility of their parents? Afterall, their parental income is relative when it comes to qualifying for a student allowance. Why isn't the same criteria applied to the unemployment benefit?
6/ Some employers will abuse the subsidy, especially when the government demands they pay inexperienced workers a minimum rate. The criteria that jobs must be "opportunities that wouldn't exist if the Job Ops subsidy wasn't available" is a test easily met.
7/ Industries that can only employ skilled workers are disadvantaged.
8/ There is inherent unfairness in expecting one young person to pay for their own skills acquisition and subsidising the next.
9/ Subsidies should be no part of a policy programme run by a free enterprise party.If they are wrong in principle then ...they are wrong. Sneaking them in here and there to look like they are 'doing something' is an abrogation of their responsibility to introduce better policy. Like low flat tax and labour market regulation reduction. Typically National.
Wednesday, May 04, 2011
Income from govt - US vs NZ
Americans depended more on government assistance in 2010 than at any other time in the nation's history, a USA Today analysis of federal data finds. The trend shows few signs of easing, even though the economic recovery is nearly two years old.
* A record 18.3 percent of the nation's total personal income was a payment from the government for Social Security, Medicare, food stamps, unemployment benefits and other programs in 2010.
* Wages accounted for the lowest share of income -- 51.0 percent -- since the government began keeping track in 1929.
In NZ 12.6 percent of personal income comes from government transfers. I can't factor in Medicare equivalent which would push up the NZ percentage but it is interesting that....
From 1980 to 2000, government aid was roughly constant at 12.5 percent.
(Hat tip Welfare State We're In, who points out that many people incorrectly believe there is no welfare state in the US.James Bartholemew has, by the way, been conracted to write a new book comparing welfare states around the world. I look forward to that. Big job.)
Tuesday, May 03, 2011
National bolsters war on drugs
"New Zealand ranking second only to the United States for cannabis use provides further evidence that our country is descending into the world's gutters," Mr Sabin said.
I wonder if National has a seat they can offer to Doug Sellman?
Monday, May 02, 2011
Teen mothers adding children to a benefit
What percentage of teen mothers go on to have 2 or 3 children while staying on the DPB?

It is impossible to answer the question based on the information MSD can provide due to a lack of historical data.
The above tables would indicate that 35,485 mothers (or female caregivers) aged 32 or less who started on welfare as a teenager had 58,004 children.
Some may have added 1; others more, so it is impossible to tell from the above data a specific percentage. But it is clear that Maori and Pacific mothers are considerably more likely to have additional children on a benefit.
There are also a number of other unknowns about the data for instance the dependence on a benefit may not have been continuous. And a very small number might be dependent on a benefit other than the DPB.
Saturday, April 30, 2011
Birthright get it wrong
The writer of the piece fails to say her headline statistic is from 2007. But strangely does date recent information. But here's what gets me frustrated;
Birthright national manager John Donaghy said there were about 219,000 single-parent families in New Zealand, most of whom were middle-aged.
"Unfortunately there are many people who basically poke at the 18-year-old person on the DPB who is seen as a weight on the rest of society, but actually they're a minority."
In March, 46 per cent of single parents were aged 25 to 39, and 20 per cent were aged 18 to 24.
How many times do I have to point out that teenage parents age. They stay dependent and they stay single. Hence we find that there is a spread of single parents across all agebands. The fact remains that up to a half began life as a single parent, usually on the DPB, as a teenager. That is why I bang on, or "poke at" that particular group.
Birthright are apologists for a serious problem that won't be resolved as long as they fail to understand it. As a volunteer I once attended a meeting between a seriously inadequate teenage mother and one of their social workers. The social worker, a pleasant enough young woman, was going through the motions - counsel, make a next-visit appointment and bugger off - whereas I was getting stuck into the filthy surroundings, showing the mother how to look after herself and her once-was-perfectly-nice home. (Another battle I eventually lost even though I won the girls trust. The usual happened. Rent arrears piled up and she disappeared.)
I am sure Birthright serves some purpose but politically they are aggravating the problem they were born out of.
Friday, April 29, 2011
Consensus on Brash
Home Paddock blogs, Most votes are in the middle
The Standard blogs, ....what he’s [Brash] thinking is batshit crazy stuff that most New Zealanders want nothing to do with.
Doesn't that tell you how centrist and similar the two big parties are, no matter how much National protests.
Anyway, no matter. We are about to find out how big "most" is. Helen Clark used to say something at this juncture. But I will refrain.
Thursday, April 28, 2011
Another dead baby
I feel bad because I look at the photo of this baby, this time, and I don't feel as much as I used to. Am I losing my humanity? I've cried in the past. Why? For the pain they may have endured? The waste? The thought of a limp, lifeless corpse that should be a warm, snuggly, chubby, wriggly, smelling- of- baby being?Perhaps the edge is taken off what should be deep sadness, by anger. Perhaps mothers with older children are less emotional than mothers of very young and I am now in the former camp. I don't know.
But we should all resign ourselves to more of the same as the causes of child abuse and neglect, sometimes ending in death, continue to be enabled with state money and state systems. Perhaps not feeling deeper sadness is a protective mechanism. More probably it is just mental fatigue. Human beings are made to be resilient, to adjust, to get used to. That is what we do well.
I am sorry you were failed little thing.
Benefit numbers rise over the year
The numbers on the unemployment and invalid's benefit have been flat over the year.
BUT the numbers on the sickness benefit have risen by 7 percent. Thirty percent of the rise occurred in Canterbury. As the invalid's benefit is flat (0.02% rise) it may be that beneficiaries are being moved from that benefit to the sickness. Only an OIA question would answer that.
And the DPB numbers have risen by 3 percent. So, six months of work-testing the DPB has made no impression so far.
Numbers at March 31, 2011
DPB 113,077
IB 85,055
UB 59,940
SB 59,582
Monday, April 25, 2011
Brash "very old"?
Seventy is not "very old". In fact, believing that says more about the outlook of the person who said it than the subject of the claim. The statement tends to fall into that collectivist-thinking basket of ideas I hate so much. It's ageist. Some people in their seventies may be very old - near death's door because of physical and mental ailments and deteriorating health. Others have good health, sound minds and decades of life experience under their belts. Above all they have a living memory of a New Zealand when values were different. Some better, some worse. But some worth reviving as universal. Like possesion of a work ethic. And here's another thing. The population is ageing. For those who don't properly comprehend that term - possibly the owner of the ageist attitude - the proportion of people over 65 is growing in relation to those under. And they all have a vote. And life expectancy is growing. So a growing percentage of voters are less likely to judge a politician on their age - at least, having too much of it.
Brash has been upfront about what he wants. There is only room for one party that wants less government involvement in the economy so he has to try and use the ACT vehicle first. Anyone that has been around ACT for any length of time knows the high regard supporters hold him in. So if he just went ahead and formed his own party he will decimate ACT's vote anyway. In that context his strategy is fair to current ACT players.
National's lines on this are eminently silly, as described by Whaleoil whose political opinion is worth rather more than mine.
If Brash assumes ACT leadership and runs a campaign based on the 2025 Taskforce recommendations I am in the camp that believes he can get up to 10 percent of the vote.
Disclaimer: I am not an ACT member and learnt about the leadership bid through the media.
Sunday, April 24, 2011
Aussie ahead again
Sorry to drag us back to the seemingly insurmountable problem of catching Australia but here is yet another instance of where they are more open-minded and commercially savvy. They are racing today. Easter Sunday. All over Australia. Thousands of NZ dollars will flow into Aussie coffers while our trainers miss opportunities thanks to archaic law.
Saturday, April 23, 2011
Kiwiblog takes a predictable position
What I am less happy about is Banks climbing on the ACT band wagon. He tried in 2008 and I opposed the idea. No reason to change.