Transcript Inequality in New Zealand: Why don`t we talk more about wealth?

Inequality of income
400,000
350,000
Top 1%
Annual income ($)
300,000
250,000
200,000
150,000
Top 10%
100,000
50,000
Middle
Lowest 10%
0
1982 1984 1986 1988 1990 1992 1994 1996 1998 2001 2004 2007 2010 2011 2012 2013
Corrosion 4: Opportunity
The Great Gatsby Curve:
More inequality is associated
with less mobility across the generations
Bill English on housing costs:
“It’s clear that the lowest-income households
have been the most affected so our planning
processes have probably done more to
increase income inequality in New Zealand
than most other policies and it does remain a
challenge to make progress.”
John Key on child poverty:
“The recognition I think we all have is that
there are some extremely poor children who
are missing out. And so then the question is,
how do you resolve those issues? It’s not
straightforward but there will be more you
can do.’’
Connections
How are poverty and wealth linked?
Same factors: just think about bargaining
power and the labour share
But basically it’s about ideology
Index of health & social problems
Health and well-being
Income inequality
The Economy
High inequality is not ‘necessary’,
despite the claims
IMF, February 2014: Over the long term,
more equal societies have better growth rates and
are more productive
Giving low and middle income families a stronger
foundation makes economic sense
So inequality at current levels
is not defensible economically
% share of NZ’s total net worth
Inequality of wealth
Opportunity
The Great Gatsby Curve:
More inequality is associated
with less mobility across the generations
What can be done?
Boosting skills: helping schools,
trade training, and creating high-wage jobs
But also addressing the ‘fair share’ of rewards issue:
Living Wage, collective bargaining and pay ratios
Redistribution, too: taxes, benefits and the UBI
Don’t forget about wealth (especially housing)
Building shared communities
www.closertogether.org.nz
www.equalitynetwork.org.nz
www.inequality.org.nz
www.closertogether.org.nz
www.equalitynetwork.org.nz
www.inequality.org.nz
The books
In bookstores or at www.bwb.co.nz/books/inequality