Category Archives: Social Policy

Is New Zealand the Best Place in the World to Bring Up Children?

Presentation to the Wellington WEA, 25 July 2005.

Keywords: Social Policy;

There is one outstanding fact about New Zealand poverty. Choose any reasonable poverty line, and you will find that over 80 percent of the poor are children and their parents. The figure would be even higher if one included other adults living in households with children. The economic problem of poverty is overwhelming children and the families they live in.

The Caring Tax: Why Do We Rate Minding Sheep Ahead Of Raising Children?

Listener: 21 May, 2005.

Keywords: Regulation & Taxation; Social Policy;

There is no consensus as to whether mothers should or should not go out to paid work and put their young children into childcare. The research says that it depends on family circumstances and the availability of care, together with the culture of the society. The policy conclusion must be that we should leave the decision to the primary carer and her or his family. But if we pursue a strategy of such neutrality, we should ensure that other aspects of public policy do not bias the family decision.

Medical Misadventures: Should Patients Be Compensated for Managerial Failure?

Listener: 26 February, 2005.

Keywords: Health; Social Policy;

An earlier column Accidents Will Happen (April 17, 2004) commended the proposed change in the ACC compensation criteria from medical error (which involves fault) and medical mishap (with a rare and severe outcome) to the situation where unexpected treatment injury occurs. The column worried that the opportunities the new scheme promises for prevention might be overlooked. I gather the ACC is instituting a programme to improve the medical safety cultures of health professionals. Great. As the column concluded, the biggest gains from the reform may be that there will be less medical misadventure.

Lock into Savings

The retirement debate depends on a disagreement between economists.

Listener : 23 October, 2004.

Keywords: Social Policy;

About 30 years ago economics sharpened its theory of behaviour with the assumption that everyone took economic decisions that gave them the best outcome. We might call this the “neoclassical paradigm”. It simplifies analysis enormously, and was used in policy extensively in the 1980s and 90s. In practice, the paradigm recognises that individuals don’t actually maximise, but it assumes that people are always taking actions that move them closer to the optimum, so the assumption of best outcomes is near enough to be true.

Economics for the Children

Paper for the AGM of the Auckland Child Poverty Action Group, 19 July, 2004

Keywords: Social Policy;

The government has at last attempted to address child poverty. And not a year too soon, for 2004 is also the 30th anniversary of the major research paper, Poverty in New Zealand which pointed out that poverty was mainly in households with children. That one main fact about poverty in New Zealand, often gets lost behind a myriad of minor facts. The consequence is that attempts to reduce poverty are at best inefficient, and at worst ineffective. That primary fact is that a substantial majority of the poor are children and their parents and we need to target on their needs.

Accidents Will Happen

The ACC reforms for treatment injury should replace a culture of blame with a culture of safety.

Listener: 17 April, 2004.

Keywords: Social Policy;

A friend recovering from a serious operation was on two occasions offered medicine that was not prescribed and, once, a scan that was unnecessary. Suppose she had been unconscious, or lacked the character to know what was going on and say “no”. Whether the mistakes could have led to medical injury, I cannot tell. But they would have consumed scarce resources.

Public Policy and the Maori

The following is a transcript of an interview by Carol Archie for Mana News broadcast on “Radio New Zealand”, 6.25am Tuesday 10 February 2004. It has been lightly edited.(“Hansard” rules – for presentation, syntax, and sense – but not for content).

Keywords: Maori; Social Policy;

Presenter (Dale Husband): This morning our focus is economics and how the National Party’s new policy around Maori services stacks up in the world of finance. One economist, Brian Easton, disagrees with Don Brash’s contention that resources should be based purely on need and never targeted specifically for Maori as a race. Brian Easton told Carol Archie that targeting particular groups often makes good economic sense.

Ending Fault in Accident Compensation:

Issues and Lessons from Medical Misadventure
Paper to The Future of Accident Compensation: New Directions and Visions, Faculty of Law, Victoria University of Wellington, 5-6 December, 2003.

Keywords: Social Policy;

Introduction: The Woodhouse Vision

There seems to be common agreement that the treatment of medical misadventure should conform to the Woodhouse Principles and therefore there should be no notion of fault in its coverage. I shall not to labour this point, but it is worthwhile to remind ourselves of the Principles and how the 1966 Commission rejected fault as relevant. Their primary principles were

Submission on review Of Medical Misadventure

Keywords: Social Policy;

Executive Summary

1. That the ‘Woodhouse Principles’ be applied to assessing the options on the treatment of medical misadventure. (Section 1)

2. The fault principle which underpins medical error conflicts with the Woodhouse Principles, the Ottawa Charter and the Ministry of Health’s guidelines to reportable events, particularly in regard to prevention. (Section 2)

3. On the available information Option 3 (Unintended injury in the treatment process) is the choice which most closely fulfils these principles. (Section 3)

4. However, the consultation document does not pay sufficient attention to the prevention possibilities of the scheme, nor to the administration costs issues. Some suggestions for improvement are discussed. (Section 4)

5. The ACC should be charged with a vigorous program to reduce medical misadventure. (Section 5)

6. While the medical misadventure is currently funded as a part of the non-earners scheme, it is suggested that an ‘insurance’ levy on health professionals as a part of their ACC levy would be more appropriate. The introduction of such a levy, plus the gains from a vigorous prevention program and a reduction in compliance costs would mean that the application of option three would not add a burden to the public purse. (Section 6)

Treat the Kids: Why Michael Cullen Should Blow a Bit Of the Budget Surplus.

Listener 17 May, 2003.

Keywords: Macroeconomics & Money; Social Policy;

One of the political oddities is how American conservatives are keen to blow the US budget surplus, creating an enormous deficit which will substantially adding to the US government’s debt. Under Ronald Reagan the justification was the merits of tax cuts, and the belief the deficit would force the US Congress to cut spending. It didn’t. Under George W. Bush the justification is the merit of tax cuts and need to support a sluggish economy, even though the cuts are poorly designed for macroeconomic stimulus. The commonality is the cutting of the burden of taxation on the rich, in effect switching the burden to future generations.

Spending the Public Growth Dividend: Why Was There So Little for Children?

Presentation to a post-Budget breakfast organised by the Child Poverty Action Group and the Public Health Association, 16 May, 2003.

Keywords: social policy;

I am not going to say much about how disappointing the 2003 budget was to the Child Poverty Lobby insofar as it did little to relieve the financial pressures on family. One could go through each expenditure item and examine how much of it was directed towards children, including praising the small improvements to family assistance – I am sure someone from the government will. The spokesperson will also recall the government promise that ‘improvements in family income assistance … will be a major theme of the 2004 Budget’. The Lobby will remind us of the caveat that these improvements are promised providing ‘present fiscal indicators prove accurate’ – they wont of course – and ask why it has taken five years

The Economic and Health Status Of Households Project (Index)

Keywords: Distributional Economics; Health; Statistics; Social Policy

This is a project by Suzie Ballatyne and myself based on the Household Survey, which enabled us to look at some of the relationships between health and economic status.

Executive Summary

A preliminary account of the research program is
Economic Status and Health Status Project

Two papers which report some of the findings are
Validation and the Health and Household Economy Project
and
Who Goes to the Doctor?

The final report, The Economic and Health Status of Households is available on request. Its Executive Summary is on this website, and so is Chapter 6,
Choosing Household Equivalence Indexes

Index of Distributional Economics
Index of Household Equivalence Scales

Economic Reforms: Index

History
Sequencing (December 1983)
Freeze and Thaw
(July 1984)
Ssh …It’s the Big ‘‘D’’ (August 1984)
Confidentially Yours (August 1984)
Devaluation!: Five Turbulent Days in 1984 and Then … (July 1985)

Economic Liberalisation: Where Do People Fit In?
(May 1987)

From Run to Float: the Making of the Rogernomics Exchange Rate Policy (September 1989)
Liberalization Sequencing: The New Zealand Case (December 1989)

Towards A Political Economy of New Zealand: the Tectonics of History (October 1994)
The Wild Bunch?: An Inquiry is Needed to Restore Treasury’s Integrity (August 1996)
The Great Diversification: Ch 9 of Globalization and a Welfare State (December 1997)
The State Steps In: Michael Bassett Makes A Case for Intervention. (August 1999)
Remaking New Zealand and Australian Economic Policy by Shaun Goldfinch (August 2001)
The Treasury and the Nationbuilding State (December 2001)

Evaluation
New Zealand’s Economic Performance This is an Index
Economic and Other Ideas Behind the New Zealand Reforms
(October 1994)
For Whom the Deal Tolls (Of Dogma and Dealers) (August 1996)
The Economic Impact of the Employment Contracts Act (October 1997)
Microeconomic Reform: The New Zealand Experience (February 1998)
Some Macroeconomics of the Employment Contracts Act (November 1998)
View From Abroad: What Do We Know about Economic Growth? (May 1999)
The Model Economist: Bryan Philpott (1921-2000) (August 2000)
Comparison with Australia: New Zealand’s Post-war Economic Growth Performance (August 2002)

The Debate
Waist Deep in the Big Muddy? (February 1991)
Friends in High Places: Rogernomic Policies Have Powerful Allies in Australia (April 1994)
Systemic Failure (December 1995)
Ignoring the Critics (February 1997)
A Permanent Revolution? (March 1997)
In the Dark: The State of Research Into the Economy is An Embarrassment (June 1997)
The New Zealand Experiment: A Model for World Structural Adjustment? (Review) (July 1997)
Out of Tune: Even the Officials Admit the Health Reforms Were Fatally Flawed. (December 1997)
Money for Jams: the Government Response to Roading Reforms is Commercialisation. (January 1998)
Reforms, Risks, and Rogernomics (March 1999)
The London Economist and the New Zealand Economy (December 2000)
Locked Out: of Free Press and Free Economics (May 2001)
A Surplus of Imitation (June 2001)
Government Spending and Growth Rates: A Methodological Debate (January-May 2002)
From Pavlova Paradise Revisited by Austin Mitchell (July 2002)
Manure and the Modern Economy: Has Economic Policy Hardly Changed? (September 2002)
From is This As Good As it Gets? (December 2002)
1999 and All That (January 2004)

Books
The Commercialisation of New Zealand (1997)
In Stormy Seas: the Post-war New Zealand Economy (Chapters 15-16) (1997)
The Whimpering of the State: Policy After MMP (1999)

Children and Their Parents Are the Largest Group Of the Poor.

Press release for 4th November 2002 from Wellington branch of CPAG Inc

Keywords: Social Policy;

What has long been known to those who work with families, researchers, and social commentators, is now accepted by the Ministry of Social Development. Children and their parents are the largest group of the poor. The exact numbers may remain in dispute, but the orders of magnitude are not. A high proportion of New Zealand’s children and their parents are below any reasonable poverty line.

Money Well Spent

Review of The Ends and Means of Welfare: Coping with Economic and Social Change in Australia by Peter Saunders (Cambridge University Press, 2002).

Listener 12 October, 2002.

Keywords: Social Policy;

The dispute over the economic reforms of the late 1980s and early 1990s involved two distinct questions. The first was whether they would work. As it happened our reforms were so incompetently managed that their economics failed miserably. But second, had they succeeded, would New Zealanders have liked their outcomes? Similar reforms in Australia, implemented with less ideological fervour and more common sense, resulted in their economy growing slightly faster than the OECD. Had the New Zealand economy succeeded from 1987 like Australian one, it would have grown 1.3 percent a year faster, and it would be in the top 10 of OECD economies.

Family Policy: Index

What are Mothers Worth? (March 1979)
Fences and Ambulances: An Economist Looks at Family Policy (July 1992)
Suffer the Children (November 1993)
Approaching Family Economic Issues: Holistically or Pathologically? (October 1994)
Family Policy: Creative or Destructive? (November 1994)
The External Impact on the Family Firm (March 1996)
Review of Children of the Poor (April 1997)
Household Gods: Whatever Politicians Say, Children Interests Are Ignored (October 1997)
You’re on Your Own: the Nanny State Becomes A Hard Taskmaster (March 1998)
Poor Children (February 2001)
Is This a Healthy Budget for New Zealanders? (May 2002)
Family Policy and Family Support (September 2002)
Notes on a Commission for the Family (September 2002)
Children and their parents are the largest group of the poor (November 2002)
Treat the Kids: Why Michael Cullen Should Blow A Bit of the Budget Surplus (May 2003)
Spending the Public Growth Dividend: Why Was There So Little for Children? (May 2003)

Index of Distributional Economics

Index of The Economic and Health Status of Households Project

Also see the New Zealand Child Poverty Action Group

Notes on a Commission for the Family

There has been much discussion on the proposed Commission for the Family. On 14 September 2002, I emailed note, which was widely circulated. Here it is – a little tidied up.

Keywords: Social Policy;

I am a little nervous about a common view which expresses a lack of enthusiasm towards the proposed Commission for the Family. The fact is it is a fait accompli, as certain as anything is in politics. Thus the approach, I would advise, is how to make the Family Commission as effective as possible.

Family Poverty and Family Support: a Strategy for the Next Three Years.

Address to the Wellington People’s Forum, 7 September 2002.

Keywords: Distributional Economics; Social Policy.

There is one main fact about poverty in New Zealand, which often gets lost behind a myriad of minor facts, which diverts us from the central issue. The consequence is that attempts to reduce poverty are at best inefficient, and at worst ineffective. That central fact is a substantial majority of the poor are children and their parents. This predominance of children and those who care for them is independent of the choice of poverty line. But to give an illustration, if we use the poverty line based on the deliberations of the 1972 Royal Commission on Social Security – the standard poverty line in the last thirty years – we find at least three-quarters of the poor are children and their parents. It is more than four fifth if we adjust for the more expensive housing that families with children face. Even those figures of 75 percent and 80 percent are under-estimates, if we note that in some households in which there are children there are adults other than their parents. The salient feature of poverty in New Zealand is that it is dominated by households with children in them.