Category Archives: Social Policy

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.

Economics and Violence

Chapter in Overcoming Violence in Aotearoa New Zealand (Phillip Garside Publishing Ltd, 2002) p. 37-43.

Keywords: Social Policy

Economics has such a pervasive role in public discussion, that it is useful to remember that on some matters it has little to offer, which is the spirit in which this offering is made.

It is true that sometimes economic considerations can lead to considerable violence. Just over half a century ago the powerful economies of Germany and Japan, finding their access to resources restricted, tried to extend their territories to encompass their resource bases. Their military ambitions were settled with defeat in the Second World War, but the resolution to their limited access to resources took longer. The answer was increasing international trade, for today both countries – and many others – obtain the resources they require by international exchange. It is a solution which may not be ideal, but it certainly less imperfect than conquest. In a similar spirit the European Union was founded to tie up the coal and steel industries of Germany and France to make warfare between then again impossible.

Rewarding Service: a History Of the Government Superannuation Fund.

Review in the E-Journal Making History (http://www.mch.govt.nz/History/making-history/govt-super.html)

Keywords: Social Policy;

There is a line entry in the 2002 Budget’s Economic and Fiscal Update for ‘GSF pension expenses’ of $671 million, an amount sufficient to more than double the total vote on arts, culture and heritage, the community and voluntary sector, conservation, national archives, the national library, and sport and recreation. Rewarding Service is a history of how that entry came about.

The Historical Context Of the Woodhouse Commission

Revised version of paper for Looking Back at Accident Compensation: Finding Lessons for the Future. Victoria University of Wellington Law School: 2-3 August: 2002. [1]

Keywords Political Economy & History, Social Policy

Although it is rarely presented this way, policy making is a problem solving exercise. At the heart of the success of any solution is how well the problem is addressed.[2] This approach, analogous to Karl Popper’s approach to the development of science requires us to be ‘as clear as you can one can about the problem, and watch the way it changes’.[3] A task then, of an historian, is to identify the problem or problems which drove a solution.

Is This a Healthy Budget for New Zealanders?

Presentation to a Post-budget Breakfast Seminar sponsored by the PHA (24 May)

Keywords: Distributional Economics; Social Policy

The Child Poverty Action Group is an Auckland based group committed to addressing the economic and associated difficulties that children and their families face. It is grateful for the invitation from the Public Health Association to speak to you. Susan St John, their economic adviser, who has a sterling record in this area, asked me to make a presentation on her behalf. I am going to briefly summarise some of Susan’s recent work, reported in a paper Financial Assistance for the Young: New Zealand’s incoherent welfare state. Then at the end of a short presentation on an enormous and very important topic, add a couple of comments of my own.

Beware the Median

SPRC Newsletter No 82, November 2002, p.6-7.

Keywords: Distributional Economics; Social Policy

In their article Beware the Mean!, Peter Saunders and Tim Smeeding argue that median household is a superior reference point for establishing a poverty line than mean household income, concluding ‘Put bluntly, the use of a poverty line linked to mean poverty income produces excessively high poverty rates that tend to increase by more when poverty is rising but to fall by less when poverty is falling.’ The purpose of this note is to demonstrate that poverty lines based on a fixed proportion of the median income are subject to a fatal flaw, illustrating the consequences of the flaw with recent New Zealand experiences.

The Macroeconomics Of the Superannuation Fund

This was a note I prepared: 24 February 2002.

Keywords: Macroeconomics & Money; Social Policy;

Unfortunately the debate on the superannuation fund established by the Labour-Alliance Government in 2001 has largely ignored its macroeconomic effects. This paper takes the orthodox position that a government has to manage its fiscal position, including its deficit or surplus. There is no necessary rule – such as that propounded by the US right – that sets an a priori level for the fiscal position – such as the government should be in exact balance.

Economic Directions: What Does the Government Think It’s Doing?

Listener 12 January, 2002.

Keywords Growth & Innovation; Macroeconomics & Money; Social Policy

A government needs a policy framework to coordinate its various decisions, and give it, its supporters and commentators a sense where it is going. The Labour-Alliance government has not announced one. If it did, what would it look like?

The Public Use Of ‘ethnicity’ Statistics

This squib was published in Letters to the Editor, The Dominion, on the 26 May, 2001.  I discovered it recalled in a report, A Question of Ethnicity – One Word, Different People, Many Perceptions: the Perspectives of Groups Other Than Mäori, Pacific Peoples and New Zealand Europeans, a prepared for the Statistics New Zealand Review…
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Poor Children: the Government Has Not Attended to the Child Poverty Problem

Listener 3 February, 2001

KeywordsDistributional Economics; Social Policy

Possibly the best established finding of twenty-five years of research on poverty is that children are disproportionately among the poorest of the nation. Not just brown children or yellow children or white children. Not just one parented children or two parent children. Just children. Over 30 percent of all children under the age of 15 are in the bottom fifth of the population by income. That means that over half the poor are children and their parents, and their rate of poverty is almost double the rate for the childless.