Towards Welfare that Works in New Zealand by David Green.
First published in New Zealand Books Issue 23, June 1996, as “The Bankruptcy of the New Fundamentalism”. Republished in Under Review: A Selection from New Zealand Books 1991-1996 (ed Lauris Edmond, Harry Ricketts & Bill Sewell) p.179-184.
Keywords: Social Policy;
In Making a Difference, Ruth Richardson says that she was “more likely than Jim [Bolger] to talk about the [1991] benefit cuts in moralistic terms.” Leaving aside the fragging of her prime minister, which seems to be one of the main purposes of her auto-hagiography, there is an interest in what the ex-minister of finance meant by “moralistic terms”. I think she means, for Richardson finds it easier to claim the high ground than to climb it, that dependency on the state is wrong, although the fog descends as we try to unravel what she thinks is right. In practice she was not so much on a hilltop, but on a wharf surrounded by people struggling in the water almost afloat by state owned lifebuoys. Her strategy is to withdraw the public buoyancy. She seems delighted to see a handful of the survivors learning to swim, while the sinking rest are ignored. This morality, which costs the moralist nothing, is complicated by policies which make it more difficult to climb onto the wharf: fearsomely high effective marginal tax rates on the poor (which the moralist’s policies raised), and rising unemployment (for there were 10 percent more unemployed when she left office than when she began it, plus higher disguised unemployment).