Another Spectrum

Personal ramblings and rants of a somewhat twisted mind

Equality on the decline?

4 Comments

In 20o5 Aotearoa New Zealand became the first nation in the world where all top positions were held by women: the Monarch, the Governor General, the Prime Minister, the Speaker of the Parliament, and the Chief Justice.

There have been other firsts that at first glance give the appearance that women are more equal here than elsewhere, including being the first country to grant women the vote. The 1976 relationship act and its amendments grant equal rights to both members of a relationship irrespective of marital status or gender is another.

Just as America prides itself on its liberty and freedom, NZ has always prided itself on its egalitarianism – both between the sexes and the population as a whole. In fact, back in the 1940s a visiting academic suggested we should build a statue proclaiming our egalitarianism in the much the same manner as the Statue of Liberty proclaims freedom in America.

The myth persists in both countries. Sadly America has slid well down the freedom and liberty ladder, even though over half the population believe it is the most free nation on earth. Our claim to egalitarianism has take a huge tumble since the mid 1980s. Fewer Kiwis believe in our own myth. Approximately 75% of the population no longer believe that everyone in NZ receives a “fair go”. But that leaves a quarter of the population still believing that we are a nation of equals.

Why the sudden change in equality since the 1980s? In what was a sort of political revolution, the leftist Labour party adopted radical economic reforms much like “Thatchernomics” in the UK and “Reaganomics” in the US, only more extreme. Known here as “Rogernomics” (named after the Minister of Finance, Roger Douglas) it saw the halving of the top tax rate, the slashing of social welfare, the privatisation of much of the public sector (sold mostly to foreign investors) and a reduction in the bargaining power of workers. Tariffs and other trade protections were eliminated resulting in a massive transfer of unskilled jobs overseas.

The initial result was high levels of unemployment and the social conditions that typically accompany it. Today unemployment is more “acceptable” but we now have a class of “working poor” that struggle and frequently fail at keeping their family out of poverty. Today, about one in five children live in households where the income is below the poverty line. I believe this is totally unacceptable.

New Zealand has the unenviable reputation of now being the nation with the fastest growing disparity between rich and poor in the OECD. While we are far from reaching the level of disparity seen in the USA and some developing nations, we approaching the likes of the UK. While it’s true that displays of wealth are still frowned upon, there is a growing acceptance that poverty is a “natural” part of the social fabric. I don’t.

One outcome of the economic reforms has been an increase in the disparity of income between men and women. Prior to the reforms, and into the first few years afterwards, the difference in income between men and women had been declining and was well on the way to being eliminated. There were dreams of Aotearoa New Zealand being the first country to achieve true pay equality. This has been shattered over the last two decades as the gender pay gap has increased markedly to around 12% (based on hourly income, more so if based on actual income).

One of the measures of freedom I take seriously is socio-economic mobility. This is the ability for someone to move out of the socio-economic group of their parents. In America, the “Land of Opportunity” around half or slightly less move to a different group. By contrast, in NZ it was around 75%. This has declined and is now hovering around the 70% mark.

It has barely been a generation since the economic reforms, and as they become a permanent feature of of our society, I suspect that socio-economic mobility will decline further. That, along with the growing disparity between rich and poor is a recipe for social disharmony – perhaps on the levels we see in Britain, the USA, and elsewhere. The mind shudders.

Equally unnerving is that it brings the prospect of us growing our own Trump –  someone gaining enormous wealth through a largely unregulated economy, and at the cost of a low skilled workforce, and then gaining political influence by telling those worse affected by those very practices that he will make things right for them. Yeah, right.

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Author: Barry

A post war baby boomer from Aotearoa New Zealand who has lived with migraines for as long as I can remember and was diagnosed as being autistic aged sixty. I blog because in real life I'm somewhat backwards about coming forward with my opinions.

4 thoughts on “Equality on the decline?

  1. I really hope y’all don’t have to go through what we’re going through up here in the States, but some of the issues you raise seem familiar to me too. It feels like jobs aren’t providing the benefits they used to in most parts of the world, as if the whole globe is reverting to a haves and have-nots society of the Victorian era. One is either at the top of an economy, or one is crushed underneath it.

    • One of the claimed benefits of of the reforms of the ’80s was the so called “trickle down effect” whereby the poor would receive some of the additional wealth created (much like dogs benefit from the crumbs from their master’s table). In reality it seems more like a trickle up effect, and at times that trickle becomes a torrent.

  2. Good post, Barry.
    NZ sounds like a really great place

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