I agree that basics services should be more accessible to all - health, education, housing etc. I'd like to add dental care to your list. Dental care is so expensive in this country - yet is an important factor in overall health and wellbeing.
David says "I have had on my mind: ACC, and the concept of extending it to Health..." Seeing as how ACC is sitting on $40 billion plus why do we need anything more? Easily extend it to teeth and possibly veterinarian fees - nah strike the last bit. .
And with $40 billion plus in kitty it is self funding. One has to wonder why it continues to levy workers and motorists. But when was the lolly jar robbed?
Because the ACC Act requires them to fully fund all future liabilities. If I get injured today, ACC has to estimate the full, life-time cost of that injury and put that amount aside. That means that the present “kitty” is all technically, committed.
The original scheme was that the levy would be set each year to cover the full costs of that year’s claims. It was designed to be a social contract between all citizens. In the late 1990s National claimed ACC was broke, and tried to privatise it and introduced full funding. I’m reassured that they have the reserves to make sure future entitlements can be met and we need to ensure these funds are never raided. I hope we fight to prevent any attempts to destroy ACC again.
I hope, also there is full public discussion about how the new illness scheme and those levies will be managed, and we should reconsider the future funding of accident cover as well.
I think National allowed insurance companies compete for the low lying fruit in the 1990s but backed off privatization. These I think days ACC manages risk by ring fencing claims and pays out long term claimants. Esp. those who cannot return to the work force. Surely $40b and the ongoing levies are enough to fund public health without a "new illness scheme"
Excellent piece today, David. Finding inspiration is always rewarding. There are better ways of doing things than how we're doing things at the moment, and every adult putting their minds to finding those better ways is how it's achieved. Crying endlessly about how bad things are only makes us unhappy and does nothing to change the status quo.
Thanks David for another excellent column that again captures what seems the prevailing mood.
This Labour government is too comfortable in the middle, supported by people also in the middle while many others suffer & struggle. Because they haven’t ‘grasped the nettle’ (three waters aside - if it gets done) and made the big changes necessary, this Labour government is disappointing.
I like your concept of ‘Universal Basic Services’. Implementing that, despite the increases in taxation to fund it, would be a good thing in NZ to help everyone. It would at the same time ease the collective guilt in many of us in the middle currently watching how difficult it is for others seemingly never able to reach that warm, comfortable place.
I'm concerned about the middle-classing of Labour too, although I benefit from it. Governing alone seemed exciting, but a partnership with the Greens might have served to focus minds on environmental and social issues, even in the midst of terrorism, natural disasters and a global pandemic. Meeting social needs is not just a "nice to have" when everything else is going well. The balance between meeting social needs and the political necessity to remain in power always creates a knife edge for governments, and a pro-active partner can help maintain the balance. Having said that, I absolutely admire the government's COVID-19 response, and the amazing range of other reforms embarked upon in these challenging times.
I too have nothing but praise for how Labour got us through to this point, but to me, probably one of the most disappointing things Jacinda has said was declaring that people should be able to expect their houses to improve in value. This in response to the arguments around how to cap the rising house prices.
What??
I don't own a house, but I do own a car. Every year, the value of my car decreases, although I spend money on it to keep it safe and mobile. Why shouldn't it improve in value like a house, in that case?
And Labour promised in 1987 that we would begin to extend ACC-style income coverage to people who were forced out of work by illness.
As the Labour candidate in Remuera in 1987 I was concerned at my popularity and spent a lot of time encouraging the President of the party NOT to send a stream of Cabinet ministers to campaign for me.
My mother said on election night, that she had never seen BOTH candidates (of the major parties) looking so horror-struck. Doug Graham, because he thought he might have lost the safest National seat in Auckland; and me, because I thought I might have won it!
I am forever grateful to all the lovely people who worked so hard for us, and they too were working for better housing, education, health and communities.
And I particularly support better dental care! It’s fundamental primary health care.
When I left school in 1952 the population of Earth was a bit over 2.5 billion. We are now heading for 8 billion. As Private Fraser would have it “ We’re doomed, doomed ah tell yeh”.
Even the Buddha could not have foreseen such an overwhelmingly desperate scenario. It makes the purification of human consciousness seem like an ever distant shadow “fleeing before the Imperial Sun”. Something will shock us into a new way. But at what price? Surely Covid is telling us something? In spite of that gloomy faux prognostication, I continue to hope. “Always look on the bright side of life………”
Thanks to Eric Idle, The Buddha, Franz Kafka and Michael Smythe. And most of all to David for decluttering our thoughts. I’m still buying a lottery ticket.
What you are advocating, is basically a return to the way NZ was run back in the 50's, 60's and 70's, when free market 'forces' (actually just old and new greedy tax-dodging bastards) were not allowed to hold sway. Many of the present John Key-loving baby-boomer neo-middle-class (my own generation), who actually DID have access to reasonable wages, free education, dental care, cheap housing, etc, when they were growing up are the lucky culprits. Their new song is "the unemployables and the homeless can kiss my ass, my partner and I have got our three to five (or more) houses at last".
Re the Unemployment Insurance - can it be argued that making employees and employers (labour and capital) take care of their own financial security will enable more government funds to support those not in work?
Is there any evidence that reducing the financial stability of the middle class increases the wealth of those worse off?
Solving the urgent but complex issues of access to the basics of health, education and housing in a rapidly changing world* must include generating the wealth to be shared more equitably.
*It is rapid change - such as the bottom suddenly falling out of the tourist industry - that is behind the unemployment insurance scheme. It is an all our interests for people to be given a little space in which to adapt and become productive contributors again.
Bravo Dave as we need some hope for everyone. Our 32 year old musician son returned from living in Germany and has been appalled at rental costs and lack of rights for renters in comparison to his experience in Germany. Climate change anxiety, lack of affordable housing, lack of any stability that gives a sense of future he feels little hope. And he is fortunate in many ways and so many are worse off. Changes in how we move forward are needed now.
A thoughtful and challenging edition today - thank you - but are you taking the actual creation of the resources to be shared more equitably for granted? The story of The Little Red Hen has cast a long shadow. It must be remembered that the Labour Party grew from workers' movements. Belief in the dignity of work - mana in mahi - is a driving force that I recognise although definitions of 'work' should be broadened. I have always liked what Schumacher wrote in "Small is Beautiful" despite its disconcerting male-centric language:
"The Buddhist point of view takes the function of work to be at least threefold: to give a man a chance to utilise and develop his faculties; to enable him to overcome his ego-centredness by joining with other people in a common task; and to bring forth the goods and services needed for a becoming existence.
"It is clear, therefore, that Buddhist economics must be very different from the economics of modern materialism, since the Buddhist sees the essence of civilisation not in a multiplication of wants but in the purification of human character."
So maybe it's time to debate how we see the essence of civilisation.
I wish this one was free so many more people could read it - it’s such a refreshing take on a clearly broken system. I imagine that capitalism lovers would angrily spout another C word - but something must be done because eventually those capitalism lovers are going to meet a French Revolution response.
I dont know if its true, I was told Milton Freidman, yes that one, visited NZ had talks with someone I dont know who, pushing Neolib ideas etc early 80's? when that was all the rage in the affluent & political knitting circles. If you find out anything in your travels would like to know.
Watched some Graeber he has an encyclopedic knowledge of the past. sadly no longer with us. Wengrow is a very able patient speaker a great second. Their ideas need more exposure, we must move away from a dollar driven society and quickly.
It not serving the majority of us well at all anymore, if it ever did.
We must stop allowing society becoming the plaything for the wealthy just because they are wealthy. So we either need a god to step out of the sky and say HOI PULL YER HEAD IN to the fuckers trying to have it all their own way because of their bank balance or the human equivalent. But sadly churches have become a useless appendage in our world, despite some people slavish dependence on the drivel they spit out continuously
You should look into MMT Job Guarantee. A buffer stock of employmed people to set and stabilize the dollar and inflation to the price of labour to fight inflation instead of the orthodox method of NAIRU - a buffer stock of unemployed people to lower wages to fight inflation.
We lost our home and business to my wife's Alzheimer's (a long story) so are well acquainted with being on the fringe, living in a mobile home with no right of secure tenure like a growing number of folks, tolerated by authorities at best, regarded as a nuisance by most.
As we put our lives back together with Ann coming out of care fours years after a 3-months-to-live end-stage Alzheimer's diagnosis (her recovery is no accident) the dream of owning a home is just that, even though my ability to produce income is way better than most 70 year olds.
Both major political parties have sat on their hands for years whilst more people are excluded from that basic Kiwi right, home ownership. We lived in rental accommodation for a year before hitting the road, it's the shittiest commercial arrangement I've encountered in my life and is not an alternative unless on the European model of reasonable rents and long leases with security of tenure.
The current Labour government has failed miserably on this front and seem incapable of dealing with the problem. As a long time Labour voter and party member, it grieves me to see the lack of innovative thinking in this space. So far, the only sensible thinking is coming from TOP where a basic tenet is "we can't get rich by selling houses to each other". As a onetime house builder I know there are many ways to approach this problem but it has to start with a firm belief that the current situation is (fucking!) unacceptable then define a desired solution without letting perceived difficulties (eg over-priced building materials) define the outcome. That's how the Americans got on the moon; when JFK set the goal, the boffins had no idea if it could be done.
JFDI Labour, it's not insurmountable! Covid is a distraction but so what?
I agree that basics services should be more accessible to all - health, education, housing etc. I'd like to add dental care to your list. Dental care is so expensive in this country - yet is an important factor in overall health and wellbeing.
Yes, dental care – whether planned or not – can cause financial havoc for those on limited incomes.
Tax excessive sugar and use it for free dental health care, sugar causes rotten teeth
David says "I have had on my mind: ACC, and the concept of extending it to Health..." Seeing as how ACC is sitting on $40 billion plus why do we need anything more? Easily extend it to teeth and possibly veterinarian fees - nah strike the last bit. .
Our furry companions do play their part in keeping us healthy. Let’s include them…please.
The original idea of ACC was for it to be self funded from investment.
Unfortunately a certain government decided to rob the lolly jar.
And with $40 billion plus in kitty it is self funding. One has to wonder why it continues to levy workers and motorists. But when was the lolly jar robbed?
Because the ACC Act requires them to fully fund all future liabilities. If I get injured today, ACC has to estimate the full, life-time cost of that injury and put that amount aside. That means that the present “kitty” is all technically, committed.
The original scheme was that the levy would be set each year to cover the full costs of that year’s claims. It was designed to be a social contract between all citizens. In the late 1990s National claimed ACC was broke, and tried to privatise it and introduced full funding. I’m reassured that they have the reserves to make sure future entitlements can be met and we need to ensure these funds are never raided. I hope we fight to prevent any attempts to destroy ACC again.
I hope, also there is full public discussion about how the new illness scheme and those levies will be managed, and we should reconsider the future funding of accident cover as well.
But let’s ensure we don’t throw the baby out!!!
I think National allowed insurance companies compete for the low lying fruit in the 1990s but backed off privatization. These I think days ACC manages risk by ring fencing claims and pays out long term claimants. Esp. those who cannot return to the work force. Surely $40b and the ongoing levies are enough to fund public health without a "new illness scheme"
Excellent piece today, David. Finding inspiration is always rewarding. There are better ways of doing things than how we're doing things at the moment, and every adult putting their minds to finding those better ways is how it's achieved. Crying endlessly about how bad things are only makes us unhappy and does nothing to change the status quo.
Thanks David for another excellent column that again captures what seems the prevailing mood.
This Labour government is too comfortable in the middle, supported by people also in the middle while many others suffer & struggle. Because they haven’t ‘grasped the nettle’ (three waters aside - if it gets done) and made the big changes necessary, this Labour government is disappointing.
I like your concept of ‘Universal Basic Services’. Implementing that, despite the increases in taxation to fund it, would be a good thing in NZ to help everyone. It would at the same time ease the collective guilt in many of us in the middle currently watching how difficult it is for others seemingly never able to reach that warm, comfortable place.
I'm concerned about the middle-classing of Labour too, although I benefit from it. Governing alone seemed exciting, but a partnership with the Greens might have served to focus minds on environmental and social issues, even in the midst of terrorism, natural disasters and a global pandemic. Meeting social needs is not just a "nice to have" when everything else is going well. The balance between meeting social needs and the political necessity to remain in power always creates a knife edge for governments, and a pro-active partner can help maintain the balance. Having said that, I absolutely admire the government's COVID-19 response, and the amazing range of other reforms embarked upon in these challenging times.
I too have nothing but praise for how Labour got us through to this point, but to me, probably one of the most disappointing things Jacinda has said was declaring that people should be able to expect their houses to improve in value. This in response to the arguments around how to cap the rising house prices.
What??
I don't own a house, but I do own a car. Every year, the value of my car decreases, although I spend money on it to keep it safe and mobile. Why shouldn't it improve in value like a house, in that case?
I agree.
And Labour promised in 1987 that we would begin to extend ACC-style income coverage to people who were forced out of work by illness.
As the Labour candidate in Remuera in 1987 I was concerned at my popularity and spent a lot of time encouraging the President of the party NOT to send a stream of Cabinet ministers to campaign for me.
My mother said on election night, that she had never seen BOTH candidates (of the major parties) looking so horror-struck. Doug Graham, because he thought he might have lost the safest National seat in Auckland; and me, because I thought I might have won it!
I am forever grateful to all the lovely people who worked so hard for us, and they too were working for better housing, education, health and communities.
And I particularly support better dental care! It’s fundamental primary health care.
It’s time we delivered for all New Zealanders.
When I left school in 1952 the population of Earth was a bit over 2.5 billion. We are now heading for 8 billion. As Private Fraser would have it “ We’re doomed, doomed ah tell yeh”.
Even the Buddha could not have foreseen such an overwhelmingly desperate scenario. It makes the purification of human consciousness seem like an ever distant shadow “fleeing before the Imperial Sun”. Something will shock us into a new way. But at what price? Surely Covid is telling us something? In spite of that gloomy faux prognostication, I continue to hope. “Always look on the bright side of life………”
Thanks to Eric Idle, The Buddha, Franz Kafka and Michael Smythe. And most of all to David for decluttering our thoughts. I’m still buying a lottery ticket.
What you are advocating, is basically a return to the way NZ was run back in the 50's, 60's and 70's, when free market 'forces' (actually just old and new greedy tax-dodging bastards) were not allowed to hold sway. Many of the present John Key-loving baby-boomer neo-middle-class (my own generation), who actually DID have access to reasonable wages, free education, dental care, cheap housing, etc, when they were growing up are the lucky culprits. Their new song is "the unemployables and the homeless can kiss my ass, my partner and I have got our three to five (or more) houses at last".
Re the Unemployment Insurance - can it be argued that making employees and employers (labour and capital) take care of their own financial security will enable more government funds to support those not in work?
Is there any evidence that reducing the financial stability of the middle class increases the wealth of those worse off?
Solving the urgent but complex issues of access to the basics of health, education and housing in a rapidly changing world* must include generating the wealth to be shared more equitably.
*It is rapid change - such as the bottom suddenly falling out of the tourist industry - that is behind the unemployment insurance scheme. It is an all our interests for people to be given a little space in which to adapt and become productive contributors again.
Bravo Dave as we need some hope for everyone. Our 32 year old musician son returned from living in Germany and has been appalled at rental costs and lack of rights for renters in comparison to his experience in Germany. Climate change anxiety, lack of affordable housing, lack of any stability that gives a sense of future he feels little hope. And he is fortunate in many ways and so many are worse off. Changes in how we move forward are needed now.
Another excellent read David. Thank you.
A thoughtful and challenging edition today - thank you - but are you taking the actual creation of the resources to be shared more equitably for granted? The story of The Little Red Hen has cast a long shadow. It must be remembered that the Labour Party grew from workers' movements. Belief in the dignity of work - mana in mahi - is a driving force that I recognise although definitions of 'work' should be broadened. I have always liked what Schumacher wrote in "Small is Beautiful" despite its disconcerting male-centric language:
"The Buddhist point of view takes the function of work to be at least threefold: to give a man a chance to utilise and develop his faculties; to enable him to overcome his ego-centredness by joining with other people in a common task; and to bring forth the goods and services needed for a becoming existence.
"It is clear, therefore, that Buddhist economics must be very different from the economics of modern materialism, since the Buddhist sees the essence of civilisation not in a multiplication of wants but in the purification of human character."
So maybe it's time to debate how we see the essence of civilisation.
Thanks Michael….interesting response..
I wish this one was free so many more people could read it - it’s such a refreshing take on a clearly broken system. I imagine that capitalism lovers would angrily spout another C word - but something must be done because eventually those capitalism lovers are going to meet a French Revolution response.
I dont know if its true, I was told Milton Freidman, yes that one, visited NZ had talks with someone I dont know who, pushing Neolib ideas etc early 80's? when that was all the rage in the affluent & political knitting circles. If you find out anything in your travels would like to know.
Watched some Graeber he has an encyclopedic knowledge of the past. sadly no longer with us. Wengrow is a very able patient speaker a great second. Their ideas need more exposure, we must move away from a dollar driven society and quickly.
It not serving the majority of us well at all anymore, if it ever did.
We must stop allowing society becoming the plaything for the wealthy just because they are wealthy. So we either need a god to step out of the sky and say HOI PULL YER HEAD IN to the fuckers trying to have it all their own way because of their bank balance or the human equivalent. But sadly churches have become a useless appendage in our world, despite some people slavish dependence on the drivel they spit out continuously
You should look into MMT Job Guarantee. A buffer stock of employmed people to set and stabilize the dollar and inflation to the price of labour to fight inflation instead of the orthodox method of NAIRU - a buffer stock of unemployed people to lower wages to fight inflation.
Great discussion about it here....
https://pileusmmt.libsyn.com/125-sam-levey-monopoly-monopsony-and-what-to-do-about-them
We lost our home and business to my wife's Alzheimer's (a long story) so are well acquainted with being on the fringe, living in a mobile home with no right of secure tenure like a growing number of folks, tolerated by authorities at best, regarded as a nuisance by most.
As we put our lives back together with Ann coming out of care fours years after a 3-months-to-live end-stage Alzheimer's diagnosis (her recovery is no accident) the dream of owning a home is just that, even though my ability to produce income is way better than most 70 year olds.
Both major political parties have sat on their hands for years whilst more people are excluded from that basic Kiwi right, home ownership. We lived in rental accommodation for a year before hitting the road, it's the shittiest commercial arrangement I've encountered in my life and is not an alternative unless on the European model of reasonable rents and long leases with security of tenure.
The current Labour government has failed miserably on this front and seem incapable of dealing with the problem. As a long time Labour voter and party member, it grieves me to see the lack of innovative thinking in this space. So far, the only sensible thinking is coming from TOP where a basic tenet is "we can't get rich by selling houses to each other". As a onetime house builder I know there are many ways to approach this problem but it has to start with a firm belief that the current situation is (fucking!) unacceptable then define a desired solution without letting perceived difficulties (eg over-priced building materials) define the outcome. That's how the Americans got on the moon; when JFK set the goal, the boffins had no idea if it could be done.
JFDI Labour, it's not insurmountable! Covid is a distraction but so what?
This is the way .