Hugh Radice wrote:
> I asked Mayes about the effect on the distribution of income and
> wealth; he did not know, or would not say.
Here are some better figures on income distribution in New Zealand
- this comes largely from Jane Kelsey's book, p.256ff.
Real disposable incomes, full-time wage and salary
earners 1984-90 (i.e. before the Employment Contracts Act
was introduced):
1st quintile 3rd quintile 5th quintile
June 1984 973 974 1052
June 1990 937 952 1081
% change -3.69 -2.26 +2.76
(March 1981=1000)
This of course doesn't include some of the worst hit:
part-timers, beneficiaries, nor those at the other end on
unearned income.
It has got worse than this since 1990. For example "the
Infometrics agency in September 1993 reported the top 20
percent of households currently received 45% of all gross
income, up from 35% in the late 1970s. It predicted that
their share would increase to 50% by 1997/98. This left
3% of the total income for the poorest 20% of households
in 1993. The real spending power of those in employment
between 1987 and 1992 rose by 7% for the wealthiest 20%
and fell by 2.9% for the poorest quintile." Compensation
of employees as a percentage of GDP, adjusted for changes
in the working age population, fell from 50% in 1986 to
47% in 1993.
The Department of Social Welfare reported to the re-
elected National government in 1993 that the gap between
the top household incomes and the bottom was widening
with the lowest 40% of household groups receiving only
16% of total household income and 76% of all benefit
income. This compared with 19% and 47% in 1988. In real
dollar terms the middle 50% of household incomes slipped
from a $23,106-$62,335 range in the early 1980s to
$17,777-$52,085 in the 1990s.
Economist Brian Easton, one of the best informed on such
matters, said in 1994 that "the number of people below
whatever poverty line you choose increased about 40% from
1990 to 1992". He laid much of the blame for growing
inequality at tax and benefit cuts. Tax cuts benefited
the rich in 1988 and benefit cuts hitting the poor in
1990.
Commenting on the widening disparities when pointed out
by the "Economist", the Minister of Finance, Bill Birch:
income disparities "are widening and they will widen
more. That doesn't worry me."
There's lots more, but that'll do for now.
Bill
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| Bill Rosenberg, Systems Manager, Centre for Computing and Biometrics, |
| P. O. Box 84, Lincoln University, Canterbury, New Zealand. |
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