Latest news with #MaxRashbrooke
The Spinoff
5 days ago
- Business
- The Spinoff
Ruth Richardson's state honour is a slap in the face for the poor
The architect of 1991's 'mother of all budgets', who was made a Companion of the New Zealand Order of Merit in the King's Birthday honours this week, did immense damage to the country's poorest and most vulnerable, writes Max Rashbrooke. In the early 1990s, two Porirua preschoolers burned to death when their state house was set alight by a candle their family had begun using after the power was cut off. They had been forced to this extremity by a National government that, obsessed by 'market forces', had decided to remove their housing subsidy and require them to pay market rents instead. This sharp rise in costs had left them unable to pay their power bill; hence the candle. Labour MP Graham Kelly caused an uproar in parliament when he attributed these deaths to National's policies – but even allowing for imponderable factors, like whether a candle falls over or not, he was in the broadest sense right. Policies that target the poor always have consequences in the end. And no one targeted the poor harder than Ruth Richardson, who on Monday was made a Companion to the New Zealand Order of Merit. Alongside the market-rent reforms, Richardson is most notorious for the 1991 'mother of all budgets', which cut the benefits of some of the poorest and most vulnerable New Zealanders by up to one-quarter. In a move familiar throughout history, she decided that the burden of tackling New Zealand's (admittedly severe) budget deficit was to fall disproportionately on the poor, rather than those better able to bear it. The result was immediate: a doubling of the number of those living in the most extreme poverty – that is, on less than 40% of the typical income – from 4% in 1990 to 8% two years later. Most policies are much slower to show their effects; Richardson is among a select few who can claim to have doubled poverty overnight. The effects of this stark rise, quite apart from the pain and misery inflicted on families, have spread right throughout New Zealand. Food banks used to be virtually unknown in this country; in the 1990s they became commonplace. Unable to afford to heat their homes, or indeed pay the rent, multiple families began living under one roof, enduring the cold or huddling together for warmth. Mould and damp proliferated. Diseases like rheumatic fever, long since eliminated in other developed nations, flourished in these conditions, wrecking childhoods and ending lives prematurely. A sharp uptick in the hospitalisations of children for medical conditions – from 50 per 1,000 to 70 per 1,000 – began in 1992, just after Richardson's budget. While she was not, of course, the sole author of these misfortunes, she undoubtedly wrote much of the script. Child poverty leaves scars that later affluence never really erases. Children born into hardship have, in adulthood, twice the rate of heart conditions of those born into wealth. They also have far lower reading scores and educational results. Quite apart from being devastating in their own right, these deficits create colossal financial costs: the annual bill from child poverty in this country is estimated at anywhere between $12 billion and $21 billion. This is particularly ironic because Richardson's legacy on the right is one of financial rectitude: she is seen, in particular, as the author of the 1994 Fiscal Responsibility Act, which aimed to improve the transparency and long-term management of the government's accounts. But not only is this relatively small beer compared to the appalling damage poverty inflicts on people's lives, the long-term economic costs of increased hardship are an example of massive financial irresponsibility. Not that Richardson has ever been able to acknowledge as much. Interviewed by the academic Andrew Dean a decade ago, she denied her policies had resulted in any wider harm: 'Over time, was there a social cost? No, there was a social benefit.' That, then, is the person the New Zealand state decided to honour this week: someone who not only did immense damage to the country's poorest but is also quite disconnected from the realities of that harm. The puzzle is less – as some commentators suggested – that it took so long for her to be recognised, but rather that she has been recognised at all. Maybe, though, we should not be surprised. Over in the UK, a similar strategy of slashing government budgets and benefit payments took place under the Conservatives between 2010 and 2024. This austerity cut access to the social services on which ordinary people rely, reduced ambulance services, and sparked poverty-related 'deaths of despair'. All up, it is conservatively estimated by researchers to have caused 190,000 preventable deaths. The man most responsible for this social devastation, former chancellor George Osborne, nonetheless occupies a gilded position in British life, having moved smoothly into editing the Evening Standard newspaper and pontificating on global politics. Inflicting misery on the poor is, in short, socially acceptable as long as it is clothed in the classic establishment rhetoric of taking 'difficult' choices, 'balancing' the books and fiscal 'responsibility'. The poor may be, as the Christians say, always with us, but that does not guarantee that their lives will ever be accorded the proper respect.
RNZ News
23-05-2025
- Business
- RNZ News
Breaking down the Budget with Max Rashbrooke
This week the budget dominated the news with Finance Minister Nicola Willis promising no frills after cutting new spending nearly in half. There have been savings made through reforms to the pay equity legislation and KiwiSaver. But boosts for businesses with a tax incentive, learning support in schools and roading. Max Rashbrooke is a senior research fellow in the School of Government at Victoria University, he has written extensively on inequality and talks to Susie. Photo: RNZ / Samuel Rillstone
The Spinoff
18-05-2025
- Politics
- The Spinoff
What kind of economy produces the highest adolescent suicide rate? Ours
New Zealand places alarmingly low for child and youth mental health among other wealthy countries, according to a new Unicef report. This reflects political choices – and this week's budget is a chance to prioritise what really matters. The latest Unicef Innocenti Report Card 19: Fragile Gains – Child Wellbeing at Risk in an Unpredictable World ranks Aotearoa 32nd out of 36 wealthy countries for overall child wellbeing. We are rock bottom for child and youth mental health, with the highest youth suicide rate among EU and OECD countries. It is a competition no one wants to win. The Unicef rankings are a wake-up call, but they're not surprising. They reflect choices. Political ones. This isn't just theory for me. In my former role as executive officer of Child Poverty Action Group, I saw firsthand how political decisions shape lives. In that role I worked with advocates, communities and academics pushing for systemic change. A core part of that work involved advocating for long-term solutions, instead of just charity. It was about improving systems that were never designed with the dignity and wellbeing of people in mind. It is important, necessary work. But what has become increasingly clear to me is, if we really want to fix poverty, if we want children to flourish, we have to go as far upstream as we can. We have to radically improve the economic system that underpins it all. Because the truth is, our current system is working exactly as it was designed to, just not for the greater good of everyone. As Toby Manhire's podcast series Juggernaut shows, neoliberalism, the dominant economic system we live under, was deliberately designed to give more power to the market: deregulating corporations and privatising the public. And our politicians really went for it. Taxes were overhauled and welfare budgets were slashed. We were told that economic gains would trickle down. Instead, the approach devalued our own people and created rampant wealth inequality. As Max Rashbrooke details, New Zealand had the biggest increase in income disparity in the developed world between 1985 and 2005. And it was during the 1980s and 1990s that we saw an upward trend in our overall suicide death rate. Child poverty, inequality and mental health crises aren't bugs, they are features of the system. Today, young people face a future that feels increasingly out of reach. Home ownership is slipping away, tertiary education is expensive, and the climate crisis looms large. They're being told, implicitly or explicitly, to expect a lower quality of life than their parents. This isn't the natural way of things and it demands a serious and future-focused response from our politicians. Budget 2025 is around the corner, and it will tell us, once again, what our leaders value. It will show us if our decision-makers are choosing to prioritise what really matters: real support for mental health, liveable incomes, access to quality housing and education, and the wellbeing of our communities. So, what would I like to see in the government's budget? Intergenerational thinking. Yes, I want to see increased funding for youth mental health services, but if we are truly to go to the root cause of the problem, the budget would include a commitment to public housing and housing affordability so that every child in Aotearoa can grow up in a stable housing environment. Housing instability is more than just a roof issue, it's a stress factory for families. Constant moves can chip away at a child's sense of community, identity and safety. It would include a commitment to real, sustained action on climate change. Not just vague targets, but serious investment in reducing emissions. Rewiring Aotearoa and Recloaking Papatūānuku are two examples of climate action that actually save money. The mental toll of living through climate anxiety is real, especially for young people who are increasingly aware that the world they're inheriting is in crisis. A future-focused budget would treat the climate crisis not as tomorrow's problem, but as today's emergency, and invest accordingly. It would include more examples of community wealth building in action. 'Community wealth building' might sound like jargon, but it's working overseas to grow jobs and prosperity. At its heart, it's a simple idea: keep jobs, resources and decision-making in local hands. One of the best examples of this was the earlier version of the healthy school lunch programme, a model that created local jobs, supported small businesses, and strengthened communities. Instead of funnelling money to distant, multinational corporations, this approach helps keep wealth circulating locally. And it's not just smart economics, it's intergenerational thinking. By strengthening the social and economic fabric now, we create the conditions for young people to thrive in the decades ahead. The budget should also include new metrics of success. We have to ask ourselves what the purpose of the economy actually is, and what metrics we should be using to measure it? In Aotearoa, we still measure success by how fast GDP grows. But did you know that oil spills and car crashes grow GDP? While unpaid care isn't counted? But GDP doesn't tell us if children are fed, if they feel safe, if they can access mental health support when they're struggling. It doesn't tell us if policies help people live with dignity and connection. What gets measured gets managed, and we're measuring the wrong things. A wellbeing economy flips the script. It doesn't ask 'how fast is GDP growing?' but 'is our economy delivering what people and the planet need to thrive?' It demands new measures of success, ones that actually tell us if what we are doing counts. Those indicators might include livable incomes, access to housing, health and education; and an environment that can support future generations. The things that truly show whether we're on the right path, both for our generation and for those to come. We can make this shift, but it demands courage and genuine leadership to break away from a failing status quo. Imagine a future where we lead not in youth suicide statistics, but in pioneering an economy designed around wellbeing and long-term impact.
Scoop
15-05-2025
- Business
- Scoop
St Peter's Post-Budget Breakfast Hui: BUDGET 2025 – Leading Us Where?
Press Release – St Peters on Willis Social Justice Group Open to the public, BUDGET 2025: Leading us where? will be hosted by Max Rashbrooke, a Wellington-based writer and commentator, and will feature six special guest speakers outlining their take on the Budget. St Peter's Anglican Church, Willis Street, Wellington Friday 23rd May 6:30am doors open, commencing with livestreaming at 7:30am The Coalition Government's second budget will be put under the microscope at a post-budget breakfast hui to be held at St Peter's Anglican Church, Willis Street, Wellington, on Friday (May 23). Open to the public, BUDGET 2025: Leading us where? will be hosted by Max Rashbrooke, a Wellington-based writer and commentator, and will feature six special guest speakers outlining their take on the Budget. The speakers are Sir Ashley Bloomfield, public health physician and CEO of ESR; Professor Lisa Te Morenga Massey University nutrition and Māori Health researcher and co- chair of Health Coalition Aotearoa; Dr Ganesh Ahirao, economist and volunteer; Fleur Fitzsimons, National Secretary of the Public Service AssociationTe Pukenga Here Tikanga Mahi; Jenny Neill, experienced educator and PhD candidate; and Craig Renney, economist and director of policy for the New Zealand Council of Trade Unions. The hui has been organised by the St Peter's on Willis Social Justice Group in partnership with the Child Poverty Action Group, the Public Health Association New Zealand Wellington Branch, and the Public Health Communications Centre. The Group's chair Gail Duncan says, 'The hui provides an early opportunity to examine the direction this Budget leads us in terms of public health, education, social investment, infrastructure, housing, employment, economic resilience and the role of government.' The hui will take place on Friday 23rd May at St Peter's Anglican Church, 211 Willis Street, doors opening at 6:30am. Journalists welcome. The event will be live-streamed from 7:30am on
Scoop
15-05-2025
- Business
- Scoop
St Peter's Post-Budget Breakfast Hui: BUDGET 2025 - Leading Us Where?
St Peter's Anglican Church, Willis Street, Wellington Friday 23rd May 6:30am doors open, commencing with livestreaming at 7:30am The Coalition Government's second budget will be put under the microscope at a post-budget breakfast hui to be held at St Peter's Anglican Church, Willis Street, Wellington, on Friday (May 23). Open to the public, BUDGET 2025: Leading us where? will be hosted by Max Rashbrooke, a Wellington-based writer and commentator, and will feature six special guest speakers outlining their take on the Budget. The speakers are Sir Ashley Bloomfield, public health physician and CEO of ESR; Professor Lisa Te Morenga Massey University nutrition and Māori Health researcher and co- chair of Health Coalition Aotearoa; Dr Ganesh Ahirao, economist and volunteer; Fleur Fitzsimons, National Secretary of the Public Service AssociationTe Pukenga Here Tikanga Mahi; Jenny Neill, experienced educator and PhD candidate; and Craig Renney, economist and director of policy for the New Zealand Council of Trade Unions. The hui has been organised by the St Peter's on Willis Social Justice Group in partnership with the Child Poverty Action Group, the Public Health Association New Zealand Wellington Branch, and the Public Health Communications Centre. The Group's chair Gail Duncan says, 'The hui provides an early opportunity to examine the direction this Budget leads us in terms of public health, education, social investment, infrastructure, housing, employment, economic resilience and the role of government.' The hui will take place on Friday 23rd May at St Peter's Anglican Church, 211 Willis Street, doors opening at 6:30am. Journalists welcome. The event will be live-streamed from 7:30am on
