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Home / New Zealand

Chlöe Swarbrick: We can choose to rewrite the rules again

By Chlöe Swarbrick
NZ Herald·
16 Aug, 2022 05:00 PM4 mins to read

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The current rules favour the wealthy, at the cost of our collective wellbeing. Photo / Dean Purcell

The current rules favour the wealthy, at the cost of our collective wellbeing. Photo / Dean Purcell

Opinion

OPINION:

Who is the economy for?

The economy is all of us and the things we create. It's not a God that we need to sacrifice to or suffer for. It's a set of rules that governs and prioritises the things we value, to produce the outcomes we want.

As election year looms and conversations around the economy percolate, it's worth asking what kind of economy we want. Do we value a healthy natural environment, strong mental and physical wellbeing and community connection?

These good things aren't measured by GDP growth.

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Wellbeing of people and the planet has, in fact, long been cashed in for GDP growth. Yet half a century deep into the failure of trickle-down economics, some political players are still trying to tell us we can't "afford" decent lives and a liveable planet. The Greens – and a whole lot of evidence – reckon it's actually greed we can't afford.

Earlier this year, ground-breaking longitudinal economic research out of London's Kings College found tax cuts for the rich lead to higher income inequality both in the short and medium term. These trickle-down tax cuts also have no significant effect on economic growth or unemployment.

Statistics New Zealand data tells us that inflation disproportionately hurts the least wealthy New Zealanders, who spend more of their income on essentials.

Economic analysis from economist Bernard Hickey tells us that the wealthiest New Zealanders are nearly $1 trillion richer two years into Covid-19.

The banks themselves are telling us that they are raking in record-breaking profits off the back of expanded lending in the midst of the global pandemic.

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The Greens agree with the Opposition that the highest inflation rates in three decades are impacting all of us. The Greens and the evidence, however, disagree with the Opposition's vague attempt to imply that inflation is impacting all of us equally.

It is fact: the rich are getting richer and the poor are getting poorer.

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So why are the Opposition calling for tax cuts for the wealthiest and penalties for young people on the benefit, including those with disabilities?

The simple answer is ideology. That is, the things we value, which all politicians and people have; the lens all of us apply to the evidence we're willing to accept, argue or reject.

Christopher Luxon gave a pretty clear view of the National party's values when he stated: "You're not going to get rich sitting on welfare."

He's right, but probably not in the way he wants to be. The Welfare Expert Advisory Group's 2019 report stated that our current welfare system comes with, "Inadequate support to meet even basic needs. The experience of using the system is unsatisfactory and damaging for too many of the highest need and poorest people."

In 1963, Heinrich Böll wrote a now-famous short story about a fisherman taking a nap in his boat on a European coast. A well-dressed tourist approached to ask why he was "wasting the day". The fisherman explained he went fishing in the morning, which would feed his family for a few days.

Exasperated, the tourist explained that if the fisherman went out and caught more fish to sell, he would soon be able to buy a motor-boat, then another boat, hire someone, buy a storage plant, a pickling factory, get a helicopter, develop contracts to export his fish to other countries.

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The fisherman asked: "Then what?"

You could then relax a little bit focusing on what matters, the tourist said.

The fisherman reminded the tourist that was precisely what he was already doing.

Public services are bending to breaking point under decades of underinvestment. Parliament is readying itself to debate whether we should protect the conditions necessary for life on Earth by keeping coal, oil and gas in the ground – especially on conservation estate and in our deep sea.

Half a century ago the rules were rewritten in favour of the wealthy, at the cost of our collective wellbeing. The post-war social contract consensus was shredded in favour of individual competition over collaborative progress.

Amidst a global pandemic, climate emergency and escalating inequality, we can choose to rewrite those rules.

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After all, this week's 1News Kantar poll makes it pretty clear the majority of New Zealanders – even the majority of National voters – aren't willing to sacrifice tax revenue that could go into our hospitals, schools, public housing and climate action on some trickle-down fancy.

• Chlöe Swarbrick, Green Party, is the MP for Auckland Central.

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