Inequality of New Zealand with Respect to Income

Inequality of New Zealand with Respect to Income
In New Zealand, differences in income are great, an aspect of this problem today is the insider-outsider problem. An insider is a person who ?plays the game?, does not criticise the ?post-reform? environment, takes a dim view of those who do criticise it, and maintains particularly bland curriculum vitae. Hypothetically take a 50-year old that has a cv which included a whole range of experiences which would have made him able to do just about any job better than most people. however, he is unemployed. Under the post-reform environment, people seen as ?risky? are unfavoured by the employing. We have created one of the most risk-averse economic environments imaginable. We are outsiders if we have skills but no experience, but having both skills and experience by no means makes us insiders. This brings me to the point, why do incomes in New Zealand span the entire spectrum of wage rates, so obviously as mentioned above experience may play a minor role in the inequality of income in New Zealand. First we must look at why some have become rich, and entered that upper income bracket. There are two other reasons why some people have become rich. Despite the New Zealand government having created a system that provides career rewards for risk-averse people who ?play the came?, and do not ?rock the boat?, the system creates much unwanted economic turbulence, much of which is a result of its natural inclination to reject and exclude huge numbers of talented people. An environment of uncertainty and much rejected talent is an environment in which entrepreneurship can flourish. Most innovative people who do their own thing in this environment do not become rich. But a very few do. Successful entrepreneurship is a road by which some outsiders can become insiders, if they so choose, however, to put your life on hold and put your family at risk to create a better life for you and your family is not for the faint hearted, it takes guts, and ?balls? to be able to place things of great importance at risk. Some people become very rich by doing nothing, giving complete lie to the theory that skills and hard work constitute the road to riches, which is a view shared by most New Zealanders. These people are the pure capitalists, the sleeping partners of corporations. The returns to the owners of privately owned assets, be it money in the bank, shares and bonds, real estate have increased significantly after the late 1980s. The major income gain arising from our new form of capitalism has been rentier income, and not entrepreneurial income. This is why we have become so risk-averse. People with private property that pays them a good income regardless of their work never want the national boat rocked by people who question their right to a disproportionate share of the national cake. This is where the whole ?Robin Hood? ideology of take from the rich and give to the poor comes in. In a society that had no inequality, a utopian society for those tax payers who despise the rich, and want them punished for what they do best. That said there are probably few strategies that yield higher expected future incomes per dollar invested than buying a Lotto ticket. For those without private property or access to parental income deriving from private property, every strategy offers a chance of success, and a much bigger chance of failure. So once again for the rich to get where they are, they must be good at what they do. [image] If we were to illustrate the inequality of New Zealand income, it would look something like this: In New Zealand, one measure that our government could take to reduce the inequality in our country is to correctly educate people that those who are skilled at what they do, have experience, and are not seen as risky to employ are those who fit into the middle category of wage rates, and that the notion that academic smarts will make you money is outdated in 2003. Work for dole schemes like Taskforce Green, are good ideas to get those who do exploit the taxpayer by ?dole bludging? out of bed before 12:00 PM and at the least doing community projects, this will be successful for deterring those who bludge off the dole, but as far as ?bridging the inequality gap? goes this will have a minimal effect.

Inequality of New Zealand with Respect to Income 7.6 of 10 on the basis of 2129 Review.