BRINGING BACK COMMUNITY EDUCATION CLASSES

by The Analyst
New Zealand Tertiary Education Union from New Zealand / CC BY-SA

Contributed to The Analyst New Zealand by Dara McNaught© 2020

When I was working for a small non-profit organisation a while back the regular e-newsletters we provided were a crucial service. 

Lacking a teenager with requisite knowledge in the family, I took my grey hairs along to a short course at our local Adult Education Centre to learn how to use digital photography and other skills so we could enhance the publication. 

In her letter (23.9.20) Jo Bowler suggests that political parties budget for a return to these night classes as they ‘could provide big returns for a tiny part of the Budget.’ What makes them so valuable?

Community Education courses across the country – 1,000 of them in small towns and big cities with 220,000 enrolments and climbing – provided a range of entry-level courses for people seeking to learn new skills including, yes, literacy and numeracy.

PriceWaterhouseCoopers at the time described the government’s return on investment of $16 million as yielding a return of $4.8-$5.3 billion in value – that’s a return of 50 times the original, which would be any investor’s dream.

Yet one of the John Key government’s first decisions back in 2009 was to stop funding for the 100 year old Adult Education Community classes around the country. 

Fees for the courses – originally set up as Workers Education Classes – were always modest so poorly paid people could afford them. A glance through the range and number of courses being offered by West Auckland alone in 2009 showed 331 classes at 15 different locations, mainly schools whose assets were unused at nights and welcomed their use in this way.

For jobseekers, short courses offered essential skills such as improving your written English, how to put together a CV, or writing effective business letters. 

For business start-ups there were classes in basic accounting and on how to design your own website. 

Language classes offered Te Reo, Chinese (Mandarin), Arabic, German, Japanese, Korean, Samoan. Classes teaching English as a second language. 

Cooking classes provided a superb meeting place to learn and exchange methods of Indian, Chinese, Thai, Japanese, Middle Eastern and African cooking. Helping immigrants and refugees to integrate into our fractured communities. Cooking, like language, transmits culture. 

There were classes in first aid, health and fitness, such as pilates, Tai Chi, yoga, dance classes, and organic gardening.

There were the art classes – learning pottery or mosaics or drawing, or oil or watercolour painting. Beginner guitar and flute playing classes. Creative writing. All immeasurably valuable for healthy brains.

The list goes on. Building knowledge and understanding. Linking people across neighbourhoods into communities of mutual interest. 

Neuroscientists consistently report that the brain is like a muscle: the more you use it the more resilient it will be. Learning new skills stimulates your brain, so you remain a better employment prospect (and hence taxpayer).

Reinstatement of the Adult Education Classes would be a remarkably cost-effective investment in re-skilling people for a drastically changing employment market as well offering low cost practical ways of strengthening communities of interest in our disparate world.

Dara McNaught is a freelance writer. She is a former health social work manager.

Poverty amongst senior citizens in New Zealand

Superannuitants caught in the trap of poverty.

by The Analyst

Poverty amongst senior citizens in New Zealand

It seems that a goodly number of Superannuitants are cashing in their KiwiSaver and retirement savings and cruising off into the wide blue yonder – a well earned reward for hard work. This would be the ideal, but we are far from it. Poverty amongst senior citizens in New Zealand is in-fact a reality. The retired and poor of New Zealand.

Others are not so lucky. Poverty in retirement with no KiwiSaver or safety net, is becoming a reality. A concerned young Emergency Department doctor noted this year in the Herald that one third of the over-65 year old patients he sees are malnourished. He suggested they may need a budgeting service. My friend Remy (not her real name) is one of them.

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Auckland City Mission research  (NZ Herald, October 17) noted that about half a million people are in food poverty – about 10 per of the population. Cold and hungry, this is the same group who are high users of health services – no prizes for working out why.

WHAT ITS REALLY LIKE…

Hence, with a 40 year work history and a life time being mindful about money, Remy didn’t expect to be nearing 70 and struggling to survive.  Work hard, save hard, and you’ll be fine – isn’t that how it goes?

But you had better pray that none of the following happens to penalize you and soak up your money: a marriage and property breakup. Primary custody of your children as a sole parent, death of your partner, having a disabled or chronically sick child or partner, a chronic illness for yourself, a severe mental illness in the family, a bad accident to you or your partner or child, mortgage meltdown as house prices rise, working for a basic wage or on a zero hours contract, stock market crash, severe economic downturn, redundancies or long-term unemployment, business failure, theft or fraud by an employee or business partner, your savings lost in a badly managed investment company. 

Remy, a former high school teacher, took on primary care of her two children after a divorce. she’s a two time breast cancer survivor – hardly unusual events.

This year, chronic hunger and cold meant she was unable to fight off the flu. Pneumonia complications took four days in ICU. Add to that in-hospital recovery time that cost the health system upwards of $29,000. A fraction of that would have given her a year’s worth of food, warm clothing and winter heat. This would have likely prevented further admissions.

IS THE SUPER REALLY ENOUGH?

Recent research notes that a single person on a basic ‘no frills’ existence still needs at least another $115 a week just to survive, and that’s if your home is freehold. Note to politicians – remove the tax on Super and you’re half way there. Cars need repairs and maintenance and replacement. Computers die. Electricity costs inexorably rise. Health costs become more frequent as you age.  God forbid you need major dental work. Many older people have the cost of hearing aids and/or spectacles, which all need regular upgrading. Factor in rent and you need way more. Going to movies, concerts, theatre or restaurants, or even buying petrol to visit friends become out-of-reach luxuries.

Poverty in retirement with no KiwiSaver or safety net

Economic pundits periodically raise the alarm over the unsustainable cost of Superannuation. It’s a crisis, they cry. And it is going to be worse. It will be an unfair burden on the current working population. The country can’t afford it. This cohort of over-65s has been predicted for decades, but not planned for. Two universal superannuation schemes have been established then scuppered by changes of government. Despite the success of the Super Fund’s stellar investment team, the government  in 2009 undermined the fund’s ability to provide for future growth by suspending all payments; this wasn’t reinstated until a change of government in 2017.

THE VERDICT!

Besides always having enjoyed her work, Remy, liked the stimulation of being around young minds. She liked using her skills and experience to contribute to New Zealand’s social economy.

She can’t work now and is malnourished because she doesn’t have a super fund or savings in retirement. Five years ago she could manage, just. But Superannuation and WINZ supplements haven’t kept pace with steeply rising costs in rents, petrol, heating and especially food. Hence Poverty amongst senior citizens in New Zealand exists without a shadow of a doubt. It is a shame that there is poverty in retirement.

No, budgeting doesn’t cut it…

Contributed to The Analyst by: Dara McNaught, a freelance writer and former health and social work manager.

Related Links:

The pursuit of happiness

Pursuing happiness in the developed world and developing nations

by The Analyst

Pursuing happiness in the developed world and developing nations

The pursuit of happiness: This article aims to discuss what pursuing happiness in the developed world and developing nations means. The Analyst also aims to explore, the difficulty in pursuing happiness in the first world compared to the developing countries.

introduction

Many have tried, and failed, as will I in all likelihood, to explain what this elusive concept of happiness really is? But I won’t fail to try, so here goes. Happiness is like a rainbow, the closer you try and get to it, the further away it tries to run from you. Very few succeed, in the figurative sense of the word, to obtain their pot of gold at the end of this elusive rainbow called happiness. 

What does it mean to be truly happy? What does it mean, I ask? Does pursuing happiness having all the money in the world? Without any of the worries us plebs have to put up and deal with on a day to day basis. Yes money is important, more so to some than others. For some it is an absolute pre-occupation and the pursuit of happiness turns into the pursuit of acquiring more material wealth, often at the detriment of morals, and in the process, losing touch with their humanity all together. Besides, for others it is a pre-occupation because they don’t have enough of it to even provide for the bare necessities of life.

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PURSUIT OF HAPPINESS IN THE DEVELOPED WORLD

Besides, happiness has become elusive and an illusion in our industrialised lives. People have to fight for everything they want. For some (the haves), this is not so much of a fight. For others, there is no guarantee they will have a roof over their heads. Three meals a day in this instance becomes a luxury (the have nots). I think the burden of blame really does lie on the cost of living. It is the cost of living that forces people to work long hours. For some it means that they need to work more than one job.

Most people need a meaningful purpose to feel valued. When they are forced to detract from this purpose and meaning and focus on making a living, which might not entirely fit this purpose, they may become disillusioned with life and what it’s all supposed to mean. The cost of living in the developed world is undoubtedly amongst the highest, especially in New Zealand. There is plenty of evidence, anecdotal and otherwise, of the detrimental effects that a high cost of living is having on people’s mental and physical wellbeing, and if I can boldly say, ultimately their quality of life and happiness.

PURSUING HAPPINESS IN THE DEVELOPING NATIONS…

Pursuing happiness in the developed world and developing nations are remarkably different. In stark contrast, on my recent travels to the sub-continent I met some people who I might take the liberty to call the have nots; the poorest of the poor as per the United Nations, but much to my surprise, these were also some of the happiest people I have ever met. I observed that many of these people were absolutely joyful despite being of limited means. I asked them why they were so happy, many did not know, some said that for them there was no other way to be.

Comparison of the pursuit of happiness in the developed world and developing nations

On a separate occasion, I asked another poor, yet articulate, person this same question. To my surprise he responded saying, “A lack of greed my friend”. He also added there was enough support from within the community. He could easily go 6 months without an income and yet have a place to live and have three meals a day. All this on the back of kindness from within his community.

There was a real sense of contentment and a strong community feeling with these folks. I think this is lacking in our communities and societies in the Westernised world. New Zealand of yesteryears may have subscribed to this community feeling and bond. These days it is very much every man for himself. People are becoming increasingly isolated due to a myriad of reasons. This is evident in our rates of homelessness, which are increasing by the day. Happy and homeless? There is no such thing. I feel ashamed just thinking about the notion of happiness in this context, as it is a misnomer.

WHAT THE ANALYST THINKS…

Hence, our society has a lot to answer for. Pursuing happiness in the first world compared to the developing countries is worthy of a discussion. Should we continue in our warped idea of what ‘the pursuit of happiness’ means. Should we stop and take stock and ponder what that phrase really means to us all, as a multi-cultural society? Do we have enough? How much is enough? Or what is it that would make not just us happy, but also your friends, family and communities happy too.

How do we best align our purpose in this life so that we achieve happiness not just for ourselves but for our families, friends and communities. I think the answer is different for different people. There are many ways of being happy and joyful, but those are not immediately apparent to all. I believe I have tried and failed like many others, but I haven’t and will not fail to try …

USEFUL LINKS:
1. Dalai Lama on Happiness.
2. Buddhist Monk on Happiness.
3. Happiness and the monk mindset by Jay Shetty.

Happiness and its Pursuit…

by The Analyst

Many have tried, and failed, as will I in all likelihood, to explain what this elusive concept of happiness really is? But I won’t fail to try, so here goes. Happiness is like a rainbow, the closer you try and get to it, the further away it tries to run from you. Very few succeed, in the figurative sense of the word, to obtain their pot of gold at the end of this elusive rainbow called happiness.

What does it mean to be truly happy? Really, what does it mean, I ask? Is happiness having all the money in the world? Without any of the worries us plebs have to put up and deal with on a day to day basis. Yes money is important, more so to some than others. For some it is an absolute pre-occupation and the pursuit of happiness turns into the pursuit of acquiring more material wealth, often at the detriment of morals, and in the process, losing touch with their humanity all together. For others it is a pre-occupation because they don’t have enough of it to even provide for the bare necessities of life.

Sufi Embroider from the Kutch region of India. Some of the poorest of the poor, but happy. Source: The Analyst

Happiness has become elusive and an illusion in our industrialised lives where people have to fight for everything they want. For some (the haves), this is not so much of a fight, for others there is no guarantee that they will even have a roof over their heads let alone three meals a day (the have nots). I think the burden of blame really does lie on the cost of living. It is the cost of living that forces people to work long hours and for some it means that they need to work more than one job.

Most people need a meaningful purpose to feel valued. When they are forced to detract from this purpose and meaning and focus on making a living, which might not entirely fit this purpose, they may become disillusioned with life and what it’s all supposed to mean. The cost of living in the developed world is undoubtedly amongst the highest, especially in New Zealand. There is plenty of evidence, anecdotal and otherwise, of the detrimental effects that a high cost of living is having on people’s mental and physical wellbeing, and if I can boldly say, ultimately their quality of life and happiness.

In stark contrast, on my recent travels to the sub-continent I met some people who I might take the liberty to call the have nots; the poorest of the poor as per the United Nations, but much to my surprise, these were also some of the happiest people I have ever met. I observed that many of these people were absolutely joyful despite being of limited means. I asked them why they were so happy, many did not know, some said that for them there was no other way to be.

On a separate occasion, I asked another poor, yet articulate, person this same question again and to my surprise came an answer to the effect, “A lack of greed my friend.” He also added that if he could for some reason not afford to put food on the table for reasons beyond his control; there was enough support from the community that he could easily go 6 months without an income and yet have a place to live and have three meals a day.

There was a real sense of contentment and a strong community feeling with these folks, something which I think is lacking in our communities and societies in the Westernised world. New Zealand of yesteryears may have subscribed to this community feeling and bond, but these days it is very much every man for himself. People are becoming increasingly isolated due to a myriad of reasons and this is evident in our rates of homelessness, which are increasing by the day. Happy and homeless? There is no such thing. I feel ashamed just thinking about the notion of happiness in this context, as it is a misnomer.

Our society has a lot to answer for. Should we continue in our warped idea of what ‘the pursuit of happiness’ means; or should we stop and take stock and ponder what that phrase really means to us all, as a multi-cultural society? Do we have enough? How much is enough? Or what is it that would make not just us happy, but also your friends, family and communities happy too. How do we best align our purpose in this life so that we achieve happiness not just for ourselves but for our families, friends and communities. I think the answer is different for different people. There certainly are many ways of arriving at a state of happiness and joy but those are not immediately apparent to all. I believe I have tried and failed like many others, but I haven’t and will not fail to try …

USEFUL LINKS:
1. Dalai Lama on Happiness.
2. Buddhist Monk on Happiness.

Income Tax and Progressive taxation

GST, Poverty and the Trickle-Down Economy.

by The Analyst

Why do we pay taxes? The answer to this question is rather universal from nation to nation. In return for a stable operating environment as provided by the government of the day, one which allows society to thrive and prosper, we as people need to contribute money into a shared pot to ensure that we have the security and services as provided and administered by the government. Hence the advent of Income Tax and Progressive taxation. 

Progressive taxes are those that increase when the taxable income increases, in other words the high earners bear a higher burden of the tax than those that don’t earn as high an income. Some might argue that this is not entirely fair and there are several schools of thought on this issue. Some prefer that we make a move to a user pays economy and some think that the rich should bear a higher burden of the tax because society is inherently unfair as people have varying levels of access to opportunities due to socio-economic barriers. It is not the Analyst’s intention to debate this issue in this article. This is however a prelude to what lies ahead in this article.

So, most people are on the same page when asked about why they pay taxes, there might be some that might be disgruntled with governments on the amount they are required to pay versus the services they access. These are societal issues and debates which have gone on for decades and no one seems to have any clear answers yet, however most people accept the status quo and as law abiding citizens pay what is required of them. This is construed to be entirely fair and equitable by the majority. So when does taxation enter a territory that is not fair on the people? Consider this for a moment, say revenue collection is deemed to be inadequate and the government decides new taxes, consumer taxes, are to be introduced into the market places it has jurisdiction over. One such tax we all are very familiar with is GST in New Zealand or Goods and Services Tax.

There are several commentators across borders like Tong who believe that this is a regressive tax. A regressive tax is one where the burden of taxation is heavier on lower income families versus higher income families where there is a common denominator of goods and services that they access regularly for example, food. Simply put if a person earning $100,000 p.a. spends $100 on food versus a person earning $10,000 p.a. who also spends a $100 on food, both pay an equal amount towards GST. However the person earning the lower income has a higher burden of taxation on them, relative to their income. This is what makes GST regressive in nature and it is a widely held belief that it is unfair on lower income families, as it has a higher net negative impact on the cost of living for them versus someone, or a family, on a higher income, where affordability is not an issue.

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This is one of the fundamental issues of GST related to fairness in society. However the Analyst would like to further explore another issue which in its opinion makes GST unfair for all and not just the lower income families. Another way of looking at GST is being a tax on a tax, a double dip tax. Yes, this may sound outlandish at first glance but it deserves and warrants an explanation and consideration by the author and you the reader.

Say we have four people namely Harry, Tom, Sally and Jodie. They all engage in a  trade with each other, directly or indirectly. Let us say Sally employs Tom and pays him a weekly salary of a $100 net. This salary is disbursed with the income tax deducted so Tom gets $100 in his hand after taxes. Tom then goes to a corner shop owned by Harry and purchases some groceries with the $100 he has received as a salary after tax. Guess what, Tom has paid GST on his purchases which is deducted from already taxed money he received from his employer. Harry then takes what remains after he has paid GST on the money (GST is a value added tax which is paid on the difference between purchase price and sale price) he has just collected from Tom and purchases fuel to put in his car at a petrol pump owned by Jodie. Again GST is deducted from the sum collected. There are two things happening here; one is that the users in the system are paying GST on purchases that they make with wages they have received after taxes (a tax on a tax). The second is that the amount of money within the system is diminishing as it changes hands.

Firstly it is almost arguable that such taxes should be construed as being unethical. It is unconscionable to tax money that has already been taxed (eg. wages less, pay as you earn (PAYE) tax). Secondly as demonstrated above, the available money in the economy keeps shrinking whilst such transactions keep occurring. So one might ask, why don’t we completely run out of money in our economy, as there are millions of transactions and billions of dollars collected in GST by the government. 

This is where government spending comes into play. The Government may decide to spend the money it collects in building more roads and more hospitals and other infrastructure projects like housing. This however means that those funds are first accessed by a select group of professionals and companies such as engineering companies, building companies, lawyers and other professional bodies who might be responsible for delivering the infrastructure projects that the government wishes to pursue. This is what one might call the ‘trickle down economics’ of revenue generation through GST. It only works for a few and leaves many more behind as is becoming increasingly evident in our society here in New Zealand. 

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Pundits argue that Government spending creates jobs and job creation is what keeps the economy humming along. The Analyst fundamentally agrees with this but believes that socio-economic inclusion can create more opportunities and sub economies which might not only lead to the creation of more jobs but also more entrepreneurs and new businesses that employ local people. This results in skill development which will inadvertently uplift entire families out of the cycle of poverty, as they either become more employable or more entrepreneurial and gain bankable skills. The question the Analyst asks is whether trickle down economics has managed to benefit all communities equally? Well the answer to this is currently being explored and may form a topic of discussion in future posts.

Useful Links:
1) GST and its history in NZ
2) GST as a regressive Tax – Liew Chin Tong

Intergenerational Poverty! Why is it a disability?

by The Analyst

So what is poverty really? A quick definition of poverty states, “Poverty is the scarcity or the lack of a certain (variant) amount of material possessions or money.” However poverty really goes beyond that. The follow on effects of “a lack of certain amounts of material possessions or money” results in diminished participation or marginalisation from society as a whole. This leads to the loss of dignity for the individuals concerned, which makes the whole cycle a downward spiral, something which is extremely hard to break. When this cycle is perpetuated from one generation to another, it becomes Intergenerational Poverty (IGP). Research shows if you are born into poverty, you are more likely to remain within that vicious cycle unbeknown of ways to break out of it (Krishna, 2012). The reasons for becoming trapped in this cycle are many, as per Krishna, 2012, but they have been surmised as ‘everyday adverse events’, as being the causative feature of remaining in this poverty trap.

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To frame this in the New Zealand context, it firstly needs to be noted that we don’t have any formal poverty statistics or measures available in the public domain at this time. Whether this is by accident, or by design, is unknown. However there is strong evidence, that there exists a wealth gap as per measures provided by the Gini co-efficient which implies the existence of relative poverty. IGP has been noted to be prevalent in families that display a dependence on social security in New Zealand as per a Ministry of Social Development report on significant ‘pockets of poverty’. This report also highlights the different types of poverty on the poverty continuum and highlights the various causes and solutions to the problem. The focus of this article however is IGP, for which the poverty continuum states comprehensive ‘wrap around services’ as a solution to this problem.

Let us momentarily shift our focus to what a disability is. One common definition might be “a disadvantage or handicap, especially one imposed or recognized by the law”. We might have a case to argue that IGP is every bit a disability. IGP is a form of socio-economic disability which as mentioned before leads to a loss of dignity and participation for the individual and family concerned. It is an economic handicap caused and passed on as a result of several factors such as bankruptcy, ill health, loss off credit worthiness, crippling sub prime debt, a criminal record, poor mental or physical health etc. This list is by no means exhaustive. A strong case needs to be made for a provision in the law to look at the nature of IGP as a disability. Why, might you ask, is this necessary then? It becomes necessary when we find ourselves wondering how might we address the problem of IGP and who the relevant stakeholders should be? As mentioned earlier in this article, comprehensive wrap around services are required to address IGP in the report prepared by the MSD. In my view, the MSD has fallen one step short of recognising IGP as a disability. Had it done so it would have more clarity on who the stakeholders might be and what those wrap around services might look like. 

We might have a case to argue that Inter-Generational Poverty is every bit a disability.

THE ANALYST

Let’s say a person with a disability approaches the health system for assistance. They are assessed for a raft of support that is available from the organisation inline with disability rights. For example, someone with a long term disability might be visited by an occupational therapist to assess their needs. Subsequently they may be provided with tools to assist with day to day functioning which leads to an optimal level of independence. The treatment of IGP can be viewed through a similar lens and the lead support person ought to be a social worker; they are in the best position to assess the nature of the IGP and to recommend the best tools to assist the person in need. Social workers are trained in the art of assessment of a person’s family and socio-economic needs, as well as holding relevant knowledge on the appropriate health and community services available to a particular person and their family. Due to the multifaceted nature of IGP, social workers hold the appropriate training, registrations and knowledge to direct people in IGP towards the correct services. Thus aiding them in taking appropriate steps to break the cycle of IGP by addressing the areas of dysfunction in their life and that of their family. They are trained to engage with people from a range of challenging backgrounds within society. Such engagement would then result in referrals and reports to MSD case workers who would then evaluate the currency of benefits for the people in question.

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However the current structure of social services is rather discombobulated as people are moved from one type of benefit to another by their case workers depending on changes in their circumstances. These case workers might not have the appropriate training to interpret their clients’ needs or situation. Thus there is a great variance in the judgement being exercised by case workers. For example, someone on the Sole Parent Support benefit might be moved to a Job Seekers benefit type because they are deemed fit to work. An assessment of this nature needs to be made with careful consideration with the circumstances of the person involved, especially for those in the IGP trap. Also the person making this assessment should ideally be a Social Worker, to determine if they are in the IGP trap or not. Their needs must be assessed, and any gaps in skills, which might prevent them from being gainfully employed, addressed. As the system currently stands, these decisions are being made by Case Managers under strict guidelines issued by the MSD, leaving very little room for compassionate grounds or the like, to be factored in decision making. The affected people are then assigned to a Work Broker, who is trying to encourage people into the work force. The system may be well meaning, however the results are mixed. 

“In writing this article, we as a society need to aspire to arrive at a point where there is no requirement for charity.”

THE ANALYST

With poverty statistics only getting worse, this is evidence that the current approach is flawed. The problem needs to be re-framed and viewed differently as a disability for those affected by IGP. This will be a landmark change, should it ever be introduced into our system. In recent times, the incumbent labour government wishes to take a more compassionate approach to economic growth; recognising IGP as a disability would certainly be a step in the right direction, as it would give those affected the same rights as a disabled person and the conundrum of violation of human rights, with such a framework in place, would be solved!

In writing this article, we as a society need to aspire to arrive at a point where there is no requirement for charity. It is at this point we can proudly state that we have addressed the issue of IGP and other forms of poverty, thereby achieving the United Nations number one Sustainable Development Goal for 2030 – “No Poverty”. But we are not quite there yet, are we?