One should look at the gini of countries that are perceived to be good places to live and manage to have healthy economies. Most of these range in the mid-to-high 20′s…

This gives a reasonable target zone. We’re too high and going higher. That is just as much Labour’s failing as National’s.

I think it is possible for gini to be TOO low, the old saw about robbing people of initiative has to come into play at some level, but I don’t think there are many examples of this. Moreover, if the distributions are (as they often are) largely heritable, the lack of realistic opportunity does a very good job of sapping people’s drive to succeed.

respectfully
BJ

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Well done Ken

Typical bullsh*t from the Tories. Too lazy to read the report so they resort to casting aspersions on the methodology.

Well … at least the UNDP publish their methodology, which is not something that can be said for the decision making process this govt is using.

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Does the measure for inequality take account of tax credits – such as in WFF?

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If this report has been available in its entirety for a week, why let the National spokesman get away with saying “I can assure the member that when the report is received it will be read.”? It would have been an opportunity to hand the MP a copy.

Trevor.

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bjchip,

tks for the wiki ref.. Gini is pretty much all about distribution..

You may also have spotted there – The Gini index for the entire world has been estimated by various parties to be between 56 and 66 – sourced @ UNDP and Bob Sutcliffe’s work..

We might say how countries nearest to these figures are the worst… likely getting worser..

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It is actually a fairly well established measure of inequality and can be found on wikipedia.

http://en.wikipedia.org/wiki/Gini_coefficient

… one notes the computations are complex and it takes some thought.

http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTPOVERTY/EXTPA/0,,contentMDK:20238991~menuPK:492138~pagePK:148956~piPK:216618~theSitePK:430367,00.html

Labour and National aren’t doing a blessed thing about it except propping up the property market so that the inequality can get worse.

BJ

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kennedy graham did well in questiontime..

he had them on the back foot..

and should keep pressing in with this..

he has plenty of ammunition to hand..

phil(whoar.co.nz)

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Point taken, tomfarmer, Gini coefficient isn’t a very familiar term! The Gini coefficient is a measure of income inequality. It’s a scale of 0-100, with 0 representing absolute equality and 100 absolute inequality.

Put another way, the most unequal society will be one in which a single person receives 100% of the total income and the remaining people receive none (G=100); and the most equal society will be one in which every person receives the same percentage of the total income (G=0).

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Interesting was the said Minister’s response in relation to “contentious” matter. Do I take it – Bryce & Owen may care to respond on this, as well as the good blogger of course – that this government is back in the bad olde ways of policy-by-exception..?

Plus, the Gini wot! is what s’il vous plait? Not the back end of a beautiful auto model, nor a mispelled genie.. explain for the wider readership… c’mon now.

Also frogblog please note my email address change.. redirect the sub..

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Great questioning by Dr Graham. It seems these days that the popular way to dismiss information that doesn’t align with your ideology is to doubt the methodology. And now, even when you have no knowledge of the report!: “I understand that methodology and data are often contentious aspects of such reports.”

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Interesting about the Social Report Bryce! The UNDP report actually has NZ’s Gini coefficient score even higher – 36.2. It definitely got worse under Labour, and looks set to increase even more under this Government.

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You might appreciate this commentary from one of my colleagues in a right wing US think tank.

http://www.newgeography.com/content/001125-executive-bonuses-the-junta-in-the-boardroom

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Interesting stuff.

Of course, the New Zealand Government produces its own Social Report annually – and the Ministry of Social Development has quietly released it today.

In terms of inequality, it shows that the Gini coefficient score increased from 33 in 2007 to 34 in 2008 – signaling increasing inequality during Labour’s last year of office. Also, the proportion of the population on low incomes increased from 13% in 2007 to 14% in 2008. Related to this increase in poverty, the proportion of children in low-income households rose from 16% in 2007 to 20% in 2008.

For more analysis, see:
http://liberation.typepad.com/liberation/2009/10/msd-social-report-2009-inequality-increased-in-labours-last-year-in-office.html

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