"The only way forward is to go back to the concept of 'deserving' and 'undeserving' " [updated]

 "It has been clear for decades that NZ's approach to welfare has gone awry. The late Roger Kerr, of the NZ Business Roundtable, once said to me, 'The only way forward is to go back to the concept of 'deserving' and 'undeserving'.' ...

    "Between the passage of the Social Security Act in 1938 and the early 1970s the percentage of working-age people on a benefit never exceeded two. Today it stands at almost twelve, with the time people stay dependent growing every year.
    "As a society we have created this level of reliance by believing and acting on a bad idea. That we must not judge others. We must not mention their faults and shortcomings. We must bend over backwards to not blame the person responsible for their own troubles. That's the kindness and compassion we are taught to aspire to. ...
    "I would vouch that the majority of New Zealanders want to help people who, through no fault of their own, need a benefit and public housing. But that willingness does not extend to people who chronically cause their own misfortune."

~ Lindsay Mitchell, from her post 'Is real change on the cards?' 

"After nearly ninety years of social security it would be reasonable to conclude that the state cannot solve 'poverty'. Indeed, the more the state does, the more the state is expected to do."

~ Lindsay Mitchell from her post 'The other side of the story' 

"Christchurch’s Captain James Cook statue survived the earthquakes largely unscathed" – but not the vandals

 

Cook statue by William Trethewey (1892-1956), 
defaced and partially repaired

"Christchurch’s Captain James Cook statue ... survived the earthquakes largely unscathed ... [but last week] his eyes were gouged out, his nose was ground off and a red cross daubed on him. To the great credit of Christchurch City Council, facial repairs have already been made, though the cross is still very visible. ...
    "[H]is voyages – and tragic death – preceded any significant European settlement by decades. Therefore, holding him to any personal, adverse responsibility here is both silly and misplaced. The same goes for a North Island tribal chief executive’s characterisation of Cook as ‘a barbarian’ when the whole ethos behind Cook’s voyages was specifically not imperial conquest but that noble Enlightenment goal (trashed by postcolonial academics in recent years), ‘dare to know’....
    "It is the vandals, not Captain Cook, who are blind. Their defacement of his statue is an emotionally immature and ill-educated act of copycat vandalism ... Smashing Cook’s face helps no one’s understanding of history and does nothing to allay the suffering of indigenous peoples as a consequence of the arrival of Europeans. ...
    "Cook must be repaired, retained and explained, otherwise our heritage is trash."

~ Mark Stocker, from his post 'Captain Cook’s Loss of Face in Christchurch'

WELFARE: "National will persist with the tinkering..."

"Right now, benefit statistics are worse than at the time of last year's election. There are 380,169 main beneficiaries — a rise of 5 percent. The number on a Jobseeker benefit is up 7.5 percent. ...

    "[I]t is long-term single parent dependence which drives inter-generational malaise - the most serious social problem the country faces. Inter-generational dependence drives under-achievement, domestic dysfunction, ill-health and crime.
    "So what is National doing?
    "The same thing it does every time it returns to power. It gets a bit tougher about oversight of beneficiaries ... They set some soft targets ... but make no mention of sole parents (who are also not required to 'check-in').
    "The last big National [Party] welfare reforms (2013) comprised ... changing benefit names.
    "The percentage of working-age people dependent on welfare is higher now than then. [Much higher]
    "There is an inertia about the numbers which is going to take some radical actions to disrupt them. But National lacks the necessary reforming zeal. 
    "National will persist with the tinkering that deflects attention and mollifies their voters while the country's historic heavy and unhealthy over-reliance on the welfare system continues."

~ Lindsay Mitchell, from her post 'Welfare - no good news'

"New Zealand lacks a national unifying myth"

 

"New Zealand lacks a national unifying myth that embodies the shared views of the country’s history and future. The loss of a common national story is central to many of News Zealand’s problems. Myths explain our history, chart a path to the future and help bind the country together.
    "Richard Slotkin, who has written extensively about the various mythologies underpinning the United States experience, suggests that ‘myths are the stories – true, untrue, half-true – that ... provide an otherwise loosely affiliated people with models of patriotic action.’ A more formal dictionary definition suggests that myths may be popular traditions embodying core social values* ...
    "There have been a number of what may be described as archetypal experiences in New Zealand history that could approach a 'mythological' status that reflect the embodiment of some of the values that underpin the national identity. ANZAC immediately comes to mind. Wartime activity and service brings a people together often because national survival is at stake.
    "Then there is the 'man alone' myth that underpins much of Jock Phillips writing, along with the Kiwi do-it-yourself 'number 8 wire' approach to problem solving. Sport tends to be a unifier but primarily a hysterical support for the All Blacks which rapidly diminishes if the team does anything but win. Sport is meant to demonstrate resilience in the fact of adversity but not, it would seem, on the part of the fans.
    "Historians are well positioned to invent and develop new national stories. ... But historians have not taken on the task of devising a coherent national mythology that can bring unity to a fractured nation. Instead, students are being taught radically different versions of the nation’s past. All this reflects not simply divergent opinions on specific issues, but disagreements about the fundamental character of our institutions and the purposes of our nation.
    "One myth which did possess a unifying feature but which has been badly eroded is the position of the Treaty of Waitangi. The treaty established a foundation for equal citizenship, one people with equal recognition under the law.
    "Hobson at the signing of the Treaty is reputed to have said 'He iwi tahi tatou – 'we are now one people.' ... The problem is that in many respects myths [like this one] contain a great deal of invention and not a lot of evidence. But Hobson’s Pledge, whether it was said or not, provides a solid background for a national identity and the foundation for a common purpose. We should be one people. We should acknowledge our differences but our shared objective should be a unity of purpose. And with that unity of purpose we can become ... a country with well-educated people, who enjoy the lifestyle their unique setting offers and the good health that goes with that ..." 

~ Thomas Cranmer from his post 'A Common Purpose and a National Mythology'

* Myths are not a lie, explains mythologist Joseph Campbell, and to call them that is a misunderstanding — 

"a very strong and narrow opinion of what a myth 'is.' Someone who, perhaps, has only been exposed to the negative use of the term as a phrase for something that is seen as a 'mistruth.' Something told with the intent to deceive, or from the vantage point of a naive or uneducated mind. For many, calling something a 'myth' is to associate it with a profound deception: a feeble or unsophisticated attempt to explain material reality before the advent of the scientific age. Some see the term as an equivalent to the more modern 'fake news.' 

    "The contemporary conception of myth as falsehood has led people to think of myths as fairytales (another complex story structure that is often dismissed as containing much less essential truth than they actually do).
    "But for Campbell, myth presents a version of the truth that is far more essential than that which can be gleaned from almanacs, censuses, and encyclopaedias, whose 'facts' are dependent on the experience of the field of time and are often outdated as soon as they are published."

Writer Robert A. Johnson sums it up, saying "Myths are a special kind of literature not written or created by a single individual, but produced by the imagination and experience of an entire age and culture, and can be seen as the distillation of the dreams and experiences of a whole culture." 

So neither unimportant nor trivial. And certainly not a lie.

The State is not a good parent

 "Reading the abuse in care reports, two questions requiring clear and compelling answers remain unanswered: Why? and How? Why were so many children and young people abused in such awful ways? How was it possible for so much and such appalling abuse to continue unchecked for so long? Without satisfactory responses to these two critical questions, the chances of history repeating itself must remain unacceptably high.

    "For some reason, however, the Why and How of Abuse in Care were not made the prime focus of the Royal Commission’s investigations. Its reports tell us the Who, When, Where and What of this horror story, but, those two key questions, Why? and How?, are not adequately addressed."

~ Chris Trotter from his post 'Report on the abuse of young people – two key questions have gone unanswered'

Productivity. But only in medals.

  

Economist Robert MacCulloch notes that New Zealand's productivity growth, as measured in Olympic medals, is astonishing.

In the 1924 Paris Olympics, New Zealand won one bronze medal in total. It was in athletics for the 100m by Arthur Porritt. The race was later immortalised in the film, 'Chariots of Fire.' NZ had a population of around 1 million back then. Just over 100 years later, the tally is 10 golds, 7 silvers and 3 bronzes*, which after adjusting for population increase, is a huge rise. Meanwhile the United States won 45 Golds at the 1924 Paris Olympics, a tally which has plummeted down to around 37 at the Paris 2024 Olympics. So productivity in this sphere in New Zealand, compared to other countries, is phenomenal.

As you're probably aware, for all sorts of reasons New Zealand is shit at economic productivity. 

So why the difference?

On this MacCulloch suggests the reason for this is simple: In sports, unlike elsewhere, New Zealanders value meritocracy "where the fastest, highest, longest .. the best .. wins, regardless of other considerations?"

Kiwis clearly respond to merit being rewarded and produce amongst the finest output in the world when it is. Meanwhile in many other spheres in NZ, everything but meritocracy is winning the day. And productivity is paying the price.

In microcosm, he's probably right. And it's great to see these athletes triumph.

Mind you,  if I were to carp — and I will, even if it's a mite too soon — I can't help wondering how much taxpayers and ratepayers are dunned for all this nationalistic gold. You know, how many millions it's cost taxpayers per medal.

Consider, Arthur Porritt paid his own way to Paris in 1924. So that was zero-taxpayer-dollars** per gold then. And now? Well, I'd like someone somewhere to do the calculation ...

* I've updated the totals.

** Yes, it was pounds then. But using that there would be too confusing.

Did you know you can see shit political economy from space?

 

Auckland: Eden Terrace's workers' cottages on the right, Mt Eden's California Bungalows 

beginning over the railway line lower left. (Photo showing the area before the Dominion Rd flyover,

from the Sir George Grey Special Collections, Auckland Libraries, 580-9498']

Did you know you can see shit political economy from space? Here below is the Black Hole of North Korea at night, too poor to have enough lights to switch on.

And you can see shit political economy in Auckland too, in aerial photographs. To be accurate: you can see shit political economy in the form of the effect of tariffs. ...

Let me explain.

Workers' cottage, Freeman's Bay

Victorian Villa, Grey Lynn

The first houses built here en masse were workers' cottages and then villas. When you fly over the city, you can see a ring of these villas around the inner parts of the city — especially so in Ponsonby and Grey Lynn — built right up until the First World War.

But after that war, something changed. It seemed to some that the United States had rescued Europe from its Great War, and had a lifestyle to which an increasingly prosperous population could aspire. It was the Jazz Age — the age of radio, electrification, automobiles, and the mass production (Fordism!) that made them affordable. In love with Americanism, in housing here it became the decade of the California Bungalow.

California Bungalow, Mt Eden

A villa is not a bungalow.  Like the California lifestyle it aped (and which the world would fully fall in love with after another war), the California Bungalow was freer than the more uptight Victorian villa, and reached out for sun and air. Their broad spreading gables form a second ring around the city in what we now call the "tram suburbs," a ring from Pt Chev through Mt Albert, Sandringham, Mt Eden, Greenlane, Ellerslie, and right around to the border of Meadowbank/Remuera.

Their popularity was immense. 

Their takeover seemed unstoppable. 

Until something happened.

That something involved a tariff. Brought in by US Senators Smoot and Hawley, their Smoot Hawley Tariff Act raised tariffs on imports by an average of twenty percent. Their intention (we're told) was to quarantine American manufacturers from the effects of the 1929 stock market crash. What it did do instead was to spread the misery and contagion around the globe, kicking off the Great Depression and all but shutting down international trade for nearly two decades.

John Bell Condliffe's "wagon wheel" showing the dramatic death spiral of world trade
following the disastrous implementation of the 1930 Smoot-Hawley Tariff Act

New Zealand economist J.B. Condliffe has a world-famous diagram describing the accelerating downward spiral of trade as every country and trading bloc in the world put up their own tariff walls in response. It was one of the most successful acts of intentional self-destruction in all modern history.*

Almost at a stroke, we fell out of love with the US.  In Britain, still the head of something called an Empire, an Imperial Preferences Act was swiftly passed making trade within the Empire roughly tariff-free — allowing many Commonwealth countries to escape the Depression first. (Not so the US of A, which had to wait until the death of a President and the end of a war to boom again.)

And trade amongst the Empire, rather than outside it, meant many more British goods replacing the previous love affair with American. Not least in housing. If the twenties was the decade of the California Bungalow, then the thirties was the decade of the English Cottage/English Revival. We can see these crabby, restrained offerings around the outer parts of the tram suburbs. (And you can see all these styles described in the Auckland Council's 'Style Guide,' pp 14-24)

In insulating itself from the world, America had not only shot itself in the foot economically, it also lost its influence with the rest of the world. 

Turned out it was a not-so-great way to Make America Go Away Again.

* * * *

* Until April 2, 2025, that is, with what Johan Norberg calls "the longest suicide note in economic history."

UPDATE 1: David Farrar notes that our average two-percent tariff rate (world's second-lowest after Singapore) becomes in the mind of the Toddler-in-Chief a twenty-percent tariff. (I use the word "mind" loosely.)

Johan Norberg has more on the effects of what he jokingly calls '"Liberation Day June 17 1930":

As he says, " I think the US was heading for trouble even before, but it certainly deepened the depression and spread it around the world, with devastating effects for European democracies. We would have had a depression anyway, but perhaps not a great one."

UPDATE 2: 

"Thomas Rustici identified the role of the Smoot-Hawley Tariff Act in exacerbating the Great Depression, particularly through its effects on trade, banking failures, and economic contraction. His seminal work, *Smoot-Hawley and the Great Depression: A General Equilibrium Analysis* (2005), presents a compelling argument that Smoot-Hawley initiated a trade war, triggered mass bankruptcies, destabilized the banking system, and led to deflation and depression. ... 

"Conclusion Rustici’s work provides one of the most comprehensive and rigorous explanations of how the Smoot-Hawley Tariff Act triggered a trade war, bankrupted farmers and businesses, destabilized the banking system, and created deflationary collapse. His analysis is central to understanding how protectionist policies can create economic catastrophe by disrupting credit, trade, and monetary liquidity. His insights remain critical in debates over trade policy and economic crises."