Here we go….

I’ve spent the better part of a couple of weeks developing a rudimentary knowledge of turbo diesels into a fine grained, forensic understanding of every fucking system that could ever shit itself. Don’t get me started….

Aside from turbo diesels, a few other ridiculous ideas have caught my way; one of which is the furore over old Pakehas receiving an small payment to help them with their winter power bill.

 See where the bulges sit above? European New Zealanders are older and thus far more likely to own their own homes (and, increasingly, the homes of others as property investors). Europeans far outpace all other ethnic groups when it comes to home ownership, being around twice as likely to own their home as Māori, and more again than Pasifika.

It’s fine to suggest that rich people shouldn’t really receive more money. This isn’t what the article is saying. It says; Pakeha New Zealanders are asset rich and live on pensions (which I think is about 20 grand per annum). Apparently these baby boomers should take out reverse mortgages in order to supplement their pensions. This seems wrong to me somehow. Yes, these people are cash-poor. Yes, they struggle to pay the power bill. Yes, they own their own homes. All that would happen is that their children would have less capital passed on to them when they die. Or, not mentioned in the article, that money might get spent on medical treatment and retirement homes….Unless and until someone addresses the complete fucking rort that is the retirement industry in NZ it will remain hard to make an argument that kids are going to inherit much at all. But let’s leave that aside for a moment.

Say those kids DO inherit something. What will they spend this largesse upon? Paying their enormous fucking student loans and outrageous mortgages. They might go to the dentist.

It’s all very well to portray Baby Boomers as living high on the hog but you have to look at a broader range of implications when you talk about making pensioners get reverse mortgages. It’s not just a simple case of taking one thing (reverse mortgages for asset rich/cash poor) and discussing it in terms of one implication (inheritance and intergenerational wealth). There are simply too many other factors in play. This is called ‘modelling’. It’s the kind of thing that dog whistling journos don’t do much of.

They prefer to make arguments on the basis of simpler concepts. Concepts everyone can understand. Like racism. Apparently Pakeha people are all home owners and that’s not fair. No-one else is a home owner! There’s even a nice piccy in the article to show you how baby boomers are all pakeha

Screen Shot 2018-07-04 at 3.31.31 PM.png

Of course, the more observant amongst you will notice that it is age, rather than ethnicity, that is the variable of interest here. Young people don’t buy houses. And young New Zealanders aren’t Pakeha. Is the cure for racist housing inequality to be older?

So that’s one thing……


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s