The next election or the next generation?

Way back in 1991, the National Government of the day seemed to think that, as there was little difference between the benefit and a low income, there was no incentive for those on an unemployment benefit to seek work (Barry, 2002). As a result, at a time when 10% of our population were unemployed, unemployment benefits were cuts by 25% (Barry, 2002; I have written about this before, here). The "household income of beneficiaries fell from 72 per cent of the mean equivalent disposable household income to 58 per cent in 1993" (Coughlan, 2018).

This was delivered in what became known as the "Mother of all Budgets" (Coughlan, 2018; NZ Parliament, 2020), which gained more money in the pot with user pays: for example, students having to pay for their tertiary education; hospitals being split regionally; as well paying out less due to beneficiaries due to the punitive benefit regime of the coming 9 years. Prior to the 1991 budget being announced, beneficiaries thought the Government was determined to keep them living in the lowest status in our communities (NZ Parliament, 2020). 

The orchestrator of the "Mother of all budgets", Ruth Richardson, still holds the view that this budget delivered an opportunity for those without employment to move into the employment market, rather than be supported to stay on a benefit (Dean, 2015). Successive National governments have continued to demonise those on government support through party advertising and government media campaigns. 

This was an appalling and calculated reduction in decent support, creating an underclass of our people, having quite serious effects for communities and families (Barry, 2002). It was proposed at the time that there was a real disconnect between the policy makers and the communities they were supposed to represent (NZ Parliament, 2020).

Many Kiwis were forced into poverty and some are still recovering decades later. Grant Robertson tried to right some of these wrongs in the 2021 budget (Cooke & Malpass, 2021), but this is still not enough. We continue to have New Zealand families living in poverty, over thirty years on from the "Mother of all Budgets". The term 'intergenerational' has become part of our vernacular, largely because, “When human politicians choose between the next election and the next generation, it’s clear what usually happens” (Boston, 2017, p. 5).

For politicians, the next election wins. Short-termism rules.

Sam, Kris, Abbe, and Malcolm

References:

Barry, A. (Director). (2002). In the Land of Plenty [documentary film]. Community Media Trust.

Boston, J. (2017). Governing for the Future: Designing Democratic Institutions for a Better Tomorrow. Emerald Group Publishing Limited.

Cooke, H., & Malpass, L. (2021, May 21). Revenge on the 'mother of all budgets'. Stuff. https://www.stuff.co.nz/national/politics/125190932/revenge-on-the-mother-of-all-budgets<

Coughlan, T. (2018, May 18). How not to budget. Stuff [republished from Newsroom]. https://www.stuff.co.nz/national/politics/103974420/how-not-to-budget

Dean, A. (2015). Ruth, Roger and Me: Debts and Legacies. Bridget Williams Books Limited.

NZ Parliament. (2020, November 18). Looking Back - Episode 16 [1991 Budget – the ‘Mother of all Budgets’] [video]. YouTube. https://youtu.be/43rlHnKRa-4

* Kris Porter kindly prepared much of the material for this post, with additional comments by Abbe Milne and Malcolm Hepburn