May 22, 2010

Poverty.

Did you know that over two billion people don't have access to proper food or water on a regular basis? That a child dies from hunger approximately every fifteen seconds in our world? There is still ongoing conflict ravaging iraq and darfur, meanwhile tornadoes and earthquakes are causing death and destruction in places scarily close to home. Looking at life from a New Zealand perspective can only be a futile and myopic thing, ...right?

You could argue that any changes happening in our country don't warrant a compelling examination. You could say this because compared to most other human beings, we have life pretty good. Or, you could take the view that I have and realize something else. People are only able to react to situations and changes which are directly relevant to their lives on a day to day basis. I'll put some perspective on my theory using the example of Paris Hilton breaking a nail. Paris reacting angrily over something so trivial, to us; seems both ridiculous and pathetic. The reason we think this way? We don't live in a world where our image is trademarked, copied, and transmitted across oceans. It is trivial to us because we place no value and haven't been taught to place value on the overly superficial. That is how she was brought up, and therefore explains in this fake scenario her total shock. Conversely, a child dying from starvation would not be able to comprehend a person in our country complaining about how bloody long five minutes felt to make a big mac combo at MacDonalds. What that child sees is selfishness, impatience, greed and complete and utter lack of empathy towards other human life. What that child doesn't see is the outward effects of societal pressure to be on time, productive and on the move at a seconds notice.

We humans are like that. We like to think we can walk a mile in another person's shoes, but how can we really without fully being that one unique person reacting to a positive or negative situation?

Today, 'as one person', I am reacting to the proposed rise in GST as part of the May 20th budget from 12.5% to 15% effective October 2010. National released the budget not long ago. It is pretty full of intricacies including a string of changes: depreciation tax reform, working for families and family trust loopholes. That's all fine, until you notice the kicker helping to harm everyday New Zealanders at the expense of the filthy rich being able to invest another six percent of their income.

Raising GST will:
  • severely impact the people who spend the majority of their disposable income on necessities
  • not at all affect the higher earners, who can put their added tax breaks to big use by investing their extra cash into savings then earn up to and including 10% for every single dollar on top of the money they already own! 
There are families in New Zealand on the bread line as it stands. Not to mention that the tax on cigarettes has increased without warning and is slated to keep increasing, adding a GST hike as-well will make it impossible for the most unfortunate New Zealanders to get by. Don't tell me there aren't people worse off, otherwise there would have been no use for the "school shoes for kids" campaign that rallied for support in 2008 in an attempt to bring those in the lowest of deciles above the poverty line. 

Our country has both one of the highest suicide rates and one of the highest teen pregnancy rates. So, already we don't score very well in key areas. Surely we would be looking at trying to reduce anxiety and panic in our society by helping those who need it, instead of taking support away (i'm looking at you ACC changes). Do we really want to marginalize the most vulnerable in our society by forcing them to effectively subsidize our taxes every time they purchase goods and services that they need to, to survive? 

You know like school bags, kids shoes, power, petrol, food, water, toiletries, insurance, services and repairs -- to name a few of the kickers. "John Key has stated that the tax cuts will mean New Zealanders won't be any worse off, and there is a proposed increase in benefits and superannuation to offset these costs".

The proposed increase in benefits and superannuation is sitting at just above two percent. GST is rising by two and a half percent. ACC levies are rising. The price of tobacco and potentially also alcohol, will rise even further. Fuel keeps on expanding and contracting which makes it difficult for families to budget. The recession has ended, and it's going to be noticeable that retailers will simmer down undercutting the wholesale price of goods just to get customers through the door. 

So, what was that, national? You say: a 2.5% increase in GST verses a 2 percent 'increase' in super and benefits only. That is pathetic. Completely moronic. It is a huge slap in the face to the majority of the country that voted you into parliament. I am beginning to regret the one I gave you, even though I am not a labour supporter. They may have overblown spending but at least the heart of the party came across as caring for its citizens. 

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