Often neglected because of its geographical isolation is the small World Socialist Party (New Zealand) that presently exists of a mere handful of members. This was not always the situation. It has had a presene in New Zealand for over 70 years, and existed as a formal socialist party since 1930.
Despite a series of progressive social legislation as well as being a fertile breeding ground for quack remedies to cure capitalism such as with the Douglas social credit movement, the history of New Zealand politics provides ample proof that reformism cannot solve the problems of the working class. Jacinda Ardern’s government has not succeeded in fixing poverty and it has offered many excuses for its failure. Living costs in New Zealand have risen sharply as has the price of homes, however, workers’ wages have lagged a long way behind. Ardern’s government has shown little enthusiasm for redistribution of the riches of the wealthy, much less abolish the rich which is the goal of we socialists.
The extent of wealth inequality in supposedly egalitarian New Zealand has been laid bare by 2020 figures showing the wealthiest individuals have over NZ$140bn in trusts – and overall have nearly 70 times more assets than the typical New Zealander.
The data show that New Zealand’s wealthiest 1% of adults – around 38,000 people – have $141bn in trusts. Another 150,000 or so people, rounding out the rest of the wealthiest 5%, have trusts worth a further $122bn.
The 1% have an average of $3.6m held in trusts, $1.6m in shares and $470,000 in cash. Their debts are on average just $80,000. The typical person in the 1% is worth $6.2m.
In contrast, the typical New Zealander is worth only $92,000 – 68 times less.
Among those in the poorest half of the country, meanwhile, the average person owns assets worth just $46,000 and has debts of $33,000, leaving them with a net worth of $12,000. They have negligible wealth in trusts and on average just $4,000 in the bank, leaving them vulnerable to sudden financial shocks.
When it comes to those on middle income – the 40% of the country who are above the mid-point but below the wealthiest 10% – have a higher net worth, on average $352,000, most of it tied up in housing.
Overall, the wealthiest 10% have 59% of all the country’s assets and the middle income is around 39%. That leaves the poorest half of the country with just 2%.
What distinguishes the WSP(NZ) from other political organisations is that it insists that it is futile to concentrate on just a part of capitalism’s problems. The only effective policy is to campaign exclusively for its abolition and replacement with socialism.
The New Zealand socialists have a fresh new website that they hope will introduce younger recruits to the Party.
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