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Comments on: Greens on poverty http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/ The Visible Hand in Economics Thu, 04 Aug 2011 06:43:45 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Royal Albert Ross http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33609 Thu, 04 Aug 2011 06:43:45 +0000 http://www.tvhe.co.nz/?p=5990#comment-33609 @rauparaha
I see, thanks

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By: rauparaha http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33608 Thu, 04 Aug 2011 06:38:13 +0000 http://www.tvhe.co.nz/?p=5990#comment-33608 I have only read the news story on the proposal so I’m guessing slightly but an increase in WFF payments means that more of a transfer has to be phased out as they start to earn more. That means their WFF payment reduces by a greater margin that at present when they earn more. Consequently, the marginal gain from the additional hours worked is smaller and their net marginal tax rate is higher.

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By: Royal Albert Ross http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33607 Thu, 04 Aug 2011 06:24:06 +0000 http://www.tvhe.co.nz/?p=5990#comment-33607 Apolgies for ignorance, but could you expand a bit on how the proposals raise marginal tax rates for poor families? Genuine question, not an implied argument – I’m not familiar with how WFF works

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By: rauparaha http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33605 Wed, 03 Aug 2011 23:33:00 +0000 http://www.tvhe.co.nz/?p=5990#comment-33605 As Matt said, the goals are admirable but the value of the proposed interventions is unclear. I understand that it’s difficult for politicians to talk about the trade-offs but I would really like to see more of a justification than ‘the benefits are good’.

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By: Eric Crampton http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33604 Wed, 03 Aug 2011 23:30:16 +0000 http://www.tvhe.co.nz/?p=5990#comment-33604 @Matt: Yup.

The Greens wishful thinking on minimum wages is especially galling.

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By: Matt Nolan http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33598 Wed, 03 Aug 2011 08:36:18 +0000 http://www.tvhe.co.nz/?p=5990#comment-33598 “As is increasing renting property standards. We’re talking about minimum standards, making places warm and healthy – so those in need can be better able to work, provide for themselves and their families.”

You can’t just say that without also admiting the cost is what rauparaha is saying – the cost is higher rents. So given this flipside, is it clear that lowering poor people’s already low discretionary income in order to ensure they have a nicer house really in their interest? I would say it is unclear.

Now, if the Green party is unwilling to face this trade-off, and instead just wants to talk about benefits people can get – then that is misleading and sort of immoral. If they are willing to face the trade-offs, and have a belief that this is appropriate policy, then I can respect that. However, in either case the trade-offs should be clear – and that is what rauparaha was doing IMO.

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By: Stuaker http://www.tvhe.co.nz/2011/08/03/greens-on-poverty/#comment-33597 Wed, 03 Aug 2011 07:47:14 +0000 http://www.tvhe.co.nz/?p=5990#comment-33597 Giving them the opportunity to get higher education, which is just unrealistic for some (especially with the current government eating away at it) really is something to help the poor. As is increasing renting property standards. We’re talking about minimum standards, making places warm and healthy – so those in need can be better able to work, provide for themselves and their families.

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