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The Income Gap in NZHow does income gap affect people in New Zealand?
Outline・The gap between rich and poor・The Income Gap in OECD・The Income Gap Growth in OECD・Main problem of the Income Gap・conclusion
The gap between rich and poor New Zealand -Population : 4.4milion (2010) -GDP : 116.4billion US dollars (2008) Source: OECD FACTBOOK 2010 Question: What is the X? “Bottom 50% of population hold X percent of nation’s wealth.”
The gap between rich and poor Source :Statistics NZ, Wealth and Disparities in NZ reportPercent of total net worth Cumulative(%)TOP 1% 16.4 TOP 1% 16.4Next 4% 21.3 TOP 5% 37.4Next 5% 14.1 TOP 10% 51.8Next 40% 43.0 TOP 50% 94.8Bottom 50% ALL 100 5.2％
The Income Gap In OECD countries Source: OECD FACTBOOK 2010 “Gini coefficients” of income inequality in OECD countries, mid-2000s0.5 0.50 1 = 1 person who is richest has all of income 0.450.4 0.40 0.35 NZ = 0.335 point0.3 Ave= 0.311 point 0.30 0.250.2 0.20
The Income Gap Growth In OECD countries Source: OECD FACTBOOK 2010Cumulative change (Mid-1980s to Mid-2000s) - 0.08 - 0.04 0.00 0.04 0.08 AUS “Point changes” AUT in the Gini coefficient BEL CAN CZE DNK FIN FRA DEU GRC HUN IRL Mid-1980s ITA JPN LUX ~Mid2000s MEX NLD NZL NZL NOR PRT ESP +0.064 point SWE TUR GBR USA OECD-24 OECD-22
What is the main problem?・Poverty in childrenNZ is ranked 28th (out of 30 countries in the member of OECD)Last year…about 100 children died because of poverty.
What is the main problem?・A Vicious Circle Poor Parent Poor Child Poor Parent
Conclusion・Share the Income to those at the bottom Progressive taxation(rate) Promote a nation’s welfare for the bottom (especially in health, education for child)・Improve the gap of wages and salaries Work harder Decrease part time job rate