Growing poverty and the stagnation of Invercargill CBD

-

The Southland Times had a front page article bemoaning the growing number of empty shops in the central city and listed a number of possible reasons, however not one was about the dropping spending power of most workers, families and beneficiaries. 

This was my response:


The Editor
The Southland Times

Dear Sir

It surprises me that one of the most influential reasons leading to a growth of empty shops in Invercargill’s CBD never got a mention in the front page article (April 20). Obviously not one single reason can be highlighted as the cause of commercial stagnation in our city centre, and many valid reasons were listed, but surely the spending power of the city must also be considered a factor.

New Zealand has had a ‘rock star’ economy since at least 2011. The past four years have seen our richest increase their wealth by around 10% to 30% a year. At the same time there has been almost no trickling down from the wealth generated by our booming economy and most wage earners have been lucky to get a 1-2% increase a year and almost 50% of workers got no increase in 2014. We are known to be a low wage economy.

The Southland region earns 12% of our national income, from only 3% of the country’s population, and one would expect our median income would be amongst the highest in New Zealand. The 2013 census revealed that the median annual income in Invercargill from all sources, for those of working age, was a paltry $27,400. This is well below what is considered a living wage (around $39,000). Only 23% of us earned more than $50,000.

It is clear to me that the lack of money in the pockets of most Invercargill people must have contributed substantially to the growth of empty shops. The steady increase of inequality in New Zealand (one of the fastest in the OECD) has done little for our domestic economy and our local businesses.
   
Yours...

Comments

gazzamuso said…
Perfect response! It never ceases to amaze me that the same people who balk at the idea of increasing the wealth of people at the bottom end of the scale also point to empty shops and dying CBDs while scratching their heads, wondering what could have possibly happened - then suggesting giving more money to rich people to fix the problem!
April 23, 2015 at 5:25 PM
Unknown said…
It always amazes me how the state employees (MPs) get an automatic top up every year. The Rising graph of their 'wages' compared to the majority of us must read like a rocket trajectory... with the eminent resulting & inevitable crash.
April 25, 2015 at 9:27 PM
Post a Comment

Popular posts from this blog

The US is actually unique for not valuing life!

-
Image
"...that’s what sets America apart from every other country; we value life. That is what makes us unique.” - Sarah Sanders There is a high level of delusion operating in the White House. The stream of mistruths that come out of President Trump and Sarah Sanders' mouths are clearly blatant lies but millions of US citizens believe them. With daily diets of Fox News and living in a very insular culture , there is little that challenges these false perceptions of US "greatness".  When comparing the United States of America with most other developed nations it becomes clear that it probably places less value on life than most and doesn't compare well with many developing countries too: If the US really valued life then it would abolish the death penalty, it is the only Western Country that executes people under law ( 23 people were executed in 2018 ).  If the US really valued life then it would have an equitable and universal health care system. The cur
Read more

The Destruction of New Zealand's Public Education System

-
Image
In 2008 New Zealand was internationally ranked in the top seven for educational achievement, and when you compared us with other countries that were also culturally diverse and experiencing growing inequality, we were extremely successful. At that time our Early Childhood sector had received a much overdue boost in funding from the Labour Government after being underfunded (as a % of GDP) compared to other OECD nations for years. The sector was working towards a target of having 100% qualified teachers in all centres. We were also in the process of implementing a new National Curriculum and a complementary curriculum for Maori ( Te Marautanga o Aotearoa ). Teachers were excited about putting all their energies into the new ideas and approaches that were espoused in these co-constructed documents that had taken around seven years to review and write. Evidence, research and practitioner input had created something that would allow us to prepare New Zealand children to become
Read more

ANZAC DAY REFLECTIONS

-
Image
I find ANZAC Day creates a dilemma for me, consequently I rarely attend dawn parades. I fully support people recognising the human cost of wars and remembering family members who lost their lives on battlefields. A grandfather of mine fought in WW1 and was gassed in the French trenches, which compromised his health for the rest of his life. His wife (my grandmother) lost her young brother in WW2. The sacrifices and human costs of war should never be minimalised. However, while speeches at ANZAC parades are full of statements promoting peace and the futility of war, those who campaign hardest for peace, promote nonviolence and call for weapons reductions are often treated like criminals. Anyone who dares to mention our own war crimes or that of our allies are generally shut down or demonised. It has become a sort of cultural heresy to question the reputation and glorification of the ANZACs.  I would love to see greater balance in how we talk about war and properly recognise those who ha
Read more