‘These statistics show the status quo isn’t working. We must lay down different economic tracks to eradicate poverty’, says Gareth Hughes, Director of Wellbeing Economy Alliance Aotearoa.

The release of New Zealand’s official child poverty statistics this morning reveal there has been no positive change in child poverty rates since June 2023. Meaning an estimated 156,000 children are living in material hardship, without access to the things they need to thrive.

The existence of these statistics, and the real pain behind them, are symptoms of an economic system that is leaving thousands of children behind, with lifelong consequences.

So what is the solution? According to the government, the answer is ‘more economic growth’.

However, there’s no evidence that economic growth will trickle down and unlock whānau from poverty. In fact, the opposite is true.

Let’s do a thought experiment. WEAll Aotearoa’s Research Economist Dr Paul Dalziel asks ‘What do we think would happen to child poverty rates in New Zealand if growth made our country 50% richer?’

‘We don’t have to imagine, we’ve already performed this experiment. Between 1984 and 2014, New Zealand’s real per capita GDP grew about 50%. The relative measure of child poverty was twice as high in 2014, and the absolute measure was no lower than in 1984 despite 30 years of economic growth’, says Dr Dalziel.

‘In reality, as our country got richer, the fruits of economic growth did not trickle down to families with young children, they got hoovered up’, Dr Dalziel adds.

Hughes states, ‘We cannot keep doing the same thing and expecting a different result, we need to think smarter than just focusing on the quantity of economic activity. We need to be fussy about economic growth and care more about the quality of it and how it is being shared.’

‘We need to prioritise new jobs that pay living wages and we need to unlock community wealth building that makes a difference to local prosperity. We need to ensure all children are growing up in households that have enough economic resources to give children the best start in life.’

WEALL Aotearoa’s vision is a world where economies prioritise the wellbeing of all people and the planet. A world where prosperity is measured not by GDP but by the health of our communities.

The economy is a product of design, which means it can be redesigned to deliver a good life for all.

Note:

WEAll Aotearoa is a non-partisan ‘think and do’ tank working to redesign Aotearoa New Zealand’s economy around the wellbeing of our people and te taiao.

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