Recession - CathNews New Zealand https://cathnews.co.nz Catholic News New Zealand Thu, 28 May 2020 05:34:25 +0000 en-NZ hourly 1 https://wordpress.org/?v=6.7.1 https://cathnews.co.nz/wp-content/uploads/2020/05/cropped-cathnewsfavicon-32x32.jpg Recession - CathNews New Zealand https://cathnews.co.nz 32 32 70145804 Punitive move divides the needy https://cathnews.co.nz/2020/05/28/needy-divided/ Thu, 28 May 2020 08:01:13 +0000 https://cathnews.co.nz/?p=127303 needy

The Child Poverty Action Group (CPAG) is calling on the Government to not further divide the needy. The call comes in response to the Government's Income Relief Payment making full-time workers who lost their job because of the economic impact of COVID-19 eligible for tax-free weekly payments of almost $500 a week for a period Read more

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The Child Poverty Action Group (CPAG) is calling on the Government to not further divide the needy.

The call comes in response to the Government's Income Relief Payment making full-time workers who lost their job because of the economic impact of COVID-19 eligible for tax-free weekly payments of almost $500 a week for a period of 12 weeks.

CPAG criticises the policy saying the divisive move comes at a time when the country is united in stopping the spread of COVID-19.

CPAG says the recovery is a team effort, one "not marked by unfair distinctions that only deem some to be deserving of help."

It is calling the move towards the needy as "punitive."

Susan St John, CPAG's economic spokesperson, says this new policy makes it light years better than the Jobseeker benefit for which many do not currently qualify because they have an earning partner.

"Modern relationships are complex and the current rules regarding benefits are based on archaic notions of the relationship and assumes what is expected from partners. But these assumptions are based on old ideas that do not apply today, if they ever did, and which have forced many into unacceptable poverty."

The Maori Party co-leader, Te Tai Hauauru, agrees and is similarly asking the Labour-led government to lift the incomes of all needy, not just those out of work from COVID-19.

Saying the Party is happy that those who recently lost their job will be guaranteed a liveable income for 12 weeks, but points out they are no more deserving than anyone else who is out of work.

"Our economy has been structured in such a way that many Maori were already locked out of employment before the pandemic - Maori unemployment has consistently been double the rate of Pakeha unemployment", the Maori Party says in a statement.

They say there is no justification for the recently redundant to receive double the income support of those made redundant before the pandemic.

"We are entering what is likely to be a major recession - all people needed guaranteed secure incomes, and not just for 12 weeks."

"It's likely many recently unemployed people won't be able to find new work within 12 weeks," the Party says.

Welcoming the income relief payments Auckland Action Against Poverty (AAAP) say that all unemployed deserve liveable incomes.

AAAP says the government's move is a slap in the face of hundreds of thousands of people on a benefit who rely on food grants to survive and is accusing the government of creating a two-tier welfare system.

"People who have been in work have suffered a very sharp income drop, and that obviously that's very unexpected because of Covid-19 ... It's a recognition that we need to cushion the blow for people," Finance Minister Grant Robertson said.

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Catholics and Salvation Army agree: NZ Pacificans 'hardest hit' by recession https://cathnews.co.nz/2013/05/21/new-zealand-pacificans-hardest-hit-by-recession/ Mon, 20 May 2013 19:31:53 +0000 http://cathnews.co.nz/?p=44458

More government action is needed to address high unemployment and a widening income gap for Pacific people according to a Salvation Army report, "More Than Churches, Rugby and Festivals". The report claims Pacific people now have the highest unemployment, the lowest incomes and a widening income gap that could mean they're left behind when the economy Read more

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More government action is needed to address high unemployment and a widening income gap for Pacific people according to a Salvation Army report, "More Than Churches, Rugby and Festivals".

The report claims Pacific people now have the highest unemployment, the lowest incomes and a widening income gap that could mean they're left behind when the economy recovers.

The average Pacifican income is $479 a week compared with $721 for non-Pacific adults, which represents an increase of just $2 in five years for Pacific adults, compared with $54 for everyone else.

One of the report's authors, Ronji Tanielu, says the huge income gap and painfully slow growth in pay affects everything from housing, to problem debt and putting food on the table.

Mr Tanielu says there's been a big spike in demand from Pacific families for Salvation Army food parcels, budgeting advice and drug and alcohol addiction services.

Speaking with CathNews, Parish priest of Otara, Auckland, Fr Brian Prendeville SM, agrees with the report's findings.

Fr Prendeville says he is noticing an escalating demand on the parish's social outreach programmes.

"We've a lot going on in the parish to help, and we've noticed a marked increase in the call on our family services, food parcels and counseling.

"Our parish branch of St Vincent de Paul is also reporting increased activity," Fr Prendeville said.

Fr Prendeville said that some have used the excuse of the economic recession to benefit themselves.

"Pacificans need to be paid a just and comparable wage", he said.

It is a story echoed by the Auckland Diocese's Catholic Caring Foundation.

Clare Wade, General Manager says that this year the Foundation received a record level of grant applications and it has a huge challenge allocating $650,000 towards families in chronic hardship.

"We have seen a massive jump in requests for help with food-parcels, budget advice, emergency housing and problem gambling.

"Pacific Island families without homes or incomes are the group most affected by poverty in Auckland," Wade said.

Salvation Army urges NZ Government action

The Salvation Army is urging the Government to revive its Pacific Wave unit of work brokers and extend Pacific youth training schemes.

The report's authors say that unless something is done to reduce unemployment and lift Pacifican income, Pacificans will need more handouts and debt to loan sharks will only get worse.

Finance Minister Bill English says the Budget 2013 will help the most vulnerable people in society "who the Government has served very poorly in the past".

Mr English told TVNZ's Q+A programme, Sunday, "Closing that gap is a pretty big challenge."

Pope urges Catholics to seek out those needing help

Speaking, Sunday, from the steps of St Peter's Basilica, Pope Francis lamented a world where homelessness and hunger was not news.

"If we step outside of ourselves, we will find poverty," he said, repeating his call for Catholics to do more to seek out those on the fringes of society who need help the most.

"We cannot become starched Christians, too polite, who speak of theology calmly over tea. We have to become courageous Christians and seek out those (who need help most)," he said.

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Vulnerable Children "silent victims" of the recession https://cathnews.co.nz/2011/09/02/vulnerable-children-silent-victims-of-the-recession/ Thu, 01 Sep 2011 19:30:56 +0000 http://cathnews.co.nz/?p=10367

Vulnerable children from the most deprived communities have become "silent victims" of the recession, often having to go without healthy food, healthcare and clothing, a new report has found. The yearly Children's Social Health Monitor, released on Monday, examines the effects of the economic downturn on children. Researchers say children with preventable illnesses are being left untreated Read more

Vulnerable Children "silent victims" of the recession... Read more]]>
Vulnerable children from the most deprived communities have become "silent victims" of the recession, often having to go without healthy food, healthcare and clothing, a new report has found.

The yearly Children's Social Health Monitor, released on Monday, examines the effects of the economic downturn on children.

Researchers say children with preventable illnesses are being left untreated and, at times, suffering permanent health damage because doctors' fees are too high for many families. Low income and beneficiary families feeling the pinch were being forced to cut back on essentials such as heating, fruit and vegetables, and visits to the doctor.

There are stark differences in the levels of ill-health, abuse and neglect for different groups of children, according to the monitor, which shows children reliant on beneficiaries are missing out on the basics.

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Blacks and minorities dip out more in recession https://cathnews.co.nz/2011/07/29/blacks-and-minorities-dip-out-more-in-recession/ Thu, 28 Jul 2011 19:35:28 +0000 http://cathnews.co.nz/?p=8127

The "Great Recession" has left black and minority households significantly worse off than white households and the wealth gap is at its widest in 25 years, since the US government began publishing statistics by ethnicity. According to the study conducted by Pew Research Centre the median wealth of white households was 20 times that of black Read more

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The "Great Recession" has left black and minority households significantly worse off than white households and the wealth gap is at its widest in 25 years, since the US government began publishing statistics by ethnicity.

According to the study conducted by Pew Research Centre

  • the median wealth of white households was 20 times that of black households and 18 times that of Hispanic households
  • the inflation-adjusted median wealth among Hispanic households fell 66% from 2005 to 2009. Black households suffered a 53% drop in net worth over the same period. By contrast, whites saw a decline of 16% in household wealth.
  • in 2009, the typical black household had just $5,677 in wealth. Hispanic families had about $6,325 in wealth. The average white household had a net worth of $113,149.
  • a third of black and Hispanic households had zero wealth, meaning that their debts were larger than the value of all their assets.

Overall, the study attributed much of the disparity to the decline in home values, which hit black and Hispanic households hardest.

"If you're less wealthy, you're more reliant on single assets," says Rakesh Kochhar, a demographer at the Pew Research Centre.

"If you're more wealthy, you have multiple assets."

Overall black and Hispanics have been disproportionately affected by the collapse of the housing market, the financial crisis and the recession period between 2005-2009, but in particular the decline in home values hit black and Hispanic households the most.


"What's pushing the wealth of whites is the rebound in the stock market and corporate savings, while younger Hispanics and African-Americans who bought homes in the last decade... are seeing big declines," Timothy Smeeding, a University of Wisconsin-Madison professor who specialises in income inequality, told the Associated Press news agency.

Blacks and minorities have also lost much of their wealth due to higher unemployment during the recession.

In June the unemployment rate remained twice as high for blacks as whites at 16.2% compared with 8.1%, with the rate among Hispanics at 11.6%.

The study show that with work-hours down families are forced to rely on savings, cash up other assets or borrow to make ends meet.

The figures reported in the Pew study are based on the Census Bureau's Survey of Income and Program Participation, which surveyed 36,000 households on wealth from September to December 2009.

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Recession still hurts charities https://cathnews.co.nz/2011/03/29/recession-still-hurts-charities/ Mon, 28 Mar 2011 18:20:08 +0000 http://cathnews.co.nz/?p=1154

Charities and the Not-for-Profit sector continue to be hit hard by the economic recession, with thousands of small US charities likely to close this year. In a new study released by the Nonprofit Finance Fund (NFF), an organization that surveyed nearly 2,000 nonprofit organizations, 87 percent report the decline in the U.S. economy continues to Read more

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Charities and the Not-for-Profit sector continue to be hit hard by the economic recession, with thousands of small US charities likely to close this year.

In a new study released by the Nonprofit Finance Fund (NFF), an organization that surveyed nearly 2,000 nonprofit organizations, 87 percent report the decline in the U.S. economy continues to impact their operations.

"The nonprofit sector is like the caboose ... of the economy, so we often go over the cliff last and then we stay over the cliff even after the economy starts going up the other way," said Ken Berger, president and chief executive of Charity Navigator, which evaluates the nation's big charities.

"The teeny-weeny, little local community-based, grass-roots charities are hitting a brick wall."

While 2010 produced relatively good results, only 52% of charitable organisation met their fundraising goals during the year, which was about the same level as in 2009.

The nonprofit sector is preparing for this to be worse than 2009. They are beginning to call their situation "The New Nonprofit Reality."

Added pressure is being put on the charitable sector by increased unemployment, poverty, and government budget cuts.

The main issue according to Rebecca Benard, St. Barnabas' Vice President of Development and Strategic Initiatives in Los Angeles, is the 10% increase in demand for its services.

Key outcomes of the Nonprofit Finance Fund survey include:

  • 87% believe the recession isn't over
  • 77% saw an increase in demand for services
  • 28% have 1 month or less of cash
  • 55% have added or expanded their programmes.
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