Act on Campus versus Greens on “Starting-out” wage

Act on Campus, via Facebook: The Green Party has been busy attacking the ACT-supported Starting-out Wage:

Youth age Greens

David Farrar points out some errors at Kiwiblog:

So in summary, the Greens:

  1. Misrepresented the minimum wage change
  2. Inaccurately stated the minimum wage last week was $13.75
  3. Miscalculated the take home pay last week (they were wrong at $13.50 and $13.75)
  4. Miscalculated the change in student loan repayments
  5. Miscalculated the change in Kiwisaver deductions

This is pretty gross incompetence for a political party with you know staff and MPs. There is nothing difficult about going to the IRD website and using their calculator. Their advertisement is false and misleading and they should withdraw it until corrected.

And Act on Campus responded:

They fail to understand that instead of reducing wages, youth rates increase opportunity to find employment.

Here’s our response to the Greens’ latest infographic:

Youth wage Act

Some comments:

Alex Caradus Is $357 a week a living wage?
ACT on Campus For a student, $357 is certainly workable. Students live on the cheap while they study so that they can gain a degree which will reward them with higher earnings later in life.
James Chan net unemployment benefit is $171.84, theyre living

UPDATE: Greens respond to David Farrars calculations and he responds to that:

amandaliarogers(1) Says:
April 3rd, 2013 at 10:06 am

Hi David. The Greens make a point of using our own imagery; most often pictures we’ve taken, but also paying for the stock images we use including this one.

The point of the numbers is to compare the situation that Sandy would experience if the negative changes that National introduced on April 1 hadn’t happened. Pedantically, the situations being compared aren’t ‘last week’ and ‘this week’ but ‘hypothetical week under last week’s rules’ and ‘hypothetical week under this week’s rules’.

We’ve calculated the student loan payments as if the repayments threshold had continued to rise at the rate of CPI inflation, rather than staying static as National has chosen.

The IRD calculators were used to get these results and double checked with our own models.

[DPF: I suggest rechecking. You’ve treated all the changes as discrete and added them together, when they are inter-related. You can’t say wages will drop and also say student loan repayments will increase. Same with KiwiSaver.

I’d welcome your detailed calculations.

Also note the starting off wage doesn’t apply to 1 May.

As for the stock image, the key thing is she isn’t called Sandy, is not a student and is not 18. No problems with use of stock images but they should be used as general background images – not claim to be someone they are not]

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1 Comment

  1. John

     /  3rd April 2013

    According to other websites “Sandy” (in the exact same picture) is busy at her computer earning a six figure salary. And is also a student at Idaho University

    Reply

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