Capitalism, poverty and theft

Afirst century sage once declared that the poor would always be with us. That seems to have stood the test of time. The poor can be found in every country, have existed down the ages and look likely to remain with us despite truckloads of social welfare.

Of course the tag, ‘‘poor’’, and how one defines it, is a moveable feast. Owning a car and a smartphone would be regarded as being rich in some quarters.

The problem of poverty, historically, didn’t become an issue until the 19th century when the Victorians developed a social conscience following the industrial revolution. Various charities and institutions were established in an attempt, not always benign, to ameliorate the plight of the poor – just think of Charles Dickens and Oliver Twist.

This was largely sticking plaster stuff. It was Karl Marx who went to the heart of the matter by examining the system of capitalism which had exacerbated poverty a hundred fold.

Which brings me to an advert that ran on television recently. A mother with two children living in a car, sits forlorn in the back of a hatchback, her youngsters bedded down for the night. ‘‘People shouldn’t live like this’’ was the voiceover, followed by a plea to donate to the Salvation Army.

Now the Sallies do good work, but your $5 donation isn’t going to solve the housing problem. But more to the point, it’s not being poor that is really the issue here. Apart from the matter of not enough houses (and everyone wanting to live in Auckland), the bigger question at the crux of the crisis is the rich who own the rental accommodation, and can charge what they like in a capitalist economy.

Adding to this iniquity is the fact that the government subsidises these capitalists in the rental business by topping up the exorbitant rents they impose, up to, and in excess of, what people would be paying on a mortgage. Rents used to be around a third of the average income. Not any more.

The taxpayer thus subsidises these business owners who must be laughing all the way to the bank.

Why is this happening? It is happening because, apart from a socialist system coming to the rescue of people under duress (a good thing in itself), the market must be allowed to decide. The capitalists charge what they like and when people cannot afford the rents, the taxpayer makes up the difference, swelling the pockets of landlords.

In all of this, the capitalist system cannot be questioned. The market is sacrosanct, a god that all must bow down to and worship. Unfortunately the market has no ethical conscience, operating on a ruthless system of competition and greed, and when such a system does damage to a society, money is required to bail it out. However, such bailouts, rather than fixing the problem, merely perpetuate it. The underlying causes are not addressed but simply buried.

It seems screamingly obvious that a cap needs to be placed on rents. A cap on house prices is also necessary and a real capital gains tax should be implemented immediately and not just imposed up to a certain number of years.

Another little mantra, similar to the one we began with, is, the thief will always be with you. It’s the same story here. They can be found in every country, have existed forever, a record of which stretches back to the tomb robbers in ancient Egypt.

Tomb robbing must involve the lowest form of life. I myself have been on the receiving end of such deplorable behaviour here in Hamilton when some years ago the flowers on my mother’s grave were stolen, twice. So I can completely empathise with those families who had the bronze plaques ripped from the headstones of war veterans in Thames, South Waikato and Hamilton Park Cemetery recently, all the more galling and hurtful for it having taken place near Anzac Day.

As I was writing this, news that my brother’s work van had been broken into here in Hamilton, and $6000 worth of tools stolen, reached me. The selfemployed find it hard enough to make ends meet so this has come as a bitter blow with no insurance. In talking about it with others, similar stories popped up out of the woodwork – a concrete mixer stolen here, a water blaster gone there . . . Hands up all those tradies who’ve been done over recently.

Theft seems to have reached epidemic proportions here in New Zealand, Hamilton being recognised as one of the hotspots. There may be those out there who say that poverty is at the root of theft. It is not, of course. Otherwise why would people who are well-off, steal? I’m thinking of Joanne Harrison, a senior manager at the Ministry of Transport, who stole over half a million dollars from her employer. I’m thinking of all those wealthy capitalists who charge exorbitant rents and get subsidised by you and me.

LETTERS TO THE EDITOR