Is New Zealand Truly Egalitarian?

This assignment examines the extent to which New Zealand is an egalitarian society. It argues that despite claims of equality, growing disparities between rich and poor indicate otherwise. The analysis focuses on income inequality as measured by the OECD P80/P20 ratio and Gini coefficient, demonstrating a significant gap in earnings. Furthermore, it highlights the issue of housing affordability, showing how rising house prices disproportionately impact middle and lower-income earners, forcing them into renting and impacting their sense of identity. The assignment concludes that New Zealand faces challenges in achieving true equality and calls for government policies to address these issues.

Running head: IS NEW ZEALAND AN EGALITARIAN SOCIETY? 1
IS NEW ZEALAND AN EGALITARIAN SOCIETY?
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IS NEW ZEALAND AN EGALITARIAN SOCIETY? 2
Presently, New Zealand is not an egalitarian society. An egalitarian society is one where
there are no social divisions and everyone has access to equal opportunities. Based on this
definition, the increasing gap between the rich and the poor makes equality a fallacy in this
country. The inequality is revealed by the difference in income received by the rich and the poor.
According to the Organization for Economic Co-operation and Development (OECD),
the ratio that indicates the difference between high income and low income (P80/P20) was
approximately 3 in 2015. This indicates that there is a gap between the high and low-income
earners. Additionally, the Gini coefficient which measures the level of inequality was at 0.3 in
2014. This inequality is reflected in education, health and housing sectors ("Income
inequality(Indicator)", 2017). For example, low-income earners cannot afford to own homes and
access quality education while high-income earners enjoy quality education and are
homeowners.
Housing affordability also proves that the country is not egalitarian. Due to rising house
prices, most people are unable to own homes especially the middle and income earners. Based on
the article, ‘Does housing affordability really matter?’, Kiwi’s place a lot of value on home
ownership (Eaqub & Eaqub, 2015). The inability to afford homes has affected their identity and
made some to relocate to other countries. Moreover, it has created a generation of renters.
In conclusion, the housing affordability in this country really matters since it affects the
cultural norms of the society. Furthermore, the housing unaffordability is among the factors that

IS NEW ZEALAND AN EGALITARIAN SOCIETY? 3
have contributed to inequality. Finally, the government needs to create policies that reduce house
prices and inequality.
References
Eaqub, S., & Eaqub, S. (2015). Generation rent (pp. 66-90). Wellington, New Zealand.
Income inequality(Indicator). (2017). theOECD. Retrieved 2 October 2017, from
https://data.oecd.org/inequality/income-inequality.htm