Economist warns costs of 'mean-spirited' benefit changes will outweigh the gains
Economist Shamubeel Eaqub has criticized a new New Zealand policy that removes unemployment benefits for 18-19-year-olds with high-earning parents. He argues the policy is 'mean-spirited' and will lead to long-term negative social and economic outcomes.
Why it matters
The debate highlights the tension between government efforts to reduce welfare dependency and concerns regarding the long-term social costs of austerity measures.
An economist is warning a welfare change that would see thousands of youth lose access to unemployment benefits, would bring significant long-term impacts.
The article centers on the economist's critical perspective, though it does include a brief statement from the government minister defending the policy.
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