New Zealand’s abysmal productivity results in low incomes and high debt. This is made up to the taxpayer by the social engineering policy of Working For Families. It goes like this:
- the unreconstructed socialists take too much money from the long-suffering workers as taxation;
- then they use a big chunk of that money to hire a battalion of bureaucrats;
- these overpaid pen-pushers then give loads of the productive folks’ money to ever-growing numbers of beneficiaries – both the deserving and the bludgers;
- what’s left over is called Working for Families and it goes back to the over-taxed and under-paid workers they took it from in the first place;
- the stupid long-suffering workers’ cups runneth over and they’re boundlessly grateful to the duplicitous politicians for giving them back some of their own hard-earned wages.
They’re turning hard working middle-income people into state beneficiaries. These people are supposed to be grateful? You can be earning $100,000 a year and be a welfare dependant.
How smart is that?
Prime Minister John Key called this Communism by Stealth. Now he’s endorsing it.
The previous government did some good. Kiwisaver and the Cullen fund were, in my opinion, a very good thing. There’s plenty of evidence for that. Look at Australia. Vast quantities of their own money for investment, lower interest rates, lower debt, lower taxation, better productivity. the received wisdom is that, because we’re borrowing to pay for Kiwisaver, it’s a stupid policy. I would argue that it’s a vital way of getting Kiwis to save and it’s a price worth paying.
If we hadn’t been persuaded by Muldoon’s duplicitous marching cossacks, Norm Kirk’s compulsory super scheme would have us sitting on a mountain of Kiwi dollars comparable with the Aussies cache.
The good that was done by Clark and her social engineers has been far outweighed by profligate spending by both Labour and National and by a failure to address lack of growth. That over-spending, combined with a failure to take the economic medicine we desperately need, and the on-going recession have combined forces to make Kiwisaver just another drain on our grandchildren’s earnings.
Except that our grandchildren will all be living in Australia. So who will pay the piper?
Watch this space.