If this is the case for compulsory super, then I guess I better figure out where I’m going to move once it gets introduced – as it is obviously going to be poorly thought through and adhoc.
Prime Minister John Key is setting out a compelling case for compulsory superannuation and says public opinion has shifted since it was rejected in a 1997 referendum.
When a paper tells you the case is compelling – you can tell there is going to be trouble 😉
Lets get down to what John Key has to say. In my opinion, this is the worst set of words I’ve ever seen come from him – previously I’ve found that he has been quite level headed (except for the cannibalism call …).
“I want to see national savings rise so we are less reliant on foreign borrowing” … “The global crisis showed that if you rely very heavily on foreign borrowing, as New Zealand is doing, eventually it catches up with you”
So we owe a bunch of people money, who should be more concerned about our outlook – us or the countries waiting for us to pay them back 😉
Having a high level of debt makes it harder to borrow yes. And it does put us in a tough spot in some ways, yes. But shouldn’t we be asking why we are borrowing, and whether this borrowing is excessive. If we are borrowing 100% of GDP to build something that will give us 100x as much output in the future – then that aint bad. If we are borrowing because it seems cheap, but it is actually being subsidised by someone else, then this is a bad thing.
We need to sit down and think about savings – not throw a blanket policy on everyone.
“Our total foreign debt is running at around 90 per cent of GDP”
Three things. This figure is known to be an exaggeration. Secondly, I think this is the net liability position right, and it has come down a wee bit during the recession. Also, it tells us that our total net liabilities is equal to a bit under our annual income – not our wealth, it is much much less of our wealth – just our annual income. Doing it this way makes it sound scarier – by making things sound scary they have more of a reason to “save us from ourselves” you see …
He said he thought there had been a shift in opinion since 92 per cent of voters rejected compulsory superannuation in the 1997 referendum.
“I think New Zealanders have come to realise they’re going to live longer, so even with the retirement age at 65 they’re going to be much more active in their retirement,” he said.
“And relying solely on national super… puts them in a precarious position.”
So they CAN save more – they have a choice. Why does this mean that they suddenly want the government to FORCE them to save. Seriously, was there any thought in this statement AT ALL!!! (Yes I am yelling – it adds flavour you see).
“If we identify and are convinced New Zealand has a vulnerability because of its high foreign debt, and also that New Zealanders aren’t as well prepared for their retirement as we might like them to be, then we need to consider our response,” he said.
If the state thinks you are incompetent, they will make you do what they think is right – seriously, CAN HE HEAR WHAT HE IS SAYING.
OK, now others.
Labour leader Phil Goff said his party was working on a superannuation policy and did not rule out a compulsory model.
“We absolutely have to increase our savings as a country,” he said.
So the opposition agrees – this is a RED FLAG for bad policy!!!
United Future leader Peter Dunne, who is Minister of Revenue, said his party had been backing a compulsory KiwiSaver scheme since 2007.
“When I raised it with Labour in the previous Parliament they weren’t keen, when I raised it with the National Party earlier this term, they weren’t keen,” he said.
“I’m delighted to see they may be coming to the table.”
Peter Dunne, the great supporter of the traditional family through Working For Families and trying to drive in income splitting. I wouldn’t his recommendation at a frikken Burger King, let alone his recommendation for National frikken policy. In fact, who the frik is going to even attempt to think sense here.
The Prime minister thinks that government has to tell people what to do, the opposition agrees, and their coalition lapdog is throwing them a bunch of dumb ideas on how to do it.
This is why I hate politics.