jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131Replacing a progressive tax with a flat tax – fair enough.
Currently the policy is to ADD the compulsory element, but I do see where you are coming from, and I still really disagree with the policy.
I like your point on the lowest incomes – I wonder if Labour and National have realised that they are thinking along the lines of ripping 10% of someones income out of their hands … when someone is struggling to live this added “credit constraint” is pretty significant 😛
]]>“How about moral hazard as a justification?”
If we think there is moral hazard, then start charging some sort of insurance premium on borrowing. Or subsidise savings in some way. Don’t regulate with compulsion 😉
]]>“pretty much all politicians are Jim Anderton to varying degrees”
Excellent, excellent, quote 😀
Tis true, I’ve noticed that economists and policy analysts aren’t exactly completely clued on about either their personal finances or what savings really are in the first place 😉
I think there is both – I have definitely heard policy analysts say the first one, constantly, just simply off the record.
However, the second issue is important – because people are scared of the idea of “systematic risk” from debt, which is fair enough.
But, if that is the problem we should be trying to figure out what is behind our CA deficit, and then working out if:
a) It is a problem,
b) What policies would directly deal with any problem that exists.
Blanket solutions like compulsory superannuation are always, what I would technically term, stupid.
]]>I’m not sure compulsory super is the one-size-fits-all solution here, but there seems to be a reasonable case against inaction.
]]>Hm, when I put it like that, in my view, pretty much all politicians are Jim Anderton to varying degrees, I guess.
Possiby also the impact of power:
Losing touch – Power diminishes perception and perspective (http://insight.kellogg.northwestern.edu/index.php/Kellogg/article/losing_touch/)
Why Powerful People — Many of Whom Take a Moral High Ground — Don’t Practice What They Preach (http://www.sciencedaily.com/releases/2009/12/091229105906.htm)