Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Labour Engages in Schoolyard Behaviour

Labour Engages in Schoolyard Behaviour

Blog: Dr Jamie Whyte, ACT Leader
18 June 2014

David Cunliffe and his Labour Party colleagues remind me of some of the bullies at my old high school. They would grab the forearms of weaker children and then force them to slap themselves in the face with their own hands. That is the effect of Labour’s policy of making KiwiSaver compulsory, which they announced today.

Suppose you are an employed 35-year-old with a mortgage charging 6% interest. You would be well advised to use any money you can save to repay your mortgage. That is a better way of saving for your old age than investing in a pension fund, such as KiwiSaver. No pension fund can produce an annual risk-free return of 6%.

But Mr Cunliffe won’t let you. He will force you instead to invest in KiwiSaver, despite the fact that such investments can provide a risk-free return of only 3% or thereabouts. He will use his superior strength – that is, the government’s power to confiscate your money – to force you to slap yourself in the face (financially speaking).

Or suppose you are 25-years-old and starting out on a career in which your pay will rise sharply over the coming years. It would be foolish to save $2,000 this year. That would materially damage your standard of living while you are earning only $35,000. In 15 years’ time, when you are earning maybe $150,000, you will be able to save much more at less cost to your quality of life. Any sensible person would delay saving until their income was higher, especially since consumption can be so much more enjoyable when you are young.

But no, if Mr Cunliffe becomes Prime Minister, he will stop you making this sensible choice. He will force you to save that $2,000 right now, whether you want to or not.

This is typical Labour Party policy. First, they wrongly assume themselves to know what is best for others; then they declare that people who disagree with them will be deprived of their liberty to follow their own judgements.

Ignorance and thuggery naturally go together, not only in school bullies but in politicians. With wisdom comes an appreciation of the uncertainties and complexities of your subject. A skilled financial adviser knows that how much people should save, when they should save and in what ways they should save are complex matters, and that the right answers vary from person to person. A skilled financial adviser wouldn’t dream of commanding everyone to save the same percentage of their incomes in the same way at all times, even if he had the power.

To do such a thing you need to be unusually ignorant and even more arrogant.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Christchurch Fires: Friday Morning Update

Slightly cooler weather conditions and higher humidity with some light rain having fallen early this morning is welcome relief for emergency services fighting the Port Hills fire in Christchurch..

It has been a quiet night with a few minor flare ups contained by fire crews. Thermal imaging is being used to identify hot spots. There is a lot of work to do to clean up the whole fire area and this will go on for several days.

Te Hapua Welfare Centre remains open with a small amount of people staying there. Nga Hau E Wha Marae and the Selwyn welfare centre have been closed. Police cordons are still in place and these areas are still considered dangerous. The situation is being constantly reassessed and we will provide further information as soon as it is available. More>>

 
 

Turnbull Visit: Leaders’ Talks Cement Trade Relations, Science Agreement

Mr English met with Prime Minister Turnbull in Queenstown today to discuss common approaches to bilateral and international issues, including trade and science and innovation. Mr English also thanked Mr Turnbull for Australia’s offer of support for those fighting the fires on the Port Hills in Christchurch. More>>

ALSO:

Youth Guarantee: Upskilling Fund Used For Retraining

News that one in five of the people enrolling in Youth Guarantee already hold qualifications at the level they’re enrolling in highlights the failure of the scheme to reach the disengaged young people it was set up to assist, says Labour’s Education spokesperson Chris Hipkins. More>>

ALSO:

Gordon Campbell: On What Trump May Mean For Us

So far not much effort has been put into tracing the possible implications for New Zealand of the stream of executive orders and tweets that have been pouring from the Oval Office. Unfortunately, we may not simply be drive-by rubberneckers at this car wreck for much longer. More>>

Pike River Select Committee: Solid Energy Chair Talks Resignation Over Re-Entry

Andy Coupe, chair of failed state-owned coal miner Solid Energy, said at a fiery select committee this morning that he would consider resigning if the government orders the company to re-enter the Pike River coal mine. More>>

ALSO:

Gordon Campbell: On Labour’s Candidacy Troubles

So its official. Greg O’Connor will indeed be Labour’s candidate in Ohariu and – as also signaled well in advance – the Greens will not be standing a candidate in the electorate. At this point, you have to question the validity of the Greens’ excuse – “we need to change the government” – for tagging along.... More>>

ALSO:

Post-Shooting Security: Guards Say WINZ Safety Protocols Unsafe

“The safety issue has moved from inside WINZ offices to outside where security guards are isolated in front of locked doors with nowhere to retreat if they need help,” says Len. More>>

ALSO:

PM’s Press Conference: Housing, Housing, Housing

Questions from the gallery focused on housing, asking about the Auckland Unitary Plan, the potential skills and resource shortage and whether NZ would seek help from overseas. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news