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

 

NZEI Survey Report: Special Needs Students Missing Out

The survey revealed that around 16 percent of students were on schools’ special needs registers, but nearly 90 percent of schools’ special needs coordinators did not believe there was adequate support for students and their learning... More>>

ALSO:

Interim Report: Waitangi Tribunal On Ture Whenua Legislation

Labour on Proposed changes to Maori land rules: “To have Treaty Negotiations Minister Chris Finlayson dismiss findings as ‘bizarre’ is totally disingenuous and disrespectful. What’s bizarre is Maori Development Minister Te Ururoa Flavell stubbornly pushing through this Bill before the Waitangi Tribunal has even completed its report..." More>>

ALSO:

Spy Update: Appointment Of GCSB Acting Director

GCSB Chief Legal Advisor Lisa Fong will become the Acting Director of the Government Communications Security Bureau (GCSB) from 15 February 2016, Minister Responsible for the GCSB Christopher Finlayson announced today. More>>

Protests Close Roads: TPP Signed In Auckland

“TPP was signed by Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States and Viet Nam.” More>>

ALSO:

Emails Behind 'Diplomatic Immunity' Case: Whitehead Report Released

“As previously indicated the conclusions reached by Mr Whitehead’s investigation are not unexpected but they are very disappointing,” Mr Mccully says. “At the heart of the matter is a single email, along with procedural shortcomings, which gave Malaysian officials the impression it would be acceptable for Mr Rizalman to return to Malaysia." More>>

ALSO:

Gordon Campbell: On The Treaty/TPP Overlap, And Iowa

The fears about the ISDS provisions in the Trans Pacific Partnership deal are well-founded. The reality is that there is a sharp uptick in the occurrence of ISDS litigation in developed countries, and even the right wing likes of The Economist have been souring on the process for some time. More>>

ALSO:

Christchurch Red Zone Offers: Fresh High Court Proceedings

Grant Cameron, Solicitor for the Quake Outcasts said “the action seeks judicial review of the Crown’s recent decision to make a fresh offer to purchase properties from uninsured property owners in red zones. More>>

ALSO:

PM's Post-Cabinet Press Conference: Waitangi And TPP

Prime Minister John Key on Tuesday said his office has received an invitation for him to visit the Lower Marae on Waitangi Day, but was waiting for a meeting of the Te Tii Marae Trustees. More>>

ALSO:

Flagged: 'Wrong Colour' Bridge Flag To Change

NZ First: Only 13 days after National trumpeted its legally questionable flag on Auckland Harbour Bridge, it is now coming down because it is the wrong colour... “Mr Key’s latest flag fiasco is another waste of taxpayers' money. Given it is coming down, down is exactly the location where it should remain. More>>

ALSO:

School's In: Children Head Back To School

“Across the whole of this year we expect 61,820 five year olds will begin their primary schooling for the first time,” says the Ministry of Education head of sector enablement and support Katrina Casey. More>>

ALSO:

Dog & Lemon: FBI Disagrees With NZ Government Over Police Chases

Multiple studies, quoted by the FBI, show that once suspects realise they're no longer being chased; they tend to slow down to normal driving speeds and therefore become far less of a risk. The FBI report also categorically rejected the argument that abandoning police chases meant ‘giving in’ to offenders. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news