Better off people can simply save less in other funds if they are forced to contribute more, while the poor just get poorer. On retirement, low income workers may get little advantage from their forced saving as they will need a top-up to get just to the level of NZ Super.
Let’s be clear, the family poverty inherited from the last decade of entrenched poor policies, sheer neglect or deliberate attacks on living standards won’t be fixed overnight. We get that. We know the PM has solving child poverty at her core, and her values and integrity are the best thing that has happened to children for a very, very long time. But CPAG is the critical friend and has to say the hard stuff on behalf of children.
When the Fund is included, New Zealand’s net debt level becomes extremely low. Treasury projections in the fiscal update December 2017 show net debt including the fund actually disappears by 2022! Time to stop the fiscal panic please.
MSD are prepared to pontificate in court for days about how married couples have greater economies of scale than two singles living together and how society expects partners to support each other. The 21st century has passed them by.
Why do we concede power and deference to these unelected officials? Is it time to give up on the courts?
National just doesn’t get it. Bill English’s persistence with the accusation that Labour had an $11.7 billion fiscal hole in its figures was, by far, his biggest mistake as Simon Wilson in the NZ Herald says. But did they learn? Even in the face of clear political damage they kept digging.
Behavioural economist Richard Thaler, the father of ‘nudge theory’ was awarded the Nobel economics prize in 2008. In New Zealand we see his influence in the auto-enrolment, opt-out design of KiwiSaver.
One of the clear threads is the move to a greater reliance on the complex stigmatizing regime of supplementary hard to access add-on means-tested assistance. Core benefits are not enough to live on and low wages are far too low.
We are not doing policy development well in New Zealand. Labour now has a real chance here to get it right. There would be time, for example, to investigate the risk-free return method first discussed by the McLeod Tax Review committee in 2001, and more recently by the Gareth Morgan foundation.
Why do we have big differences between rates of NZ Super? Why does a single sharing pensioner get $ 60 a week more than if their relationship is defined to be in the nature of marriage?
Why does a superannuitant living alone get $90 a week more than a married person?
In 1994 CPAG was formed in response to the truly appalling changes Ruth Richardson rammed through in the early 1990s that saw rates of child poverty soar along with rates of 3rd world child diseases. Do people really understand that a sole parent’s benefit was cut below the poverty line but if they tried to earn extra money, they lost most of it?