Economic Policy Launched – Social Credit

Social Credit has released a $20 billion economic policy programme for this year’s general election.

Reclaim Our Future will be launched with full page advertisements in major newspapers on Saturday.

As the country moves out of the Covid-19 lockdown, a new economic direction is required to support thousands of unemployed, rebuild business, lift people on low incomes out of poverty, address inadequate housing, develop secondary industry and more self sufficiency, move primary producers towards regenerative farming, and protect and enhance the environment.

The previous taboos on economic management have been swept away and use of the Reserve Bank to support the economy is now accepted. As Christian Hawkesby, the Reserve Bank assistant governor says “We’re creating electronic money to buy government bonds. Through this process we create money.”

Social Credit will use the Reserve Bank to directly fund its economic programme and will implement a commensurate reduction in the creation of money by commercial banks to ensure inflation does not get out of hand.

The key features of the $20 billion programme are:-

– A maximum payment of $20 for all GP and dentist visits

– No tax on the first $20,000 of income, and only 20% tax on the next $20,000

– No fares on all urban public transport

– A “Child Dividend’ of $30 per week for all children under 18

– A guaranteed minimum income for all low income earners

– A rent-to-own public housing programme

– Grants for relocation to lower cost parts of the country

– $4.6 billion for environmental, pest free, and energy initiatives

This annual programme is additional to existing government expenditure which was funded from tax revenue in the last budget.

Infrastructure developments which were to be funded from borrowing or using private sector capital will instead be funded from the saving in interest (approximately $5 billion) on existing government bonds the Reserve Bank will re-purchase.