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Nanny State, Daddy State, poor state?

20 October 2011 1 comment

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National intends to sign up all workers?

Isn’t that… compulsion?

Isn’t that… “Nanny Statism“?

Isn’t that what National complained so bitterly about in 2008, promising to undo the dreaded tentacles of Nanny State?!

Well, let’s see…

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Perhaps I’m being unfair on National.  Calling them hypocrites on “Nanny Statism” may be unwarranted.  After all, National voted against the Repeal of Section 59 (“anti-smacking legislation), right? They voted against the Green Party initiative, right?

The legislation also carries an amendment agreed earlier by Prime Minister Helen Clark and National leader John Key that says the police have the discretion not to prosecute complaints against a parent where the offence is considered to be inconsequential.”  Source

Oh, no! National did vote for the Repeal of Section 59!!

It seems apparent that the term “Nanny State” was nothing more than a very clever election “bogey”, designed to paint Labour as some kind of authoritarian Party that loves to do nothing but micro-manage our lives.  It was a clever ploy, and it certainly played it’s part in helping to defeat Labour in 2008.

But as with the banning of using cellphones whilst driving or launching a “Food in Schools” programme, National is not averse to legislation to enforce “social-engineering” policy.

Their change-of-heart in regards to Kiwisaver may be viewed as  a further step into so-called “Nanny State” heartland. But, like other changes to the way in which we organise our society and manage our economy, it is a necessity which we cannot do without.

Some folk may jump up and down and whinge till the cows come home, that compulsory enrollment is a violation of their right to exercise choice; that it is not necessary; etc, etc.

Well, newsflash, my dear fellow Kiwis – it is necessary, and it is long overdue. The spend-up we’ve been having has been financed through massive borrowings from overseas – and the credit agencies have taken notice of our borrow & spend habits.

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Much of our debt is private debt – fuelling our housing bubble – and based on other peoples’  savings. Very little of it goes into the productive sector. In effect, the property speculation is based on borrowed money.

And the party, people, is rapidly coming to an end.

Kiwisaver will do for New Zealand what Australia’s compulsory super-scheme did for that country:  save.

Australia has amassed savings of over $1 trillion dollars,

After more than a decade of compulsory contributions, Australian workers have over $1.28 trillion in superannuation assets. Australians now have more money invested in managed funds per capita than any other economy.” Source

It is little wonder that Australia is a wealthier society than New Zealand. Their superannuation savings scheme – compulsory since 1992 – has meant that Australians do not rely on foreign capital to the same extent that we do, here in NZ.

By contrast, New Zealanders voted away a compulsory savings scheme in 1975, when we voted for Robert Muldoon and his National Government. His (in)famous “Dancing Cossacks” election ad was sufficient to “spook”  us – as was a certain measure of self-interest. We simply didn’t want to save for our future if we could get away with it. And Muldoon was only too happy to be elected into power and oblige us.

The current National Government – a different creature from the one in the 1970s – understands the sheer necessity to wean us off foreign borrowings. That is why they  belatedly support Kiwisaver after initially condemning it when they were in Opposition.

However,  it seems that Key and English haven’t quite got the stomach and cojones to make Kiwisaver compulsory, as in Australia. They will be offering an “opt out” clause to voters.

I guess they don’t want to be devoured by that mythical beast they created, the dreaded Nanny State.

Daddy State will have to do.

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Additional information

Dancing Cossacks anti Labour party political TV ad

Superannuation in Australia

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