Why is government assistance so popular for both people and businesses?
I suppose that having a social backstop for your mistakes is good. I am very grateful for the privilege of being born in New Zealand and not a 3rd world country. You should be too!
There is a basic level of redistribution that is essential – and in New Zealand it delivers a lot of support to people struggling from job loss, health problems or relationship breakdowns.
But I can’t get my head around why so many people look to the government for help when it comes to retirement savings.
Many people just don’t “get it”. At least 11,000 Kiwisaver members really don’t get it. Low future-time orientation confirmed through utilisation of the first home subsidy.
Changing demographics and the move towards “user pays” in everything means that contributing to Kiwisaver and not taking the money out for a house is essential if you don’t want to be in abject poverty when you retire.
Living a simple, low impact lifestyle that doesn’t harm the environment or lead to consuming copious amounts of useless stuff not only saves you money but lessens the impact of “adverse shocks”.
The other day I was fascinated to learn how many people, in the wake of Great Depression 2.0, think it is a prudent idea to put less than 20% deposit on a house – running the risk of negative equity if any supply side reforms go through.
Loan-to-value restrictions won’t work because a lot of people my age – early 20’s – are frustrated because they can’t consume like their parents did and don’t care about the fragility attached to high levels of debt in an economic environment where debt servicing ability is best described as a game of chance.