By Alex Tarrant
The earliest gains in national savings can be made by government reducing spending and reversing its deficit, the chair of the government's Savings Working Group Kerry McDonald said.
McDonald also said the group would be looking very closely at evidence on whether Australia's compulsory savings regime was increasing the level of savings there, or whether it just shifted savings around the economy.
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The Retirement Policy & Research Centre has cast doubt upon the need for a compulsory savings scheme in NZ . They found that Australian's had more munny at retirement , but more debt too . And the balance of assets that Kiwis owned at retirement was healthy . For instance 22 % of Kiwi retirement assets were in directly owned businesses , compared to only 9 % for Ozzie retirees .
McDonald says: "More recently, over the last 12 months or so, [there has been] quite a strong effort by households to de-leverage. The data shows that is taking place, ..."
Let's see now... go to www.rbnz.govt.nz...
Mortgage debt in August 2009: $165.441b
Mortgage debit in August 2010: $169.446b
an increase of $4b, or $1000 per capita.
Consumer debt in August 2009: $11.943b
Consumer debit in August 2010: $11.791b
a decrease of $152m, or $38/capita.
So we managed to pay off $38 from the credit cards and hire purchase, great stuff, unfortunately we whacked another $1000 onto the mortgage. Quite a strong effort indeed. Well done everyone.
Anyone know what McDonald is referring to here?
Still paying the mortgage , Iain ! Oh those nasty predatory international bankers who offered you the munny to get a roof over your head ........ 'cos you weren't able to stump up the dosh to buy it freehold . ...............Horrid rotten little borderless bankers . How dare they offer you some of their excess liquidity , and entrap you into an abode ............ Scoundrels !
"We are not exporting enough. We are not earning enough foreign currency or producing stuff here that replaces imports."
This notion that exporting will somehow be the salvation of NZ is somewhat naive as much as it is an empty slogan. It's a little bit like standing in the middle of a desert looking at your neighbour's shack burning down and saying water would put that out. Yes it would but it denies the reality of the environment.
Exporting implies that we have stuff to sell to people who want to buy it. What stuff do we have and who are the people who want to buy it? The American consumer is broke, the Europeans are busy swallowing bitter pills again (is that all they ever do?), and the Japanese make their own stuff. Thank God for food, that's all I can say, or else we would be really in the shit.
I had the good fortune once to work in one of the most preeminent scientific research institutions in the world. And three things about that place really impressed me. One is that they worked very hard at keeping on top. Two, was their can-do attitude. "I don't know how to do that, but leave it with me and I will find a way” was something I often encountered and which contrasted so dramatically with the New Zealanders mindset of, “No, you can’t do that”, or “No, we don’t do that”. And three, was a critical mass of researchers and technology all under the one roof that provided all the resources that were needed to support and encourage innovation and productivity. And it was done that way deliberately. These were smart people working in a smart organisation that consistently and persistently delivered.
In order for us to become a great exporting nation we need to have these kinds of places too in our factories, businesses, etc., so that we can produce innovative products that people around the world clamour to buy. But by and large, we don’t have them. And the reason for that is quite simple; we simply don’t have enough of those people who come up with the ideas nor the environment (attitude) that supports them when they do that together creates the critical mass that really gets things going. And until we can find a way to create those kinds of places here, we will not be making stuff that people really really want to buy.
So yes let’s export ourselves to salvation. Anybody got a bucket of water?
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