Another change the system wish list

Partly do to the major disruption our society and economy are going through and presumably partly due to some people having more spare time to think about and discuss things, there have been a number of policy wish lists published.

Of course some politicians have been having a go at the immediate future, like Simon Bridges:

But that’s fairly short term aiming to crank things back up to business as usual.

Like others KJT at The Standard thinks that the old way was stuffed and something radically different is required – What we were doing wasn’t working.

While the Government is flat out just trying to work through the current crisis it’s unlikely Labour would be any more keen than National in making major changes at this stage. That would be even more disruption and even more risk.

KJT suggests a number of idealist style policies:

  • Expanding Kiwibank, to undercut private banks and start to take back control of our money supply  from private banking, is a logical first step. Reducing the capital haemorrhage.
  • Support Government that has not been bought and paid for by international corporate interests.  From one that is only interested in extracting as much wealth as possible from us, before it is all gone, to one that has a vision for the future.
  • A financial transactions and/or capital flows tax, to discourage money speculation and offshore currency speculation.
  • The predatory Capital investment, mostly  from offshore, that has loaded our companies with so much excessive debt, to make short term profits, that they cannot sustain four weeks of lost earnings.
  • Capital gains taxes . Can be rebated for the family home to a certain value,  and for local productive investment. Make investing in NZ’s more attractive than land speculation, overseas securities or local finance scams.. Prices of speculative investments will probably drop, some inevitably with the present economic contraction, leaving some people with negative equity. Banks as one of the contributors who profited from the situation, should be made to bear the change in equity along with other investors.
  • A genuine emissions tax, which can be made economically neutral by spending on energy and resource efficiency in New Zealand, or  by giving it back as a general tax rebate.
  • Change the RBA away from the current single focus on inflation, allowing our dollar to drop to a natural level against overseas currencies, helping both exporters, job creation  and manufacturer’s within NZ.  (Fighting inflation with interest rates is like fighting a fire with petrol. Works briefly and then there is an explosion.).
  • Refuse to enter trade agreements that constrain what NZ can do on its own.
  • An expanding population also requires growth. Increasing the standard of education of women and free contraception are both proven, ethical and non-coercive answers to slow increasing population.

Increasing New Zealands population, 20% in 16 years, by immigration, or increasing birth rates, to give an illusion of economic growth, is obviously not an answer.

Closing wishes:

Government can spend money into the economy for sustainable energy and efficient resource use. (Invest in the future of New Zealand) There is no reason why we cannot borrow against ourselves, as an investment for our kids future, instead of paying interest to a private bank.  Such spending is no more  inflationary  than borrowing from an overseas bank.

Increasing equality, will make such solutions more politically acceptable, as there will be less pain to the majority in the transition..

There will be plenty of spare capacity, in our economy, for some time to come.

Lastly. Look at “just transitions” to a more sustainable future, so workers, including those who do the unpaid work in our society, are not loaded with all the costs of changes. https://www.mbie.govt.nz/business-and-employment/economic-development/just-transition/ while others, who haven’t contributed, run away with the profit.