Consider the scenario where about half the beneficiaries became ineligible...
So you realise that's 200,000 squatters - right?
200,000 overdue rents, every week ad infinitum (most beneficiaries don't have HNZ access)
Landlords go under, banks have to recall mortgages for landlords at high risk
An oversupply of properties, property prices plummet
Banks have to raise rates to cover losses and cover higher wholesale rates
OCR up due to increased risk premium
Currency plummets, fuel increases -> inflation -> still higher interest rates -> more mortgage defaults -> government debt servicing becomes a BIG problem -> IMF bailout???
Then there's the crime issue, higher home and contents insurance premiums etc
As for taxpayers...having to compete with downward pressure on wages, desperate people don't work for minimum wage, they'd be happy at $8 an hour, under the table of course. IRD would be irrate at that. The question becomes, how long can you remain a tax payer (i.e. in employment)
Personally I'd prefer the tax, rather than:
Higher interest rates
Higher insurance premiums
Personal risk due to crime
Energy/import price inflation
Wages lowering and job insecurity
Paying for supermax prisons ($91,000 each person you know)
Put it this way, NZ wouldn't be a pretty place, you'd want plane ticket, not a job. Hmmm and as for the Tourist/Immigrant Student/Immigrant Retirement industry? Overseas retirees did wonders for Tauranga's real estate prices by the way - hint.
Insurance is duplicious and doesn't work all too efficiently, Americans are learning this slowly with their health system. Besides, if you had to pay insurance to guard against unemployment - then even the 17.5% tax is a rip off. What with the increased mortgage on a depreciated property, the crime effect, the lower wages, the increased import prices etc...
A good economy always has spare capacity in the workforce
A good economy always has population growth
Tax is the price you pay for job security, it keeps other bidders at bay. Children raised on DPB become tax payers too someday, assuming there are jobs...in other words, they're supposed to be an INVESTMENT - dur.
Welfare is not a poverty trap, a poverty trap is when you are homeless and don't have the resources to present yourself for a job...I cannot believe we are taking advice from an American. In America, the good old USA, many people are so desperate that prison accomodation and food is a welcome gift if all else fails.
Benefits keep you alive, they are not a life. Enjoy trying to hold down your job if these dreamers get their way.
So you realise that's 200,000 squatters - right?
200,000 overdue rents, every week ad infinitum (most beneficiaries don't have HNZ access)
Landlords go under, banks have to recall mortgages for landlords at high risk
An oversupply of properties, property prices plummet
Banks have to raise rates to cover losses and cover higher wholesale rates
OCR up due to increased risk premium
Currency plummets, fuel increases -> inflation -> still higher interest rates -> more mortgage defaults -> government debt servicing becomes a BIG problem -> IMF bailout???
Then there's the crime issue, higher home and contents insurance premiums etc
As for taxpayers...having to compete with downward pressure on wages, desperate people don't work for minimum wage, they'd be happy at $8 an hour, under the table of course. IRD would be irrate at that. The question becomes, how long can you remain a tax payer (i.e. in employment)
Personally I'd prefer the tax, rather than:
Higher interest rates
Higher insurance premiums
Personal risk due to crime
Energy/import price inflation
Wages lowering and job insecurity
Paying for supermax prisons ($91,000 each person you know)
Put it this way, NZ wouldn't be a pretty place, you'd want plane ticket, not a job. Hmmm and as for the Tourist/Immigrant Student/Immigrant Retirement industry? Overseas retirees did wonders for Tauranga's real estate prices by the way - hint.
Insurance is duplicious and doesn't work all too efficiently, Americans are learning this slowly with their health system. Besides, if you had to pay insurance to guard against unemployment - then even the 17.5% tax is a rip off. What with the increased mortgage on a depreciated property, the crime effect, the lower wages, the increased import prices etc...
A good economy always has spare capacity in the workforce
A good economy always has population growth
Tax is the price you pay for job security, it keeps other bidders at bay. Children raised on DPB become tax payers too someday, assuming there are jobs...in other words, they're supposed to be an INVESTMENT - dur.
Welfare is not a poverty trap, a poverty trap is when you are homeless and don't have the resources to present yourself for a job...I cannot believe we are taking advice from an American. In America, the good old USA, many people are so desperate that prison accomodation and food is a welcome gift if all else fails.
Benefits keep you alive, they are not a life. Enjoy trying to hold down your job if these dreamers get their way.
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