Forum Archive Index - January 2002

["capitalist" <capitalist@paradise.net.nz>]

With regard to savings, this from Gareth Morgan


"There is no evidence that New Zealanders do not save enough. Our personal
saving performance is no worse than that of the average American and who is
going to argue that they are not well off. No, the problem for us has been
that we have been very poor investors of our savings. In short we have
invested most of them in the New Zealand economy which has been a relatively
poor performing economy now for many years. For instance over the last 30
years the income of the average Kiwi has fallen from 75% to 52% that of the
average American and from 108% to 90% that of the average Australian.

Of course it's chicken and egg. If Kiwis make poor investment decisions -
like housing, forests, some farm types, uncompetitive corporates - then
personally they'll reap poor returns and overall the performance of the
economy will suffer. Now we have a government installed that has declared it
knows how to fix the economy and is going to demonstrate that by raising
taxes and offering taxpayers' funds to businesses it thinks are best.

Now you might choose to believe they can do it. Or you might more rationally
wish them luck but move your savings somewhere a bit less risky. For your
own sake and for the good of the country do the latter. "




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