Paying more to pay more

A large group of social agencies and welfare advocates is calling for the government to increase benefits before Christmas.

There is no doubting the difficulties facing beneficiary families.

But that doesn’t change the fact that every dollar the government is spending is borrowed money that has to be repaid.

The signatories of the open letter to the government don’t seem to understand they are asking us all to pay more in repayments and interest to pay more in benefits.

They also ignore the growing disincentive to work when income from a benefit gets closer to income from wages.

And they are seeking a band aid without offering any treatment for the underlying causes of the multiple problems which face many who depend on benefits.

The last National government made a good start in addressing these with its social investment programme, but much of that good work was abandoned or  undone in the last three years.

If these groups really want to help the people for whom they’re advocating, they need to understand the solution to their problems is not as simple as more money.

One Response to Paying more to pay more

  1. Gravedodger says:

    More money will have very little effect for most but as the Marrow grower in the far north lamented yesterday ( he was not a Marrow grower, that aberration only came about when he couldn’t get anyone to head out to gather his courgettes). Getting labour off the couch is due entirely to the one size fits all approach English was addressing until the great charlatan massaged his spiteful ego and reinstated the blanket socialism we will now witness failing the market. Fruit and vegetable harvesting for the market has very exact parameters of actual delivery and a burgeoning manipulated demand payment will still not see people wanting to get out and do the physical. Lindsay Mitchell had a great post on this yesterday.
    @ lindsaymitchell.blogspot.com

    The total disconnect exhibited by the Socialists was rarely better expressed when State TV covered a rather red faced Minister of Immigration, one Trevor Mallard, remonstrating with Horowhenua asparagus growers over their request for Fijian labour to pick that crop for export. Good old ex school teacher Trev the Muss, went on site, got up at an ungodly hour to be fed and transported to a nearby field where he very quickly discovered walking stooped along a row of spears, selecting the ones best ready for cutting was not as easy as he had decided as easy for an unemployed, out of condition, welfare recipient. Quick smart lifted the arbitrary lid on allowing Island labour in to the country to earn and send money back to their villages.

    Well worth repeating the Thatcher summation; “Welfare will only last so long as there is other people’s money available to pay for it”.
    A theory now partially hidden as printing presses have replaced large swathes of taxation opportunities.
    Even then the principle Maggie expressed is still relevant.

    Like

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