New Zealand looks to join Canada as newest country to give money directly to the people

Over the past four months, several Western nations have toyed with the idea of giving monthly stipends directly to their peoples whether they were working or not.  And primarily, these ‘helicopter money’ programs were being formulated in energy based countries where the lower prices have nearly devastated their economies.

Going back to December, when Finland began proposing an 800 euro monthly payment to every citizen, and forward to earlier this month where the province of Ontario, Canada is in serious discussion to give out their own flat-rate stipend to their citizens, the trend of ultimate quantitative easing is now not simply a fringe desperate measure for governments and central banks, but it is becoming the next step in the Keynesian model for supporting an economy.

Which now leads us to the next sovereign state ready to lift off direct payments to their people, and it is way down under in the nation of New Zealand.

The New Zealand government is considering giving citizens a regular monthly income whatever their work status, according to the country’s Labor Party leader, Andrew Little.
The party plans to debate implementing the system known as ‘basic income’ later this month.

Universal basic income (UBI) systems could give people a regular allowance regardless of their income or assets. They would oust welfare benefits, student allowances or pensions.

The regular monthly pay would give people flexibility to work as they want and not to quit jobs altogether. The measure will provide a basis on which citizens can go through the down periods as well as enjoy the up periods.

— Russia Today

Unfortunately, human nature is one where only a small portion of a population has the integrity and fortitude to actually work, and where the majority would be more than happy to receive a paycheck for adding little towards a nation’s productivity.  And to validate this, all one has to do is look at the U.S. and Europe to see that when given the chance to achieve wealth through work versus having a lower standard of living through welfare, a large contingency of the population will accept welfare and the responsibility of others to pay for their lifestyles.

“In 2013, according to the Census Bureau, there were 105,862,000 full-time year-round workers in the United States — including 16,685,000 full-time government workers. These full-time workers were outnumbered by the 109,631,000 whom the Census Bureau says were getting benefits from means-tested federal programs — e.g. welfare — as of the fourth quarter of 2012.

”Every American family that pays its own way — and takes care of its own children whether with one or two incomes — must subsidize the 109,631,000 on welfare.”

— Politifact

Two decades of central bank interventions and spiraling debt has now brought the world to the point where any decrease in credit expansion will summarily destroy the global economy.  And since the central planners failed miserably in re-stimulating actual production following the 2008 credit crisis, and facilitating the return of real jobs and wage growth, it appears that they feel they are left with no options except to directly pay people not to work in order to stave off the inevitable consequences of revolution and loss of their power.

4 comments

  1. I’m in Canada and I say bring on the Basic Income. I will immediately take it and buy Gold, Silver, & Bitcoin with it. Any policy that accelerates the collapse of the fiat currency monetary system is ok by me!

  2. This is just another form of QE. At least this time however the money is going directly to the consumer and not the banking cartel. This is also potentially a last ditch attempt to force inflation. By pumping money into consumer hands it should lead to consumer price inflation and thus devaluation of overall debt loads. Newzealand is likey a test bed for this just as Cyprus was a test bed for bail-ins. None of these actions are likely to end well. Confidence in monetary authorities is low. Eventually the realisation of a global monetary reset with gold as its centre piece weight and measure will take centre stage.

  3. I am a New Zealand citizen and I just thought I’d provide a little local perspective to the proclamations of Labour’s Andrew Little.

    Firstly, Labour is currently the opposition party, secondly, they have lost the last 3 elections by a wide margin, thirdly, the party leadership has changed 4 times since they were last in power, and finally, Andrew Little is not a popular man amongst the general public.

    In addition, the National party, and in particular the current Prime Minister, the popular and pragmatic John Key, still have very strong support and continue to poll strongly, well ahead of Labour, to the present day.

    Consequently, Labour have become increasingly desperate to improve their popularity, and more recently appear to be resorting to straight out bribes in an attempt to achieve it. This latest announcement is just the last in a long line of ‘Vote for us and we’ll give you free money’ policies that Andrew Little seems to favour.

    Fortunately most New Zealand voters are smart enough to recognise these promised handouts for what they are, and immediately respond with "Oh? And just who is going to pay for this?" (the answer of course being one or both of "Why you! Who else?" and "It’s OK, we’ll have the keys to the money printing machine").

    In any case, I wouldn’t attribute much (if any) weight to the desperate ravings of a the leader of an unpopular and stagnant political party; there’ll be even more poorly conceived, unrealistic policies to follow, you can count on it!

  4. Sam –

    To me, New Zealand would have been one of the last country to go down this path, but then again, I never would have suspected Canada to do the same.

    More than anything, like the sudden barage of ending cash from academia, central banks, and financial pundits, these are trial balloons which should scream to everyone there are no more effective policies that can be implemented to save the global economy, and they are now at the point of the Twilight Zone.

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