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.
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.
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.