A Matter of Perspective

How very reassuring it is to hear Dr Cullen report that there is no economic crisis looming on the near horizon. My cat and I will both sleep more easily. And yet, despite his soothing comments and generous budget, some niggling doubts remain that we are perhaps on the verge of a major “correction”. I suppose it is a matter of perspective.

Knowing that the boom-bust cycle is necessary to maintain balance in our outdated financial system, surely it follows that a bust succeeds a boom? And in that case, positioned as we are at the high end of a lengthy boom, the unpleasant bust effect must be next. Although governments may manipulate the timing and manage the impact, bust invariably follows boom. That is fundamental to the nature of the current system.

Even the facts seem to be getting in the way of Dr Cullen’s good news story. The average New Zealand household spends 115% of its weekly income. Student loan scheme debt approaches $9.5 billion. The Child Poverty Action Group reports that up to 30% of our children live in poverty (visit www.cpag.org.nz ). Housing affordability, or lack thereof, has seen a steady but significant reduction in home ownership levels. Residential mortgage interest rates continue to increase – problematic if you live in Central Otago where 105% or your income is needed to meet mortgage payments. Local body rates increases are an annual event – more than 23% for Buller District Council rate payers this year. The NZ dollar has risen to uncomfortable heights, creating difficulties for exporters but delight for retailers of imported goods. Global warming is a costly reality we have yet to adequately confront. And most worrying of all, in the past two decades New Zealand experienced the fastest growth in inequality in the OECD. The bottom 50% of the population holds just 5% of the country’s net worth, while the top 10% holds 50%.

I suppose that from Dr Cullen’s perspective, the economy is ticking over quite nicely: afterall, he has a lovely big budget surplus to play with. But from the perspective of most New Zealanders, the outlook is bleak. We are a debt-ridden nation with a lack lustre track record on social justice issues. Too many of our young people are unable to fully participate in their communities, unable to realise their dreams. It is clear that the present financial system does not allow for managing the economy in a way which enables all New Zealanders to share in the common wealth of our country. If a system isn’t working in the best interests of the majority of citizens, then it must be replaced with a system which does.

A social credit financial system, as promoted by Democrats for social credit, puts people first. It offers a sound, practical alternative to the old debt-based system. A social credit economy has the tools to address existing inequalities and develop the social cohesion necessary for successful transition to a post-industrial society. There is a better way forward: it’s called social credit.

Written By:

Stephnie deRuyter
Party Leader

Published: February 2008