Tuesday, July 24, 2012

Bribes to the rich are pure waste

The debate over John Key's bribes to the rich privatisation-bonus scheme have devolved into quibbling about cost, with Labour offering a figure of $1 billion (based on Treasury advice), while Key suggests a much lower $80 million (based on the back of an envelope in his office). Meanwhile, the key point is being missed: regardless of the cost, this is not money we should be spending. There's no benefit we gain by paying this cost; its just pure waste, money spent to bribe the rich so they make even more money by stealing our assets.

Meanwhile, Key's lower figure is a bit revealign in itself:

If the entire float earned $5 billion and 20 per cent of investors were 'mum and dads' the total cost would be $60m based on an Australian model, he said.
So what's he's saying is that he expects 80% of the investors to be foreigners and institutions. So much for his "kiwi mums and dads".