Inequality magnified by Govt
Like Martin Visser (Letters, November 7) I am sceptical about the Government's intentions to combat poverty, when its own policies exacerbate inequalities. The chief culprit is the iniquitous "funding-to-lend" scheme. It's the proverbial elephant-in-the-room which few commentators dare to question.
Economics writer Bernard Hickey is one critic,
while Social Credit's Chris Leitch is the only political leader who has dared to challenge Finance Minister Grant Robertson to stop the nonsense and allow the Reserve Bank to buy the weekly issue of Treasury bonds directly, rather than allow the big banks first pickings.
Cushioned by this easy funding, the banks are duly lending, as required but favouring borrowers with least risk. No wonder the already well-heeled are buying up real estate and pushing up prices.
Sadly the general election was between one social credit party and umpteen social debt parties, with an overwhelming preference for the latter. Oddly, unions and business are united in their approval of a system which pays out millions of dollars a day in debt-servicing to rich foreign creditors. Yet, from what remains, unions expect further pay increases. Martin Visser advocates some kind of wealth tax whereas it is a flawed monetary model which is generating the problems he abhors.
HEATHER MARION SMITH
Gonville
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