There are numerous reasons for parking the new Labour “tool” for macro economic fiddling well out of sight.
One however is a perennial Parker problem – failure to look beyond end of nose. Mr Parker claims that by forcing people’s hard earned through the funnel of a compulsory KiwiSaver scheme we are somehow better off since money does not flow into overseas capital markets.
Where does he imagine the ever grateful for the fees funds management industry put the money? Being prudent as well as fee rapacious they diversify the holdings – globally - and the higher the NZ dollar the more cost effectively this can be done.
A costly way of moving the bump along the carpet then….. again.