Should New Zealand Reduce Pensions To The Level of Other Benefits?

When the pension system was introduced in New Zealand in 1898, the average life expectancy was less than 60. Today, it’s closer to 80. Consequently, pension expenses have ballooned. This article discusses whether New Zealand should lower the pension to bring it in line with other main benefits, and what we could afford if we did.

A lot of words are being written lately about universal basic income, but few realise New Zealand already has a universal basic income for the over 65s, known as National Superannuation.

The argument for paying out this universal benefit is that people older than 65 cannot reasonably be expected to earn a living through the workforce, and therefore would starve without a pension. That seems entirely fair. Not many people would argue that a person should be forced to starve, in this age of plenty, just because they were too old to work.

However, the amount of money paid in pensions is taking the piss. $360 per week to every person over 65, when a majority of them own their own house, is an obscenity, when we expect severely mentally ill people to survive on $273 per week, out of which they almost always have to pay rent.

As of June 2019, the New Zealand Government spends over $12,000,000,000 every year on pensions (see table at top of article). This mostly consists of the $20,000 of yearly pension payments per recipient, multiplied by the 600,000+ eligible pensioners in New Zealand. Pension spending is projected to be $20,000,000,000 by 2031.

Although most people can agree that it’s cruel to leave people to starve on account of that they’re too infirm to work, there’s no reason for the Government to be granting pensioners a lifestyle that compares with what people make from working. Indeed, if they’re not working, why should they be paid any more than the unemployment benefit?

A fair compromise between the current luxury pension model on the one hand, and reducing the pension to the level of the unemployment benefit on the other, might be to reduce the benefit to a midway level. This would recognise both that current pension spending is an unsustainable and unfair burden on the under-65s, and that the infirmity of old age demands more expenses than the health of youth.

If the pension was cut by 25%, from its current $360 per week to around $270, this would bring it in line with other main benefits such as the Supported Living Allowance. This 25% reduction would equal a savings of $3,000,000,000 per year in pension expenses.

To give an example of how much money that is, it’s roughly equal to the $3,000,000,000 in tax revenue that the Government gets from the 10.5% tax on the first $14,000 of income. This tax works out to slightly less than $1,500 per person for each of New Zealand’s roughly 2,000,000 wage or salary earners.

So lowering the pension by 25% to bring it in line with other main benefits could be balanced by making all income up to $14,000 tax free. This would be a revenue-neutral move – there are plenty of other ways to spend $3G, but this would be one of the most popular.

Introducing a $14,000 tax-free threshold would make two million New Zealanders much happier about going to work every day. It would revitalise the workforce by giving every worker an extra $1,500 per year. This works out to almost $30 per week. That would make a huge difference to standard of living given the cost of living and cost of housing at the moment.

For two-parent families, such a saving would equal roughly $60 per week. For many Kiwi families on the breadline, this would be enough money to make the difference between survival and disaster some weeks.

There’s no loss to bringing this in, apart from a reduction in luxuries for our current crop of pensioners. None of those pensioners will go hungry because they would still get as much as an invalid’s beneficiary, and considering that these same pensioners had the luxury of being able to buy a house on one income – a luxury that younger generations will never have – there’s no reason for the rest of us to spend empathy on them. We ought to keep it for each other.

At the moment, New Zealand is being sucked dry by a cohort of super-entitled Baby Boomers who feel that they have the right to party it up for 20 years after they reach 65. This was only sustainable when pensioners were a small percentage of the population, but with as much as 20% of the population soon wanting a slice of the pension pie, it no longer is.

We need to bring the pension in line with other main benefits in order to rein in our bloated Superannuation expenses. Reducing it to the same level as the Supported Living Allowance would free up roughly three billion dollars every year. Freeing our economy from this burden would make life a lot easier for the vast majority of Kiwis.

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If you enjoyed reading this essay, you can get a compilation of the Best VJMP Essays and Articles of 2018 from Amazon for Kindle or Amazon for CreateSpace (for international readers), or TradeMe (for Kiwis). A compilation of the Best VJMP Essays and Articles of 2017 is also available.

The Case For Cannabis: Cannabis Does Not Make People Violent

As ridiculous as it may sound to many, the public opinion of cannabis and its effects have been informed by images like the murder scene from Reefer Madness. In the minds of a large section of the voting-age population, using cannabis leads directly to a desire to murder other people just for the thrill of it, or at least to an meth or alcohol-like aggression. This article looks at the truth.

Anyone who has been part of a cannabis-using scene knows that the supposed link between cannabis and violence is bullshit. It’s simple enough to just contrast the results of cannabis cafes in Amsterdam, or cannabis festivals, with bars and pubs just about anywhere else. Cannabis, by itself, makes people mellow in the vast majority of cases.

The myth that cannabis makes people violent was proven false as far back as 1977. A review published that year in the Psychological Bulletin stated that “The consensus is that marihuana does not precipitate violence in the majority of those using it sporadically or chronically.” All of the further research since then backs up this point.

Interestingly, that article cites the importance of set and setting, which is something that any responsible person would emphasise if they wanted to reduce harms (more on this below).

The presence of a scientific consensus that there is no causal link between cannabis use and violence doesn’t stop prohibitionists from cherry-picking data and research to create the impression that such a link exists. After all, there are correlations between all kinds of things, but (as any honest scientist knows) these correlations are often best explained by underlying third factors.

There is certainly a correlation between violence and cannabis, as there is between violence and everything on the black market. This is inevitable, because anything on the black market is all but guaranteed to be sold by someone who won’t go to the Police if they are ripped off, stood over or killed. Cases like the example of Marlborough man Colin Farrell, who was robbed of his cannabis plants in a home invasion, only happen because of prohibition.

It’s true of everything that if only criminals use it, it will have an association with crime. It’s also true that if something is illegal, then only criminals will use it. Therefore, anything that’s illegal will have an association with crime. This, by itself, explains most of the link between cannabis and violence.

Another reason why an association exists between cannabis and violence is that some people use cannabis as part of a pattern of polydrug usage during nihilistic benders. There are a lot of meth benders that end up with a person smoking cannabis to try and calm themselves down and get to sleep, only to find it not quite working, at which point something really out of order often happens. The same is true of alcohol benders.

This is why the headlines proclaiming things like “Cannabis Crash Tragedy Kills Five” inevitably lead into an article that describes how the driver was also drunk, and/or on meth and/or on prescription sleeping pills. The mainstream media is happy to play up the cannabis angle to these stories, partly because drink driving fatalities are not news and partly because it pleases the alcohol manufacturers who spend millions advertising in that same media.

Logical thinking tells us that, just because a person smoked cannabis and became violent later doesn’t mean that the cannabis caused the violence. This is an example of the informal logical fallacy known as post hoc ergo propter hoc, or “after this, therefore because of this.” This is because people who smoke cannabis and become violent have usually been drinking alcohol or doing methamphetamine at the same time, or haven’t slept for days.

Logical thinking would ask: “Where are the cases of murders and violent crimes being committed by people who were only on cannabis and nothing else?”

Of course, there are few or none – even making an Internet search for examples comes up with little. This is because the people who are using cannabis without also using alcohol or methamphetamine are almost always just quietly using it at home, to relax, in a similar manner to how many responsible people drink alcohol daily.

Much like alcohol, the emphasis ought to go on educating people about the real effects of the substance. Absurd lies like the Reefer Madness story have to be consigned to history, where they belong alongside witch hunts, virgin sacrifices and the persecution of left-handers as embarrassing examples of human superstition, cowardice and stupidity.

The truth about things like set and setting have to be explained to people, so that they can make intelligent decisions about their cannabis use instead of relying on abstinence-based fearmongering (this is true of alcohol as well as cannabis). Part of this involves only using cannabis in situations where they are safe and where they don’t have to be responsible for anything, and preferably around people they like and who won’t harass them when they are high.

Any correctly informed person who is concerned about violence would support the legalisation of cannabis, because it would replace known violence-causing drugs (in particular alcohol and methamphetamine) with something that causes less violence. In reality, the connection between cannabis and violence is so weak that, far from being an argument for its prohibition, it’s an argument to legalise it.

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This article is an excerpt from The Case For Cannabis Law Reform, compiled by Vince McLeod and due for release by VJM Publishing in the summer of 2018/19.

The Best Way to Raise Wages Is to Strengthen The Negotiating Position of The Working Class

Low wages are blamed by many for the various social ills befalling the nations of the West. If only wages were higher, a lot of problems with housing, education and healthcare would be solved. Although this is true on the face of it, little thought goes into what actually leads to high wages. This essay explains.

A popular belief, particularly among young leftists, is that the wage being paid reflects the employer’s goodwill. This is true to a minor extent (it reflects the degree of solidarity that the employer has with their employees), but in practice the size of a wage reflects little else than the respective negotiating strengths of the employer and the employee.

These people don’t understand that a person’s wage is the result of a negotiation process, and that this process is determined by economic principles. In particular, the wage reflects what the employer and employee each have for a Best Alternative to a Negotiated Agreement (BATNA) – the alternative that would arise if negotiations failed and both parties walked away from the table.

If the employer’s BATNA is to lose production and fail to fill orders because they are short-staffed, that employer’s negotiating position is weak. Likewise, if the employee’s BATNA is to get a well-paid job somewhere else, that employee’s negotiation position is strong.

Conversely, if the employer’s BATNA is to get the Immigration Minister to import cheap labour from the Third World and to hire them instead of a local, then that employer’s negotiating position is strong. Likewise, if the employee’s BATNA is that his family back in the Third World starves, that employee’s negotiating position is weak.

So it can be seen that a person’s wage is chiefly a function of the demand for that person’s labour and the supply of competing labour. All other factors being equal, the greater the demand for that person’s labour, the higher the wage, and the greater the supply of competing labour, the lower the wage.

If one wishes to raise wages, then, the only thing that will reliably work is to restrict the supply of the labour competing for those wages.

The capital owners of the West have always striven to minimise their labour expenses. The most effective way to do this is through slavery, because then the capital owners get labour (effectively) for free. The American cotton and sugar plantations of the 18th and 19th centuries were profitable because slavery minimised their labour expenses, and the closer a modern company can get to free labour, the better.

In the 21st century, the way to keep wages low is to import cheap labour from overseas. This has the massive benefit of allowing the capital owner to undercut the native working class, and to pay a fraction of their wage to the new imports instead. If the cheap labour is from a poor country, they will often be happy to live 20 to a house so that they can send some of their wages home in remittances.

Many modern enterprises in the West are only profitable because of importing cheap labour, but allowing this is a form of corruption that harms the working class. In a natural capitalist system, companies that can’t pay a living wage to their employees go out of business because they can’t find staff. Under the system we have, those companies import cheap labour and their previous staff go on the dole.

Despairingly, many leftists now think it is “racist” to oppose open borders, on the grounds that it’s mean to tell non-white people they can’t live in the West. These leftists are indifferent to the argument that opening the borders to cheap labour is against the class interests of the working poor. In fact, they often verbally abuse those working-class people for agitating for their own class interests, while the capital owners laugh all the way to the bank.

There is only one reliable way to increase the wages of labour. This way is to improve the negotiating position of the working classes. The negotiating position of the working classes can only be increased in two ways: by increasing the demand for labour, and by decreasing the supply of labour.

Only if the best alternative to a negotiated high wage is another high wage will the employer pay one. If the worker asks for a living wage and cheap labour is available, the employer will go with the cheap labour in almost every case. The employer doesn’t give a shit if this leaves the original worker unemployed – the cheaper the labour, the more profits for them.

The sad truth is that the international capitalist interests who have created this arrangement also own the mainstream media. As a result, this media has convinced us that this state of affairs is natural and that anyone who complains about their wage must be a racist. They don’t care if they’re hated – they still own everything and hate doesn’t stop them. What they do care about is a weakening of their negotiating position.

The New Zealand Labour Party – like neoliberal parties everywhere – has completely betrayed the New Zealand working class by keeping the floodgates of cheap labour wide open. It is by doing this that the Labour Party have kept wages low and contributed to the current social problems. As this magazine has argued previously, this betrayal risks that the New Zealand working class turns to fascism. The only way out is to strengthen the negotiating position of the workers.

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If you enjoyed reading this essay, you can get a compilation of the Best VJMP Essays and Articles of 2018 from Amazon for Kindle or Amazon for CreateSpace (for international readers), or TradeMe (for Kiwis). A compilation of the Best VJMP Essays and Articles of 2017 is also available.

The Case For Cannabis: An Elderly Perspective

The perception that old people are generally anti-cannabis is far from a myth. Although many elderly cannabis enthusiasts have plenty of friends who are pro-cannabis, statistics show a strong negative correlation between being aged 65+ and voting for the Aotearoa Legalise Cannabis Party in 2017. This essay describes what those enthusiasts already know: that there is a strong case for cannabis law reform from an elderly perspective.

The unpleasant truth about getting old is that it tends to involve a lot more healthcare than being young. Getting old is tantamount to the body crapping out. It’s a miserable truth to acknowledge, but there is a strong correlation between aging and physical suffering.

Because of this elevated degree of physical suffering among the elderly, there is an elevated demand for medicines of all kinds. Everyone knows that old people are always popping pills for some ailment or other. The increased sickness and frailty that comes with aging means that elderly people are interested in all kinds of medicine and, increasingly more nowadays, in cannabis.

One of the areas in which cannabis has shown the most promise for the elderly is an alternative to opiates for the sake of pain relief, particularly in the case of cancer and terminal illness. An article in the European Journal of Internal Medicine describes how cannabis was found to be a safe and effective medicine for the elderly population in this way. Its greatest benefit seems to be found in replacing opiates and thereby avoiding their profound and unpleasant side-effects.

Cannabis has also shown promise in treating a number of conditions that are much more likely to afflict the elderly, such as Parkinson’s, insomnia, some forms of chronic pain, age-related cognitive decline and hypertension. This is only a small sample – cannabis has also shown promise in treating entire classes of illnesses, in particular inflammatory ones.

Despite the attempts by prohibitionist interests to equate cannabis with more harmful substances such as tobacco, the fact is that a vast range of medicinal uses for cannabis are already known. It’s very possible, given the evidence thus far, that further research into cannabis will uncover new ways to alleviate the suffering of the world’s elderly.

Some will make the argument that all of this evidence in favour of medicinal cannabis, which is an entirely separate issue to recreational cannabis. But just because the elderly have plenty of reason to support medicinal cannabis doesn’t mean that they have reason to oppose wider cannabis law reform.

It has been discovered in Canada that freeing up restrictions on recreational cannabis encourages doctors to write prescriptions for it. When “recreational” cannabis is illegal, this normalises the idea that cannabis itself is harmful, and discourages doctors from writing prescriptions for medicinal cannabis. Therefore, the two issues are inseparable.

The fact is, as Edward Bernays might have told us, that the amount of research that gets done into cannabis medicine for the elderly is a direct function of the degree of positive sentiment towards cannabis that exists in the wider society. The more people in general feel that cannabis is helpful and not harmful, the more likely someone is to suggest to research its medicinal qualities, or to agree to fund such research.

So the elderly everywhere have an interest in liberalising restrictions around cannabis, because this will lead to doctors taking an interest in the application of the plant to alleviating the suffering of conditions that afflict the elderly.

All of these things add up to there being good personal reasons for elderly people to support cannabis law reform.

After all, the elderly overseas support cannabis law reform – it has been noted that many of the beneficiaries of cannabis law reform have been elderly. The fastest-growing group of cannabis users in legal jurisdictions are the over-65s. The article linked here, from the Journal of Gerontology and Geriatric Medicine, states “marijuana use seems normalized among the older populations as more of those who ever used marijuana age.”

The fact that many elderly are against cannabis law reform, despite being the major beneficiaries of it, is not a contradiction. Those generations were the ones exposed to a viciously anti-cannabis mentality that was not above telling lies to demonise the plant. Because of this normalisation of the idea that cannabis is harmful, it’s understandable that someone raised in this era might still believe so.

However, there remains a moral imperative to look honestly at the evidence for and against cannabis before making a decision to support its prohibition. This ties in with one final thing the elderly might like to consider: the question of goodwill. This is a question of what kind of legacy they want to leave for those who come after them.

The Police are unlikely to arrest old people for cannabis offences (although they do). They are much more likely to go after the grandchildren of those old people. When the grandchildren of old people get criminal convictions for using cannabis, they have to live with those for the rest of their lives, and (as argued in another chapter) the effects of a criminal record are disproportionate to the suffering caused by cannabis offences.

The elderly don’t win from their offspring getting criminal records.

Ultimately, the elderly might like to think about cannabis law reform, not just for their sake but for their children and grandchildren. It will be those generations who will be looking after them in the old folks’ homes, and many of the nurses who work there would like to have access to cannabis to unwind after a day of work. The smart thing to do might be to stay on their side.

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This article is an excerpt from The Case For Cannabis Law Reform, compiled by Vince McLeod and due for release by VJM Publishing in the summer of 2018/19.