this post was submitted on 27 Aug 2023
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Financial education has its limits – if we want New Zealanders to be better with money, we need to start at home (theconversation.com)
submitted 1 year ago by [email protected] to c/[email protected]
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TL:DR Studies on financial education show it helps increase savings rates, but has virtually zero impact on whether someone will default on loans. The article suggests that financial discussions at home are important.

Really though, the article is raising discussion points and doesn't really suggest what actions we should take (that I noticed, anyway).

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[–] [email protected] 3 points 1 year ago

Best thing govt could do is stop blaming people.

I haven't seen the government blaming people?

Companies get to expense their business lunches.

Companies pay tax on profits. They buy a bottle of milk for $2, sell it for $3, and pay tax on the $1 profit. They get to take off the cost of running the business (e.g. rent, electricity, staffing) before paying tax. This all seems fair to me.

Business lunches are part of running a company. But in fact, there are special rules about food and drink that mean in NZ companies can only claim half the cost. So really this is a weird thing to get hung up on since we artificially restrict how much businesses can claim.

They get tax layers to pay for their luxuries and we bail them out when they take high risks.

Can you give some examples?

Govt blames majority when we have inflation

When did they do this?

and then in that same breathe blame the population for not spending enough and causing a recession.

When did this happen? The reserve bank is intentionally trying to cause a recession.

Almost like they have no idea how to run an economy.

Even expert economists have no idea what they are doing, because economics is extraordinarily complex, with many different levers, and chaos theory in full swing.

Bring the price of things down and people will have more disposable income to buy the things they want.

That's not how that works. The more disposable income people have, the more things will cost. It's a basic principle of economics that companies will increase prices to the level the market is able to bear (i.e. how much money people have).

Oh and regulate predatory payday loans and high interest loans. You can educate the populace or you could just do your job and stop illegal scams.

The government has made big strides in this area over the last year or two. Payday lenders have significantly more restrictions than they did previously.