Why save?

The 2008 stock market crash exposed New Zealand businesses that hadn’t saved for a rainy day. The coronavirus lockdown is exposing those who didn’t and are now crying poor.

There are two fundamental government-assisted flaws here. The Government, in allowing banks to pay what amounts to zero interest on savings, discouraged all businesses from saving. Even worse, those that didn’t put money aside are now being rewarded by government handouts. What message is that giving to businesses starting up? “She’s right mate it’ll all come out in the wash”. This is what New Zealand governments throughout history have been plagued with.

Gary Hollis, Mellons Bay.