The only person who has come up with any sort of argument is Labour leaning blogger Rob Carr.
His analysis is here. No such numbers in raw seem to exist. NBR has
promised an analysis on Friday. Reading the raw Credit Suisse report, New Zealand barely rates a mention.
So let's draw a long bow and assume Rob's guesstimate is correct that in New Zealand you need around $800-900,000 in net assets to be considered "them" by protesters.
The problem is of the 1% I would say 80-90% are constrained due to their attractiveness in wealth; defacto relationships or marriage and therefore contingent. Not many of us are neatly legally single whereby no one can take a bludging claim on our anointed 1% status.
Take Mr X who has a lazy million in net assets and is by Rob's calculation "1%". He's been married to Mrs X for 20 years. If they divorce prima facie she owns half the assets and they both fall out of the 1%. That's a large inaccuracy in the statistics right there. It's bottom heavy according to Rob's calculations and therefore bottom heavy with couples who individually wouldn't rate.
I suspect the $800-900k figure to get 1% individually is a hell of a lot lower. And as Rob quite rightly points out, people are embellishing their lifestyles living on debt feeding off bank lending and a willingness to make everyone seem wealthier than they actually are. Politicians like that.
Then we may have Mr A who is worth $20 million. If he dies tomorrow and splits his fortune held in trust among 20 family members, there's 20 more in the 1% adjusting the stat who are trust beneficiaries even though only the settlor is credited as owning the assets.
I've discussed this in the past about the
fallacy of the NBR Rich List. Families are rated with individuals. There is no accounting for how many people the family wealth is actually supporting.
If you look at those with $800-900k in net assets, chances are the number 1 asset owning class is a house. One very simple house bought in Herne Bay on mortgage in the 1970's may now be worth with house inflation say $1 million, putting the owner in the 1% (and their spouse). That is, through absolutely no risk taking whatsoever these sorts end up in the 1% as a function of being bloody old. None would count themselves as rich and in many cases as a function of time most are struggling with the outgoings to pay to live in Herne Bay for example. Hell New Zealand has examples of state house tenants living in homes that if cashed up would put owners in the 1% and beneficiaries currently squat in them.
New Zealand
wages being as low as they are, it would take a lifetime for most workers to accumulate $800-900k in net worth solely from after-tax and after-rent savings. And if you threw it on the roulette wheel called the NZX you'd have to have ridden a few crashes. Another reason that New Zealand would have a ridiculous amount of property millionaires in this 1%, many like farmers, accidentally rich through expansionary bank lending policies, not through any great intellectual achievement.
1% with buyers remorse?One of the sugar Daddys and business pin-up boys of the Labour Party is
Selwyn Pellett.
Pellett is by independent and reasonable accounts a good bloke so I'm not picking on him and I don't want slathing comments about him from readers. Even if he called on
Phil Goff to be axed in
April yet still supports him.
“Labour is likely to lose the election no matter who is leading it, but with Phil Goff at the helm it could be a devastating result. People have simply stopped listening,” Pellett said.As a
four figure co-funder of the Labour Party this election, I posed a few quickies to Selwyn on Twitter as along with Bernard Hickey he's becoming a more prominent Labour Party Finance spokesman/apologist these days so can face some more examination of his ideas.
Selwyn's angry that generation Y are being screwed over by asset sales and accumulation by their parents and grandparents.

Inheritance and the 99%The problem with Selwyn's argument is that when the baby boomers die, where do you think their assets go? Thin air? The $800-900k in net wealth that puts Mummy and Daddy in the 1% goes to the "Y's" That's right, the sort of snotty brats now sitting in Occupy protests all over the world pretending they are in the 1960's and protesting about something worthy like free love on acid. That's the private assets. The public assets, well Generation Y don't currently own those anyway do they? Not one has paid for those assets, like family wealth they are inherited from prior generations, who borrowed from evil banks so they could all own a nice big home that their kids cannot afford, but don't need to as one day the house will all be theirs whereby they pretend they actually
deserve to live in it.
So when someone who hasn't contributed says "don't sell OUR assets" what they are really saying is "I didn't pay for them, I don't pay enough tax to ever put into the system more than I'm taking out, but yeah I don't think our assets should be sold because....ergh...yeah there's a hot chick I'm spading and she's in Aotea Square.....cool.". And that's the fallacy of Labour's campaign against asset sales and protests around them. Less Labour voters than National or ACT have actually contributed to those assets and less are likely to as the amount of people paying net tax in New Zealand declines. David Farrar recently analysed this
via Bill English's office.
On a personalised level it's like this. Selwyn runs into financial difficulty (
heaven forbid as unlike these shitty Gen Y'ers I of course wish him well and hope he gets even richer even if he sprays it on pinkos). He has a fictitious delinquent child who at 3x years old is not working or contributing to the family despite being old enough to and another child of similar age who earns a Labour minimum wage of $15 per hour. Selwyn owns a spare beachhouse that he rents out that will of course one day realise a tidy capital gain probably when the children are much older even though they've promised never to sell it, that if he sells 49% of to his mate, he can pay off debts. The fictitious delinquent child and other start screaming "Daddy don't sell our assets" and throw tantrums even though Selwyn would still own half of it. What does Selwyn do? Charge the delinquent rent? Listen to the child whose contributed nothing to the family? Of course he doesn't. He mans up and does what is needed as he's made all business decisions to be successful, without any emotion attached.
Bankers are evil but so is Selwyn?Selwyn thinks banks and bankers make too much money. Fair enough. However right now the fictitious 99% are protesting all around the world that it is Selwyn as well who makes too much money off his workers and capital.

Selwyn thinks that because he "distributes wealth" through creating jobs that he is immune to the Occupy criticism. Well a Chinese factory owner making those little component parts has the same argument doesn't he? And every member of the Rich List? As does the head of a bank. Lending creates wealth in itself, ask all businessmen who have borrowed money from a bank. Ask bank employees if they haven't had wealth distributed to them for their work? Just because you are in a high-tech trendy "wanted" industry, doesn't make your business any
deserving than the old-age bank keeping the finances flowing.
Who deserves wealth?The day as a businessman that you start making judgment calls on who "
deserves" to be wealthy, is the day you end up smacking your own face in the concrete and hard. You may not like the debate. Especially if you were a
recipient of corporate welfare on your
return to New Zealand in 2001 from overseas.

The sad fact is that most people don't "
deserve" their wealth. In a puritanical sense they haven't totally worked for it or financed it themselves. Many have inheritance or soft family loans to thank for their success. Many got kickstarts from government contracts and their mates. A large amount of women have married better than others and divorced even more stupendously. Does a housewife who in a past life was a receptionist ever
deserve $10 million in payout simply for marrying a man with $20 million and having two children? More money than she ever would have made living on her own as a receptionist. And any women with two children who hasn't married as well?
And many have gone to a bank, relied on expansionary lending policies for residential property and got rich off the bank.
Some take corporate welfare because they are already wealthy but "everyone else is doing it" so they think they have to line up and take it as well. This is the new high-tech entrepreneur model it seems.
Does a son who sponged an interest free loan off his parents ever
deserve the money they have now by selling the business their grandfather built? Of course not.
Is a businessman who borrowed money from a bank risking depositors money than their own, more
deserving than one who risked all the money in from his own savings? No.
Very few people in the 99% actually
deserve their wealth either. Very few have made all their money by themselves, with no financing from banks, parents or friends or divorce.
While many turn up to work each day to work for someone else in return for wages, New Zealand is littered with examples of people working for themselves. Who is more
deserving of their wealth?
Those employed, or those who create jobs for others in SME's?
The 99% are of course going to banks to borrow funds put on deposit by the 1% in any instance. The 1% are funding borrowing for the 99%.
The Wall St occupation and New ZealandThe Wall St anti-bank sentiment of Occupy in New Zealand is also a fallacy. The current GFC has seen zero money used to bail out banks in New Zealand. Finance companies? Yes. But no bailout for them meant hundreds of thousands of oldies would lose their money and gosh we can't have them dying poor can we? Nothing for generation Y to inherit that Selwyn thinks they may
deserve. They may have to actually go earn their lifestyles.


As for Selwyn thinking NZX companies
deserve more support than banks. Why? What returns are NZX companies offering shareholders? What has NZX been doing to promote new listings. Significant new listings? What about removing RWT on dividends? Anyone lobbying for that? And can't you buy shares in banks anyway if they're such a sure bet? Ergh...yes....but banks aren't a sure bet are they? The best way for the NZX to grow in credibility and size is whack 49% of those SOE's on to it. Selwyn's argument to shift money from property to the NZX is boosted by the asset sales he is against.
Almost all businessmen at some stage have gone cap in hand to a bank. All farmers have. And when the bank loans you the money they are fabulous. If not, the she-devil and it's all the bankers fault and loud outcry to politicians result who in turn pressure policy to free lending to make voters feel richer than they actually are. It is all highly co-dependent and horribly cyclical.
The over-generous lending policy of banks at the insistence of politicians has pushed up house prices, it's pushed up land prices but no politician wants to burst that bubble. Not Labour. Not Selwyn's mates, they are too scared to put CGT on the family home where this 1% of Herne Bay wealth example is created. Apparently you
deserve to be able to have a gain from your own home but not from a second property. Politicians worldwide have driven bank lending policies. Everyone must have their own home and for political stability it must never decline much in value.
Cash buyers for property with hard earned savings have to effectively compete with banks acting as agent for their mortgaged clients. Who is more
deserving? The cash buyer or the one who has the most generous bank manager? Is this fair? Of course not.
A kid in their twenties can go "buy" several million dollars of farm with a deposit lent from their parents that employs only himself and a partner, yet an independent forty year old can't go borrow the same to build a business that employs 20 people. Who
deserves the funding? Yet
rural lending constitutes $47 billion and the net result is farmers only getting rich by selling farms to each other. The returns from farming still don't stack up on a lending scale used for SME's and other businesses. Do they
deserve this wealth? Selwyn and some other businessmen have bandied together to support getting more of your savings on the NZX in their pockets and away from residential housing.
The first million and the 1%They say your first million is the hardest to make, be that as it may I wonder if the likes of Selwyn, Morgan Jr and Sr would have the same tax spruiking leftist attitudes of deciding for you who
deserves to keep their cash, if they were at the point of having just made their first? Or trying to get the first on the ladder? But now they've comfortably got runs on the board they're making it harder for others to do exactly what they did. There's a not so nice word for that.
They all have made capital gains and say how ludicrous they got them tax free. I don't see however a retrospective cheque for 15% being stumped up to the consolidated fund, do you? No the Morgan Jr and Sr would rather give their own money to charity worldwide and invest in New Zealand start-ups in Jr's case. Which is all very well and good but most New Zealand taxpayers never get that choice to decide who
deserves their money.
It is not Selwyn will be paying for years to come it will be Generation X's of my age who will be indulging these Y brats who have been egged on with entitlement mentalities and buy-a-vote policies that apologists boomers like Selwyn are now advocating by funding and acting as the acceptable high-achieving business face of the Labour Party.
I for one am stuffed if I'm going to sit by and put up with random snotty kids and mindless beneficiaries protesting that they've been hard done by in New Zealand of all countries. As they lounge around with consumables, interest free student loans which most of us Generation X New Zealanders never received, world class education and demands that they want more because "well, you know we are the future of New Zealand and we cant even afford a deposit on a house even though we go to Aussie each year and drink all weekend...."...... And they
deserve more. Some are talking of violence and hatred towards those oppose them. Mana are launching a platform for the election from this. You can see it in action already.
Bring on the water cannons and heavy Spring rains and cooler temperature dips in Auckland.
courtesy of Bookface of Cr C.BrewerIt's time someone just called the core of Occupy what they are - envious, greedy politicising opportunistic young thugs.