According to John Armstrong, National’s asset sales program is about encouraging hundreds of thousands of ‘ordinary New Zealanders’ into the sharemarket, thus transforming New Zealand into a capital owning democracy.
I wonder if National – or Armstrong – know that several million New Zealanders now own shares via their investment into KiwiSaver funds?
(My guesses to that question: absolutely yes, and absolutely not.)
It’s not quite the same, of course. If you put your money into KiwiSaver it gets spread across a range of different asset classes according to your risk profile. If you sink all your money into buying shares in four different power companies then you could lose almost all of it in the event of, oh, say, a Waitangi tribunal finding and High Court decision that has a huge impact on the value of companies in that sector.