There’s a test coming up in 7 months

The election.  What process will you use to determine how and who you will vote for.  Like investing, raising a family, cash management and marriage – there is often minimal logic and most often lots of emotion – with minimal education but much information!

Try these statements for example.

1. You cannot legislate the poor into prosperity by legislating the wealthy out of prosperity.
2. What one person receives without working for, another person must work for without receiving.
3. The government cannot give to anybody anything that the government does not first take from somebody else.
4. You cannot multiply wealth by dividing it!
5. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that is the beginning of the end of any nation.

So how do we determine a) what each of the parties stand for  b) what you stand for – the fundamentals (principles and values).

Morally, are you? – liberal or conservative.

Financially, are you? – socialist or capitalist.

The function of government.

Are you supportive of:

A)     Libertarian
B)     Social democracy
C)    Conservatism
D)    Totalitarianism.

At the extremes these are individualism and collectivism – A and D

What does each stand for.

A)     Libertarian.  Free market in all areas.  No censorship.  Sexual and moral freedom.  Government’s role restricted to protection and individual rights.

B)     Social democracy (pretty much what we have now).  Mixed economy (government, private ownership).  Democracy (dictatorship of numbers) limited freedom of expression/association.  Some measures of censorship.  Some sexual, moral freedom.

C)    Conservative.  Less sexual and moral freedom.  Greater financial freedom.

D)    Totalitarian (communist, fascist, dictatorship).
Full state ownership and control of means of production, distribution and exchange (communist).
Full state control but façade of private ownership (fascist).
One party state, no freedom of expression or association, regulation of moral and sexual issues, censorship (dictatorship).
 

If we create a matrix with liberal and conservative being the vertical axis (moral) and socialism/capitalism (financial) being the horizontal – it looks like this:

You should now place the parties in an appropriate square.  You choose.  You can now quite vividly see why politicians are scrambling for a centrist position.  Whilst not ‘idealistic’ neither is a centrist position ‘extremist’.  The Act Party for example is most likely – top right.  Colin Craig – bottom right.  Peter Dunne – bang in the centre!

If we want to condemn politicians, that condemnation should not occur if the party and the person is clearly fulfilling their idealism.  You should be condemned for not having considered their ‘positioning’.  On the other hand – if the politician or the party proclaim their position as being ‘social democrats’ (centrist) – then they become moralistic around ownership or freedom – we should condemn them for being what they really are – unprincipled and totally pragmatic (as determined by circumstance).

Next week – what will it mean for you.

• The role of government
• Your moral position – human behaviour
• Your financial position – finance, economics, investment, business.

The information provided in this blog is not intended to be a substitute for professional advice. You may seek appropriate personalised financial advice from a qualified professional to suit your individual circumstances.