Cullen’s Election Economics Ruining NZ

03 September 2006 12:00:00

“The controversy surrounding Helen Clark’s pledge card antics is now widely viewed as a cynical pilfering of taxpayer funds,” said Greg Balle, Libertarianz Finance Spokesman. “But $8.5 billion of excessive tax, which went unreturned to taxpayers, seems to have escaped an equivalent moral judgement.”

“Before the 2005 election, Mr. Cullen was busy juggling the large numbers involved in ‘voter bribes’: $1 billion in interest free student loans and $1.6 billion “Working for Families” welfare packages.” Balle points out: “In this context, the pledge card indiscretion of $0.0004 billion seems like pennies.”

“In New Zealand, the state is now responsible for more than 35% of reported economic activity; this is rising quickly under the socialist Labour government. The fact that any single entity has so much control over the financial well-being of New Zealanders is worrying enough but added to this is the unseemly, economically disruptive lolly scramble of excess taxpayer funds which occurs before elections.” Balle compares this to the free market. “Financial markets perform in the most efficient and stable manner when there is certainty surrounding the economic environment within which they operate.” Having a large government trying out new election bribes and prescriptive social policies every three years is disastrous.

Libertarianz would reform the state such that it was involved in only 5-10% of economic activity. “A low participation by the state in the national economy avoids any spending decisions being disruptive to the stable operation of free markets at all times, including in election years,” Balle explains. “Excess taxation receipts from a highly successful economy would be returned promptly to taxpayers in the form of immediate tax reductions.”

ENDS

For more information contact:

Gregory J. Balle
Libertarianz Monetary Finance Spokesperson
Phone 021 250 5430
Email: [email protected]

Libertarianz: More
Freedom – Less Government