Labour’s Profound Monetary Ignorance

13 February 2007 12:25:00

“Labour is yet again wilfully tinkering and interfering in the markets, as spectacularly exemplified by the mortgage tax Dr. Cullen recently floated,” said Dr. Greg Balle, Libertarianz Finance Spokesman, today. “The New Zealand economy is hobbling along with anaemic growth rates and the highest interest rates in the developed world. There is also falling worker participation hidden inside the optimistically spun ‘employment numbers’.”

“The fundamental fallacies of state-run saving and investment schemes have become apparent with the fight over the merits of the Cullen Fund’s investment in ‘unethical’ corporations. It is impossible for the fund to please everybody about how it invests but it is also quite right for individuals to protest against funds being used in their names to invest in objectionable corporations,” explained Dr. Balle. “The Cullen fund should be disbanded immediately so that private citizens can chose how and when to invest their own savings.”

“Kiwi enterprises are paying high rates of interest and struggling to attract funds while Labour’s Cullen Fund sends tens of billions of taxpayers’ dollars overseas – and then has the gall to threaten citizens with any number of schemes to force them to save more,” Dr. Balle fumed. “The simple fact is that people are investing in property because this is one of the few widely accessible asset classes that has so far been beyond odious state meddling, interference and taxation. Labour claims to know how, where and when everybody should be saving or spending; clearly this is an impossibility.”

“One solution to the ‘savings problem’ is the simple removal of the 40% tax on interest dividends,” Dr. Balle concluded. “Libertarian financial policy is to remove all such interference in the market by the state, thus ending many of the monetary ills caused by government meddling in financial affairs.”


For more information contact:

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

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