Friday, October 10, 2008

National's economic "plan"

Before the PREFU, National's economic policy was their standard package of tax cuts for the rich, gutting the RMA, and downsizing the public service. After the PREFU, their economic policy was tax cuts for the rich, gutting the RMA, and downsizing the public service - now packaged as an "Economic Management Plan". Its a perfect example of how the right isn't actually interested in reality, but rather has preconceived policies which it claims are the solution to every problem. Times are good? Cut taxes to "reward hard work", reduce "red tape", and seek "efficiencies" in the public service. Times are bad? Cut taxes to "stimulate the economy", remove "barriers to growth", and cut costs. Invaded by aliens? Cut taxes, reduce environmental protections, and sack bureaucrats. It's simply stimulus - response. Personally, I'd prefer politicians who actually thought about the problem in front of them, rather than looking for an excuse to do what they were going to do anyway.

Meanwhile, Labour has released a nice little video on why National's plan to fund its tax cuts by gutting KiwiSaver is fundamentally mistaken:

Basically, National's "plan" is a short-term "solution", which sacrifices our long-term growth potential so they can loot the state for the benefit of their rich mates. It's exactly the sort of Enron-thinking I'd expect from a party led by a Wall St gambler. And if they get to go through with it, we'll all be worse off in the long run.