Green snake oil on sale

The Green Party has come up with what co-leader Russel Norman calls a suite of measures to address the high value of the kiwi dollar.

Minister of economic Development Steven Joyce, rightly, calls it snake-oil.

“New Zealand has one of the strongest economies in the OECD over the last 12 months, and yet the Greens are determined to talk us down and promote a bunch of ideas that are only in vogue in countries that have run out of options and have massive and crippling public debt,” Mr Joyce says.

“The Greens solution to supposedly encourage the private sector is to slap a capital gains tax on it. Leaving aside the fact that Australia has a Capital Gains Tax and a high dollar, it’s a strange way to seek to encourage investment and growth by offering to tax it more.

“They then want to abandon sensible monetary policy and whack up the cost of living for every New Zealander, and they want to pay for the Christchurch rebuild by printing money.

“They have truly jumped the shark. The Greens half-baked economic ideas would move one of the few solidly growing OECD economies into the basket case division – more proof that they should never be let near the Treasury benches.

“In the post GFC world New Zealand is doing better than most. Our economy is 2.6% larger than it was this time last year, and the economy has added 57,000 jobs over the last two years.

“The way to achieve faster growth and more and higher paying jobs is to first have responsible fiscal and monetary policy, and then to assist Kiwi firms to become more competitive in the area of skills, innovation, infrastructure, access to raw materials, capital and markets. Not panicky responses from politicians in desperate search for a headline.”

Printing more money as Norman suggests , is one of the failed policies of the 70s and 80s that the late Sir Robert Muldoon might have favoured.

We paid dearly for that with very high interest rates and inflation until our economy was brought back into the real world with the successful policies of the mid to late 80s and early 90s.

Going back to government meddling with the exchange rate and the inflationary impact that would have might provide a temporary fillip for exporters but it would be at a very high cost for the whole economy. Those on middle and lower incomes who can least afford it would pay the highest price.


11 Responses to Green snake oil on sale

  1. Paul Walker says:

    When will some politicians get the point that the exchange rate is a price which, at best, is a signal of problems elsewhere in the economy. It is a symptom not a cause of problems.

  2. jabba says:

    open letter to all voters .. PLEASE keep the Gweens from getting their hands on our money PLEASE

  3. robertguyton says:

    Russel’s proposals for QE are all over the news today. He knows how to catch the attention of the media and the public and will continue to dominate the discussion. How will he do that? By presenting reasonable, well thought out ideas that appeal to reasonable and thoughtful people. Key can’t do that, as very few people trust anything he now says, following his twisty behaviour around Banks, Kim Dotcom, the spies, Warner Brothers and so on, and so on.
    Russel’s your biggest threat and you won’t be able to contain him at all, because he’s clean. Your man is badly stained now and that can’t be washed off.
    Good times.

  4. robertguyton says:

    “40,000 manufacturing jobs gone in four years. Manufactured exports in free-fall. Tourism revenue collapsing. If that’s not a crisis, what is? Why is the government going to do? Nothing. Nothing. On Q+A, Russel Norman put forward a solid proposal: lower the OCR, new tools to stop housing booms, and quantitative easing to pay for Christchurch and rebuilding our disaster fund.

    Finally, some action. Something to grab on to.

    The Right will howl but what right do they have to howl? They are complete economic failures. ”

    Oh dear!

    There are those who think you are completely wrong, Ele!

  5. robertguyton says:

    *Update – “And putting the money into the Christchurch rebuild and the Natural Disaster Fund is smart. It lessens the inflationary impact and it means we are covered for both the current rebuild and the next disaster. (National’s ‘plan’ is to have the Natural Disaster Fund, which pays for your EQC claims back to $6 billion in 2041! $6 billion wasn’t enough in 2011, and what happens if Wellington goes in five years?)

    I look forward to John Key, when he gets back from fellating Mickey Mouse, explaining why the best path for New Zealand is losing 200 manufacturing jobs a week and leaving our disaster fund empty so that money traders can make a profit off us.”

    There’s more, though I have to say, Ele, I thought you’d put up some sort of defense.

  6. homepaddock says:

    ” I thought you’d put up some sort of defense.” Paul @ 3:48 did it for me.

  7. robertguyton says:

    Paul is all you’ve got?

    Looks like Russel will prevail then.


  8. fredinthegrass says:

    What were you on this weekend,Rg? I thought you were grafting – but you must have been using too strong a paste, and its addled your brain.
    You are totally deluded, and the victim of some very inaccurate reporting. The “facts” you quote tell a tiny part of the story – and misrepresent the overall picture. One of growth – albeit small – but significant in tough economic times; of a Government willing to tackle the difficult issues while being sidetracked by an Opposition devoid of substance and logic.
    While they fluff about with minor issues (Dotcom for example) the real issues are not being challenged by them. Everyone knows a ‘good’ opposition makes for a good government.
    As for the Head Watermelon Norman – he sails on with the Press as his ally. That is till one of the few journalists able to confront him – Nadine Chalmers-Ross – caught him out completely. I do doff my cap to him though for knowing what he can get away with!!!!
    That is until N C-R had him over a barrel.
    Must go. I have just had a large helping of whitebait put in front of me – and needs must…….!

  9. robertguyton says:

    “Everyone knows a ‘good’ opposition makes for a good government.”

    So this woeful Government is the fault of the Opposition, Fred?
    Elegant logic, I’m impressed!

    Doffing your cap to Russel Norman is a good move, Fred.There’ll be plenty of blue caps doffed over the next two years and it’s to your credit that you got in early.

  10. Paul Walker says:

    The truth is all she needs.

  11. Paul Walker says:

    “Russel’s proposals for QE are all over the news today. He knows how to catch the attention of the media and the public and will continue to dominate the discussion.”

    Unfortunately having the attention of the media and the public is absolutely no guarantee of an informed rational discussion. When the people leading the “discussion” don’t appear to understand what the “discussion” is about, or are deliberately distorting the “discussion”, such a discussion is unlikely to reach any sensible conclusions. While good economics is generally bad politics, deliberately setting out to utilise bad economics just to store a few political points doesn’t help anyone, or the economy.

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