Libertarianz leader Dr Richard McGrath invites you down to his clinic for an inoculation against this week’s stories and headlines on issues affecting our freedom.
This week: National – More Government, Less Freedom
- NZ HERALD: ‘Power stuns PM with plan to quit’ – Simon Power announces that he will leave his job as an MP in November…
THE DOCTOR SAYS: This is a bit surprising, as Power was thought to be future National Party leadership material. What disappoints me was his comment:
“I had a three-year plan which we'd decided to execute once we came into
Government and it had always been my plan to do that and then to exit.”
Whaaaat?! Is three years the extent of National’s grand plan?
This government has barely skimmed the surface of the spending cuts that are needed if New Zealand is to stop its crazy borrowing (a billion dollars every three weeks). There are dozens of government departments that could be sold off, opened to competition or simply shut down.
Has National done this? No.
Has it done anything consistent with its values of individual freedom, limited government and personal responsibility? Well, let’s see. We have a higher rate of GST (an election promise broken), the RMA still clobbers anyone wanting to improve their land, and we have an Emissions Trading Scheme to further tax industrial productivity.
That doesn’t sound like freedom to me.
The good news is that voters don’t have to vote this directionless administration back into office in November. There is a political party that represents the very ideals that the National Party has soiled by association—that genuinely wants lower taxes, greater freedom for New Zealanders to improve their lives by their own effort, and an end to the parasitic welfare state that threatens to consume those productive people who haven’t yet headed overseas.
- DOMPOST: ‘Lost taxes dig deeper hole for finances’ – Bureaucrats are concerned that the tax take will drop by $5 billion as a result of jobs lost and capital destroyed by the Christchurch earthquake…
THE DOCTOR SAYS: I can’t hear a single voice rejoicing in the employment opportunities created by the devastation of last week. Thank goodness.
And that’s because the broken window fallacy is just that. A fallacy.
When there is destruction on this sort of scale, any benefits to those employed to rebuild homes and infrastructure are enormously outweighed by the loss of plant and capital, real wealth,which had it not been for an accident of nature would have produced goods and services of far more value than the benefits to the rebuilders.
The broken window fallacy only has legs because the benefits are seen, but the lost savings and production are not.
What the statists do see however is that the tax take drops sharply when people can’t work. This leaves the government with less stolen money to redistribute and thus less ability to buy votes. Bad news indeed for state-worshippers. Hence, after this February 22nd earthquake there has been a blessed lack of people peddling the broken window bullshit (unlike the situation after the September 22 quake when dozens of alleged economists leapt into print to talk up the earthquakle's "stimulus" effect).
As for the suggestion that taxpayers put thousands of beer-sodden boofheads into luxury accommodation aboard a cruise liner during an international rugby tournament later in the year, the bureaucrat who came up with this Great Ideas should be released from his current job and made to raise the money needed privately.
- STUFF: ‘Super regulator to get extra powers’ – A new “super regulator” will be able to force anyone making unsolicited approaches to buy shares from investors to reveal how much the shares are on the open market…
THE DOCTOR SAYS: Oh dear. Seems investors are too dumb to look at share prices and calculate the net worth of their shares, so Nanny has to ensure that anyone who wants to buy those shares tells them.
What next? All vendors on TradeMe having to state a market value on the items they are selling?
This is another embarrassing demonstration of National’s failure to grasp the fundamentals of market economics.
Information held by buyer and seller is always asymmetric in every transaction. Understanding that this is a feature not a flaw is one of the starting points for understanding real world economics.
A free market does not mean perfect information and equal knowledge. It does mean freedom of speech and expression. It means the absence of coercion. It means buyer (and seller) beware. It means willing buyer, willing seller and the government minding its own business and staying out of people’s private affairs.
For goodness sake readers, chuck out these blue-rinse-socialist Tory tossers this coming November. Don’t give these wankers the sanction of your vote and the opportunity to run your life for you with your own money.
Vote instead for a party that acts according to principle, or don’t vote at all. It only encourages the two-faced lying bastards.
“Liberty means responsibility.
That is why most men dread it.”
- George Bernard Shaw