Another irony of politics and economics in the news today. The IMF, the conservative bastion of economic advice to Nations, entered the political debate in New Zealand with a warning to Engkeylish as the pretenders to “sound economic management” in the country. “Tax Cuts are dangerous in a time of international economic down-turn.”
Such advice from such an august body must surely raise questions in Treasury and among the Banking industry about the soundness of the policy promises coming from John Key and his spin controller - Bill English. Their latest promises of average tax cuts of $50.00 would cost the country $8.6 billion a year and deliver less than $12.50 a week to those on the average annual income of $27000 while rewarding the CEOs of big business who, already being given $250,000 a year, would get a Engkeylish funded $920.00 a week tax cut bonus.
The result of such generosity to the average income earner would be to increase the Government debt by 50%.
The IMF’s advice, in this case, should be heeded - Beware the pretender wearing ill fitting clothes and carrying nothing in the way of substantial policy. It also reveals that John Key, the money speculator, knows little about the macro-economics of responsible governance.