Family Party on Economic Crisis

The Family Party have released our strategy on the economic crisis. As we analysed the issue we found that our policies were already very good regarding the global situation. Our strategy:

  • Recognises that we need a cross-party response, and we wish to work with the expertise of National and Act post-election to manage the crisis.
  • Promotes economic activity within NZ to work out of the crisis.
  • Eases the burden on families during the crisis.

I would encourage you to read the full strategy. Some key points are:

  • Keeping more money in the economy through
    • Lower taxes
    • Reducing bureaucracy
    • Repealing the ETS, withdrawing from Kyoto
    • Interest rate cuts
    • An urgent review of all public sector expenditure
  • Helping families through
    • Targeted tax cuts (GST off essentials)
    • Favouring NZ companies for government contracts (maintaining employment in NZ)
    • Maintaining and expanding (where possible) employment in law enforcement and defence
    • Work-for-the-dole as a final resort if despite all the above unemployment still rises significantly, if you are paying people the dole anyway they may as well be doing something useful

We support a government guarantee of deposits because everyone else is doing it, and we risk funds being moved over to countries where there are these guarantees if we don’t do it too, risky as it may be. But our guarantee would only be extended to reputable firms and would be reviewed every six months, so is far more sensible than Labour’s very risky all-inclusive long-term guarantee.

I believe this is a very balanced response to the crisis, and takes care of the key issues for both families and the wider economy. But we recognise that we don’t know everything, and we need a National-led government to have the expertise to manage this crisis, with us in there too to ensure families are supported.

4 Responses to “Family Party on Economic Crisis”

  1. kiwipolemicist Says:

    You have an interesting blend of Right & Left policies🙂

    Point #7 of your plan is “An immediate cut in interest rates as far as the Reserve Bank deems feasible.”

    When interest rates are cut retail banks borrow more money, and to supply them the government prints new dollars. This causes inflation and steals from the citizens by devaluing each existing dollar. The present crisis is largely due to the US government printing a lot more money since 1992, and the only true solution to the current problem is to get rid of central banks and return to a gold standard.

    http://kiwipolemicist.wordpress.com/2008/10/17/global-economic-crisis-why-are-governments-bailing-out-banks/

  2. Mr Dennis Says:

    I think it is a good blend, enough from the right to get the economy through the mess with enough from the left to keep enough food on the table in the meantime.

    I am no economist, but the more I do read about economies the more I also personally support the gold standard. Money was based on precious metals since Biblical times, and it just makes logical sense. But you must work within the system you are given, and I think we have the balance about right. Good point about interest rates though, I hadn’t looked at it that way.

  3. kiwipolemicist Says:

    If you want to know more about the gold standard, central banking and fractional reserve banking, a plain-English explanation that I highly recommend can be found here:

    http://mises.org/money.asp

  4. Lee Says:

    Yes, I support the gold standard myself. It is good to know that other kiwis are thinking about this, as there issues are not well known about here in NZ.

    You can find a free pdf book about the Biblical view of money and the gold standard here:

    http://freebooks.commentary.net/freebooks/sidefrm2.htm

    Just scroll down and look for the one called “Honest Money”


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