Labour’s Finance Spokesperson Barbara Edmonds has opened the door to a higher inflation target, meaning a Labour Government would tolerate higher costs for Kiwis.
“Labour’s only policy on inflation seems to be encouraging more of it,” says National’s Finance Spokesperson Nicola Willis.
“Barbara Edmonds’ support for a higher inflation target is bizarre, particularly at a time when New Zealanders are still recovering from the sky-high inflation Labour caused last time.
“Put simply, a higher inflation target means higher prices for Kiwis.
“This is on top of Labour’s commitment to introduce new taxes on Kiwis’ homes, businesses and retirement savings.”
Is this a sign of a very short memory or failure to learn?
The economic mire from which the country is struggling was caused by Labour’s reckless spending which contributed to inflation more than twice as high as the band in which the Reserve Bank is supposed to stay.
If the party’s Finance spokesperson doesn’t understand this, she would make a very dangerous Finance Minister.
If this becomes Labour’s policy it will be a very good weapon for National and its coalition partners who will be able to say New Zealand cannot afford to put Labour back in government.
Ele Ludemann is a North Otago farmer and journalist, who blogs HERE - where this article was sourced.
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