Government’s high taxes and big spending are stunting economic growth

Commenting on this morning’s GDP figures, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“While the impacts of the severe weather events earlier in this year will have damaged primary production, the Government needs to shoulder much of the blame for this economic contraction. Its spending addiction has driven inflation to record levels and forced the Reserve Bank to hike the Official Cash Rate repeatedly, which has undoubtedly hampered economic activity.

“New Zealand might have only just entered a technical recession, but without drastic and urgent action from the Government to rein in its spending, this situation may well persist for some time to come.

“While Grant Robertson might not want to listen to us, he should take heed of the IMF’s damning indictment of his economic policies. They rightly argue that other than investment in cyclone recovery and social housing, the Government should tighten its belt by cutting spending and ensuring that cost of living support is targeted to those who need it most.”