Sunday 18 May 2008

Slippery John slips up - freemarket doesn't really work

John Key rather let the cat out of the bag, regarding the debate about whether or not GST should be removed from food. Quoted in the Dominion Post, he is reported to have said, "I am not convinced if we cut gst on food that it would necessarily be passed through to consumers" (1).

Which is as good as saying that the freemarket - where competition is supposed to drive down prices, gaurenteed by consumer's free choice amongst suppliers - doesn't really work. Instead, the supermarkets will keep prices high and pocket the difference.

This from the mouth of the freekmarketering National Party. Next week - Rodney Hide endorses state control of rail network and infrastructure.
1 - "Main parties reject petrol, gst demands," by Tracey Watkins in The Dominion Post, 17th of May, 2008. (http://www.stuff.co.nz/dominionpost/4551413a23917.html)

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