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Economic Recession

Hand-Wringing Wetness Won't Aid Economic Recovery

Libertarianz leader Richard McGrath flayed Prime Minister John Key over yesterday's decision by the government to force employers to pay an increased minimum wage, regardless of employee productivity, during a time of economic recession.

"The motives behind this decision were political, not rational," said Dr McGrath. "John Key knows it will promote unemployment among low-skilled workers. It also reflects an ignorance of basic economics among senior members of the National cabinet."

"Forcing the minimum wage higher while tolerating monetary inflation will harm businesses, despite the claims of Labour Minister Kate Wilkinson," he added. "A better move would have been to abolish the minimum wage, thus allowing industry to soak up unemployment, and then give low-paid workers a tax break."

"During the election campaign last year, the Libertarianz Party suggested making the first $50,000 of income tax-free, before phasing out income tax altogether, and we stick by that. If John Key wants to appease trade unions and the left wing of his party, why doesn't he offer to stop stealing from workers' paypackets – instead of making it more onerous for small businesses to keep them employed?"

ENDS

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