Do you want more family distress and even deeper child poverty? Vote ACT. Do you want the economy to contract drastically, foodbanks to be swamped with demand for food, hospitals unable to cope with third world diseases of cold and damp houses? Vote ACT.
Do you believe that all people need is an incentive to work and if taxes are cut jobs will magically appear? Vote ACT.
Treasure modelling shows that Child poverty is on the rise in the COVID-19 crisis. But instead of increased spending on welfare ACT would cut incomes of those with children severely. That’s right, ACT propose deeply contractionary policies at the bottom of the worse recession since the Great Depression.
Among a raft of austerity measures that surely no sane economist would endorse ACT would.
Abolish Winter Energy Payment $505 m
Abolish BestStart $477m
Abolish $25 benefit increase $ 672m
Abolish WFF changes $510m
Abolish benefits changes in Families package $220m. ACT would take $2.4 billion from families living on income already beneath the breadline. Overall cuts to government spending exceed $7 billion.
The bogey of debt one day crippling our children appears to justify the most severe cuts to families already drowning today.
While taxes will be cut, government spending will be cut far further so that the budget is balanced or in surplus and debt repaid. Ruth Richardson tried this in 1991 and the deficit doubled because the economy shrank so much.
The policies are so ill conceived it is perhaps a bad idea to give them any air-time. But voters who are disillusioned with National appear to be flocking to ACT. They need to take a hard look at their disastrously contractionary recipes for poverty that are exactly the opposite of what is needed.