Taxpayers’ Union smacks up Robertson for making it up

The left love to talk about ‘trickle-down economics’ and destroy its validity.

The trouble for Grant ‘less pies’ Robertson and Russel ‘give me my flag back’ Norman is that the ‘neoliberal theory’ is a figment of their imagination.

They were both on Radio Pravda (sometimes called Radio NZ) this morning bleating on about the latest OECD report calling for us all to be poorer so the poor feel better.

The Taxpayers’ Union has republished a piece which destroys Robertson’s credibility as Labour’s finance spokesperson.

Trickle-down economics is an example of a “ridiculous beyond belief” idea; that giving money to the rich will eventually trickle down to the rest of the economy to benefit all. Indeed, the refutation of this theory of trickle-down economics dominates the discourse.


The problem is, there is no such thing as trickle-down economics. In fact, it is an oxymoron: it has no “economics” in it whatsoever. Thomas Sowell, senior fellow at the Hoover Institution argues convincingly that the theory is a straw man argument – a flimsy invention of those arguing against it so they can easily knock it down. Sowell writes that the idea cannot be found in “even the most voluminous scholarly studies of economic theories”.

Trickle-down economics is a complete caricature of the original arguments supporting economic growth. No economist has ever argued that in order to make a poor person richer you should make a rich person richer first. Economists have, however, argued that economic growth can make us all better off, whether we are rich or poor.

The left can’t argue the theory to recreate what the right are saying and make it up with scary ‘neoliberal’ language.

“We’re disappointed that Mr Robertson continues to refer to the made up economic theory of ‘trickle down economics’. Mr Robertson must know that no such economic theory exists. No economist has ever argued that in order to make a poor person richer you should make a rich person richer first. Economists have, however, argued that economic growth and freedom makes us all, rich or poor, better off.”

“The biggest cost of living is people’s tax bills. Instead of wanting to solve inequality by cutting government waste and taxes at the low end, politicians immediately want to tax more so they can distribute it to constituencies.”

“Mr Robertson is now shadow Minister of Finance. He should be focused on arguing real economic data, not taking on his own straw men arguments,” concludes Mr Williams.

This is the problem Labour faces with book learned policy wonks who have never had real jobs infesting their party.

Do you want:

  • ad-free access?
  • access to our very popular daily crossword?
  • access to Incite Politics magazine articles?

Silver subscriptions and above go in the draw to win a $500 prize to be drawn at the end of March.

Not yet one of our awesome subscribers? Click Here and join us.

As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story.  And when he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet.   Cam Slater doesn’t do quiet, and as a result he is a polarising, controversial but highly effective journalist that takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him.  But you can’t ignore him.