Labour's Temporary Gas Tax Reduction is Critiqued by famous Harvard Economist Greg Mankiw
The Kiwi government recently reduced gasoline taxes by 25 cents per liter for a period of three months. The author of the best-selling economics textbook in the world & former Chair of the US President's Council of Economic Advisers says its a lousy idea for three reasons:
1. It undermines efforts to get inflation under control.
2. It mainly benefits oil companies.
3. Its bad for the environment.
Given that the Kiwi Labour government is:
1. meant to be fighting inflation
2. meant to stand for not enacting policies that throw big oil companies bigger profits
3. meant to be fighting climate change and supporting the environment
Grant Robertson's inflationary, pro-big oil, exacerbating-global-warming petrol tax cut takes the cake.