Election Promises Come with Caveats

The upcoming election has seen promises of free lunches for all, but experts warn that delivery may be unachievable. Gerrard Eckhoff, a former Otago regional councillor and Act New Zealand MP, cautions that such promises often result in debt and inflation.

Eckhoff points to the Opportunity Party's proposal to give every citizen $20,000, which would be deducted through an annual land tax of 1.75% on land value, approximately $8000 per year, depending on location. This would increase to around $40,000 annually for rural land.

The same party has also promised that unemployed gang members will receive the $20,000 handout, with no clear plan for clawing back the money from their estates after death.

Eckhoff argues that governments produce nothing of tradeable value and are a major source of inflation through continuous debt accumulation and increasing money supply. He warns that inviting the Green Party and Te Pati Maori into Cabinet would exacerbate this problem.