Former ACT Leader Jamie Whyte explains why the Overseas Investment Offices policies dont make sense: The Overseas Investment Act has a provision whose effect can only be to make New Zealand businesses less efficient. Specifically, it allows foreign purchases of a business on condition that the foreigner will increase the number of people employed by the firm. But employment is a cost to New Zealand, not a benefit. This is obvious from the fact that you need to pay people to work. If working were a benefit, people would pay to do it. The benefit provided by businesses are the goods and services they supply. The effort that goes into supplying them is the downside. People who can find ways of producing the same amount of stuff but with less labour enrich us. Politicians and bureaucrats who demand that more labour go into any given level of output impoverish us.
Posted on: Tue, 13 Jan 2015 00:20:16 +0000
Trending Topics
Recently Viewed Topics
© 2015