Liberal Democratic Party – Greens and Labor both economic illiterates

Greens and Labor both economic illiterates

Issued 3 August 2010

The Liberal Democrats believe the Greens and Labor are both economic illiterates and not fit to govern. Elements in the Liberal and National parties are not much better.

A recently completed survey shows that those self-identifying as progressives or moderates are far less economically literate than those identifying as conservatives or libertarians.

On a simple 8 question test, progressives on average scored only 34% answers correct while moderates scored marginally better at 41%. In contrast, conservatives or libertarians scored between 79% and 82% on average.

For example, only 7.5% of progressives were correct in understanding that minimum wage laws increase unemployment, whereas 88.7% of conservatives correctly answered this question.

On average, progressives incorrectly answered questions on rent controls, housing restrictions and free trade. Indeed a startling 61% of progressives believed our standard of living was higher 30 years ago than today.

“This casts serious doubt on the ability of the so-called ‘progressive elites’ who dominate Labor and the Greens, and are significantly represented in the Liberals, to make sound economic decisions about Australia’s future,” said WA Senate candidate Mark Walmsley.

“The likely result of them implementing their policies is higher unemployment, higher housing costs, and a lower standard of living for the lower socio-economic groups the progressives are trying to help.”

The study was based on a 2008 survey of 4,737 individuals conducted in the US and replicated on a smaller scale in Australia. On average 91% of Australian liberals or libertarians answered questions correctly.

“What was surprising was that the level of education did not affect results. High school-educated conservatives were far more knowledgeable on real-world economic matters than university-educated progressives,” Mr Walmsley said.

“This result goes a long way to explaining the ludicrous economic policies of the Greens and Labor, which are progressive/moderate parties. These parties lack the fundamental economic knowledge to govern and have much higher potential to seriously damage the Australian economy.”

“Examples of unsound policies include the wasteful BER and insulation programs, the CPRS, and the massive increase in government debt.”

“By undermining our economy, progressive policies undermine our current high living standards. High living standards require a strong economy, and sensible use of our wealth. Pursuing uneconomic pet projects for political purposes squanders our wealth and therefore our future prosperity.

“The Liberal Democrats are Australia’s only party advocating lower taxes and free trade whilst being staunchly committed to civil liberties and individual freedom for all Australians,” Mr Walmsley said.

The full survey is entitled “Economic Enlightenment in Relation to College-going, Ideology, and Other Variables: A Zogby Survey of Americans” by Zeljka Buturovic1 and Daniel B. Klein. It is found at http://econjwatch.org/file_download/432/ButurovicKleinMay2010.pdf