In a stunning display of naked xenophobia and economic ignorance, the NSW Labor government is to decree a ban on foreign imports for NSW government purchases.
Make no mistake, this decision will cost jobs in NSW. This decision will force the NSW government to purchase goods from more expensive, and inefficient, domestic suppliers. As a result, government expenditure will significantly increase, and the cost will be born solely by the NSW taxpayer. NSW is already the highest taxing state in Australia, a key reason people are leaving NSW for other states in droves. Individuals will struggle to pay higher taxes, decreasing consumption. Businesses will be forced to increase prices, meaning even less consumption, leading to job losses and business forced to close.
There can be no doubt that free trade leads to greater prosperity – a fact even recognised by the Rudd government, who oppose this move. This decision is one based on rank xenophobia, and some horrid desire that people in other countries should not receive income – apparently NSW Labor want people in developing countries to live in poverty. It will be bad for other countries, it will be bad for NSW, it will be bad for all.
Free trade leads to prosperity for all. For NSW Labor to return to the dark days of protectionism is an utter disgrace.