6/19/2010

Just why the Green Party don't get economics

The printed version of the Eastern Daily Press has a small story about the County Council Greens demanding that Norfolk County Council's Pension Scheme should no longer hold any investments in BP following the oil spill in the Mexican Gulf.

This is typical Green Party grandstanding with no concept of the economics involved.

Aside from the fact that The Green Party has very much taken the US line of "attack BNP" rather than accept that whilst BP have ultimate responsibility, the Rig was owned and run by Transocean, a US firm, it is worrying that the Green Party in the first instance choose to attack a UK based firm rather than look in to the facts in more detail. But as we know from the Iraq War, the Green's chose to attack the Lib Dems for supporting a motion  in parliament which offered the support of parliament to UK troops, even if the Lib Dems did not support the war. So we shouldn't be surprised to see the Green Party putting Britain last.

But what about the economics of the Green Party's policy on BP. Is it really good sense for the Norfolk County Council Pension Fund to sell off their shares in BP when the value of those shares has tumbled ? As a "blue chip" stock that has in the past paid out very good dividends, we should assume that BP forms a large part of the pension fund's investments. If they sold now they would make a huge loss with no hope of making up this loss. So who will then pay for the hole in the Council's pension fund ? No doubt when taxes rise to find this black hole, the Green's will attack this tax rise too ?

It just goes to show that the Greens know little about economics but a lot about rabble rousing.

6 comments:

Anonymous said...

Yeah.

Middle class guilt.

Being born to well-off parents and never really knowing what it's like on the other side of the tracks is a cross they have to bear. Pity they try and make the rest of us feel terrible to compensate.

I like many of their policies but can't stand them individually.

alistair said...

Must as I hate the greens, is this the sound of Nick worried that his party`s protest vote (about 50% of all Lib dem votes) will leave at the next election and head to the greens?

Adrian Windisch said...

Are you confused between BNP and BP?

Is it poor economics to want ethical investment? Its better long term as its more sustainable.

Anonymous said...

Ha, seems you know little about fundamental economic rule of "You break it, you buy it." I guess by your standards, though, corporations shouldn't be held accountable for anything. They get to behave as carelessly as they'd like and leave taxpayers holding the bag.

Norfolk Blogger said...

Of course I want to see companies paying for the mess they make. That's why I support the Lib Dems policies on carbon taxes. However, I do not see why Norfolk County Council Pensioners and ultimately Norfolk Tax payers should have to pay the price for a foolish sell off of shares at rock bottom which will benefit nobody and ultimately make not one difference to the cleanup operation needed in the Mexican Gulf.

Dan R said...

Well next May there will be double elections to Norwich City Council - real prospect of nightmare on Green street..........

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