Borrowing Motivations

To my disbelief Traveor Mallard is trying to argue that having no interest on loans will not significantly affect the proportions who take them up. This is so ridicolous I do not know how he can say it with a straight face. Almost every known model of economics places huge reliance on the rate of interest as influencing behaviour with regards to investment.

I am hearing rumours that Michael Cullen fought totally against this policy, because he knows it is going to blow borrowing out. The fact it has not been checked by a single government agency suggests the decision making on this was incredibly rushed.

Investing more money into tertiary education is not a bad thing, but this policy is arguably the very worst way to go about it. Labour Party member, self-described socialist and former AUSA Office Stef criticises the policy as ir-responsible, and she is right.

It has also been criticised by senior academics as bad policy.