This collection of essays from the Centre for Independent Studies show that increased regulation and expenditure have put a handbrake on economic growth and prosperity in this country. The global financial crisis has brought home the realisation that much of New Zealand’s recent prosperity has been illusory and funded by debt.
This collection is a contribution to the ongoing public policy debate in New Zealand. The country faces substantial challenges ahead. Government debt is mounting. Tax revenues are forecast to drop by $NZ 1 billion. If no substantial policy changes are made, gross government debt is set to rise to 33.1 per cent of GDP in 2012–13 and up to 57 per cent in 2022–23. Now as ever, regardless of what happens in the short term, long-term policy considerations must be at the forefront of our thinking.
Quality long-term policies that promote productivity and growth are the only policies that truly increase income and national economic wellbeing. These long term policies include smaller government, less regulation, more predictable regulation, and, less government spending.
Don Brash is former Governor of the Reserve Bank of New Zealand and former leader of the National Party.
Roger Kerr is Executive Director of the New Zealand Business Roundtable.
Luke Malpass is a Policy Analyst at the Centre for Independent Studies.
Gareth Morgan is a principal of Gareth Morgan Investments and a director of economic consultancy Infometrics.
Matt Nolan is an economist at Infometrics economic consultancy. He is also the author of The Visible Hand in Economics blog.
Phil Rennie is an Adjunct Scholar of the Centre for Independent Studies.