New Zealand's living standards have been slipping relative to the countries we compare ourselves with, and the gap is now measured in decades rather than years. That is a policy failure rather than an act of nature.
Productivity is the binding constraint. New Zealanders work long hours for comparatively little, because too little capital, too few good ideas and too much regulatory friction stand between effort and reward. No government can legislate productivity growth. Every government can stop obstructing it.
The Initiative's economic research examines the settings that decide whether investment happens here or somewhere else. We look at fiscal discipline and the quality of public spending, at a monetary framework that concentrates on price stability and leaves the rest alone, at a tax system that does not punish saving and investment and at openness to foreign capital and foreign markets.
Prosperity is not a matter of trying harder. It is a matter of getting the incentives right.
1. INTRODUCTION AND SUMMARY 1.1 This submission on the Reserve Bank of New Zealand’s Keeping Cash Local consultation is made by The New Zealand Initiative (the Initiative), a Wellington-based think tank supported primarily by major New Zealand businesses. Read more
Is New Zealand a country in decline or a quiet success story? A new report from The New Zealand Initiative argues it is neither. Read more
If re-elected, National would make KiwiSaver contributions compulsory from 2028, with employers and employees each contributing 6 percent by 2032. That compulsion requires guardrails, according to a Research Note published today by The New Zealand Initiative Chief Economist Dr Eric Crampton. Read more
The Accident Compensation Corporation (ACC), which funds injured New Zealanders’ care and recovery, has halted a decade of decline. But a New Zealand Initiative report warns its recovery rests on tighter decisions and exits, not proven rehabilitation. Read more
New Zealand cannot build enough houses because councils cannot afford the pipes and roads that new suburbs need. That is the conclusion of a new report by The New Zealand Initiative. Read more
New Zealand is about to lose a German bread that was never German, and as the only German in the room, I have been invited to grieve. I will pass. Read more
One day after Christopher Luxon survived a confidence vote, Oliver and Damien ask whether he has finally shown the country who he really is. Next, they discuss Chris Penk's departure from politics and what it costs National. Read more
Suppose a business is deciding where to expand around Christchurch. It can compare rates and building consent performance in Christchurch, Selwyn and Waimakariri. Read more
Free to Disagree is a new weekly podcast produced by The New Zealand Initaitive. Join Oliver Hartwich and Damien Grant as they talk about New Zealand politics and economics. Read more
Dr Oliver Hartwich talked to Leah Panapa on The Platform about New Zealand's falling fertility rate and NZ First's proposal to pay families $15,000 for each child. Dr Hartwich argued that baby bonuses overseas have mostly been windfall payments for parents who wanted children anyway, and that making housing more affordable would do far more to help Kiwis start bigger families. Read more