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Given the troubles of Europe’s welfare states, it is hard to deny that large public sectors have a negative impact on economic growth. Where government grows too big it crowds out private activity, redirects resources from productive to unproductive uses, and stifles the economy with extra regulation and bureaucracy. Read more

The recipe for growth is well-known. Most economists would agree that lower taxes and less regulation can encourage entrepreneurship and job creation. Read more

Over the past decades, being a shareholder in Rheinisch-Westfälisches Elektrizitätswerk AG, one of Europe’s largest utility companies, was a pleasurable thing. Recessions and upswings came and went, but one thing was certain: each financial year, RWE would post a decent profit. Read more

Malta must be an exceptionally well-governed country. In the latest Eurobarometer opinion poll, only 53 per cent of Maltese said they tended not to trust their political parties. Read more

The New Zealand economy is undoubtedly in good shape but not all the factors behind the boom can or should be sustained indefinitely. This raises two questions: How much is temporary? Read more

There are a few relationships in economics that are almost set in stone, with the odd exception to the rule. If supply increases, prices fall. Read more

It is often said that tax is the price we pay for a civilised society. Indeed, taxes are necessary to fund key public services, including defence, law and order, the courts, border controls, civil defence, foreign affairs, public administration generally, and a contestably lengthy list of other potentially worthy activities of a collective nature. Read more

On Tuesday, I spoke at a conference organised by our sponsor, PortfolioConstruction Forum. The audience were mainly Australian and New Zealand investment advisors and wealth managers and my topic was the state of their respective economies. Read more

Individuals should – and in most countries including New Zealand they do – ­have the right to make their own decisions about their lifestyle, such as which career path to follow, what to wear, and what to eat and drink. A number of lifestyle choices, particularly those regarding diet and exercise, have direct effects on an individual’s physical health. Read more

No, it was not a good start to the year for the European Union by any account. The French President had to spend more time sorting out his own private affairs than his country’s ailing economy, Italy managed to kick out the third Prime Minister in as many years, and the German Constitutional Court effectively killed the European Central Bank’s main policy to save the Euro. Read more