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We all know the analogy about barring gates after the horse has bolted from the barn. It speaks to the futility of doing something too late solve a problem. Read more
When Germany’s Constitutional Court ruled on the legality of the European Central Bank’s asset purchase programme on 5 May, it sent shockwaves through financial markets. In one fell swoop, the red-robed judges accused the ECB of going beyond its mandate of monetary policy and the European Court of Justice of covering up the breach. Read more
It says a lot about this economic crisis when a forecast of -4.5% annual growth is regarded as good news. Yet that was the forecast the International Monetary Fund released yesterday. Read more
It’s been hard to get a decent night’s sleep lately. Stories of the Government’s mismanagement of its quarantine facilities and of the pandemic worsening abroad make for restless nights thinking through safer ways of running those operations. Read more
The average cost of each stay by Kiwis in hotel quarantine here is over $3,000. That cost is being footed by the taxpayer. Read more
The Government’s response to the economic challenges of Covid-19 has primarily focused on new spending which will balloon public debt from 19% of GDP in 2019 to 30% in 2020 and peak at nearly 54% of GDP by 2024. It is only expected to modestly fall to 42% of GDP by 2034. Read more
Wellington, 19 June 2020 - To plug the fiscal gap created by Covid-19, the Government must rethink its retirement income policies, according to a new report by The New Zealand Initiative. So far, the Government’s primary responses to the challenges of Covid-19 appear to have focused on spending more money to help New Zealand’s lagging economy. Read more
On Tuesday afternoon, the Environment Select Committee published its report on Shane Jones’ Forests (Regulation of Log Traders and Forestry Advisers) Bill in Parliament ahead of its second reading. Despite its many flaws – and an unprecedented chorus of disapproval (including full page advertisements in the media) – the Bill has emerged from the Select Committee largely unscathed. Read more
The Government’s plan to recover from the Covid-19 crisis has essentially been about finding new ways to spend. As a result, public debt is expected to increase from 19% of GDP in 2019 a whopping 54% by 2024 and remain elevated for decades after. Read more
New Zealand’s border is its first line of defence against Covid-19. The gross failures exhibited this week cannot be repeated and require a complete reversal of the Government’s border procedures. Read more