Summarised by Centrist
New Zealand’s economy is shrinking, and while Treasury’s latest economic update predicts a rebound to 3.3% growth next year, recent data shows the economy contracted by 1% last quarter.
Damien Grant, writing for Stuff, warns the nation risks sliding into a low-income economy.
“Our default response to any crisis is increased government intervention paid for with higher taxation,” he writes, suggesting this approach is the root of the problem, not the solution.
According to Grant: “The Crown will not cut spending to match the fall in revenue and will eventually raise cash with new and economically destructive taxes on capital when debt becomes too expensive. The Treaty will continue to be used as a means of extracting economic rent from one sector of society against another and not just addressing past wrongs.”
Grant further critiques a “generous social welfare system that rewards indolence” and regulatory barriers that hinder development.
He argues that ideological conformity is stifling debate and progress, saying, “We cancel those we disagree with rather than engage in debate.” While some reforms—like Erica Stanford’s efforts in education and David Seymour’s push for foreign investment—show promise, Grant believes these are insufficient against the scale of New Zealand’s challenges.
