Summarised by Centrist
Robert MacCulloch says the new government has disestablished the Productivity Commission because it hasn’t lived up to its name, which is to make NZ more productive and increase GDP. Instead, the commission’s reports started to emphasise issues related to fairness, disadvantage, and social inclusion. Critics argue that the Ministry of Social Development is better suited for such matters, leaving the commission’s redirection a misuse of taxpayer money.
MacCulloch writes:
“Economics has long distinguished between efficiency & equity. Much of the subject is built on the principle that a trade-off exists between the two – namely that increasing equity by increasing taxes reduces the incentive to create wealth. The Commission’s job was to focus on efficiency – it focused on equity instead. It ‘recommends’ introducing a ‘Social Inclusion Act’. Not its job. Ardern’s government perverted the role of the Commission. Little wonder its legacy has been mistrust. Who’d not be mistrustful when the Productivity Commission became the opposite of its name? Namely, the Fairness, Inclusion and Equality Commission.”
