In 1936, the father of Keynesian economics, John Maynard Keynes, used the term ‘animal spirits’ to refer to the fluctuating human emotions that can drive economic decisions in stressful times. Today the term is most often found in the context of investors’ decisions. Read more
Let’s say you’ve bought non-refundable tickets for a movie, and then hear scathing reviews. It’s better to tear up the tickets and make other plans for the evening rather than bloody-mindedly watch the film just because you’ve already paid to go. Read more
Bipartisan politics is a rare beast in New Zealand nowadays. It is even harder to spot when political parties are shy to sponsor necessary policy changes that might arouse public backlash at first. Read more
The great legacy of the reforms of the 1980s and 1990s were the durable institutions that have since guided how we are governed. The Fiscal Responsibility Act set a framework for balanced budgets that has withstood many changes in government. Read more
“Giving up smoking is the easiest thing in the world. I know because I’ve done it thousands of times” – Mark Twain Despite the “ease” of giving up smoking, the government wishes to make it harder by smoking out an alternative, healthier way of intaking nicotine – vaping. Read more
During a visit to a new London charter school in 2015, then-Mayor Boris Johnson sparred with a 12-year-old over the year the Roman Empire converted to Christianity (313 AD). Johnson was wrong (by a year) and dumbstruck by the knowledge of the inner-city children. Read more
Freshwater management is a tough political problem. Any substantive reduction in the nutrient load in too many of our rivers will require significant land use changes – and changes in wastewater practices in some towns. Read more
On Monday, my fellow columnist Rod Oram delivered a gloomy view of British democracy. Alarmed by Boris Johnson’s prorogation of Parliament, Rod echoed the views of those who believe the Prime Minister has chosen a most dangerous path. Read more
Before last Wednesday, I had no idea I was “brave”. Until I was told so by a delegate who had heard me speak at a large infrastructure conference. Read more
We at the Initiative share Education Minister Hipkins’s desire for a stronger vocational sector. But we are less convinced that centralising the sector will solve the problem. Read more
The very best part of grad school was the drinking. Well, not so much the drinking. Read more
In case you missed it, the World Rugby Federation members have adopted a new code of conduct. Right in time for the 2019 World Cup, national teams have agreed on a more holistic approach to playing the game. Read more
A couple of years ago, I wrote a short report making the case that New Zealand is the world’s last sane place. Or, at least, if it’s going mad, it’s going mad more slowly than the rest of the world. Read more
What are budget advisers to make of the Reserve Bank governor’s call for increased public and private spending? Adrian Orr has reportedly even floated, as a future contingency option, taxing cash holdings to encourage savers to either spend or invest to stimulate the economy. Read more
The New Zealand Initiative has been a staunch supporter of the coalition government’s housing agenda. While we warned that Kiwibuild would not fix the housing crisis but rather risked diverting the government’s attention from more important reforms, we have had every confidence in Minister Twyford’s wider vision. Read more