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The real fun in Treasury fiscal updates is rarely in the headlines. It’s rather in the finer print where the assumptions underpinning the main estimates are laid out, and where different scenarios are played out. Read more
Dear minister, Let’s cut to the chase: New Zealand’s economy is in a perilous state. The covid-19 crisis is a one-in-100-year shock. Read more
Back in March, the World Happiness Index 2020 placed New Zealand eighth with a score of 7.3, tucked between Austria and Sweden. Every country ranking higher was Nordic (aside from Switzerland) and I notice they also have plenty of Ikea stores. Read more
We should thank Ruth Richardson for requiring Treasury to publish pre-election economic and fiscal forecasts. Compliments also to Treasury for maintaining their quality over nearly three decades. Read more
Treasury’s pre-election fiscal update makes for grim reading. Bryce Wilkinson tallies the numbers, showing the forecasts are based on heroic projections about growth in labour productivity and on greater fiscal discipline than has been the norm. Read more
In this week’s New Zealand Initiative podcast, a scheduled release of the second quarter GDP statistics revealed the country’s economy dropped 12%, rather than the feared 16%. But coupled with the government’s money printing plans, the true state of the New Zealand economy is tough to judge at this point. Read more
On the first day of election bribes, Jacinda gave to me: a holiday on Matariki. On the second day of election bribes, Judith gave to me: two four-lane highways and a holiday on Matariki. Read more
Labour finally announced some election policies this week: a new public holiday, a cap on bank fees and a new top rate of income tax. It is easy to point out what all these measures have in common. Read more
Wellington, 9 September 2020 – If Labour’s goal is to get debt back under control then it would make more sense to prune back spending, such as on superannuation, says David Law, senior research fellow at The New Zealand Initiative. Today, Labour finance minister Grant Robertson announced a lift in the top tax percentage from 33% to 39% for anyone earning over $180,000. Read more
When you think of Sweden, does Abba come to mind? What about meatballs or furniture stores? Read more