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There’s an old short-handled shovel hanging in our garden shed. The plastic handle has split, but the blade and shaft are fine. Read more
Taiwan is one of the few countries to “flatten the curve” while maintaining an open domestic economy. Earlier this week, Taiwan only had 104 active cases of Covid-19. Read more
As the Government looks ahead to the end of the Covid-19 public health emergency it should first look to the past for examples of how good policy intentions in a recovery can go horribly wrong. For instance, a paper by US-based macroeconomists David and Christina Romer shows that fiscal headroom is crucial because it means countries with low-debt will experience much milder downturns after a crisis than highly leveraged countries. Read more
Wellington, 8 May 2020 - More economic freedom will be the key to surviving the next phase of the Covid-19 recovery, and the Government should step aside as soon as it can, according to a new report For better or for worse: How governments respond to crises by The New Zealand Initiative. After placing the country in enforced lockdown for nearly two months, the Government is now considering its options to reopen many Kiwi businesses sometime in the next few weeks. Read more
The Government’s wage subsidy scheme has a lot going for it. After a few early wrinkles were ironed out the evidence suggests it has achieved its purpose, helping connect more than a million New Zealand workers with their employer. Read more
Among the more irritating education fads is the idea that schools need to teach a “growth mindset”. It is true that students who think they can improve wind up faring better than those who feel stuck in a hole from which they see no way out. Read more
So far the Government has announced $50 million in funding to support the media industry as it deals with a financial hit from the Covid-19 crisis. There have also been calls for the Government to make digital platforms Google and Facebook share revenue from journalism. Read more
New Zealand has come out of lockdown to enter the purgatory of Three-dom (hopefully for only a couple of weeks). The path towards a new normal remains long and littered with challenges. Read more
Wellington, 30 April - Now is not the time to rethink New Zealand’s hard-won network of trade ties around the world with protectionist policies, warns a new report Reinforcing New Zealand’s trade relationships after Covid-19 by the New Zealand Initiative. While the Covid-19 crisis exposed vulnerabilities in the global supply chain, the answer isn’t to create new trade barriers, said the report’s author and chief editor Nathan Smith. Read more
When the facts of the world change, business models must change to keep up. Legislating the world back to the way it was rarely turns out well, and cobbling together regulatory and tax measures to return the media funding environment to the 1980s seems like a mistake. Read more