According to Tony Arthur at BNZ we should be. This is an essential issue for NZ as it determines where our Terms of Trade stays elevated – or whether it falls. In turn it determines our national income, given what we produce.
I agree with many of the factors he states (although he is a bit bullish on them) but I think he ignores factors around the long run elasticity of supply of food. So I thought I’d try a poll (my first one 🙂 ), and do a post based on discussing the dominant view later:
Or so Russel Norman said when asked by Paul Henry earlier this week what the most common misconception about the Greens is. What do you think? I’m going to try a poll for the first time ever on tvhe, hopefully it works:)
I somehow stumbeled across this article from the greens (don’t ask me how..) which I think illustrates their understanding of economics
I’ll be honest and admit I stopped reading the article after the paragraph i’m about to reproduce so I’m open to accusations of trolling, but this was little gem
“Reducing saving by cutting KiwiSaver is the same as increasing debt. It won’t show on the Government’s balance sheet, because Key has swapped Government debt for private debt. Lower savings will show up on households’ balance sheets as increased private debt, which is already too high,” Ms Fitzsimons says.
Two points here: