The New Zealand Herald

Economists often criticise government policies, but the new coalition government in New Zealand is a rare source of optimism. It aims to rectify past policy mistakes, prioritize sound principles of policymaking, and base decisions on data and evidence, signaling a positive change.

The upcoming New Zealand government faces political limbo as special votes are counted, giving time to consider the alignment of the potential coalition in terms of their commitment to decentralization. The National, ACT, and New Zealand First parties emphasize localism, promising a shift of power from Wellington to local communities, contrasting with the recent centralization efforts of the outgoing government. The potential coalition’s shared focus on empowering local communities could lay a strong foundation for the new government.

New Zealand faces economic challenges, including low productivity and restricted foreign investment. To thrive, it must embrace global opportunities and improve domestic essentials.

The combination of economic turmoil and the Government’s political weakness may be a toxic combination.

New Zealand has a good democratic system. With the right democratic spirit, our country will blossom as a true liberal democracy.

The challenge for the current generation of politicians is to have the courage to admit just how bad our education system has become. And then they need to have the courage to discard what is wrong and start again.

In a world increasingly shaped by AI, the value of our own intelligence and education does not diminish. Instead, the returns on human capital could well increase because of the presence of AI.

It is a pity we hardly teach history anymore. Or economics. Let alone economic history. Because if we knew a bit about the past, we might have a better idea of our future. Especially as we are grappling with inflation.