Honest Conversations: Economy

The New Zealand economy is busy, but stalling. Massive monetary stimulus and government borrowing have kept people working, but they bring debt and inflation in their wake. Meanwhile, supply chain problems, skill shortages, and the threat of a fresh COVID-19 outbreak remain.

Compounding these problems is an erratic Government that’s failing to provide a COVID-19 exit plan, and seemingly hostile to large sectors of the economy. New Zealand needs leadership with a firm eye on its economy as the world moves to reopen from COVID-19 lockdowns. But we are getting an endless stream of announcements that seem unrelated to each other or any underlying strategy?

Underlying the problem with Government policy is an inability to prioritise what matters. The Government should be asking, ‘how do we create the conditions for growth?’ Instead, it seems to ask ‘how can we spend what is already created (plus what we can borrow)?’ Very few policies are designed to grow the economy, but many of the Government’s policies will actually slow growth.

ACT has been listening. We have a plan to meet the economic challenges New Zealanders face. We are offering solutions that will allow New Zealand to safely reconnect with a world coming out of COVID-19, manage debt and inflation, reduce the tax burden, get skilled people to fill vital positions, and create the right environment for small business to grow and our farming sector to thrive.

You can read our discussion document, Honest Conversations: Economic Recovery from Covid-19, here.

Chris Baillie, Mark Cameron, Dr James McDowall, David Seymour and Damien Smith

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