The invitation to comment on the proposed Regulatory Standards Bill opens with Minister David Seymour stating ‘[m]ost of New Zealand's problems can be traced to poor productivity, and poor productivity can be traced to poor regulations’.
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There is a constant theme from the economic commentariat that New Zealand needs to lift its economic growth rate, coupled with policies which they are certain will attain that objective. Their prescriptions are usually characterised by two features. First, they tend to be in their advocate’s self-interest. Second, they are unbacked by any systematic empirical evidence using, instead selective anecdote. Well, yes; there is always an example to confirm one’s prejudice. But rarely will it stand up in a court of science. (The conversation is not helped by those who cannot discriminate between productivity growth is slowing down and productivity is falling.)
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Robert Solow transformed the way we think about economic growth.
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The media treat budgets as bit of a circus: lots of theatre and soon forgotten. For a serious economist they show how a team of economists is thinking about the wider economy.
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Has economic productivity suffered from the lowering of public trust?
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Answering that question proves to be challenging. This preliminary assessment suggests the economic benefits to incumbent New Zealanders may not be great.
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