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Contact:
Foundation for Economic Growth,
P.O. Box 10-282,
Wellington, N.Z.
Email
The Foundation for Economic Growth is a group of like-minded individuals who have decided to act rather than accept New Zealand's continuing poor economic performance. The Foundation is not affiliated with any political party. Add Your Comments Here.

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Most recent update: Mar 3rd, 2014 - 11:01:36

Other Countries
The Death Camp of Communist China.

As Llewellyn H. Rockwell, Jr. states, "When you hear about shoddy products coming from China or wheat poorly processed, imagine millions in famine, with parents swapping children to eat in order to stay alive. And what do China's critics today recommend?

More control by the government.

Don't tell me that we've learned anything from history. We don't even know enough about history to learn from it."


Jul 23, 2007, 18:45

Other Countries
France and Germany
France and Germany are struggling to keep their welfare states going. They are both in default of their EU Treaty obligations to keep their deficits below 3% and they show no signs of solving this problem. This article is a very clear exposition of the problems they face and is a very good illustration of the intractable difficulties faced by governments having a large public sector, strong unions and struggling businesses. This is of course exacerbated by the recent addition to the EU of a group of leaner, meaner hungrier nations determined to boost business and improve their standard of living. Read on . . . Visit Website ]
Jul 20, 2004, 17:36

Other Countries
Why are Aussies Richer?

Is it a natural law that says that bigger countries must be richer per capita than smaller countries? No. About half the countries that are wealthier than us are bigger and half are smaller. Size is not a determining factor. Neither is mineral wealth although it helps. What is it about us that we are now less wealthy than Australia though we used to be wealthier 50 years ago? Are we just going to take this lying down?


Jul 2, 2004, 18:00

Other Countries
Finland - Economy in trouble?

Finland is often mentioned as a modern successful country that New Zealand would do well to emulate. Unfortunately things are much more complicated than that and Finland seems to be heading for trouble if the latest OECD report is anything to go by. To quote from the report "the challenges posed by high unemployment and a rapidly aging population underline the need to spread reforms across all parts of Finnish society". It would appear that the Welfare State and the strong Unions have conspired to halt Finland’s 5% growth rate and drop it down to around 1% for the last three years. The OECD report seems quite clear on what needs to be done.

Here is a quick summary of Finland:
Finland developed the institutions of the Nation State around 800 years ago and has a unified population which has successfully survived the depredations of Russia and Germany in the middle of the last century.
Industrialisation started at the same time as other European countries and although under State control, traded successfully.
The State has deregulated some of the important sectors of the economy, reversing a legacy of state control.
The State has a high R & D expenditure.
Very successful industrial trade and growth from 1950 to 1990.
Large downturn from 1990 to 1994.
Turnaround from 1995 to 2000 but, very low growth from 2001 to 2003.

OECD advises:
• High unemployment and a rapidly aging population underline the need to spread reforms across all parts of Finnish society.

• The public sector remains large relative to other OECD countries.

• Strong unions defeat Government moves to improve the commercial and industrial situation.

• Tax burdens are too large.

• Government jobs account for nearly a quarter of total employment.

• Steps are needed to promote greater efficiency in the State sector.

• Stronger political drive for impact assessments of new laws and regulations is needed.

• There is urgency for further reform because of Finland's aging population.

• Centralized wage negotiations offer little incentive for improvement in sheltered sectors of the economy.

• The regulatory regime does little to encourage unemployed individuals to return to work.

It would appear that the Welfare State and the strong Unions have conspired to halt Finland’s 5% growth rate and drop it down to around 1% for the last three years. The OECD report seems quite clear on what needs to be done. Let us hope that New Zealand’s strong growth up to 2003 continues. Unfortunately, it looks like our growth is set to decline to 1% or 2% over the next few years, and for the same reasons!

Our task is to change all this.

Visit Website ]
Jun 15, 2004, 17:30

Other Countries
Finland
Finland is often mentioned as a modern successful country that New Zealand would do well to emulate. Unfortunately things are much more complicated than that and Finland seems to be heading for trouble if the latest OECD report is anything to go by. To quote from the report "the challenges posed by high unemployment and a rapidly aging population underline the need to spread reforms across all parts of Finnish society". It would appear that the Welfare State and the strong Unions have conspired to halt Finland’s 5% growth rate and drop it down to around 1% for the last three years. The OECD report seems quite clear on what needs to be done. Let us hope that New Zealand’s strong growth up to 2003 continues. Unfortunately, it looks like our growth is set to decline to 1% or 2% over the next few years, and for the same reasons! Check out the full Finland report.
Jun 15, 2004, 17:11

Other Countries
Iceland
In 1970 New Zealand and Iceland were both equal in the world wide wealth stakes - around 17th. Some of my friends have argued that New Zealand is a small, remote island with few resources and that therefore it is not surprising that we are not very high up in the world wide wealth stakes. But Iceland is a smaller island, fairly remote and the only resource seems to be fish and geothermal activity. We have more of both and a lot else besides. Also we are not covered in ice and snow most of the time. Read the Iceland story and think about the facts.
Jun 15, 2004, 14:10

Other Countries
Ireland
The great economic success story of the past ten years has been the Republic of Ireland, which suffered from a 17 percent unemployment rate in the mid-1980s but enjoyed nearly double-digit economic growth rates in recent years. The Emerald Island serves as a valuable case study to illustrate how large the payoffs can be from better economic policies in the presence of favorable external factors. Visit Website ]
Jun 10, 2004, 11:19

Other Countries
Canadian Tax Reduction Praised

New Zealand isn't the only country with low growth prospects and high middle class taxes. However, some countries are doing something about it. How long do we have to wait before the blindingly obvious is understood by the socialists who run our country? In Canada, one province has taken a deep breath and made the necessary tax cuts. But when the Hamm government of Nova Scotia cut taxes, it came under intense criticism. In his regular column in the Chronicle Herald, Brian Lee Crowley says that policy makes sense because taxes are a good thing only up to a point.

Economists have proven time and again that after that point, the harder you tax, the lower the benefit and the higher the cost. If we want better quality public services, the best way to achieve it is to make the economy grow and take a smaller share of wealth in taxes. But our high level of taxes prevents that growth. That’s why no one ever taxed their way to prosperity.

Except for New Zealand's Michael Cullen, perhaps.


Jun 8, 2004, 15:10

Other Countries
Finlands Growth Path
Finland developed the institutions of the Nation State around 800 years ago and has a unified population which has successfully survived the depredations of Russia and Germany in the middle of the last century.
Industrialisation started at the same time as other European countries and although under State control, traded successfully.

The State has deregulated some of the important sectors of the economy, reversing a legacy of state control.

May 15, 2004, 18:12