by Brian Easton

Are we too generous about the civilian rights of non-doms, who do not pay tax on all their incomes? 

Bryan Gould has drawn attention to the dangers we face in New Zealand of foreign political interference by funding contributions to political activity. His apposite example is Chinese money being channeled into the change-the-flag campaign.

Responses to the flag referendum and the TPPA have parallels overseas such as supporting Trump in the US and Brexit in Britain. A sizeable proportion of the population think that the government is not listening to them and doesn’t care about them.

Kiwiblog presents an impressive scatter-diagram which shows that the more an electorate voted for National, the more it voted for a new flag. It seems unlikely that National voters are republican and radical (especially given the views of the leader they endorse).

Are we entering a long period of secular stagnation in which interest rates are low? We cannot foresee all the implications. 

This has not been an easy column to write, and it may not be an easy one to read. Part of the problem is that there is no agreement within the economics profession as how to interpret what is going on.

The story of our national anthems might provide guidance for how to proceed with the flag.

A recent Victoria University graduation ceremony invited everyone to sing The National Anthem. As we lustily, but not tunefully, sang God Defend New Zealand, I avoided the thought that while pedants would point out that New Zealand had two national anthems there are few pedants left in our universities.

The history of New Zealand is speculation on farm land which stokes up debt, with disastrous consequences when the bubble bursts. The New Zealand industry is going through another one. 

During the Great War, farm land prices boomed. When farm product prices collapsed in 1920, farmers walked off their land. It was not that the land prices were too high. Farmers had borrowed to purchase their farms and with lower revenue they could no longer service the debt.

A journalist’s list of the ten most important issues politically facing us did not mention inequality and poverty. Why?

A month ago Fairfax political journalist Tracey Watkins listed the following ten areas to watch out for in the political year:

Spies (especially the review and resulting legislation)

The government is restraining its spending on healthcare – perhaps by over $2 billion a year. Is that what we really want?

A common assumption is that public spending on healthcare rises faster than GDP. There are three reasons behind this assumption.

First, an aging population requires more healthcare. The over-65s consume more healthcare resources than the under65s (and the over-85s even more so).

The short answer is all trade reduces sovereignty to some extent. The TPPA is no exception, but its effect is probably small. 

Allow that we had to give away something, such as increased copyright extensions, for better access for our exports; the real issue for us in the TPPA is that it reduces ‘sovereignty’. To report my conclusion at the beginning: all trade and all trade deals reduce sovereignty to some extent. This has been going on in New Zealand since its first European economic engagement.

A key issue may not be what is in the TPPA, but that by not adopting it we may ruin the other international agreements we are pursuing. 

In the 1960s I was an active member of the Campaign for Nuclear Disarmament. It was a moral crusade with unrealisable objectives such as withdrawal from SEATO (a now defunct treaty), a nuclear-free New Zealand and withdrawal from ANZUS. The dreams of youth can become a reality.

World Sharemarkets Are Sneezing. What Does That Tell Us About the World Economy?

Before discussing the state of the world economy – especially what is going on in China – it is useful to say something about the importance of the sharemarket (Americans call it ‘stock market’). It is far more important in pop-economics than serious economics.