Economics

"Government's view of the economy could be summed
up in a few short phrases:
If it moves, tax it.
If it keeps moving, regulate it.
And if it stops moving, subsidise it".
Ronald Regan
Go Ronny Regan! NOW if that's the way our Governments look at our economy's, then it's hardly surprising that we rapidly sinking down the gurgler. I suppose with the lack of thought that goes into organising ones Government these days, that it's hardly surprising that that mantra would be followed to the letter by successive Governments around the world. Does it show?

How would a Government be structured under a NOW economy? The idea behind a Government is sound, it only fails where the government hasn't got a clue in regards to the things that matter to the people of the country. I laugh about as hard as anyone can do when told that we have a vote and that we should exercise that vote in order to affect change. If there was anything sensible to vote for, I would have voted by NOW. I haven't. Anyway, a NOW Government.

Dealing with the outside world will be the main function of the New Zealand Government. This includes the management of New Zealand's financial affairs, imports, exports and other assorted global relationships. Essentially the Government will be THE bank for New Zealand. As mentioned earlier, the world is a financial animal and New Zealand will have to earn its way. Can we afford NOW if we have a free local economy? Consider the costs associated with imports and exports and the true costs of those items without "overheads".

How much of an Imported product, by the time it reaches our shores to the time is reaches the shelves, is mark up? "Overheads": Base price + Tax, GST, Port charges, Freight, sundry expenses etc... A large chunk of a products price is the "overhead". Overheads are costs that can be removed from products being distributed around New Zealand, because we are a free country. The goods will be landed for the cost price, costing nothing more than the purchase and shipping to NZ price. The goods will not be subject to Tax, GST, Port Charges, Freight costs etc... because our local resources are free. That makes imported goods much much cheaper by the time they hit the shelves.

How much of an Exported product's price, by the time it leaves the country, is "overhead"? If we are a free local economy and we have no "Overheads" and the global market dictates the value of our exports, then the overseas purchase price of our goods will not drop. We choose to sell our exports at a lower cost if we need to compete. That's an awful lot of revenue for the bank of New Zealand?

Add that to our starting pot i.e. everyone's assets at the time of implementing NOW (we have savings, assets etc...) and New Zealand could find itself sitting pretty in terms of financial stability. There are other ways of making money for the country such as Tourism (think of New Zealand as a large All Inclusive resort), overseas corporates that would like to make use of our highly educated free workforce (paying a small fee for the use of our resources) and likely several others. Would a free workforce be able to compete with the likes of China and India? Absolutely, cheap is better than anything, right? Well the marketplace seems to think so. Either way it looks like New Zealand would be able to handle itself financially in the global financial economy. This would insulate its population from feeling the real pain of recession that most of us have felt over the last 4 - 5 years (4 - 5 years, that's a very very long time). Surely the financial whizz kids would be able come up with plenty of other revenue generating schemes?

New Zealand won't have to sustain growth either! It could grow by choice.

Given that New Zealand would be able to punch its weight in the financial world, we're going to need some sensible Policies.