Economic growth is an unnecessary evil, Jacinda Ardern is right to deprioritise it

This was the headline of an article CM spotted today. Of course CM wouldn’t dream of writing something that daft. To think social wellness can be achieved, let alone sustained without attention to economic growth. Magic pixie dust perhaps? Even though CM debunked the relative aspects of the Wellness Budget being considerably inferior to Australia, the left were quick to lavish praise on the the new matriarch of the woke. She is like the Obama of the Southern Hemisphere. Even regressives are progressive in the eyes of the left.

Note the NZ budget forecasts a 25% lift in tax revenues out to 2023. Income tax will rise 29.9% over the same period. Indirect taxes will jump 28.3%. That on a slowing economy and a rising unemployment rate will mean incremental taxes sting at the margin. Their data, not CMs.

Of course if the idea is to de-prioritize the economy, it can only mean that taxes as a % of GDP rise. Indeed they do from 30.6% this year to 31.1% by 2023. Compare that to 25.2% falling to 25.0% in Australia over the same period.

Effectively Australia gets way more bang for the buck on providing wellness initiatives with lower burdens on the taxpayer because that’s what happens when the economy IS prioritized. Spending on social wellbeing rises as the economy expands.

If unemployment rises (as forecast by the NZ budget) over coming years, one can imagine that wellbeing by its strictest definition should fall. One loses a job, household income falls and wellbeing declines with it, unless welfare is on a par.

Presumably if Ardern’s deprioritized economic growth leads to worse economic outcomes, she can be guaranteed that wellbeing won’t be sustainable without more shared misery in terms of debt (rising) and deficits.

As Friedrich von Hayek once said, “if socialists understood economics they wouldn’t be socialists.”

Such is the madness of the left that they believe yet again that feelings are more important than facts. Even though as “woke” as many paint Ardern, her neighbour across the ditch is already there and expected to continue to outperform. That’s because economic growth is the priority. Yet don’t expect Scott Morrison to receive any praise. He is the wrong gender, skin colour and religious affiliation for starters.

Ardern is unlikely to stop the 35,000 odd Kiwis that migrated to Australia last year but she maybe lucky in doubling the 40 (yes, forty) Aussies who left the land down under to live in NZ in 2018.

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