Professor Jane Kelsey discusses new book
New Zealand author Professor Jane Kelsey has warned of the risks faced by an economy structured around finance, insurance, and real estate.
Speaking at an event at the Palmerston North library to promote her new book, The FIRE Economy, Kelsey detailed how the New Zealand economy has been "progressively hollowed out" since 1984 and burdened households and the country with massive unsustainable debt.
"We no longer look to make money off the stock market we look to make money with property... we borrow money to make money."
This transformed our political, economic and social landscapes and created rising inequality and ballooning household debt, she said.
Kelsey described our current economic state as in a "state of denial".
She said the country must engage in national discussions on the social, economic and political costs of carrying on as we are.
"It requires us to understand the way the last 30-40 years has become really, effectively embedded [in society]."
"If we are going to move into a different kind of model...then were going to have to look systematically at how we bring about change."