8 simple ways NZ's economy can prosper
What issues will get your vote?
What issues will get your vote in this year's election? Andrew McEwan shares eight policies he'd like to see in place to help our economy.
The pre-eminent folly of the National government is that property is not important to our domestic economy.
Nothing could be more wrong. There is no nation on the planet that has a high standard of living and low property values, and there is no nation that has a low standard of living and high property values. The two are in tandem.
National's laws, policies and public statements have always decried property and worked to stunt property values. Now we all reap the results, lower property values and a lower standard of living.
It is again folly by some to say there has been a property bubble. Real property prices after inflation are the same as they were in 2007. In many parts of regional New Zealand, and in specific urban New Zealand, real values are significantly lower than they were in 2007 - a major reason for our lower standard of living now.
Here are eight simple legislations that could structurally correct the economy:
1. Roll back GST to 12.5 per cent
2. Raise the top personal tax rate to 39 per cent above $140,000 earnings
3. Scrap loan to value ratios
4. Roll back depreciation law on property
5. Scrap the 90-day trial employment law
6. Halt inflation, increase in welfare payments for two years other than superannuation
7. Regulate power companies, banks and councils to preclude price increases beyond the rate of inflation
8. Bring back loss attributing qualifying companies
If you are wondering why New Zealand's standard of living has fallen, our gross earnings per capita have dropped from $32,700 per capita in 2008 to in 2014, with more than 10 per cent inflation in this period, instead of increasing it has lowered to $31,600 per capita.
By following these eight simple directions I believe our great nation will rise again and prosper.
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