Can you fix the economy?: Productivity is key
Can you fix the economy?
Here's my humble opinion on fixing the economy, but first let me say it ain't really broke relative to the rest of the world - we've got moderate unemployment, low inflation and relatively diverse trading partners and growing demand for key exports including dairy.
I believe investment in productivity in core sectors is the best way to secure long term growth.
In primary industry I would focus on sure bets such as dairy, where demand will continue to increase with rising incomes in developing countries. Government-supported joint ventures with our dairy industry to develop more land and labour expertise plus scientific research would go a long way to securing our leading edge.
I also think high margin industries like technology in sectors where we lead the world (boat building, movie technology) is also ripe for funding. Again, more focus on science and training would be useful.
I don't buy into trying to manipulate exchange rates to ease the pressure on exporters, we just have to work harder, smarter and adapt as our currency will always be strong when our economy follows suit.
Can you fix it? is an ongoing Stuff Nation assignment. To contribute hit the green button.
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