READER REPORT:

Time to get radical

JOHN ROWAN
Last updated 05:00 23/11/2012

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The time has arrived for a radical restructure of the New Zealand economy to achieve the aspirations of its citizens in the future.

Unfortunately there is no quick fix to achieve this. New Zealand has been served by low calibre politicians over the last 20 years.

The country is running an entitlement system in social welfare which is no longer affordable and, in fact, was never affordable. However, politicians from the main parties have as yet not had the will to address this for fear of voter backlash.

Some of the solutions now being advocated such as quantitative easing are downright scary. It's easy to join the race to the bottom and then learn the hard way.

The strong dollar is beneficial in lowering input cost. Productivity responds to a low tax regime.

As for capital gains taxes, forget them. We need to free our capital up and invest in productive enterprise. Housing is no more than a consumer item, same as a plasma TV.

Socialism is great until the money runs out. It's no more than a shift in resource from the productive to the non-productlve sector.


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