Facing Geo-Economic Reality

An Axis of Foolishness

New Zealand cannot afford the luxury of its economic pretensions. It is dominated and controlled by an axis of two political forces. The first is an ideological coalition of eco-greens, whose influence is far wider than the Green political party. This ideological consensus also dominates the Labour and Maori parties, and leads the ideology of the National party as well.

The ideology rests in the pretension that there is such a thing as a green economy--a paradigm of economic development which is "eco-friendly": that is, a path to productive prosperity which does not require despoiling the landscape or using up natural resources. This brave-new-world economy would use predominantly, if not exclusively, natural renewable resources (for example, wind, solar, hydro power). This "eco-friendly" economy would require minimal intrusion into the natural ecological order. In the ideological parlance it would have a minimal "footprint".

The prophets of this brave new world assert as a matter of religious certainty that this new "eco-friendly, zero footprint" economy will be enormously productive: they promise a Klondike-like path to wealth. The zealots of the coalition even have pretensions of leading the world into the global new-world-economic order. This utopian vision is now the de-facto economic policy of the country and it spreads right across the political party spectrum.

One result of this economic ideology is an agreed focus and emphasis upon "eco-winner" industries. Tourism is a prime example. It is no mistake that current Prime Minister, John Key has opted to run the Tourism portfolio because he thinks the economic potential is huge. But note carefully: the tourism industry in New Zealand is a particular kind if tourism. For example, it is not the same tourist industry as exists in Las Vegas (visits to the Grand Canyon notwithstanding). Ours is an oxymoronic industry which focuses upon offering international visitors an experience of un-human-touched landscape (whether mountains, rivers, plains or whatever). Undeveloped, untouched natural resources is a key to economic prosperity we are constantly told.

A second "winner" industry because it is seen as "clean", with close to zero footprint benefits, is intellectual property, and in particular the IT sector. Even the greens love this industry.

The second front of the axis which controls virtually all political discourse is economic entitlement "rights." This is the modern ideological manifestation of non-revolutionary, gradualist socialism. Its hold over the minds and hearts of the populace and the ruling class is vice-like. It is the modern paradigm of social and political discourse. We fear its death grip hold over hearts and minds will not ease until the majority are converted to, and discipled by, the Lord Jesus Christ (which will indeed happen at some time, but at His pleasure).

These two ideologies--economic entitlement rights and the new world eco-friendly, zero footprint economic model--have formed an axis which holds the entire country in its thrall. Entitlement rights require a large and intrusive government apparatus, endless regulations and petty micro-government rules, high debt, and high oppressive taxation and which produces a large dependant welfare class. The prevailing political consensus is not just to maintain, but over time increase, entitlements. Political discourse between left and right is largely a debate over how much and how quickly.  Buttressing this objective is the utopian dream of a highly efficient, zero-footprint economy which will deliver "big bucks" and economic prosperity so entitlements can be afforded and more "wealth" can be shared.

Both ideologies are humanist utopian dreams and will eventually fail, dismally. Just across the Tasman sea is Australia. Its economy is currently growing at between six and seven percent. Ours is hardly registering any growth at all. Migration to Australia out of New Zealand--where people are in search of higher paying, lower taxed jobs--has recommenced. Bleeding to death by a thousand cuts. Welcome to our brave new world. 

New Zealand remains firmly on track to becoming the Niue of the OECD. This will remain the case at least until the naive utopian pretensions of the eco-friendly, zero footprint economy are exposed and shattered.