Encouraging Signs

Not Yet Living Within Our Means, But Progress Nonetheless

And now, a good news story.  One of the things that has bedevilled the New Zealand economy for decades is the dearth of capital.  As a nation which has practised "socialism without doctrines", as historian Michael Bassett put it, we have not saved, nor valued, nor husbanded sufficient capital.  Why save, when the state taxes and distributes, with the goal of creating cradle to the grave security? 

Consequently, the Balance of Payments has run at a deficit for a long, long time.  This econometric statistic measures whether NZ Inc is trading at a surplus or deficit, whether as a nation it is making more than it spends, or whether it is relying upon others outside New Zealand to fund our lifestyles in aggregate.  The perpetual deficit is a record of our having become accustomed to living standards way beyond our national means. 

Gradually this situation is changing.