WSJ – Kiwi Stimulus Smarts – II<br/> Here’s a novel idea: Why not grow one’s way out of recession?

While the U.S., Australia and Japan spray cash in every direction to “stimulate” their economies, New Zealand has a novel idea: Why not grow one’s way out of recession?

Prime Minister John Key declared yesterday that “during this global downturn, we can work to improve the performance of our economy relative to other countries, and we can emerge better off.” He then announced a package of regulatory reform and tax initiatives aimed at making it easier for companies to do business — and keep Kiwis employed. While the total benefit, at NZ$480 million ($246 million) is small, the positive message it sends to business is much greater.

…the bulk of what Mr. Key is doing makes good sense. Since taking office in November he has already enacted a series of income-tax cuts and eased unfair dismissal laws. On Monday, his government announced plans to streamline the Resource Management Act, an environmental protection statue that has blocked or slowed business developments across the country.

I hear it’s been hot in New Zealand.

ninme puts the sunscreen back in the suitcase by the door

Date: Feb 4th, 2009 · Comments RSS · Tags: Politics