Alwyn Poole
Before going into education I got myself a degree in Economics. People in that profession are often mocked for their lack of accuracy, assertions based on assumptions and 20/20 vision in the rear view mirror. Many times the criticism is deserved.
Occasionally though they need to be assertive and have something of value to say! To take the place of an economist today is to say that New Zealanders should not be waiting for government hand-outs with the coronavirus and the droughts. What New Zealanders need to do for each other is to spend. Not at the risk of their savings or to build credit card debt – but to support each other in business and employment.
One measure of Gross Domestic Product is multiplying the money supply by the rate that people spend their money. While some people will need to go into physical isolation no one should go into economic isolation. Buy things! Increase the circulation of incomes. Get your house renovations done; buy books, clothes, high quality groceries, art, running shoes; replace your car etc. Pay things forward and treat others like you would like to be treated. Your business matters to you – make sure the business of others matters.
Don’t dump your shares. The fundamentals of most NZX companies will be very sound and based on a solid response to the GFC. Don’t look for cheap gains at the expense of others.
There are only five cases in New Zealand. It may be scary to book and go overseas but there are amazing opportunities to travel in our gorgeous country. Of course, you should take care and ask questions of hosts and restaurants but keep the probabilities in mind.
Businesses may also offer huge support and opportunities back into the economy. If you understand international trade and/or have travelled you will know that our best produce goes overseas. This ranges from kiwifruit, wool, meat products, fruit, wine, crayfish, all fish etc. I have only ever had export quality steak once in my life and never buy snapper, scallops or crayfish in our country. Instead of storing or delaying exports our businesses could do a high goodwill gesture and place these products in our supermarkets. Crayfish is an obvious example. Not only would these businesses be supporting their employees and consumers, but they will also help the government books through GST and PAYE.
Of course, the government needs to respond, and that seems delayed and scatter-brained at present. However, in a democracy, it is government for the people – by the people. As a population, we are not supposed to sit on our hands and wait as either consumers or producers. Spend money. Keep people in employment, maybe even bring forward decisions like painting the roof, buying a new fridge, getting that engagement ring.
Our country gets through and has been a world leader in the past because we all step up. Time to do it again and set aside self-interest to a significant degree. From the perspective of an economist/educator, this approach would be outstanding for our children and families.
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