tag:blogger.com,1999:blog-4822259594352375763.post838014507771552530..comments2024-01-09T23:21:40.634+13:00Comments on Thoughts from 40° South: New Zealand's Precarious Economic PositionKiwiwithttp://www.blogger.com/profile/10507667837257013301noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-4822259594352375763.post-84506348096316806622012-05-31T15:41:25.216+12:002012-05-31T15:41:25.216+12:00The Government has proclaimed that it expects the ...<i>The Government has proclaimed that it expects the Christchurch earthquake to add 1.25% to economic growth every year from 2012 to 2016, which is based on a economic misunserstanding known as the broken window fallacy. Rebuilding Christchurch only diverts investment from other potentially more productive areas of the economy and adds costs to everyone (look at the rise in your insurance premiums this year, if you don't believe me).</i><br /><br />This would be a case where the broken window fallacy applies if $20B of re-insurance monies were not going to be entering the country as part of the rebuild. Our economy took it's economic growth hit from Canterbury during the paying of money down the money hole there over the last few years and the lack of growth from Christchurch (possibly decline) being represented in the national figures in previous years.<br /><br />The reason however we won't get economic growth of 1.25% from ChCh is; urban planning and council nonsense, not to mention RMA constraints, ETS, regulation, taxes, etc., etc...Jeremy Harrishttps://www.blogger.com/profile/05819630707494648769noreply@blogger.com