The mid-to-late 1980s was the most transformational time for the New Zealand economy.
I was coming up 15. My parents were juggling mortgages at double-digit rates. There wasn’t even enough left for an ice cream on the weekend.
From the ages of 15 to 45, you’re in the build part of your life. You’ll go on to pay for an education, a home, and then to nurture your own children toward that part of their life.
You and your cohort, during those 30 years, drive most economic growth.
I entered this period at just the right time.
Roger Douglas deregulated the economy. By the 1990s, I found opportunity galore.
I was able to start a business at 17. Invest in shares. Single-handedly pay for five years of university education. Leave university with a home deposit.
By 2000, I bought a bungalow on a busy road in central Auckland for around four times my income. When I married in 2005, I was mortgage-free.
10 years later, we had two young children.
I found myself asking this question: ‘Will these kids — or younger people today — be able to find the level of opportunity I did growing up in New Zealand?’
The answer was a resounding no.
We sold things up and moved to Europe on a permanent basis.
There, I was at a trading desk in the financial markets. From a distance you start to see things more clearly.
Over-regulation destroys businesses. Only the largest — or the government endorsed — prevail.
Over-inflated home prices devour an economy. Mortgages absorb too much household income.
Division and inequality exacerbate. Family gifts and inheritance overpower productive opportunity. And that depends on the luck of your birth.
Of course, things would be easier if the ordinary person was still represented by ordinary people in government. But career politicians, minority ideologies, and lobby groups have been capturing this sector. They have no idea how to restore opportunity.
Here at Wealth Morning, we have a leading investment news site in New Zealand reaching thousands. And a wholesale portfolio management service, where we help high net-worth investors diversify into global markets. We run what is probably this country’s only night trading desk for European markets.
Our readers and investors are telling us the same thing:
- ‘Opportunity is drying up in New Zealand’.
- ‘You can’t do anything’.
- ‘I’m tired of people trying to control my life.’
- ‘I’m tired of people trying to force woke ideology upon me’.
- ‘The country is in danger of continued lifestyle erosion.’
New Zealand faces challenges, no doubt. Our biggest export market is slowing down. As in the early ‘80s, inflation is undermining living standards again.
When you have wages rising at 3% — as company earnings reports appear to be showing — but inflation at 7%, there’s material decline in people’s quality of life.
But we’ve pivoted before, with fantastic results. And we can pivot again.
This is why we’re sponsoring a discussion event on the 22nd March with Dr Oliver Hartwich.
Dr Hartwich is a well-regard German-Kiwi economist. He understands the problems. More vitally, he proposes solutions.
He will cover the following important topics:
- Housing and cost-of-living crisis.
- Local government accountability and transparency.
- Monetary policy and NZ’s national debt.
- Climate change.
- Immigration and trade.
- Practical regional and local solutions.
Following his approximately 60-minute presentation, there will be a robust Q&A for approximately 45 minutes.
This educational public event is open to all. It will be held at the Warkworth Town Hall, Auckland North, on Wednesday, March 22nd, from 7:00pm to 9:00pm.
The entry price is $20 per person, and tickets may be purchased at the door or via Eventbrite.
Early registration is advised, as we anticipate a full house.
Editor, Wealth Morning
(This article is general in nature and should not be construed as any financial or investment advice.)
Simon is the Chief Executive Officer and Publisher at Wealth Morning. He has been investing in the markets since he was 17. He recently spent a couple of years working in the hedge-fund industry in Europe. Before this, he owned an award-winning professional-services business and online-learning company in Auckland for 20 years. He has completed the Certificate in Discretionary Investment Management from the Personal Finance Society (UK), has written a bestselling book, and manages global share portfolios.