Firstly sorry for any topic violations, I will just post a breif response to the questions asked.
> > Japan has, in the last 15 years, clocked up an outstanding public debt of > about 150% of a year's GDP, which is over twice that of the USA. And it made > things worse, not better! New Zealand has been running a large surplus of > about 3-4% GDP for the last few years but the economy keeps doing well. > Germany and France are following Japan and getting the same results. > So, how does New Zealand do it? > George Hara New Zealand is generally rated as being the third most free market economy, after Hong Kong and Sinapore, after extensive market liberalisation 1984-1988 (Fourth Labour governemnt), and 1990-1992 (Fourth National Government). This included elimination of capital controls, removal of the wage-price-interest rate-rent freeze, elimination of quotas and import licencing, progressive unilateral tarrif elimination, corporatisation and privatisation of state trading departments (coal, oil and gas, rail, postal services, state banks, public works, airports, airlines, ports, electricity (generation, transmission and distribution), and the rest), product market deregulation, agricultural and business subsidy elimination (1984), tax reform including reducing the top tax rate from 66% to 33% (almost was reduced to 23% in 1988, but the Prime Minister backed out of the plan), elimination of the wholesale sales taxes, elimination of all stamp duties (including on land transfer in 1998), labour market deregulation (1991 'the method of negotiation is up for negotiation'), fiscal reform including the State Sector Act (a model state sector structure and reform recently promoted by its architect Sir Roger Douglas to the UK -- a must read report actually), Fiscal Responsibility Act (which resulted in surpluses since 1993 to the present, and the repayment of the public debt) and various other market liberalisation programs, including welfare benefit reductions in 1991. That is the primary reason for the overall good results, especially compared to the 1960-1984 period. The particular reason why the economy has been strong and surpluses very large in the last few years has been: needless tax hikes that increased the top tax rate to 39%, some cancelled defence spending and lack of participation in the war on terrorism, freezing of the unilateral progressive elimination program with a freeze in tariff rates until 2005, and a program to partially prefund the 'National Superannuation' by accumulating large surpluses in a dedicated fund, and resisting calls from the opposition to cut the top tax rate to 25% (and calls from its own tax reform commission, which recommended a top rate of 28% and a bottom rate of 18% only because the government specifically told them not to consider a flat rate of tax). Also general public spending has been falling as a percentage of GDP while brack creep pushes tax payers into higher brackets, and a property construction boom. And many expats returned home after 11/9/2001, and increased immigration and arrival of refugees. David Hillary --- You are currently subscribed to e-gold-list as: [EMAIL PROTECTED] To unsubscribe send a blank email to [EMAIL PROTECTED] Use e-gold's Secure Randomized Keyboard (SRK) when accessing your e-gold account(s) via the web and shopping cart interfaces to help thwart keystroke loggers and common viruses.
