Government spending as a % of GDP

The ideal vs the NZ situation.

In terms of per capita GDP Singapore leads the world (2023 figures) at US$141,553.

NZ is 43rd at $53,481.

Bruce Cotterill has a very good piece in the NZH last week on the huge encroachment of our government sector across the economy.

“Government spending has gone from $87.3 billion 10 years ago to $162b today. It’s gone from 27% of GDP to 38% of an increased GDP. Today, core public sector employees number 63,000 people, compared with just 41,000 in 2015.”

When I was a school student – NZ was described as a “modern. mixed economy”. The tilt was strongly towards the free market and private ownership. We are now closer to a socialist model by any measure.

In Singapore the government expenditure as a percentage of GDP was approximately 14.51% in 2024.

Organisation in NZ such as the NZ Initiative have completely capitulated on these aspects. Their latest release is to extoll the Netherlands (and there are good aspects) but their government expenditure as a percentage of GDP is above 43%. They are selling themselves out in hoping for marginal gains from the current government and being able to have a coffee with the Ministers on occasions.

Prior to the current coalition Oliver Hartwich stated that the best outcome for the Ministry of Education was a truck-load of TNT. Michael Johnston of the NZ Initiative now defends the Minister/Ministry even though very little has changed (e.g. they still spend massively on 4000 employees and results continue to decline) – and tells me that I am “outside of the tent” as I challenge the Minister and the Ass Minister (Seymour). I do hope he is not a part of the Free Speech Union.

Our government spending as a percent of GDP does not yet have the horse completely on the jockey but the rider is very fat and is in grave danger of completely crushing the private sector that the government depends on for their fiscal revenue.

Are there any free market economists/advocates left in NZ?

Alwyn Poole
[email protected]