3 – Coronavirus in New Zealand: Cost of the world’s tightest lockdown
As New Zealand enters Level 1, it is an opportune time to assess how the country has dealt with the coronavirus. The current wisdom in most of New Zealand and amongst liberal media admirers across the globe is that New Zealand’s supposedly swift and decisive action in closing its borders and strictly locking down its economy has led to elimination of the coronavirus in the country. New Zealand’s lockdown was backed by overwhelming majority of the local population and has led Jacinda Ardern and the NZ Labour Party to stratospheric polling leads over National, almost unprecedented in modern NZ political history. NZers you speak to or read on social media glow with pride at the country’s accomplishment (the ‘team of 5 million’ etc.) and look askance at the huge numbers of cases and deaths in Europe and the US.
To counter the damage to the economy, the NZ government has poured tens of billions of dollars into a vast wage subsidy programme backed with loan guarantees for small businesses and various packages designed to assist various industries. Once lauded for its relatively low government spending as a percentage of GDP and budget surpluses, NZ is expected to more than doubling its debt to GDP ratio and rack up massive budget deficits as it pours ever more money into an artificially moribund economy.
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