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A question from the floor at a public meeting in Wanaka three years ago asked then National Party leader Don Brash why he always talked about money and the economy rather than things that mattered like health and education.
He responded that a growing economy was the means to provide better social services.
Future gains to economic growth will need to be driven by increases in productivity growth. Improving productivity will have benefits for individuals, businesses and for society as a whole. A more productive New Zealand will offer our people opportunities to earn world-class incomes without having to go overseas to achieve this. It will allow New Zealand businesses to provide sophisticated products to the world without having to relocate their head offices. Higher incomes will underpin a public sector that can provide high-quality services, which will lead to improved social outcomes in crucial areas such as health and education.
Higher productivity will make New Zealand a more attractive place to live, work and do business with and from.
That reminds me of this quote from Margaret Thatcher:
No one would remember the Good Samaritan if he'd only had good intentions; he had money as well.
This is a simple concept but achieving the economic growth we need to provide the standard of living and social services we want is more complicated and we can't leave it all to government.
They can implement policies which enable and encourage improved productivity but they can't create wealth, thats up to people and businesses.
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