Guest Post: The managed decline of the New Zealand economy

A guest post by Harro104 on Kiwiblog:

New Zealand likes to think of itself as a rich country that has simply lost its way for a while. The reality is more uncomfortable. We are managing our own economic decline, steadily, deliberately, and with broad political consent.Around the year 2000, New Zealand’s GDP per person was roughly 75% of the income level of the richest OECD countries. Today, it is closer to 50%. That is not a cyclical dip or a short-term policy failure. It reflects a long-running structural divergence, and nothing in our current policy settings suggests that trend is about to reverse.This is not about pessimism. It is about incentives, behaviour, and mindset.