2001

Samoa - lessons from another frustrated tribal model
In past columns I have queried the compatibility of the Maori tribal model with reducing the gap in economic well-being between its participants and other New Zealanders. The government's 'closing the gaps' strategy floundered on the reality that the quest for economic betterment will soak up infinite handouts if tribal...
5 December 2001 - maori - Gareth Morgan

From banks to airlines to figurines
The Clark government's appetite to invest in businesses knows no bounds. Flushed with the success of its forays into an airline, a railroad and a bank the government has now turned its attention to investment in Lord of the Rings figurines and assorted memorabilia from that US film project and the upcoming America's Cup. Whether large or small...
14 November 2001 - govt spending / budget - Gareth Morgan

Cullen's Big Superannuation Idea: Another Hoax
Some of us have written for years about the folly of governments trying to shelter the citizenry from the personal choice each of us face over whether to "party up" now or set more aside for retirement. Still governments won't leave it alone and there continues to be an enormous waste of energy as regime after regime pursues futilely...
7 November 2001 - retirement / super - Gareth Morgan

McLeod II: Cowardice Under Fire
The second McLeod Tax report is a disappointing step backwards from the standard attained in its first document. The result is that the government is let off the hook - doesn't have to defend the imperfect taxation status quo and is instead able to cherry pick from the recommendations that survived the amended report. And like a rat up a drainpipe...
31 October 2001 - taxation - Gareth Morgan

The cake, its size and its distribution
The economic and social performance of any nation depends on relentless pursuit of economic efficiency and distributive justice. And the relationship is two way - if economic efficiency is sacrificed then the ability to deliver a fairer share of the spoils will be impaired as well. Yet without all people getting a fair 'suck of the sav' economic...
21 October 2001 - markets / regulation - Gareth Morgan

Send in the Clowns - NAC arises from the ashes
Why were airlines worldwide in major trouble before September 11? Because they're not profitable - there's too much capacity and airfares are too low to provide a return. Why isn't the industry profitable? Because it's undermined constantly by numerous airlines who do not have a profit motive - those airlines being the "national...
3 October 2001 - industry policy - Gareth Morgan

Distributive Justice and Incentives: A Global Perspective
16% of the world's population controls 80% of global wealth If all the world's citizens consumed the amount of resources the average American does we'd need the resources of 7 globes Over the 1990's management of US firms have increased their remuneration proportionally more than the increase...
26 September 2001 - overseas economies - Gareth Morgan

Muslims and the West
Having just returned from almost a month living under the shadow of the Pakistan and Afghanistan regimes in West Asia, it is easy to bring a somewhat different perspective of events around the World Trade Centre and the general relationship between Islamists and the West. The most chilling impression one returns with is that there are...
19 September 2001 - overseas economies - Gareth Morgan

Having a trucking good time
Personally I can't stand trucks on the highways -whether crowding out your rear, making sure all you can see is their bumper, or blocking your vision in front making it impossible to pass. No matter how professional the driver, their mere presence is a drag. Unless of course you happen to be driving one and then it can be loads of fun. In the...
22 August 2001 - industry policy - Gareth Morgan

Dumb and dumber
Rodney Hide is having a field day revealing how crazy the People’s Bank proposition is. Yet government, for the sake of congealing coalition camaraderie through to the next election, moves ever forward on this one large, dumb idea.Jim Anderton’s job machine has struck again, ploughing $1-2 million from its Major Investment Fund into a JV...
15 August 2001 - politics - Gareth Morgan

Thank heavens for Treasury and the Reserve Bank
Amidst the media hype the Knowledge wave conference generated it has not been easy identifying those contributions that offered a sober assessment of New Zealand's economic and social policy, performance and potential, and cast erudite light on this subject. There was of course an impressive array of experts in specific fields whose papers...
8 August 2001 - politics - Gareth Morgan

Investment Reality: The Power of Foresight, the Impotence of Hindsight
One of the inevitable traits of investors is to base investment decisions on past performance. An all-to-common decision criterion that investors use is to ask "how well has the stock done in the past". If the answer reveals commendable performance then frequently the investor will go ahead and jump aboard. Yet despite the health warnings put out by most investment managers that past...
4 August 2001 - investment - Gareth Morgan

Knowledge- or Blow Wave?
Consider some facts about recent New Zealand economic performance and contrast them with the fiction increasingly promulgated by those who would attempt a "transformation" of this reality. The share of low- margin, commodity production in our exports has been steadily increasing (meat and low-end dairy) while the performance of...
1 August 2001 - politics - Gareth Morgan