Pressure is coming on the Government to improve business competition to push down prices for cash-strapped Kiwis as the cost of living emerges as the top concern in an election year.
Weak competition in some markets is making it easier for businesses to pass on cost increases to customers, Reserve Bank chief economist Paul Conway noted in a recent speech on inflation.
As a small, remote country, some industries in New Zealand are dominated by a few big players.
“When I look at the two building companies, the two supermarket chains, and the four banks that dominate their respective markets, some of that is typical of a country of this size – it’s not that unusual,” says Sam Stubbs, managing director of non-profit Kiwisaver provider Simplicity.
“That means that actually government have a bigger role to play here. It’s not as if you just leave it to market forces to ensure competition.”
The obligation of the Government is to regulate Capitalism so that we the people benefit from the competitive dynamics of competition!
The disgusting right myth is that NZ is an over taxed, over regulated economy when that is total bullshit!
Max Rashbrooke highlighted the horror of NZs under regulated market…
The bad news is that, to investigate 200,000-300,000 terrible rentals, the Ministry of Business, Innovation and Employment (MBIE) has employed a frontline inspectorate numbering … 37. Each inspector will have to check somewhere between 5000 and 8000 rentals.
…there is only 37 inspectors of rental properties for 300 000 terrible rentals?
Similar poorly funded regulation is apparent in the 82 labour inspectorates who are supposed to police hundreds of thousands of migrant worker exploitations!
Time and time and time again in New Zealand we see an old boy matrix of vested interests who occupy market dominance and act like a monopoly, duopoly or oligopoly raking in vast wealth while leaving the local small and medium sized operators outside the cosy relationships!
Up and down NZ, small and medium enterprises are unable to compete because of the lack of basic regulation in the market!
We’ve seen it with the Supermarket duopoly, the medicinal cannabis oligopoly, the Gib Board monopoly – each time under regulated and poorly regulated capitalism continues to screw over us the consumers at a time of a cost of living crisis!
Frustration inside the drainage industry has reached boiling point recently with anti competitive practices and crony capitalism that would make your average South American Drug Cartels blush.
Our top tax rate is the 39th highest in the world behind all the Scandinavian countries plus Germany, the United Kingdom, Ireland, France and South Africa!
Australia’s top tax rate is 47cents!
Our GST rate doesn’t even get us into the top 50 and our corporate tax rate is 40th while Government spending against GDP ranks 56th!
I’m not looking for socialism here folks, just basic garden variety regulated capitalism!
We can’t drain the swamp because the crocodiles have learnt to shoot machine guns at anyone who attempts it.
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