Economic Struggles and Inflation
New Zealand’s economy is having a tough time. In 2024, the country fell into a recession with a growth rate of -1%. Inflation has made life harder for households, making basic things like food and rent too expensive for many people. Even though inflation slowed down later in the year, prices are still high and rarely drop back down. The government’s main plan is to wait for wages to catch up, but this doesn’t seem like a real solution to fix the problem.
Record Departures and the Culture Shift
At the same time, more New Zealanders than ever are leaving the country. Many don’t believe the future here is bright for them or their kids. While high immigration keeps the population steady, it raises a question: What does it mean to do what’s best for New Zealand? Are we focusing on making life better for people already living here, or just boosting numbers like GDP as though it was a company.People care about their cultural identity, not just money. For example, when Donald Trump was elected in the United States, it showed a strong "country first" attitude. In his book The Road to Somewhere, David Goodhart introduces the terms “Anywheres” and “Somewheres” to describe two distinct approaches to life and belonging. About a quarter of people are “Anywheres”—global citizens who feel at home in places like Auckland, London, or New York.
A Leadership Void
For years, leaders in Western countries, often “Anywheres,” have moved away from focusing on local concerns. They seem more comfortable at global meetings than connecting with regular people in their communities. Some politicians have even insulted their own voters. For example, former UK Prime Minister Gordon Brown once called a supporter a “bigot,” showing how out of touch some leaders can be.
Housing: The Unspoken Crisis
Housing is a big problem in New Zealand. When Christopher Luxon, the leader of the National Party, gave his State of the Nation speech, the headline was about allowing more concerts at Eden Park. Former Prime Minister Helen Clark and Mt. Eden crank opposed it, but the real issue wasn’t concerts. Luxon’s speech quietly supported the same policies that have guided New Zealand for decades: bringing in lots of migrants and keeping house prices high.
These policies make current homeowners feel richer, as they can sell their houses and move on. But younger people can’t afford homes and are being left behind. Politicians avoid the hard truth: if we want house prices to go down, property values—including our own—must drop. This isn’t popular, so no one talks about it. If things don’t change, young people will keep leaving to find better opportunities elsewhere. To make up for this, the country just brings in more migrants, which boosts GDP but makes GDP per person go down.
Welfare: Trapped by the Safety Net
New Zealand could use its small size to be creative and quick to adapt, but instead, we have high taxes and spend a lot on welfare. This system sometimes traps people rather than helping them move forward. For example, if a person spends more than a year on benefits then he or she will average more than ten years. This is a huge waste of talent and potential. Without new ideas, we will keep wasting lives that could have been improved.Education and Health: Spending More, Achieving Less
Education has similar problems. We spend about $330,000 on each student by the time they finish high school, but fewer students are enrolling in university, pass rates are dropping, and our rankings are slipping compared to other countries. Adding more money to failing systems isn’t working. Health care has the same issues. New Zealand spends more than $6000 per person each year on health care, which is enough to get good private coverage. But the public system doesn’t reward hospitals for being efficient or getting better results. Managers don’t aim to make improvements because there’s no pressure to perform well.
Time for Bold Change
In short, New Zealand needs to wake up. Leaders must be honest about problems with housing, welfare, education, and health. Citizens must hold them accountable. Cutting government spending and giving people more freedom to take risks and invest in themselves could be hard at first but might be the change we need. New Zealand is small, and that can be our strength. By focusing on our unique culture and thinking outside the box, we can succeed. But we have to stop doing the same old things and start making real changes.