Back in the dark days of the pandemic, when the world was locked down and businesses were gasping for air, Labour’s quick thinking and economic management kept New Zealand afloat. Under Jacinda Ardern and Grant Robertson, the Wage Subsidy Scheme saved 1.7 million jobs, pumping billions into businesses to stop them from going under. The COVID-19 Response and Recovery Fund threw a $14 billion lifeline, while shovel-ready infrastructure projects kept tradies working and the economy ticking. It wasn’t perfect, with many abusing the scheme, but at least New Zealand recovered faster than most.
The result? GDP roared back 4.8% above pre-COVID levels by 2023, unemployment hit a historic low of 3.4%, and exports surfed a wave of new free trade deals. Labour’s 39% top tax rate for the ultra-rich ensured the recovery didn’t bankrupt the future, making $550 million a year without squeezing the middle class. House prices may have ballooned, and the lack of a wealth tax left inequality festering, but Labour at least kept businesses booming.
Fast forward to 2025, and the National-ACT-NZ First coalition of chaos is steering New Zealand’s economic ship with all the finesse of a toddler at a pottery wheel. Their big idea? Tax cuts for landlords and high earners, costing at least $2.9 billion, while slashing 14,000 public sector jobs and $7.5 billion from services to “balance the books.”
Last Saturday, The Post reported:
Wellington’s consumer confidence lowest in NZ
...
Retail NZ chief executive Carolyn Young said the loss of government jobs was the strongest driver behind lagging consumer confidence in the capital.
“It’s definitely influenced by the perception of what's happening and the fact that more or less everyone in Wellington knows someone or that has experienced a restructure.”
Because of this perception, Wellingtonians were shying away from discretionary spending, which was putting the city in a challenging position.
Because of National's mismanagement, unemployment has crept up to 5.1%, real incomes are shrinking, the cost of living crisis has only gotten worse and GDP growth’s limping along at 0.5%. National’s betting on deregulation and foreign investment to spark a miracle, but the IMF’s 1.4% growth forecast for 2025 now feels like a bad joke.
Meanwhile, health and education services are on life support because of a lack of proper funding. It’s austerity dressed up as ambition, and Kiwis are feeling the pinch. But don't expect the National Party to accept that their policies have failed to deliver anything but economic misery for most New Zealanders.
We’ve reduced wasteful government spending and now we’re going for growth to create more jobs, lift wages and help Kiwis with the cost of living.
— NZ National Party (@NZNationalParty) April 27, 2025
