Does Market Liberalisation Work?

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Rich80105

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Oct 7, 2022, 12:43:59 AMOct 7
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https://www.pundit.co.nz/content/does-market-liberalisation-work

Easton comes across in his articles as a good thinker - I understand
he has advised both National -led and Labour-led governments - always
worth reading

Crash

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Oct 7, 2022, 4:53:31 PMOct 7
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On Fri, 07 Oct 2022 17:42:47 +1300, Rich80105 <Rich...@hotmail.com>
wrote:
Easton's writing concentrates on who benefited financially and
correctly identifies the imbalance.

What is missing though is an analysis of deregulation of supply
channels - understandable as thorough analysis of the market freedoms
that came with deregulation would be difficult and time-consuming for
(probably) no financial reward. I am thinking purely of NZ here.

Prior to the election of the Lange/Douglas government in 1984 we had
total government control on imported products. Those granted import
licences were frequently required to assemble finished goods in NZ
from imported components.

The motor vehicle industry is a case in point - all mass-market cars
were assembled here from mostly-imported components. The importation
of finished cars was granted to private buyers for a specific car
along with a requirement not to sell it for a few years. There were
many other constraints on car purchase - minimum 50% deposit if
financing used car purchase, overseas funds required to purchase new.

With consumer household products every TV available was either a PYE
or Philips, assembled in Waihi. White ware was all Fisher and Paykell
brands that were made in NZ from imported components although some
components were made here.

So what value can we place when deregulation brought so much more
product choices, including often significant quality improvements by
importing finished product manufactured in a country with highly
competitive domestic markets?


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Crash McBash
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