One salient point made by NZ Prime Minister John Key in his recent interview with the WSJ was that governments everywhere had a responsibility to be realistic about their limitations in dealing with recessionary conditions. This is both important and unpopular with politicians.
He noted that N.Z. and especially government policies had little influence on the global economy. That is true for most if not all economies.
The worst of government intervention is the empty promise, the hopes thrown out then dashed – examples abound – in investor protection regulation, in consumer protection schemes and in occupational licensing.
Realism with a belief in how much can be achieved with the right incentives and positive action by individuals supported by strong government ground rules is a preferred path.
Monitor then the extent, if any, to which Key’s point is taken up by other leaders…