British economist Gary Stevenson, who's gained a following as the "People's Economist," delivered a blunt message to New Zealanders during his tour: working hard won't make you wealthy in an economy built on asset appreciation.
According to Stuff, Stevenson is calling for wealth taxes on property and assets, arguing that New Zealand's economic structure has made traditional pathways to prosperity increasingly inaccessible for younger generations.
It's a message that's resonating in a country where home ownership is increasingly out of reach. New Zealand has one of the most expensive housing markets in the world relative to incomes, and the gap between property owners and renters is widening rapidly.
"The people who get rich are the ones who already own assets," Stevenson told audiences. "Working harder, getting better qualifications, none of that matters if you can't get onto the property ladder."
Mate, this is the uncomfortable truth that New Zealand has been avoiding for years. The economy has become a machine for transferring wealth from workers to asset owners, and no amount of hard work changes that equation.
Stevenson's proposal for asset taxes isn't new to New Zealand politics, but it's politically toxic. The country has long resisted capital gains taxes and wealth taxes, despite repeated recommendations from economists and tax experts.
The challenge is that property owners, who benefit from the current system, are also voters. Any government that seriously pursues wealth redistribution through asset taxation faces an uphill political battle.
But the status quo is increasingly untenable. Young are leaving for in record numbers, partly because housing there is more accessible despite higher absolute prices. The dream of home ownership is dying for an entire generation.
