Changes were rammed through in short order that made competition paramount, ended protectionism, welcomed foreign investment, freed the New Zealand dollar from exchange controls, started a massive slimming down of government with a focus on privatization, and brought government more financial discipline and openness. Personal and corporate income taxes were cut up to 50 percent but loopholes were pretty well wiped out. Wholesale taxes were abolished. In the first years unemployment surged to nearly 11 percent. It has dropped to about 6 percent since 1991.
Average incomes are up.
National revenues are up. The government has begun running surpluses. New Zealanders still have only 60 percent of the per capita income of Americans but are closing. Growth has slowed recently but is considered to be on a sound long-term track. Inflation is being held close to 2 percent.