Part 1- a 🧵

1/8 Breaking down the AWESOME economy of NZ in a 🧵 from a video by "Economics Explained" Here's why you should read on:

• NZ's economy favors commoners, startups and workers alike
• The country is led by a woman. Need I say more?

The jargon is explained in the 7th tweet

2/8 Do you think high GDP means high wellbeing? Well... 🤔 Despite a relatively modest value of GDP per capita, NZ has a high level of wellbeing, further proving the incompetence of GDP per capita as a measure of living standards

3/8 A connection between personal finance and a country's finance 👇🏻 Think of a working commoner living comfortably, saving their income for the future and a flashy billionaire drowning in debt

Who would you consider a better financial success? Yes, it is the commoner

4/8 This is exactly how NZ has maintained a near- perfect economy Agriculture- it is not a primary occupation in most developed countries as they prefer a capitalist economy But in NZ, agriculture has a high share in the national output thanks to a decision made in 1987 👇🏻

5/8 The decision was- removing farmers' subsidies. This resulted in the farmers:

• Cultivating profitable crops
• Using new technology
• Reducing fertilizers and pesticides as they became expensive
• Marketing and Branding their products better, raising international sales

6/8 There was a clear line b/w the functions of the free market and the government which is a challenge to implement

• Free markets were only for value adding industries
• The government undertook public and worker protection, green initiatives and development of infrastructure

7/8 Now for some jargon aka 'how to speak like an economist'

• GDP per Capita: value of a country's goods and services generally in a year, divided by its population
• Subsidies: discounts by the government to make essential items available to the public at affordable prices

8/8 Check out part 2 of Breaking down the AWESOME economy of NZ in a Thread where I go deeper into its Business and Startup side, and giving you motivation to move to NZ and startup! 8/n Fin n=8

Part 2- a 🧵

1/8 This is part 2 of Breaking down the AWESOME economy of NZ in a 🧵

Here is part 1, where I talked about how NZ is doing awesomely in the agricultural and industrial sector As always, the jargon which will be in the 7th and 8th tweet

2/8 NOW for the fun part...the Business and Startup side of New Zealand NZ:

• Attracts international investors
• Protects workers' rights
• Maintains the intellect of the population through strict immigration laws. More about this soon

Read on to find out how! 👇🏻

3/8 New Zealand is ranked #1 out of 190 economies for the 'Ease of doing Business, a World Bank publication! 💯

It ranks how easy it is to do businesses in countries by measuring the smoothness to:

• Deal w/ construction permits
• Protect investors
• Pay taxes and more!

4/8 (shocker below!) New Zealand has high tax rates to maintain surplus budget and to reduce their national debt However, NZ is scores high in the other fields above

The government spends towards:

• Green initiatives and infrastructure development
• Enforcing workers' protection

5/8 To maintain the fairness of businesses and companies, there is:

• An emphasis on dispute resolution
• No bureaucracy- to provide confidence to the businesses
• No risk of unfairness or having capital destroyed

Read on for how entrepreneurs and the consumers are benefitted! 👀

6/8 The results of the above:

• A levelled playing field between developing and developed businesses
• One of the least corrupt government systems in the world
• 18% of the people being self employed (a LOT of startups! ✨)
  • All the factors of production utilized completely

7/8 Hope this was good motivation for you to startup in NZ ✈️

Now for some jargon aka 'how to speak like an economist'

• Factors of production: the 4 main inputs that are needed to produce goods
• Surplus budget: a governmental budget where revenues > expenditures

8/8

• Construction permit: an official document that gives you permission to build on land or to make changes to a building
• Bureaucracy: a system of government in which most of the important decisions are taken by state officials rather than by elected representatives Fin n=8

Part 3- a 🧵

1/7 This is part 3 of Breaking down the AWESOME economy of NZ in a 🧵 Every point needs a complement. So, lets take a 180° turn to talk about its shortfalls

This is part 2, where NZ is a haven for Startups! The jargon, marked with an asterisk is explained in the 7th tweet

2/7 NZ suffers from their own success: Because of the highly developed infrastructure, job opportunities, more people want to live in NZ. Hence, it sees a high immigrant* demand However, the government wants to maintain a skilled population and this is how they do it 🔻

3/7 There is a point based immigration system where one receives points based on the category they fall under these sections: Age, Employment, etc. along with bonus points!

One needs to meet the minimum threshold of 100 points to be able to lodge an Expression of Interest*

4/7 This means that financially independent, English- speakers get an easier entry than others Owing to the high demand of immigrants, there is an increase in the demand for capita, resulting in higher property rates

The property price can even exceed one's salary! 🤯

5/7 Australia and NZ have similar cultures, laws, even accents! And these didn't go unnoticed even by the government as they've set laws that allow people to move among both countries freely

NZ loses 27k young professionals to Australia annually due to its higher salaries

6/7 Despite this, NZ does well as it has played the long- term game of building a solid foundation upon which value adding businesses can thrive and constantly invest into their future! 💯

And remember, talking about downfalls📉 is as important as talking about achievements 📈

7/7 Now for some jargon aka 'how to speak like an economist'

Immigrants: the international movement of people to a country of which they are not natives or do not possess citizenship

Expression of Interest: is an application indicating interest from a person to enter a country Fin n=7