Economic cake

Your correspondent Dr John Hawkes (NZ Herald, May 17) calls for a larger economic cake . That is no solution for public expenditure shortfalls.
Economic growth is a function of mobilised savings productively invested, chiefly in high-return export industries, research and development (R&D) and infrastructure.
But economic growth, although necessary, is not a sufficient condition for higher living standards.
A nation's living standards are determined by its national income and the number of people sharing it.
The 1985 OECD Report on the New Zealand Economy noted our economic growth between 1950 and 1984 was close to the OECD average but strong population

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