NZ Herald
  • Home
  • Latest news
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather forecasts

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
    • The Great NZ Road Trip
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
    • Cooking the Books
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • What the Actual
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Personal Finance

Bernard Hickey: Shopping our way into debt

Bernard Hickey
By Bernard Hickey
Columnist·Herald on Sunday·
16 Oct, 2016 02:43 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

The wait is over for fans of fashion retailer H&M as the brands first New Zealand store opens its doors to the public.
Bernard Hickey
Opinion by Bernard Hickey
Bernard is an economics columnist for the NZ Herald
Learn more

Two apparently unrelated things happened in the first week of October that say so much about New Zealand these days.

First, the world's two biggest "fast fashion" chains, H&M and Zara, opened shops here, creating the kind of scenes we've not seen before.

Hundreds queued at the openings at Auckland mall Sylvia Park, generating wall-to-wall media coverage and the sort of enthusiasm and fandom usually reserved for pop stars.

A Google search for these store openings shows at least 1130 articles or references to them in New Zealand media in the past month.

I know of one woman who travelled from Tauranga for the H&M store opening, happy to queue for hours to get inside and for another hour for changing rooms.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

As a boringly dressed 49-year-old man I, of course, have no idea what is going on here, but I'm reliably informed there were frenzied scenes.

More than 300 people queued and there was applause and a rush for the racks when the door opened.

Remember, these were people queuing to pay money for clothes that can be bought any day of the week, from any computer on the planet, and there is no shortage of choice.

It is not queuing for bread in a war zone. It was an active choice by sane people willing to take time of out of their busy days to enthusiastically consume.

Something in the air (most probably Facebook) informed and enthused these people.

Discover more

Opinion

Hickey: Wrinkles to owning apartments

18 Sep 04:21 AM
Opinion

Hickey: Age and wage disparity so unfair

24 Sep 04:00 PM
Opinion

Hickey: We need truckies not cleaners

08 Oct 04:00 PM
Opinion

Bernard Hickey: Work rate drives wages

05 Nov 04:00 PM

It might be advertising or word of mouth or social media or mainstream media attention. It is now all around us, wrapped up and embedded in our economic and human geography.

Second, four days after the H&M opening and the day before the Zara opening, Treasury published a paper on the rise in New Zealand's household debt to record high levels relative to income.

Advertisement
Advertise with NZME.

It's fair to say there were no queues outside the Treasury's doors in Wellington for its release.

It showed household debt fell relative to incomes for a couple of years after the Global Financial Crisis of 2008 as we pulled our heads in and saved after a shock - but we got back on the spending horse in earnest from 2014 onwards.

Our household debt to income ratio of 165 per cent is now about 5 per cent above those previous highs of 2008 and rising quickly as debt rises around twice as fast as incomes.

That speed of growing indebtedness is not much worse than the bad old days of 2002-07 when New Zealand went on its biggest ever debt-funded spending spree.

This week I attended an OECD conference on saving hosted in Auckland by the Commission for Financial Capability.

We got back on the spending horse in earnest from 2014 onwards.

The opening speaker was an economic anthropologist, Ida Rademacher, from the Aspen Institute in the US.

Advertisement
Advertise with NZME.

She spoke about how international researchers were starting to look at the issue of debt and saving in a similar way to those who study obesity epidemics.

Our Western society has created an environment full of cues and prompts to encourage us to eat high-energy food as often and as cheaply as possibly - an obesogenic environment.

It has also developed into an economic geography that encourages us to spend money we don't have.

"We've created an environment that really facilitates over-eating and I'm thinking there's a very parallel piece where we've created an environment which facilitates overspending," Rademacher said.

She pointed to human geographers in Britain who are now conducting studies of a "debtogenic" environment that has developed in some cities that are now packed with betting shops, payday lenders, clothes shops and ads to encourage spending.

"There's this idea that we have made it so easy with the financialisation of our world.

Advertisement
Advertise with NZME.

"It's so easy to spend.

"It's like the Eskimos have 18 words for snow and none for other things. I think we have a 1000 words for spending and very few for saving, so there's a lot of ways we have to change the environment to make it as easy to save as it is to spend.

"There are ways you can look at obesity epidemics as being very similar in terms of what do we have to do around changing the systems and the culture, and not just the information, so different choices are not just possible, but different choices are being normalised."

Forty years ago most shopping malls and pubs and offices were full of smoke and cigarettes could be bought easily and much more cheaply at any dairy.

After decades of legal, political and social changes, smoking is no longer "normal".

No one at the queues at Sylvia Park was smoking, but they were spending money, and many were spending money they didn't have.

Advertisement
Advertise with NZME.
Save

    Share this article

Latest from Personal Finance

Premium
Business|personal finance

‘Rip-off’: App developer and Consumer say fees will stifle open banking

08 May 11:00 PM
Premium
Business|companies

Govt warned it'll be lumped with bigger bill than insurers if disaster strikes

06 May 04:16 AM
Premium
Business|personal finance

Nearly 500k people behind on loan payments, mortgage arrears hit eight-year high

05 May 05:00 PM

One tiny baby’s fight to survive

sponsored
Advertisement
Advertise with NZME.

Latest from Personal Finance

Premium
‘Rip-off’: App developer and Consumer say fees will stifle open banking

‘Rip-off’: App developer and Consumer say fees will stifle open banking

08 May 11:00 PM

Government, banks respond.

Premium
Govt warned it'll be lumped with bigger bill than insurers if disaster strikes

Govt warned it'll be lumped with bigger bill than insurers if disaster strikes

06 May 04:16 AM
Premium
Nearly 500k people behind on loan payments, mortgage arrears hit eight-year high

Nearly 500k people behind on loan payments, mortgage arrears hit eight-year high

05 May 05:00 PM
Premium
Floating rate fad helps Westpac's profit grow 10%

Floating rate fad helps Westpac's profit grow 10%

05 May 04:37 AM
Connected workers are safer workers 
sponsored

Connected workers are safer workers 

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • What the Actual
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven CarGuide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP