Lawyers an exogenous
As we end the year in worse financial shape then we began it ,the RB has imposed further constraints to slow inflation and growth.The prognosis for NZ is not good for 2006, even though on a world scale other economies are expected to still have above average growth.
Every commentator and political pundit has been examining the entrails of road kill to prophecise the coming year and forward their own solutions.
It was surprising that in an election year there was no proposition for economic growth,or innovation.The election was solely about pork barrel politics and the largesse to the moving share of the undistributed middle.
Indeed the last 6 -8 years has been about constraint and not about expansion.There is not 1 policy that has been directly attributible to macroeconomic growth.Instead of promoting R&D and innovation constraint has been a prime component of the legislature,with reactive legislation to very dubious studies and research,mostly as carbon copies of EC and UK social and destructive agendas.With electoral margins around the margin of error we have seen the tail wagging the dog and we know what you find under the tail.
As the move from post industrial to service economies there is less optimisation of productivity due to the nature of the industrial and service complexes that remain.
Specialization of the agriculture and scientific R&D areas has lessened due to funding being redirected to feel good projects for the conscience belts of Kelburn and Parnell.
Scientific and industrial research has been reduced at CRI and universities to provide increased finance for Social indoctrination and regulation and the increased funding of Law schools.
Do we need increased funding for law schools?do we need more regulation?more lawyers?In a word NO.
We already have more lawyers then LA.We have 265% more lawyers then the mean of 7 sample countries in the following graphs.A quick sampling of the OECD 2005 figures found that there can be seen to be correlation between poor growth,balance of payments ,and GDP that is related to the exogenous variable of the quantity of lawyers in each country.
If we want to increase our GDP and a number of commentators suggest the emulation of the Celtic Tiger economy of Ireland or that of Finland and the Nordic countries .We should immediately export 50 % of our lawyers.Remember the main purpose of a lawyer is not to follow the law,but to reinvent the interpretation,intent, and purpose by obusification,exaggeration, and ommission.
Ireland and NZ in most areas are comparative with similar education,population etc.Irelands per capita GDP is 50% greater then NZ.The health demographics,education and social parameters are similar the main difference is in NZ there are 8280 lawyers, in Ireland 1479. Finland has 1662.Sweden with twice the population of NZ has 4129.
The emerging economies and the poorer performing OECD countries such as Greece and Portugal have similar ratios of lawyers per 1000 people as NZ .
NZ 265% more lawyers per 1000 people then the sample mean
NZ 30 % below mean of sample population.