This report was originally published on New Zealand Treasury.
Summary: There is a dynamic relationship between New Zealand’s long-term public finances and intergenerational well-being. Intergenerational well-being relies on the growth, distribution and sustainability of the four capitals – financial and physical capital; human capital (e.g. health and skills); social capital (e.g. institutions and trust); and natural capital (e.g. water and biodiversity).
Firms, households, and the government combine these four capital stocks in various ways to generate flows of goods and services that are consumed by people and enhance their well-being. Sustainable government finances are a precondition to improving long-term living standards. They reduce the risks associated with economic, social or environmental shocks, provide current and future generations with the opportunities to participate in society (by allowing governments to provide essential services and infrastructure), and give more certainty in the future for individuals and governments to plan…”
Read on and access the report at: New Zealand Treasury.