No need to be bashful, it’s no secret; if there’s something that we in New Zealand do well, one thing we do better than any other nation in the world, it’s price-gouge.

Sure, some laugh off such an assertion, attempting to justify, using the term ‘opportunistic’, trying to sound as if they understand economics with the label ‘supply and demand’ but others, other honest Kiwis hang their heads ashamedly, obliged to accept New Zealand’s shameless gouging for what it is.

It’s basically extortion and, largely directed at tourists, largely by a nation of people hoping to re/build their country’s reputation as a tourism destination, here’s the thing about our world-renowned Kiwi sales technique; if we don’t curb this unmitigated avarice, this compelling desire to accumulate greater wealth than the next person, simply, as a nation, we will price ourselves out of the international market.

For decades New Zealand has enjoyed the tags of being a ‘clean’ ‘green’ ‘pristine’ ‘beautiful place to visit’ although rather ‘expensive’; few years ago, pre-COVID, back when tourists had money, this was fine – the Stavely Café could push its $7 homemade toasted (half) sandwiches and Frank’s Eatery could sell its $1 cupcake bites for $2 – but today, post COVID-19 pandemic, this unashamed price-gouging isn’t going to work.

Disenchanted tourists aside, did we as a nation, amid our feverish rapacity – can anyone say 800% mark-up on ‘Metallica tickets’? – maybe stop to consider what our gouging is doing to inflation in New Zealand?

Remember ‘supply and demand’? Yeah, well, regarding economic acumen consider this reality; retailers increase the price of their products because outside costs are ever-increasing and store-owners refuse to accept anything less than a gargantuan profit margin, thus consumers are now paying more for their products, therefore consumers need to earn more to continue to be able to buy that product, thus the New Zealand Government forces employers to pay a wage increase, therefore employers continue to raise prices of commodities to cover their increased cost, thus consumers will continue to demand increased wages because everything now costs more, therefore retailers are beholden to charge still more to cover renewed costs, and so on.

Expenses up, wages up, expenses up, wages up, expenses – what is the term describing the depreciation of the value of money, essentially caused by a global populous of money-hungry, wealth-driven, avarice-inspired, rapacious idiots?

This phenomenon is inflation which, together with the international realisation that New Zealand as a tourist destination is not worth the prices that it charges, might be a step closer to the end of financial prosperity in this Great Southern Land.

Forget tourism though, we’re now focused, communistic, exemplifying the importance of ‘buying local’ and such; sure, so, given that the price of a Flat White from a local coffee shop, in five years, has gone up from $3.50 to $4.60 – around 25% – I wonder if wages have increased by a quarter?

Probably not, no.

It starts with tourists but inevitably, soon we’re going to be gouging ourselves.

Article by Tim Walker

Edited by Fix A Price

Photography by Ave R Wrist