The government at times instructed the Reserve Bank to extend credit to the public sector, especially in aid of the state housing programme. Neoliberalism and state interventionToday's government's housing policy is also coloured by its ideological leanings. But a red-hot house market had already been allowed to drive economic growth, while deeply entrenching social and economic inequality. "The housing market is New Zealand households' preferred store of wealth, so what happens to housing has a huge impact on the broader economy. "I don't think the Labour government would fix the housing crisis the way the First Labour Government did.

Source: New Zealand Herald August 14, 2021 04:00 UTC