Phil Goff has picked up on the point I made yesterday: while unemployment is falling in Australia due to the $42 billion stimulus package implemented by the Rudd Government, in New Zealand unemployment is still rising while this do nothing government sits on its arse, and unemployment here is now higher than in Aussie for the first time in a decade.
David Farrar, trying to cover for Do Nothing Key, responds to Goff:
“So why does Australia now have lower unemployment? Because New Zealand went into recession, and Australia did not. And no this was not a post credit crisis recession. New Zealand’s economy started shrinking in the first quarter of 2008, and kept shrinking until the second quarter of 2009.
Now people may be wondering who was responsible for the economy in the first quarter of 2008. Well a Phil Goff was an Associate Minister of Finance. So when Phil wonders why Australia now has lower unemployment than NZ, he doesn’t have to go far to ask how come.”
You’ve got to be kidding me. There was a worldwide recession, David. Australia only avoided recession by a hair’s breadth thanks to the stimulus package. New Zealand entered recession in Q1 2008, the same quarter as the US, Canada, Denmark, Ireland, and Slovakia entered recession. It was the beginning of the global recession due to record oil prices, the housing bubbles bursting, and the sub-prime crisis/credit crunch, which threatened the global financial system. At the same time, we suffered a major drought. Yet, David wants us to believe (I don’t think for a second that he believes it himself) that this was the fault of the Associate Minister of Finance.
Come on, David, shows us how that works. Show us how Associate Finance Minister Phil Goff caused the recession. Show us the cause and effect logic. At the same time, I’m sure you can provide us with proof that the awful weather in Wellington is Obama’s fault.
Talk about making a laughingstock of yourself, David.
The recession was a global phenomenon, not the fault of either New Zealand government. But the Government could choice how we reacted to the recession, and how we react now in its aftermath. While Labor in Australia chose a strong response focused on creating green jobs, National chose to do nothing and unemployment has risen remorselessly ever since.