Our brilliant economy

Written By: - Date published: 10:49 am, June 16th, 2017 - 51 comments
Categories: class war, economy, national, useless - Tags: , , , , ,

Do voters really vote on “the economy”? I’m not so sure, but if they did, they shouldn’t vote for this lot. Grant Robertson:

Economy stalling after nine years of National’s complacency

The second successive quarterly fall in per person growth shows the need for a fresh approach to give all New Zealanders a fair share in prosperity, says Labour’s Finance spokesperson Grant Robertson.

Data released by Statistics New Zealand today shows that GDP per capita fell 0.1 per cent in the March Quarter, following an 0.2 per cent decline in the December Quarter. Exports fell 0.4 per cent, following a 3.2 per cent decline in the December Quarter and a 1.1 per cent decline in the September Quarter. The construction sector shrunk 2.1 per cent.

“After nine years, National is asleep at the wheel. The economy is going backwards on a per person basis, the export sector is in recession, and, now, construction is falling too. Relying on population growth and an overheated housing market to prop up the economy is a dangerously complacent approach.” …

In other headlines just this week:
Second quarter of slow growth for economy
NZ economy grows smaller-than-expected 0.5% in 1st quarter
Higher NZ deficit disappoints and surprises banks
Big Read: Hey! Where did my pay rise go?
NZ’s weak productivity in OECD’s sights
A cure for a productivity recession
Economy not meeting the needs of working people – where is the Governments strategy?
Our environment’s crucial role in the economy
NZ economy growing, but house prices a risk – OECD report
And one older piece:
New Zealand’s economic growth driven almost exclusively by rising population

I’m not a fan of “growth growth growth”. We need new thinking on the economy – zero emissions, sustainable, a big redistribution from rich to poor. But the list of woe above shows that even on their own old conventional terms the Nats are useless economic managers.

51 comments on “Our brilliant economy”

  1. Philj 1

    It’s mathematically impossible to have continuous growth. There must always be a reset or crash.
    Why do politicians or economists not acknowledge this?

    • Draco T Bastard 1.1

      It’s mathematically impossible to have continuous growth.

      Actually, it’s mathematically possible to have continuous exponential growth. If it wasn’t we’d have economists telling us that we can’t have it.

      But it is physically impossible which shows just how disconnected from reality economists, most politicians and all RWNJs are.

  2. Draco T Bastard 2

    Data released by Statistics New Zealand today shows that GDP per capita fell 0.1 per cent in the March Quarter, following an 0.2 per cent decline in the December Quarter.

    Definition of recession:

    In economics, a recession is a business cycle contraction which results in a general slowdown in economic activity.[1][2] Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise. In the United Kingdom, it is defined as a negative economic growth for two consecutive quarters.

    We’re now in a recession.

    So much for he ‘Rock Star Economy’ that National told us we had.

  3. Carolyn_nth 3

    I was stunned this week to hear Steven Joyce touting how the government was working on productivity, like they were already working on it… so all good for Natz, it seems.

    But, after 9 long years, the Natz with NZ productivity stalled or going backwards, the Natz are only now starting to work on it?

    And, yep, we need a sustainable economy that works positively for the many, not an economy that looks good on a spreadsheet but works well only for the few. And we need an economy that works for all people, communities and the environment.

  4. Sorrwerdna 4

    The sky is falling -OMG 0.1% decline

    • Draco T Bastard 4.1

      And the RWNJ comes in with the usual dismissal of the increasing poverty that their policies create.

      • Sorrwerdna 4.1.1

        I thought the discussion was on economic growth not poverty

        • Draco T Bastard 4.1.1.1

          GDP going down per capita means an increase in poverty.

          • Andrew 4.1.1.1.1

            And yet, GPD per capita is still much higher than when Labour where in office.

            • Draco T Bastard 4.1.1.1.1.1

              And?

              There’s still been an increase in poverty.

              Income inequality: How NZ is one of the worst in the world
              NZ’s child poverty highlighted in Amnesty report
              facts about poverty

              There may have been an increase in GDP but all the benefits and then some have gone to the rich.

              Striking it Richer: The Evolution of Top Incomes in the United States
              The Gains From the Economic Recovery Are Still Limited to the Top One Percent

              Those are from the US but the same thing is happening in NZ.

              What we’re seeing is how that increased poverty is now impacting the economy.

            • Grafton Gully 4.1.1.1.1.2

              There was an earthquake, remember ?

            • Macro 4.1.1.1.1.3

              what a load of cock!
              So you take it that GDP is a measure of welfare then?
              Obviously you are completely ignorant of just what it is that GDP measures.
              To quote Bobby Kennedy in 1968

              University of Kansas, March 18, 1968

              Even if we act to erase material poverty, there is another greater task, it is to confront the poverty of satisfaction – purpose and dignity – that afflicts us all.

              Too much and for too long, we seemed to have surrendered personal excellence and community values in the mere accumulation of material things. Our Gross National Product, now, is over $800 billion dollars a year, but that Gross National Product – if we judge the United States of America by that – that Gross National Product counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage.

              It counts special locks for our doors and the jails for the people who break them. It counts the destruction of the redwood and the loss of our natural wonder in chaotic sprawl.

              It counts napalm and counts nuclear warheads and armored cars for the police to fight the riots in our cities. It counts Whitman’s rifle and Speck’s knife, and the television programs which glorify violence in order to sell toys to our children.

              Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials.

              It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile.

              And it can tell us everything about America except why we are proud that we are Americans.

      • Gosman 4.1.2

        Poverty hasn’t moved much in the past 20 years

  5. Macro 5

    Those of us on the left know full well that it is perfectly possible to have prosperity without continual growth – assuming a stable population. Obviously if you have a growing population then the economic activity to provide the prosperity will need to grow as well.
    NZ already has sufficient economic activity to provide prosperity for all its citizens – the problem is that it is not equally distributed. We all know the reason why, and how it came about. However, the process to reverse this inequality will need a very strong vote from the population, because lets face it, the ones who did alright out of the changes 30 odd years ago are, by and large, (for purely selfish reasons) not going to want to reverse them. There is only one way we can reverse the “user pays” ideology of the mid ’80’s 90’s, .. etc. and that is to begin a movement for equity. And the only way you start a movement is through actually talking and listening to people. You don’t need fancy signage, you just need active people, committed to change, getting out door knocking, and saying “hello how are things with you?” This is the way JC in UK and Bernie in the US carried out their campaigns, and they are still doing today. Like Rachael used to say: “It won’t happen overnight – but it will happen”

  6. mlpc 6

    For a more balanced and impartial view:

    “New Zealand continues to enjoy a strong, broad-based economic expansion.

    Strong economic growth is being driven by booming tourism, strong net inward migration, solid construction activity, and supportive monetary policy.
    The fiscal position is sound, with low public debt and a balanced budget. The major vulnerability facing the economy is high levels of household debt associated
    with rapid house price increases, particularly in Auckland. New Zealand is also exposed to protectionist trade policies abroad and to slowing Chinese economic
    growth. While the short-term economic outlook is strong, there are long-term challenges from low productivity growth and a changing labour market. ”

    (OECD Economic Survey of New Zealand, 2017)

    Not brilliant, but far from bad, especially compared to most advanced economies.

    • Draco T Bastard 6.1

      Link?

    • peterh 6.2

      low public debt ? half a trillion and increasing

      • Andrew 6.2.1

        That would be private debt, not public. Compared to the rest of the world, NZ has one of the lowest public debt-to-gdp ratios in the world.

        • mlpc 6.2.1.1

          Correct, Andrew.
          According to the IMF, amongst advanced economies, only Estonia, Luxembourg and Hong Kong have a lower public debt to GDP ratio than NZ.

          • One Two 6.2.1.1.1

            How about you explain what ‘money’ really is then..

            Just how did the ‘debt’ accumulate, and to whom does the public of Nz ‘owe’ the ‘debt’ to?

            Should human beings be born into ‘debt’…do you think?

            • mlpc 6.2.1.1.1.1

              Not sure what you mean by the first bit, but there has been public debt for many years.
              It was around $20 billion for a while before the GFC and the earthquakes and then it blew out to around $70 billion. It is now in the low $60 billions and slowly decreasing.
              The debt is owed directly to banks in NZ and overseas, but it might be owed indirectly to you if you have Kiwisaver and other financial investments.

              Whether human beings should be born into debt is a good topic for debate, but I guess it depends on what the debt is for.
              Is debt ok if it is used for infrastructure investment? Most people would probably say yes.
              Is debt ok if it is used to cut the top rate of tax? Most people would probably say no.
              Some people pass on a debt to their kids if their mortgage is not paid off, but the kids probably wouldn’t complain if there is a good amount of equity.
              Many successful businesses have debt, but that is ok if it is less than the value of the assets and the businesses is profitable.

              • mordecai

                The majority of posters here would have no idea about the nations debt, they simply regurgitate the talking points handed to them by their labour party enablers.

                • Gosman

                  Agreed. Also they don’t understand the best way of dealing with the debt issue is to give Tax breaks to people so they can pay off their debt.

                  • left_forward

                    Neo-liberal dogma: Thereby increasing public debt and reducing expenditure on public services such as health and education.

                    • mordecai

                      Tax breaks actually lead to a higher tax take, because people use their higher disposal income to spend.

                • Stuart Munro

                  You’re unusually backward for a troll Mordecai – the Labour party want us to follow like good little sheep – they hate us.

                  • mordecai

                    I am neither a troll nor backward. You might not be a Labour supporter, but a large number here are.

                • left_forward

                  Most of the posters here will remember well the Clark Government’s successful reduction of public debt – which was quickly undermined when the Natz arrived by tax cuts for the wealthy and selling high earning public assets

                  • Stuart Munro

                    Yes, in fact I have much more respect for Cullen than I ever had for Clark. But the hate is true – they won’t talk to me, they mobilise their identity politics against us and play their weird games.

                    “Talking points from Labour” as if.

                  • mordecai

                    Rubbish. The Government borrowed to fund the rebuilding of Chch, and the GFC. Are you suggesting the left would have run down social spending instead?

                    • Stuart Munro

                      They borrowed more than enough to rebuild Christchurch but they misdirected it. It hasn’t been rebuilt.

                      That’s not what success looks like – that’s endgame of a failed state.

                    • left_forward

                      No not all, but (again) they wouldn’t have reduced taxes for the wealthy and sold high earning public assets.

                    • Grafton Gully

                      The Governement is tired and dysfunctional. All the little resentments and jealousies have built up. You can tell by looking at them. And that weird stuff with the likes of Chai Chuah. Time for a clean out !!

                    • mordecai

                      “It hasn’t been rebuilt.”
                      No. All those new properties, roads and other infrastructure I saw the other week are a figment of my imagination.

                    • mordecai

                      “No not all, but (again) they wouldn’t have reduced taxes for the wealthy and sold high earning public assets.”
                      1. Taxes were reduced for everyone, not just high income earners.
                      2. Those public assets are returning a higher dividend now than they did before.

                    • mordecai

                      “The Governement is tired and dysfunctional.”
                      And yet immensely popular.

        • Macro 6.2.1.2

          What a load of nonsense

          In 2016 New Zealand public debt was 53,698 million dollars, has increased 2,494 million since 2015.

          This amount means that the debt in 2016 reached 29.5% of New Zealand GDP, a 0.06 percentage point fall from 2015, when it was 29.56% of GDP.

          If we check the tables we can see the evolution of New Zealand debt. It has risen since 2006 in global debt terms, when it was 17,501 million dollars and also in terms of GDP percentage, when it amounted to 15.95%.

          According to the last data point published, New Zealand per capita debt in 2016 was 11,311 dollars per inhabitant. In 2015 it was 11,019 dollars, afterwards rising by 292 dollars, and if we again check 2006 we can see that then the debt per person was 4,158 dollars .

          The position of New Zealand, as compared with the rest of the world, has improved in 2016 in terms of GDP percentage. Currently it is country number 38 in the list of debt to GDP and 152 in debt per capita, out of the 185 we publish.

          http://countryeconomy.com/national-debt/new-zealand

  7. Keith 7

    Our housing market is now firmly run aground. We cannot and under National will not he able to build our way out of the mess they have overseen because land prices and land bankers are now halting expansion.

    Demand in their utopia will ALWAYS exceed demand.

    The National Party cannot fix this, they’re personally involved and ideologically blind.

    • Gosman 7.1

      What are Labour going to do to reduce land prices?

      • Craig H 7.1.1

        1% land tax on land values above $300K in area 1 on the new Accommodation Supplement list, $200K on area 2, $100K on area 3 & 4. You heard it here first!

  8. saveNZ 8

    Our brilliant economy… bit early for satire isn’t it?

  9. Gosman 9

    How come The Greens and Labour don’t seem to agree with you on the big redistribution from rich to poor?

    • left_forward 9.1

      Troll question – of course they do agree with this – but not yet enough for progressives

  10. Smilin 10

    This govt is an extractionist producer of wealth, repaying so little to the environment that we are in decline of a our natural resources
    This is a crime organised by bankers and the finance industry who are the last people you need in a govt
    Everything that happens is valued in monetary terms because its the easiest way to manipulate the population so the 1% can carry on creating a model to pressure human existence into what their idea of civilization is rather than what it should be that will sustain it and not head as at present to a never any decline and this country will be nothing in 100 yrs either by our efforts or natural events
    Get scared its going to happen

  11. Philj 11

    Informed youth are waking up to the seriousness of the modern world as reality is beginning to bite. We have to work together when powerful forces are driving us apart. This is global and inevitable. Love and respect, not hate and fear.

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    I have no special insights to offer on the Labour sexual assault coverup. All I have is disgust. Disgust that an organisation could fail its people so badly. Disgust that they punished the victims rather than the perpetrator. Disgust that its party hacks are apparently blaming the victims for demanding ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Speak Up for Women calls out Greens’ censorship
    This open letter to the Green Party was penned after an opinion piece by Jill Abigail, a feminist and founding member of the party, was censored by the Greens’ leadership. (Redline has reprinted her article here).The intolerance of the Green Party leaders and their acceptance of the misogyny of gender ...
    RedlineBy Daphna
    1 week ago
  • Member’s Day: End of Life Choice, part 3
    Today is a Member's day, and David Seymour's End of Life Choice Bill continues its slow crawl through its committee stage. They're spending the whole day on it today, though the first hour is likely to be spent on voting left over from last time. After that they'll move on ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Flight to Los Angeles turned back after passengers decide they don’t want to go anymore
    An ambitious plan to fly to Los Angeles petered out into a brief sight-seeing trip and a desire to return home and get some sleep before work tomorrow. Air New Zealand has confirmed a flight to Los Angeles last night was turned back about a quarter of the way into ...
    The CivilianBy admin
    1 week ago
  • Indigenous Futures: defuturing and futuring – an analytical framework for policy development?
    There appears to be consensus – by omission – that the concept of indigenous futures should be accepted at face value. So I scavenged the internet to see if I could locate an academic descriptor or a framework around how we think about it as a concept, and whether it ...
    EllipsisterBy Ellipsister
    1 week ago
  • Cadbury rumoured to be releasing the Pineapple Trump
    Here’s another novelty chocolate to shove in your gob, New Zealand Cadbury could be seeking to make itself great again with a rumoured new release: Pineapple Trumps, a spin on its classic chocolate-encased pineapple treat and do-it-yourself tooth remover. The global confectionery manufacturer and bumbling “before” character in an infomercial, ...
    The CivilianBy admin
    1 week ago
  • The coming resource war.
    During my time in the Pentagon I had the privilege of sitting down with military leaders and defence and security officials from a variety of Latin American nations. Sometimes I was present as a subordinate assistant to a senior US defence department official, sometimes as part of a delegation that ...
    KiwipoliticoBy Pablo
    1 week ago
  • Māori Language Week with The Civilian
    Kia ora, Aotearoa. It’s that magical time of year. Te Wiki o te Reo Māori. In English, the week that frightens talk radio. As you probably know by now, all your favourite media outlets are participating, some more successfully than others. Stuff has changed its name to Puna for the ...
    The CivilianBy admin
    1 week ago
  • Will Horizons act on climate change?
    Local body elections are coming up next month. And it looks like all Palmerston North candidates for Horizons (the Manawatu-Whanganui Regional Council) want to take action on climate change:Climate change is set to be a key issue in Palmerston North for the next three years if those wanting to get ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • BORA reform is stalled
    Eighteen months ago, the government promised to strengthen the Bill of Rights Act, by explicitly affirming the power of the courts to issue declarations of inconsistency and requiring Parliament to formally respond to them. So how's that going? I was curious, so I asked for all advice about the proposal. ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Corbyn and Brexit
    As the Brexit saga staggers on, the focus is naturally enough on the Prime Minister and his attempts to achieve Brexit “do or die”. But the role played by the Leader of the Opposition is of almost equal interest and complexity. The first problem for Jeremy Corbyn is that he ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • A ditch for him to die in
    Last week, English Prime Minister Boris Johnson boldly declared that he would rather die be dead in a ditch than delay Brexit. Unfortunately for him, the UK parliament accepted the challenge, and promptly dug one for him. The "rebellion bill" requires him to ask for and secure yet another temporary ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Warning! Warning! Danger Jacinda Ardern! Danger Marama Davidson! Warning!
    Lost In Political Space: The most important takeaway from this latest Labour sexual assault scandal, which (if I may paraphrase Nixon’s White House counsel’s, John Dean’s, infamous description of Watergate) is “growing like a cancer” on the premiership, is the Labour Party organisation’s extraordinary professional paralysis in the face of ...
    1 week ago
  • Union solidarity with Ihumatao land occupation
    by Daphna Whitmore Every Sunday for the past two months unionists from First Union, with supporters from other unions, have set out to the Ihumatao land protest, put up gazebos and gas barbeques, and cooked food for a few hundred locals and supporters who have come from across the country. ...
    RedlineBy Daphna
    1 week ago
  • Climate Change: The wrong kind of trees?
    Newsroom today has an excellent, in-depth article on pine trees as carbon sinks. The TL;DR is that pine is really good at soaking up carbon, but people prefer far-less efficient native forests instead. Which is understandable, but there's two problems: firstly, we've pissed about so long on this problem that ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • No freedom of speech in Turkey
    Canan Kaftancioglu is a Turkish politician and member of the opposition Republican People's Party (CHP). Like most modern politicians, she tweets, and uses the platform to criticise the Turkish government. She has criticised them over the death of a 14-year-old boy who was hit by a tear gas grenade during ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Speaker: Tadhg Stopford: Why I’m standing for the ADHB
    Hi there, just call me Tim.We face tough problems, and I’d like to help, because there are solutions.An Auckand District Health Board member has nominated me for as a candidate for the ADHB, because her MS-related pain and fatigue is reduced with hemp products from Rotorua.  Nothing else helped her. If I ...
    1 week ago
  • Good little vassals
    The Inspector-General of Intelligence and Security has published their report on whether the SIS and GCSB had any complicity in American torture. And its damning. The pull quote is this:The Inquiry found both agencies, but to a much greater degree, the NZSIS, received many intelligence reports obtained from detainees who, ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Who Shall We Turn To When God, And Uncle Sam, Cease To Defend New Zealand?
    Bewhiskered Cassandra? Professor Hugh White’s chilling suggestion, advanced to select collections of academic, military and diplomatic Kiwi experts over the course of the past week, is that the assumptions upon which Australia and New Zealand have built their foreign affairs and defence policies for practically their entire histories – are ...
    1 week ago
  • The Politics of Opposition
    For most of the time I was a British MP, my party was out of government – these were the Thatcher years, when it was hard for anyone else to get a look-in. As a front-bencher and shadow minister, I became familiar with the strategies required in a parliamentary democracy ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • More expert comments on the Canadian fluoride-IQ paper
    The Green et al (2019) fluoride/IQ is certainly controversial – as would be expected from its subject (see If at first you don’t succeed . . . statistical manipulation might help and Politics of science – making a silk purse out of a sow’s ear). Anti-fluoride campaigners have been actively promoting it ...
    1 week ago
  • The return to guerrilla war in Colombia
    by Gearóid Ó Loingsigh On August 29th a video in which veteran FARC (Revolutionary Armed Forces of Colombia) commander Iván Márquez announced that they had taken up arms again was released. There was no delay in the reaction to it, from longtime Liberal Party figure and former president Uribe, for ...
    RedlineBy Admin
    1 week ago
  • Air New Zealand identifies this enormous plot of unused land as possible second airport site
    Air New Zealand couldn’t believe its luck that this seemingly ideal piece of real estate had so far gone entirely unnoticed. Air New Zealand’s search for a site to build a second Auckland Airport may have made a breakthrough this afternoon, after employees scanning Google satellite imagery spotted a huge, ...
    The CivilianBy admin
    2 weeks ago
  • Redline on the Labour Party
    No-one on the anti-capitalist left in this country today puts forward a case that Labour is on the side of the working class.  There are certainly people who call themselves ‘socialist’ who do, but they are essentially liberals with vested interests in Labourism – often for career reasons. Nevertheless, there ...
    RedlineBy Admin
    2 weeks ago
  • New Fisk
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Labour’s failure
    When National was in government and fucking over the poor for the benefit of the rich, foodbanks were a growth industry. And now Labour is in charge, nothing has changed: A huge demand for emergency food parcels means the Auckland City Mission is struggling to prepare for the impending arrival ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Ardern attempts to vaccinate Clarke Gayford live on television to prove that it’s safe
    Gayford, pictured here on The Project, before things got wildly out of control. A bold public relations move by the Government to encourage parents to vaccinate their children has gone horribly wrong. Prime Minister Jacinda Ardern appeared on tonight’s episode of Three’s The Project, where the plan was for her ...
    The CivilianBy admin
    2 weeks ago
  • Has Mr. Whippy gone too far by parking on our front lawns?
    Mr. Whippy’s business model has driven it down a dark road of intimidation. Residents in major centres around the country are becoming disgruntled by the increasingly aggressive actions of purported ice cream company Mr. Whippy, who have taken to parking on people’s front lawns and doorsteps in a desperate attempt ...
    The CivilianBy admin
    2 weeks ago
  • Cleaning up the water
    Today the government released its Action Plan for Healthy Waterways, aimed at cleaning up our lakes and rivers. Its actually quite good. There will be protection for wetlands, better standards for swimming spots, a requirement for continuous improvement, and better standards for wastewater and stormwater. But most importantly, there's a ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Fronting up
    Today I appeared before the Environment Committee to give an oral submission on the Zero Carbon Bill. Over 1,500 people have asked to appear in person, so they've divided into subcommittees and are off touring the country, giving people a five minute slot each. The other submitters were a mixed ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Politics of science – making a silk purse out of a sow’s ear
    Anti-fluoride activists have some wealthy backers – they are erecting billboards misrepresenting the Canadian study on many New Zealand cities – and local authorities are ordering their removal because of their scaremongering. Many New Zealanders ...
    2 weeks ago
  • Democracy – I Don’t Think So
    So, those who “know best” have again done their worst. While constantly claiming to be the guardians of democracy and the constitution, and respecters of the 2016 referendum result, diehard Remainers (who have never brought themselves to believe that their advice could have been rejected) have striven might and main ...
    Bryan GouldBy Bryan Gould
    2 weeks ago

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