Written By: - Date published: 10:46 am, May 19th, 2022 - 13 comments
It is clear that we will continue to face these economic challenges with tools that are ill-equipped to face the problems. Only a truly international response can create an economy that delivers for all.
Written By: - Date published: 9:38 am, May 30th, 2017 - 40 comments
Bill English knows that our low wage economy is a ticking time-bomb for the government. He must be starting to get worried. The repeated promises of jam tomorrow are well worn out now.
Written By: - Date published: 4:13 pm, May 4th, 2017 - 8 comments
I/S at No Right Turn writes: “The CPI is out today, and it shows that the poor are getting poorer … This is a long-term trend. Since National took office, inflation for poor households has been nearly twice that of rich households.”
Written By: - Date published: 7:01 am, April 26th, 2017 - 31 comments
In the warm afterglow of the huge wage increase for health care workers the case for addressing NZ’s creaking low-wage economy is getting some recognition (along with the effect of immigration on wages).
Written By: - Date published: 7:02 am, January 25th, 2017 - 53 comments
Any increase in the minimum wage is better than nothing, but National’s increases have not kept pace with the real cost increases (notably housing) faced by low income earners. That is why we are seeing the rise of the working poor, and increases in homelessness and poverty.
Written By: - Date published: 6:52 am, January 29th, 2016 - 71 comments
Is Reserve Bank Governor Graeme Wheeler so concerned about the bogey of Auckland’s housing bubble that he is underestimating an equally nasty bogey – deflation? Deflation will certainly cure the problem of the property bubble, but that cure will be at a terrible cost.
Written By: - Date published: 2:56 pm, May 17th, 2011 - 40 comments
John Key at a press conference yesterday made some claims about wages, inflation and Treasury predictions that really need looking at a bit more closely.
Written By: - Date published: 12:50 pm, April 18th, 2011 - 11 comments
Back in October last year the Nats, in a sea of bad news on the economy, latched on to the low inflation rate as something that they could claim “credit” for. No doubt they will now be just as ready to accept blame for the worst inflation rate in 20 years. Almost half of this figure is driven by the Nats’ GST increase…
Written By: - Date published: 7:40 am, March 7th, 2011 - 62 comments
The government has a fair bit on its plate right now, like the Christchurch quake, and the hammering that ordinary folk are getting from the cost of living. So its reassuring to know that the PM’s office has its eye on the ball. It’s all over the “important issues”…
Written By: - Date published: 12:57 pm, January 24th, 2011 - 42 comments
Higher commodity and food prices, we are told are a Good Thing. Our exporters (ie. Fonterra and foreign oil companies) get more money. But we consumers have to pay more to by the same products, so are we better off? And what about the poor saps overseas who are paying more for less, or the really poor saps who are priced out of the market?
Written By: - Date published: 10:00 am, October 20th, 2010 - 32 comments
Trying to get my head around the economic arguments going on. Hearing contradictory things. Who’s telling the truth? ls Labour’s new overseas investment policy Stalinism that will ruin the economy, as Key claimed on Monday and Tuesday? Or is the same as the existing law, as Key claimed on Monday and Tuesday?
Written By: - Date published: 7:02 am, October 20th, 2010 - 44 comments
National have been running some fine lines of bullshit lately. Keith Ng’s recent post at Public Address calls them out on two of them. The first, National is trying to claim credit for low inflation. The Second, National is trying to claim that recent wage increases have been better than the previous 9 years. Keith takes the bullshit apart – dirty work, but someone has to do it.
Written By: - Date published: 1:00 pm, October 19th, 2010 - 27 comments
The Nats are trying to take credit for the fact that annual inflation in the year to September was the lowest since 2004. What exactly did they do? Dig into the numbers and the cause of the lower inflation is a weak global economy, not National. Already, inflation is climbing, 1.1% this quarter, and will break 5% next year thanks to the GST hike.
Written By: - Date published: 12:08 pm, May 22nd, 2010 - 54 comments
My wife and I are retired. We worked hard, we lived frugally, and we have a nest egg to get us through. Now John’s mob have come along and taken part of that nest egg away from us. 5.9% inflation will eat up our savings. The same will happen to the nest eggs of retired people or young people saving to buy a house up and down this country. How does that reward saving?
Written By: - Date published: 1:18 pm, October 21st, 2008 - 21 comments
Inflation hit 5.1% for the year to September driven by the mammoth spike in oil, food, and other commodity which has abated since then, for now. There is nothing that could be done to avoid this impact on New Zealand from international markets. The economy is already in recession, and now would be the worst […]
Written By: - Date published: 6:38 am, July 19th, 2008 - 30 comments
We’ve said this before but, seeing as BNZ chief economist Tony Alexander is in the Herald this morning saying ‘the October 1 tax cuts won’t cover inflation’, it’s worth restating: tax cuts are not and can not be the method by which people’s incomes are risen for inflation. Tax cuts cannot be cut year on […]
Written By: - Date published: 2:27 pm, July 16th, 2008 - 25 comments
This morning on Sunrise, John Key said “wage inflation” is a problem causing inflation and needs to be reduced. Wage inflation is a businessman’s way of saying pay increases. John Key opposes Kiwis getting the pay increases they need to cover the rising cost of living. This fits with his statement that “we would love […]
Written By: - Date published: 12:27 pm, July 15th, 2008 - 18 comments
Inflation was 1.6% in the last quarter, 4% annually, the highest in 13 years. Petrol is driving inflation. By itself petrol accounted for a 1.2% increase. Food is the other big increase, also accounting for a 1.2% and that is itself being driven by international oil prices. The price of oil is beyond our control […]
Written By: - Date published: 6:50 am, June 19th, 2008 - 47 comments
Key reckons he could bring down inflation by targeting â€˜low quality’ government spending. How? To counter inflation, you need to increase productivity. Inflation is projected to run at 4.7% this year. The Government makes up a third of the economy. If Key was to bring that down to 2% by increasing Government productivity how much […]
Written By: - Date published: 12:30 pm, May 19th, 2008 - 77 comments
Discovering National’s policy is a bit like the old art of Kremlinology, when Western intelligence agencies would attempt to discover the inner workings of Soviet politics by looking at who stood next to whom in pictures, and what hand politburo members carried their briefcases in. The latest subtle signs from National regarding its tax policy […]
Written By: - Date published: 1:59 pm, May 16th, 2008 - 23 comments
The economy is clearly slowing. Fundamentally, it remains strong with high employment, good wages rises, and strong prices for our exports but employment and retail spending both declined in the first quarter of this year, the housing market is flat, and there is a danger that if the Reserve Bank keeps its foot on our […]
Written By: - Date published: 12:58 pm, May 5th, 2008 - 17 comments
The Labour Cost Index rose a record 3.4% for the March year. That means wages and salaries for doing the same job rose an average of 3.4% over the year. Public sector wages were up 3.3% and private sector wages up 3.5%. Retail and other low-paid workers did especially well, with their pay up 5.1%, […]