What does Treasury make of National’s economic plan according to the Budget papers? Here’s the outlook for when National is kicked out of office at the end of 2011:
Unemployment will still stand at 145,000, 5.5%. That’s compared to 98,000, 4%, when they took power.
Over 8% inflation in the next two years. That’ll chew up your savings.
Workers’ share of the economy will have fallen from an already miserable 43.6% to 41.5%. The portion of the pie that workers get a hold of will be smaller and shared among more.
GDP per capita will be lower when National leaves office than when they entered it.
Real wages are set two drop 2% over the next two years.
The tax cut to the rich will, as it always does, spark an importing boom. The money will head overseas and the current account deficit will be back up to $13 billion a year by the start of 2012.