Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Most people still waiting to see benefits of GDP growth

Most people still waiting to see benefits of GDP growth

“The strong growth in GDP in the three months to September is being driven by the boom in commodity exports such as dairy and logs, with help from the construction boom in Canterbury and in housing, and does not mean kiwi families are sharing in the benefits of this growth,” says Bill Rosenberg, CTU economist.

“This growth is not flowing through to most people and is not working to raise living standards. This illustrates the reality that GDP growth is not a good measure of the reality most people see in their lives.”

Rosenberg says “many households are still struggling. Household consumption showed a fall in routine expenditure on things like groceries and other daily needs over the last six months. The main increases in household spending are being seen in ‘durable goods’ like furniture, appliances and cars, probably driven by the increase in house building and by spending of families in higher income households.”

“We have had one quarter of relatively strong employment growth, but unemployment has fallen very little from its peak. Business expectations and forecasts are not a substitute for the creation of decent, secure jobs and rising living standards.”

While it is good to see manufacturing, which provides many good jobs, growing strongly in the September quarter, that comes after two quarters of contraction and is still heavily reliant on food processing, in turn driven off the boom in commodity exports. Construction surprisingly fell in the quarter as a result of less infrastructure and non-residential building construction, but some of the manufacturing is also being driven by the longer-term boom in residential and commercial construction.

“The story that this is a broad-based recovery is still not convincing”, says Rosenberg. “It will certainly not be convincing for many families who have yet to see it improve their situation and their living standards.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Closing Schools And Such: Interim Redcliffs Decision Announced

“While the school’s board has argued that circumstances that could give rise to potential disruption are extremely unlikely, advice from technical experts has shown these concerns cannot be ruled out." More>>


Jane Kelsey: High Court Can’t Make Groser Provide TPPA Information Faster

‘This week we went back to court to challenge Trade Minister Groser’s stalling tactics over the release of information on the Trans-Pacific Partnership Agreement negotiations, following a High Court order that he reconsider the Official Information Act request I made last January’, said University of Auckland law professor Jane Kelsey, first applicant in the case. More>>

Werewolf 58: No Climate For Change

The last time the global community tried to take collective action on climate change the world’s leaders finally came to agree that every not-too-onerous effort should be made to hold global warming to 2°C above the pre-industrial average. At Paris, all 150 participant countries nations will have put forward their pledges... On the information available, New Zealand's is the second weakest contribution of any nation in the developed world. More>>


Lambton Quay Shutdown: Object Was Made To Look Like Bomb

Police cordoned off part of Lambton Quay Wednesday afternoon, saying that a suspicious package had been found. Buildings were evacuated and buses were detoured. The army’s explosive ordnance disposal unit was brought to the Quay. More>>


Public Sector Still Shrinking: Record Low Number Of 'Backroom Bureaucrats'

Ongoing restraint in the public sector and a focus on better frontline services has seen a further reduction in the number of core Government employees, State Services Minister Paula Bennett says. More>>


Disobeying The Law: Police Censorship Of Crime Research “An Outrage”

The Green Party is calling on Police Minister Michael Woodhouse to ensure Police scrap controversial contracts that place onerous restrictions on academic researchers’ access to Police data, the Green Party says. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news