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.”

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014.

During his visit, President Xi Jinping met with Governor-General Jerry Mateparae, and held talks with Prime Minister John Key. The leaders had an in-depth exchange of views on bilateral relations as well as regional and international issues of common interest. More>>

 
 

Parliament Today:

Savings Targets: Health Procurement Plan Changes Direction

Next steps in implementing DHB shared services programme Health Minister Jonathan Coleman says the Government has agreed to explore a proposal put forward by DHBs to move implementation of the shared services programme to a DHB-owned vehicle. More>>

ALSO:

More on Health Policy:

Auckland Unification: 'No IT Cost Blowout' (Just More Expensive)

Following discussion of an update on Auckland Council’s Information Services Transformational Programme at today’s Finance and Performance Committee, council has released the report publicly. More>>

ALSO:

Other Expensive Things:

Gordon Campbell: On The SAS Role Against Islamic State, And Podemos

Only 25% of the US bombing runs are even managing to locate IS targets worth bombing. As the NYT explains at length, this underlines the need for better on-the-ground intelligence to direct the air campaign to where the bad guys have holed up... More>>

ALSO:

Public Service: Commission Calls For Answers On Handling Of CERA Harassment

EEO Commissioner Dr Jackie Blue is deeply concerned about the way in which the State Services Commission has handled sexual allegations made against CERA chief executive Roger Sutton this week and is calling for answers. More>>

ALSO:

Gordon Campbell:
On Andrew Little’s Victory

So Andrew Little has won the leadership – by the narrowest possible margin – from Grant Robertson, and has already been depicted by commentators as being simultaneously (a) the creature of the trade unions and (b) the most centrist of the four candidates, which would be an interesting trick to see someone try in a game of Twister. More>>

ALSO:

China President Wishlists: Greens Welcome Xi, But Human Rights Need To Be On Agenda

“President Xi has made some progress on climate change, but he must also lift the Chinese government’s game on human rights issues,” Green Party Co-leader Dr Russel Norman said... It is important that our Government continues to urge the Chinese government to show restraint and respect human rights in both Tibet and the Xinjiang province.” More>>

ALSO:

Airport Security Breach: CAA Fines Minister

Minister Brownlee has been issued an infringement notice and is required to pay a $2000 infringement fine for breaching Civil Aviation Rule 19.357(b), which states no person may be in an airport security area without an appropriate identity card or document. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news