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

Gordon Campbell:
On The Inquiry Into One Case Of Dirty Politics

Suddenly, we’re awash in inquiries and reviews. (It feels almost as if the Greens won the last election.) Caught out by the damning inquiry by SIS Inspector-General Cheryl Gwyn, the government’s response yesterday was utterly in character – it released two other major reports at the same time to try and distract public attention...

Inquiries are supposed to re-assure the public. What these inquiry outcomes share in common is a government culture of zero responsibility. More>>

IGIS ON SIS:

 
 

Parliament Today:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

White Ribbon Day: Govt Resumes Sexual Violence Trial Proceedings Work

Justice Minister Amy Adams has asked the Law Commission to resume work on proposals for better supporting victims of sexual violence through the criminal process. The Law Commission will revisit its previous work on alternative pre-trial and trial processes to identify options for improving complainants’ experience in court. More>>

ALSO:

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience. More>>

ALSO:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

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... More>>

ALSO:

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:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news