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 What John Key Should Be Asking Joe Biden

No doubt, US Vice-President Joe Biden will be updating Prime Minister John Key on the chances of a TPP vote taking place in the ‘ lame duck’ session of Congress that’s held between the November’s election and the inauguration of a new President in January. More>>

ALSO:

Make NZ Make Again: Greens Will Establish A Minister For Manufacturing

The Green Party announced today that it will establish a Minister for Manufacturing in Cabinet, to better represent the interests of manufacturers and ensure they thrive. The Minister will be inside Cabinet and have responsibility for the long-term interests of the manufacturing sector. More>>

ALSO:

Cannabis Party: Treasury Figures On Cost Of Criminalisation

Figures released by Treasury prove the economic viability of The Cannabis Party's policy, while destroying the credibility of police claims about cannabis harms. More>>

ALSO:

Green Party: Investigation Into Mental Health Facilities Shows Disarray

The Health Minister must urgently launch an inquiry into mental health services, after serious issues with the standard of care at mental health and disability facilities around the country were revealed today, the Green Party said. More>>

ALSO:

Apparently He Means 'Years 0-8': Seymour Announces 4th Partnership Schools Application Round

“The continuing growth of this policy reflects the achievement of the eight existing Partnership Schools, and the strong levels of interest educators and community leaders are showing in the Partnership Schools model and what it offers students and their families,” Mr Seymour says. More>>

ALSO:

Trust Directors: Urban Māori Win Case Against Te Ohu Kai Moana

The National Urban Māori Authority (NUMA) and Te Waipareira Trust have succeeded in their claim over a $20 million trust set up for the benefit of urban Māori, meaning all directors of the trust must represent Māori who are not affiliated with an iwi. More>>

New Model: Carbon Tax Could Lower Emissions And Boost Economy

A carbon tax targeting emissions-intensive industries, along with a revamped Emissions Trading Scheme (ETS), could boost economic growth, with the extra tax generated used to cut GST from 15 percent to 12.5 percent. More>>

ALSO:

Budget Docs Release: ACC Sought $158mn In Budget 2016, Got $26.4mn

The Accident Compensation Commission requested an extra $158 million in funding for 2016/17 from the government ahead of Budget 2016, but Treasury instead recommended an interim payment of just $26.4 million be funded to tackle demographic changes, papers published by the government show. More>>

ALSO:

Submissions Sought: Māori Party Joins Opposition Housing Inquiry

People who are homeless, those who were once homeless, those working with the homeless and concerned New Zealanders are being asked to share their experiences and solutions to this growing issue with the Cross-Party Homelessness Inquiry. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news