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

 


Who is going to benefit from GDP growth?

Who is going to benefit from GDP growth?


“Yes, there is growth in the economy, but the big question now is who will benefit from it”, says CTU Economist Bill Rosenberg. “The 0.9 percent growth in the three months to December 2013 was about what was expected, but we have yet to see the results in sharply falling unemployment and good wages growth.”

Business investment, which drives jobs growth, had been expected to be booming by this time but is looking surprisingly weak. In December, Treasury forecast 11.7 percent annual growth in market investment by March 2014. Business investment grew only 0.9 percent in the December quarter, with only one good quarter growth (7.4 percent in June) during 2013.

“Tuesday’s productivity statistics for the year to March 2013 showed average wages were falling behind labour productivity increases again: another sign that wages are stagnating and workers are not getting a fair share of what growth there has been in the economy. Wages rose quite strongly until mid 2009, with some momentum from wage settlements prior to the global financial crisis. Since then, the bottom of the recession, labour productivity has increased 10.1 percent but the average wage after inflation has risen only 0.6 percent. Even in the year to March 2013, labour productivity rose faster at 2.1 percent than the real average wage (that is, after CPI inflation) which rose 1.5 percent.” Rosenberg said.

“Household purchases are also consistent with some households doing well and feeling confident enough to buy new appliances and furniture while others can barely afford to pay for necessities such as groceries and electricity.” Rosenberg said.

“The growth is heavily driven by progress on the Canterbury rebuild and strong commodity exports. What happens when this music stops?” Rosenberg said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

CPAG: Government Spends Over $100K Pursuing Beneficiary

For the past fifteen years, Kathryn, now in her fifties and living alone with chronic ill health on a benefit, has been challenging the decision by the MSD that she has to pay back $117,000. She has no assets or savings and cannot afford to pay for fresh food or therapy that would improve her health. More>>

ALSO:

Labour: National’s Cuts Shave $100K Off KiwiSaver By Retirement

New analysis shows National’s constant cuts to KiwiSaver will reduce the average worker’s retirement savings by $100,000 over their working life, Leader of the Opposition Andrew Little says... Since coming to office it has made five separate cuts to the scheme." More>>

ALSO:

Auckland: Transport Operators Switch From SuperGold To AT HOP Cards

Seniors using Auckland’s public transport will need to use their AT HOP cards from today but Auckland Transport has requested its operators to show understanding for those customers yet to complete the switch from SuperGold cards. More>>

ALSO:

Crime Stats: Burglary Up 11.9%

“While burglary rates are still below that of recent years, there has been an increase of more than 10 per cent over the past 12 months, which is of concern to Police and something we are determined to tackle,” says Police Commissioner Mike Bush. More>>

ALSO:

Help: Lifeline Aotearoa Fighting For Survival

Lifeline Aotearoa has announced it only has enough money to run for one more year. By 30 June 2017, all available sustainability reserves and funds from a new mortgage on its Auckland property will be exhausted. More>>

ALSO:

Overseas Investment: Auditor-General To Examine OIO

The Auditor-General is to examine how the Overseas Investment Office collects and manages information following a request from the parliament's finance and expenditure committee. More>>

ALSO:

Gordon Campbell: On Bill English Living In Denial

The working poor have been a direct byproduct of the economic policies in vogue for the past 30 years or more, all over the Western world... That anger was evident in the Brexit vote, and it underlies the support for Donald Trump in the United States. More>>

ALSO:

Final Reading Of Parental Leave Bill: Families With New Babies Victims Of Veto

“For the first time ever, a Bill will have a third reading debate and no vote will be taken at the end because the National Government has used its veto – an extreme measure against families,” says the Bill’s sponsor, Labour MP Sue Moroney. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news