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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On John Key’s Trip To Iraq

In the embedded press coverage on this trip, the absence so far of any evaluation of the wider context of what New Zealand thinks it is doing at Camp Taji has been striking. More>>


Labour: Parata Puts Brakes On Charter School Appraisal

“When the Ministry of Education recommended they compare the achievements of children at charter schools to those of their counterparts at state schools, the documents show Hekia Parata specifically prohibited them from doing so." More>>


Bad Day For Universities: Gun, Bomb Threats On Three Campuses

Dunedin Police are continuing their investigation into the threat made against the University of Otago. Staff are following a number of lines of inquiry, and police are working to verify the authenticity and source of the post. More>>


Gordon Campbell: On The TPP Deal Reached In Atlanta

Yes, the TPP has helped to knock a few points off the tariffs facing our exporters. Yet some of those alleged dollar gains may well have been made regardless over time – and without the negative baggage of the concessions in the non-trade areas (intellectual property, copyright extensions, investor-state dispute mechanisms etc) that the TPP deal also brings in its wake. More>> (Cartoon by Dave Wolland)

Public Summaries:


Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Pre-Signing: Gordon Campbell On The TPP Countdown

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news