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

 


High growth for now - but who benefits?

High growth for now - but who benefits?

"Will most people see money in their pockets as a result of the current high GDP growth rates?" asks Bill Rosenberg, CTU Economist. "Economic growth is forecast to peak this year, yet wage growth has been slow. There is a real question whether the current growth will come and go with few people seeing the benefit of it in their own standard of living."

There was no growth in household spending this quarter.

"Should wage and salary earners - by far the biggest group of earners in New Zealand - be the ones 'that don't enjoy the income growth that others do enjoy' as Reserve Bank Governor Graeme Wheeler is quoted as telling Parliament's Finance and Expenditure Select Committee last week?" Wage and salary earners bring in over three quarters of the average income to households with at least one person aged 18-64. The Reserve Bank has identified high net immigration, more people seeking jobs and still-high unemployment as factors holding down wages.

"There are many people trying to make ends meet after several years of stagnant incomes, out looking for jobs and only finding part-time ones with not enough hours to pay the bills. In addition to 154,000 unemployed in March there were 96,000 people wanting more hours, and another 100,000 classified as jobless. The number of young people not in education, training or employment rose in the March quarter after taking account of seasonal effects. For many people the 'growing economy' is meaningless." Rosenberg said.

"With two-thirds of the growth this quarter reliant on construction, the economic growth is still heavily based on the Christchurch reconstruction and building construction along with high commodity prices for our exports. Prices for dairy products and logs are now falling. The forecasts are for the growth in the economy to fall off after this year to below the levels of the 2000s before the Global Financial Crisis." Rosenberg said.

There was no growth in manufacturing this quarter, after six months of growth and six months of contraction. Three of the largest manufacturing sectors contracted: food processing, wood and paper products, and transport and other equipment. Textiles, clothing and footwear contracted for the fifth successive quarter.

"There is an increasingly urgent need for policies that bring down the exchange rate, help industries that create good, well-paying jobs to grow, and ensure that the income generated by the economy benefits wage and salary earners in rising wages." Rosenberg said

Or will the train go past with most people only able to stand on the platform watching it?

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Hager Revelations: Inquiry Into NZSIS Release Of Goff Docs

The Inspector-General of Intelligence and Security (IGIS), Cheryl Gwyn, announced today that she would be instituting an inquiry concerning allegations that the New Zealand Security Intelligence Service (NZSIS) might have released official information to Mr Cameron Slater, regarding briefings provided to the then Leader of the Opposition, for political purposes...

“I am satisfied there is a sufficient public interest justifying the commencement of an own-motion inquiry into the substance of the issues raised with my Office,” said Ms Gwyn. More>>

 

Parliament Today:

Fish Pun Warning: By Hoki! It’s Labour’s Fisheries Policy

A Labour Government will protect the iconic Kiwi tradition of fishing by improving access to the coast, protecting the rights of recreational fishers and reviewing snapper restrictions, Labour’s Fisheries spokesperson Damien O’Connor says. More>>

ALSO:

It's Official: Governor General Gives Direction To Conduct Election

The Governor General has signed the writ directing the Electoral Commission to conduct the General Election on 20 September 2014. This is the formal authority to run the 2014 election, and enables candidate nominations to open tomorrow Thursday 21 August 2014. More>>

Gordon Campbell: No More Mr Nice Guy

When future historians seek to identify the exact moment when the prime ministerial career of John Key hit the downward slope, they may well point to Key’s interview yesterday with Guyon Espiner on RNZ’s Morning Report. More>>

ALSO:

Dirty (Politics) Weekend: Collins’ Admission Reason For Key To Act

"Despite claiming that the evidence about her in Nicky Hager's book was ‘false’ Judith Collins has now been forced to admit that she did send information about a Ministerial Services staff member to Cameron Slater for him to use in a baseless smear campaign. More>>

ALSO:

Potential Disasters: Underground Coal Fire On Denniston Plateau

Forest & Bird says one or more coal fires have broken out beneath the Denniston Plateau, and that the Department of Conservation (DOC) must stop Bathurst Resources’ preparatory mining work going on there until the fire or fires are extinguished. More>>

ALSO:

Bikes: Nats Plan $100 Million For Urban Cycleways

Prime Minister John Key has today announced $100 million in new funding will be made available over the next four years to accelerate cycleways in urban centres. More>>

ALSO:

New Tax Bracket, Child Poverty Fund: Greens Launch Billion Dollar Plan To Reduce Child Poverty

The Green Party has launched a billion dollar package to significantly reduce child poverty in New Zealand. The details of the plan were released at the party’s campaign launch in Auckland. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news