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

Pre-Caucus Audio:
David Cunliffe And
The Future Of The
Labour Party

David Cunliffe met with the press today after Saturday’s disappointing election result for The Labour Party.

“We are all deeply concerned by the result of our party vote. I want to be clear that I, as leader, am responsible for that result” Cunliffe said. Although he called the results “deeply disappointing” Cunliffe said “the voters are always right”.

He felt that Labour needed to make improvements and take action: “We don’t need months to get feedback from members of the public, we've had a lot over the past 48 hours”. More>>

 

Gordon Campbell: On Labour’s Very Bad Year

While Labour leader David Cunliffe still appears to be in denial about the extent of Saturday night’s debacle, there was hardly a single redeeming feature about the election results for the centre-left... More>>

ALSO:

General Election NZ: National Win

Election Night: With almost all votes counted National and John Key have won a third term and are close to being able to govern alone if they so choose. Key has indicated he will still reach out to form a Government with ACT, United Future and Maori Party. More>>

ALSO:

Perfectly-Timed Anniversaries: Suffrage Day Is Last Chance To Enrol

“The last chance to enrol is Friday 19 September. You can’t enrol on election day.” More>>

ALSO:

Gordon Campbell: On First Time Voting (Greens)

For the last two days, I’ve turned my column over to a couple of guest columnists who are first time voters… Today’s guest columnist is Ana Avia-O’Connor, who will be casting her first time vote on Saturday for the Greens. More>>

ALSO:

Meddling: Aussie Liberals Embroiled In Key Campaign

John Key needs to explain why Australia’s Liberal Party is interfering in New Zealand domestic politics and is encouraging Kiwi voters across the ditch to vote for National just days out from the election, Labour’s campaign spokesperson Annette King says. More>>

ALSO:

SURVEILLANCE:

Election Ad Soundtrack: Rapper Eminem Sues National Party Over Copyright Breach

US rapper Eminem is suing the New Zealand National Party for alleged copyright infringement over unauthorised use of the rapper’s ‘Lose Yourself’ song in an election campaign advertisement. More>>

ALSO:

Big March: Call For An End To Domestic Violence

Hundreds of protesters marched down Lambton Quay to Parliament Monday calling for an end to domestic violence. Wearing white facemasks, waving banners and calling for “safety” for the women and children of New Zealand.. More>>

ALSO:

Pre-Election Chartering: Four New Partnership Schools To Open

Education Minister Hekia Parata today announced the Government has signed contracts to open four new Partnership Schools in 2015. More>>

ALSO:

Werewolf 50 Out Now - The Election Issue: Loss Leaders

Gordon Campbell: A third term requires a mature decision, with eyes wide open. It calls for a conscious vote of confidence… Without trying hard here are about 19 reasons, in no particular order, for not ticking ‘party vote’ National. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news