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Inflation Double Wage Growth

“New Zealanders are losing money under Grant Robertson's watch. They're working harder and now their wages can't keep up with the cost of living,” says ACT Leader David Seymour.


“According to the Labour Cost Index released today, wages are up 2.4 per cent for the year, when the cost of living is up 4.9 per cent.

“Middle New Zealand is being squeezed from every direction, whether it’s at the pump, in the vegetable aisle and even at the fish and chip shop with the price of battered fish rising 5.3 per cent year on year.

“That’s not to mention the devastating effect of 30 per cent house price inflation on a young generation trying to find their way in the world, hoping to follow their parents and grandparents into a property-owning democracy.

“When we emerge from the COVID crisis, many New Zealanders may throw their hands up in the air and take off overseas, a brain drain may be on the cards as soon as Jacinda lets them leave for greener pastures.

“The Government’s relentless focus on regulation and redistribution, added to global supply chain interruptions, has further fuelled inflation with too much money chasing too few goods.

“The Government has been the biggest beneficiary of the inflation with GST, business and personal taxes swelling the Government’s coffers to a record $98 billion.

The obvious solution is to implement ACT’s tax policy cutting the middle rate of 30 cents, to 17.5. This policy would deliver the average full-time worker around $2000 a year to help deal with the rising cost of living.”

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