I’ve said on here often enough that I’m not buying the idea that National are good managers of the country’s finances. IMHO they’re just another bunch of smoke and mirrors socialist charlatans, and I have the feeling we’re very soon about to learn this harsh truth in a most unpleasant way.
National’s spin doctors like GDP. They use it to underpin almost every one of their claims to be the economic masters we should be all bowing down to in gratitude and admiration. However I came across a startlingly accurate analysis in the lame limp NZ Herald yesterday in an article by economist Paul Glass. He say-
Let’s look at the economic growth achieved in 2014.
Headline real GDP growth was a very impressive 3.5 per cent. However, population growth was 1.6 per cent so per capita GDP growth was only about 1.8 per cent.
Commodity prices – in particular dairy – had a big run up in 2014 resulting in a positive impact of around $5 billion to nominal GDP. Working out the contribution to real GDP growth is difficult, but if we assume about half of this fed through directly into GDP, then that accounts for about 0.9 per cent of growth.
Likewise the Christchurch rebuild got into full swing and probably added a further 0.6 per cent. So real GDP growth per capita, excluding the one-off effects of surging commodity prices and the Christchurch rebuild, was about 0.3 per cent. Not quite so flash.
Of course he’s spot on. Its what I have been saying on here for months. I’m no economic expert, but unlike recent graduates from our dysfunctional socialist education system, I can do maths.
There’s also the quality of the expenditure. If the rebuild of Christchurch is doing great things for this country’s economy, well hells bloody bells why don’t we just knock the whole damn country down, starting with Wellington and then Auckland?? And then wherever the hell else you choose, because it doesn’t matter, as we’ll spend trillions to rebuild them and it will add to GDP and National won’t just look like economic masters they’ll be economic genii.
Auckland real estate agents will tell you National are genii already, because they have been selling record numbers of houses, and some are now making millions. They sold more than 8,800 homes in March, the largest number of monthly sales since 2007.
But wait- the number of new listings was the lowest recorded for April by realestate.co.nz, with only 9,673 coming on to the market, a fall of 5.6% on the same time last year, and a decrease of 18% from March.
So how do we fix this calamity? We bring in another 100,000 people from different cultures and we tell NZers who complain about feeling like foreigners in their own damn country to shut the hell up and enjoy the vibrancy and diversity.
Once again, it won’t fix any damn thing in the least but Gee Whiz what a damn GDP we will have then and it will make our $100 billion dollar debt look like nothing.
In other circles, outside govt, this crass sell out of traditions and cultures done just to consolidate John Key’s hold on power, would be seen for nothing but a Ponzi scheme, and its perpetrators would be investigated and charged and found guilty of false pretences and fraud.
But propped up by donations from real estate companies and other’s profiting from this farcical excuse for an economy, the National Party rolls merrily on.
Just don’t whine when the Ponzi scheme reaches the end of the road voters, and every one scrambles to try and avoid being the one left holding the basket. You brought it all upon yourself. Look at Greece.
Never mind, you can all sit around under your new flag and tell your grand children there was once a country called NZ, built by NZers and valued by NZers. They probably won’t believe you, or if they do, they’ll ask you the kind of simple question kids are always so good at-
“If it was so good Grandpa, why did you throw it all away?”