Tuesday, May 27, 2008

More tough times ahead as government gobbles ever more


Economic growth is predicted to fall below 2% next year but not really get above 3% for the next few years.
Considering the expected increase in the country's population over the next few years, that means flat incomes for everyone.
Now, considering how firms are already shedding staff by the thousand, I feel the predictions from the NZ Institute of Economic Research are a little optimistic, though I avoid the total gloom Bruce Sheppard forecast the other week.
Nonetheless, the property and retailing sectors are already in strife and rising food and fuel prices are hitting incomes.
A predicted fall in the growth of real private consumption in the next year will cause the growth contraction.
Real private consumption was forecast to grow zero per cent in the March 2009 year, down from 3.7 per cent the previous year.
"Private consumption expenditure makes up approximately 6 per cent of GDP by value, so this component of GDP remaining static in the March 2009 year will contribute significantly to the low overall level of economic activity."
In other words, while the wealth creating private sector suffers, the government sector carries on growing in blissful ignorance .
No wonder we are doomed. The 'real economy' needs something of a kickstart and to carry less of a burden to help it forge ahead, unless we resign ourselves to becoming the Albania of the South Pacific as the government continues to eats up yet more of our economy!

10 comments:

Anonymous said...

STAGFLATION is HERE!

unless we resign ourselves to becoming the Albania of the South Pacific as the government continues to eats up yet more of our economy!

Umm... if you haven't noticed. we're already there!

Anonymous said...

Re Kate Wilkinsons so called gaffe - all this has done is show us what an incredible expense Kiwisaver is going to be for the taxpayer.

At present there are 630K members and it is costing the taxpayer 2.5Bil.
Just wait til there are 2 million signed up. How much will that cost the taxpayer - and all to SUBSIDISE employers! Then there is the same amount in "tax credits". Kiwi saver is sucking up our tax cuts!

Now add to this the 10 Billion out there in interest free student loans - who pays the interest - the taxpayer! Where does the 10 Billion come from.

Never mind Welfare for Families!

Scrap this lot and give everyone their $100 a week back to do with as they please.

Wake up people!

Rachael

Anonymous said...

Re Kate Wilkinsons so called gaffe - all this has done is show us what an incredible expense Kiwisaver is going to be for the taxpayer.


that's why it's called KiwiStealer

At present there are 630K members and it is costing the taxpayer 2.5Bil.

fuck yeah!

Just wait til there are 2 million signed up. How much will that cost the taxpayer - and all to SUBSIDISE employers! Then there is the same amount in "tax credits". Kiwi saver is sucking up our tax cuts!

It doesn't subsidise employers: employers don't get to keep the money. It just turns workers into bludgers. If you don't save, you will starve. How hard is that to understand?

Scrap this lot and give everyone their $100 a week back to do with as they please.

a better idea: scrap the compulsory employer deduction. automatically reduce every KiwiStealer members salary by twice their contribution - and use the money for tax cuts for those who really contribute to the economy and aren't a drain on high-value individuals and companies


Anyone stupid enough to belong to KiwiStealer, Welfare for Families, the Maorimander, etc etc

deserves everything that is coming to them - penury, unemployment, poverty, disease -
and a lot more besides.

Psycho Milt said...

Said it before, say it again: Fuck are you guys gonna be disappointed come next year...

FAIRFACTS MEDIA said...

So Liarbour has left a poisoned chalice then. Then they have no integrity!

Anonymous said...

Fuck are you guys gonna be disappointed come next year...

Fuck are you gonna be surprised.

Were you planning on working in Wellington next year. Well gee I just hope you don't have a mortgage - or any kids.

Psycho Milt said...

Actually, I'd like nothing better than to be surprised along the lines of the fantasies indulged in by Annoyingly Anonymous above. A one-term National govt would suit me just fine...

Clunking Fist said...

There's gotta be a clip on utube with two slightly portly american men shouting "fuck you!'
"No; fuck YOU!" at each other.

http://www.youtube.com/watch?v=5JNGitAxoQo

This is close

Anonymous said...

Yet another survey of business confidence shows business is worried about the state of the economy.
The budget has offered nop assurance either.
If anything it will send business into a downward tailsping that might take yerars to recover from.
The inflationary consequences of Cullen throwing billions on various government projects has caused the interest rate rises we have seen today.
Indeed, if taxcuts cause higher interest rates, how come we have had high interest rates for years.
The truth is high government spending causes highr interest rates and as Cullen plans to spend another eight per cent this year, it is inevitable interest rates will rise further.
Thus, as you put it, government gobbles and gobbles and gobbles.
Greedy pigs!

pdq

FAIRFACTS MEDIA said...

Sounds like PM and others say Liarbour will have a toxic legacy for National.
The country will be in suh a mess that unpopular decisions will have to be made.
And while it is Liarbour's mess, National will cop the blame for having to carry out the remedial treatment.
Is that it?